Sudar Garments - IPO Note (Keynote Capitals)

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Issue Highlights

Price Band                                                       :        Rs72-77 per share                                                                            

Minimum Bid Lot Size                                     :        81 Equity Shares

Maximum Bid Lot Size                                     :        2,592 Equity Shares

IPO open during                                              :        February 21 - 24, 2011

Book Running Lead Managers                         :        Ashika Capital Ltd.

To list on                                                         :        NSE & BSE

IPO Grading                                                     :        1 / 5 (CRISIL)

PE                                                                    :        7.92x (based on base price)*

                                                                        :        8.47x (based on cap price)*

Market Cap post-listing                                    :        Rs142.81Cr or $32mn (based on the cap price)

Market Cap of Free Float                                  :        Rs77.19Cr or $17mn (based on the cap price)

*Based on FY10 EPS

IPO of mn equity shares of Rs10 each, aggregating to Rs70Cr or $15.5mn (at the cap price)

Executive Summery

Ø   Sudar Garments Ltd. (SGL) engaged in the manufacturing of garments for Men wear, Women wear and Kids wear. SGL operates as an integrated apparel manufacturer with the capability of designing and manufacturing involving cutting, body stitching, washing, ironing and finishing.

Ø   The manufacturing facility of SGL is setup at Raigad, Maharashtra with a built-up area of about, 29,626 Sq. Mtrs. having a combined capacity of producing 1,66,667 pieces of shirts, dress, pants tops, skirts, and denims per month.

Ø   The management of SGL has wide experience in the field of apparel manufacturing, which helps the company to understand the consumer preference in a better way.

Ø   SGL’s core competency lies in its in-house manufacturing and embroidery skills. Right from sourcing the raw material to manufacturing which includes, dyeing, and washing of the readymade garments is carried out in-house including packaging and dispatching of finished goods.

Ø   SGL follows ERP process, an advance logistic system, which enables it to control inventory. This also helps the company in effectively servicing the requirements of its distributor and multi brand outlet.

Ø   SGL use latest technology and machinery procured from major suppliers/distributors in India. These modern machineries help SGL in maintaining high quality standards, enables radical design and innovation in creating new look and new trends.