Cool Caps Industries IPO Subscribed 7.5 Times

The Initial Public Offering (IPO) of Cool Caps Industries Limited received a solid response from the investors, despite the muted sentiments in the broader markets. The issue was subscribed 7.5 times by the end of the book building process on March 15, 2022. The allocation for high net-worth individual HNI investors was subscribed 4.46 times whereas the retail portion fetched bids for 11.25 times.

The IPO of Cool Caps valued INR 11.63 crores was open for subscription from March 10 to March 15, 2022. Cool caps sold 3.06 Million equity shares with a single lot consisting of 3,000 equity shares. The company has fixed the price band between INR 36-38 apiece. Company shares will soon be listed on the emerging platform of National Stock Exchange of India Ltd. 

Rajeev Goenka, Chairman and Managing Director of Cool Caps said, "We were elated with the solid response in the IPO. This shows a lot of investors are willing to put their hard earned money in the company because they have faith in our growth. We will continue to do so and serve to the best of our potential. With our long-term relations with our clients and our capability we are in a very good position to capture the growth opportunity."

The net proceeds from the IPO will be utilized to meet working capital requirements and for general corporate purposes. The Lead Manager to the Issue was Holani Consultants Private Limited while the Link Intime India Private Limited acted as Registrar for the same.

Ashok Holani, director of Holani Consultants said, “We made our initial public offering (IPO) under the Indian market's difficult conditions. Whereas it was subscribed to by investors not only twice, but 7.5 times at the completion of the book building process on March 15, 2022. It was the outcome of the company's solid fundamentals, which were preserved throughout the process, and also that we are in a very strong position to capitalize on the growth opportunity due to our long-term relationships with our investors and our expertise.”

Founded in 2015, Cool Caps is a company that manufactures a wide range of plastic bottle caps and closures. The company, headquartered in Kolkata, has two units situated in Howrah, West Bengal and Kotdwar, Uttarakhand. The wide range of products offered by the company include bottle caps and closures which include soda bottle caps, soft drink bottle caps, mineral water bottle caps, juice bottle caps and closures.

The company is promoted by Purv Flexipack Private Limited, Rajeev Goenka and Vanshay Goenka. They belong to the Goenka family of Sindharam Sawarmal, Dry Fruits, a well- known entity of Kolkata. The company is also into manufacturing N95 Face Masks from its unit situated in Howrah, West Bengal to help the community during the COVID-19 pandemic.

The company has managed to gather a huge client base from the Food and Beverages sector including the names like Bisleri, Kingfisher, IRCTC, Patanjali, and clear supply plastic bottle caps. Through its subsidiary, Purv Ecoplast Pvt Ltd also manufactures shrink films and trades of plastic granules to provide one-stop packaging solutions to its customers.

The consolidated sales of the company for the year ended on March 31, 2021 stood at INR 31.3 crore, with a net profit of INR 2.91 crore. For the last 3 financial years, financial year 2019-2021 companys revenue has grown at a CAGR of 27.68 percent while earnings bbefore interest, taxes, depreciation, and amortization (EBITDA) and Profit after Tax (PAT) have grown at a CAGR of 46.19 per cent and 45.99 per cent respectively.