A G Universal Limited
Raised ₹8.72 Cr at ₹60 per share.
+0.2%
listing-day move
Prospectus research note
verified extraction · 120 verified factsThe DRHP places the company in Steel Industry, so the issue needs to be read as a sector-specific manufacturing and distribution story rather than only as an SME listing.
Source: DRHP p.87
The operating mix covers ERW Pipes & Hollow Section Pipes, MS Pipes, Hot & Cold Rolled Strips & Sheets, TMT/Beam/Channel/Angle, cPVC Pipes & Fittings, uPVC Plumbing Pipes and Fittings.
Management's own case rests on experienced Promoter and their Network in the Trading Community, quality Policy, strengthen human capital, existing client and supplier relationships.
A key dependency is explicit in the DRHP: dependence on key suppliers: Surya Roshni Limited, Jindal Supreme (India) Private Limited, Swastik Pipe Limited, Ravindra Tubes Private Limited, Sks Ispat & Power Ltd.
Geographically, the disclosed footprint includes Domestic India (no international revenue).
Source: DRHP p.95, p.96, p.97, p.98, p.99, p.100
This is a Steel Industry issue.
The industry section gives a scale-and-growth frame: US$ 874.6 Billion; 133.596 MT; 105.751 MT; 3.02% CAGR (2022-2027); 7.2% CAGR required for crude steel production; 17% demand increase in FY22.
Demand drivers cited in the DRHP include growing Automobile Sector, growing Demand for Long Steel, opportunities in Steel Recycling, steel Materials Can Play a Role in The Buildings and Cities of the Future.
The counterweight is competitive intensity: arcelorMittal, HBIS Group, Nippon Steel Corporation, POSCO, Tata Steel Group, Hyundai Steel, Novolipetsk Steel, SAIL, JSW Steel, EVRAZ plc, Gerdau, United States Steel Corporation, Severstal, Steel Dynamics, Inc., Thyssenkrupp, Shougang Group, Nucor Corporation, Zenith Steel Pipes & Industries Ltd, Nanjing Steel, Shandong Steel Group; highly competitive and fragmented market; emergence of new COVID-19 variants; geopolitical tensions and climate emergency.
Source: DRHP p.79, p.84, p.86, p.87, p.88, p.89
Profit after tax
reported sequenceRevenue. 34,55,42,713
Revenue. 70,46,13,103
Revenue. 38,44,28,206
Revenue. 19,95,23,209
Profit after tax. 1,14,29,044
Source: DRHP p.38, p.39
14
risk items extracted from the filing
The first layer is execution/legal risk: substantial portion of revenues dependent upon few clients; top 10 clients account for 92.61% of sales, top 5 over 75%.
Financial risk is also visible: delays or defaults in customer payments could reduce profits and cash flows.
Regulatory risk is material because changes in government regulations could disrupt operations and adversely affect business.
Risk Substantial portion of revenues dependent upon few clients; top 10 clients account for 92.61% of sales, top 5 over 75%
Risk No long-term contracts with customers; business dependent on purchase orders
Risk Prices for traded products subject to fluctuations beyond company control
Customer/supplier risk Loss of major customers would have material adverse effect on operations and profitability
Customer/supplier risk Dependence on purchase orders; no long-term contracts with most customers
Customer/supplier risk Failure to procure inventory or supply in timely manner may result in loss of business
Customer/supplier risk Customer payment delays or defaults could reduce profits and cash flows
Financial risk Delays or defaults in customer payments could reduce profits and cash flows
Source: DRHP p.25, p.26, p.27, p.28, p.31, p.32
Exchange filings
Fields captured from NSE and BSE- Symbol
- AGUL
- Issue period
- 2023-04-11 to 2023-04-13
Documents
Data sources: MONEYCONTROL , NSE , NSE , YAHOO . Data quality clean.