After an over-subscription on its IPO, the company listed its shares today at Rs 89 against its issue price band of Rs 63-72.
It plans to utilize the proceeds from IPO to partly fund its expansion project. The company also plans to diversify into medium density fiber (MDF) board manufacturing. Rushil Decor intends to use Chinese machinery, which has not been very successful in India.
Krupesh Thakkar, Managing Director had stated that company expects revenues of Rs 30 crore from medium density fiber (MDF) in FY12, and Rs 70 crore in FY13.
The management expects the company to achieve a growth in top- line and bottom-line of around 20% to 25%.
Rushil Decor is competing with companies like Century Ply and Greenply Industries, that are bigger in size, sales and are roughly 10 times the size of Rushil Decor.
According to a report, Century ply's PE multiple based on March 11 numbers is 7.72 times while Greenply is available at a multiple of just about 16.7 times.
While the EPS on pre-IPO capital of 87.56 lakh shares is 4.40 while post IPO shares would be offered at around 18.10 times at the lower end of the price band and 20.69 times at the higher end.
The company has more than 2,000 dealers and is exporting to around 20 countries. Also, Krupesh adds if the raw material prices are increased we have to increase our price to make profitable business.
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