Olympic Cards IPO opens on March 9

Olympic Cards Limited, a fully integrated manufacturing company mainly involved in production and sale of Wedding invitation cards, Greeting cards, Visiting cards, Office envelopes, Cloth-lined covers, Student notebooks, Account books, Files, etc. and trading in Screen-Offset printing inks, proposes to enter the capital markets on 9th March 2012 with a public issue aggregating upto Rs 25 crore. The Price Band has been fixed at Rs 30 to Rs 32 per Equity Share of Rs 10 each. The 100% book building Issue closes on 13th March 2012. Ashika Capital Limited is the sole BRLM for the Issue and Cameo Corporate Services Ltd is the Registrar to the Issue. Crisil Ltd has assigned IPO grade 1 to the Issue. The Equity shares of the company are proposed to be listed on the BSE Ltd. 

The Company proposes to utilize the net proceeds of the Issue to fund its expansion plan of setting up a new manufacturing unit near Chennai and capital expenditure for establishing 4 own retail outlets of the company. Presently the Company manufactures products from its factory in Chennai. As a part of the expansion plan, it proposes to set up a new factory at Kannigaiper, near Chennai. It has already purchased 5.65 acres of land for the purpose. 

Olympic Cards Ltd is presently operating through direct outlets located at various places across Tamil Nadu. It has 6 own retail outlets. As a part of the expansion plan, it intends to set up additional 4 direct retail outlets in order to have a wider reach to public. It is currently operating through 5 franchisee outlets as well and intends to set up more franchisee outlets so that there is more equitable distribution of its outlets across the country. 

Under the brand “OLYMPIC”, the company is one of the leading manufacturers of paper/board based products and existence of the group in the business for 50 years is one of the competitive strengths of the Company. Other strengths include large scale, versatile manufacturing infrastructure, high quality products, cost-efficiencies through scale, experience and technology. Further, in an industry where the new designs come every now and then, it becomes extremely necessary for the survival of the company to be as much innovative as possible to bring out new designs. To achieve this, the Company has established an in-house Research and Development facility at Chennai. 

The premier product of Olympic Cards Ltd is Wedding Invitation Cards accounting for more than 53% of current sales. For the year ended 31st March 2010, the Company’s total income was Rs 34.86 crore and Profit After Tax was Rs 1.29 Crore whereas for the year ended 31st March 2011, the total income was Rs 45.72 Crore and PAT of Rs 2.18 Crore and for the nine months period ended of the current fiscal 31st December 2011, the Company’s total income was Rs 32.72 Crore and Profit After Tax of Rs 1.93 Crore.