Crisil assigns SME 4/5 grade for Opal Luxury IPO

The rating indicates that fundamentals of the company are 'superior' compared to other SMEs in the country

Rating agency Crisil has assigned grade of SME 4/5 to Opal Luxury Time Products, indicating that fundamentals of the company are ‘superior’ compared to other small and medium enterprises in India.

Pune-based Opal, a manufacturer of high-end designer luxury clocks, plans to list on NSE's SME platform, Emerge. The initial public offering (IPO) of Opal is expected to hit the market in March.

“The assigned SME fundamental grade reflects Opal’s established position in the premium wall clock industry in India on account of first-mover advantage, aesthetic designs and consistent product innovation,” said Crisil.

The rating agency expects the demand for organised wall clock industry to grow at a compounded annual growth rate between 12-15% over 2015-16 on account of increase in discretionary spending.

Opal’s has pan-India distribution network through nine distributors, 35 direct dealers and 88 shop-in-shop counters.

The company had revenues of about Rs 17 crore and operating margin of about 27% for the year 2011-12.

As per Sebi norms, IPO grading for SME offerings is optional.