With a potential price of Rs 260–280 per share, Archit Nuwood files DRHP to introduce India's second-largest SME IPO

With a potential price of Rs 260–280 per share, Archit Nuwood files DRHP to introduce India's second-largest SME IPO

When considered separately, the company's operations revenue increased by 4% to Rs 151.16 crore in FY23 from Rs 145.47 crore in FY22, while EBITDA increased by around 76% to Rs 20.22 crore from Rs 11.49 crore.

Archit Nuwood Industries IPO: The company's promoters are Vinod Kumar Singla, Vineet Kumar, and Prem Chand.

To begin the second-largest initial public offering (IPO) of small and medium-sized businesses in India, Archit Nuwood Industries has submitted a draft red herring prospectus (DRHP) to the BSE. Expected to raise around Rs 170 crore, this would be a completely new offering of 62.4 lakh shares, with a projected price of Rs 260 to Rs 280 per share, according to two persons with knowledge of the situation who spoke to Moneycontrol on condition of anonymity.

The firm intends to spend the proceeds in its wholly owned subsidiary, with the purpose of financing the construction of buildings and electrical systems, purchasing equipment and plant, fulfilling working capital needs, and building acquisition. General company purposes will be the usage of the remaining cash.

The company's promoters are Vinod Kumar Singla, Vineet Kumar, and Prem Chand. Share India Capital Services is the book-running lead manager and Maashitla Securities is the registrar for the public offering.

When considered separately, the company's operations revenue increased by 4% to Rs 151.16 crore in FY23 from Rs 145.47 crore in FY22, while EBITDA increased by around 76% to Rs 20.22 crore from Rs 11.49 crore. Profit after tax (PAT) increased from Rs 3.63 crore in FY22 to Rs 9.92 crore in FY23, an approximately 173 percent increase.

The company's listed peers, according to the DRHP, include Century Plyboards, which recorded a PAT of Rs 366.84 crore on sales of Rs 3,621 crore in FY23, and Rushil Décor, which posted a profit of Rs 77.67 crore on revenue of Rs 838.4 crore.

38.15 percent, 22.08 percent, 29.12 percent, and 44.70 percent of the company's operating revenues came from its top 10 clients for the seven months that concluded on October 31, 2023, as well as for the years that ended on March 31, 2022, 2023, and 2021, respectively.

According to the DRHP, the pre-IPO round that ended in December 2023 included participation from the Negen Undiscovered Value Fund, Persistent Growth Fund — Varsu India Growth Story Scheme 1, Parag Bharat Mehta, Manish Mittal HUF, as well as Ankit Mittal, among others.

The firm produces a wide variety of pre-laminated sheets in various kinds as well as MDF and HDF boards. Its facility is in Tohana, Haryana, and it has short-cycle presses and MDF and HDF machines.