Price band: Rs 620-Rs 690

Issue size: Rs 274-305 crore

Issue opens: November 22, 2007

Issue closes: November 27, 2007

Business: Mumbai based Jyothi Laboratories (JLL) is FMCG manufacturer. Brands include Ujala (fabric care), Maxo (mosquito repellent), Exo (dish washing bar), Jeeva (soap) and Maya (agarbatti).

Strong distribution network is strength of the company. 21 manufacturing units at 14 locations.

Financials

Sales
FY2002-2003 - Rs 286.04 crore
FY2006-2007 – Rs 374.51 crore
CAGR – 7%

Profit after tax
FY2002-2003 - Rs 17.70 crore
FY2006-2007 – Rs 51.41 crore
CAGR – 30.5%

Offer objective: Providing an exit route to existing investor

Valuation : The company is valued at 19 to 21 times its EPS of Rs 33.15 for FY2006-2007.

Outlook: For us one more FMCG company is entering the bourses. The distribution ventures with other players are an icing on the cake. We recommend subscribe on this issue with a view to bag listing gains.

Disclosure: We may bid in this IPO.

Article courtesy: umcapitalindia