Archidply Industries Review

Archidply Industries Limited (Archidply) is a modern manufacturer of wood panel and decorative surfacing products with its plants at Rudrapur, Uttarakhand, Mysore, and Karnataka. Archidply is the flagship company of the Archidply group, and has been
associated with plywood manufacturing for more than 30 years under the brand Archidply.

The IPO proceeds will be used to setup a new manufacturing facility at Chintamani, Karnataka, where Plain Particle Board (PPB), Pre Laminated Particle Board (PLB) and Decorative Plywood will be manufactured.

IPO:
Face Value Rs. 10
Price Band Rs. 70 – Rs 80
Issue Opens 11-Jun-08
Issue Closes 17-Jun-08
Shares offered to Retail 2,315,502 = Rs 18.5 crore [Upper Band]

Archidply Vs Peers:
Archidply had witnessed a CAGR of 79.2% and 319.6% over FY06-08 in net sales and net profit, respectively, which is higher than its peers such as Century ply (103% and 91%)and Greenply (20% and 27%).

Valuation:
At a price band of Rs. 70-80, Archidply is valued at a P/E of 7.2x and 8.2x at the lower and upper price band, respectively. The offer is being made at a marginal discount to other listed players.