Chennai-based Olympic Cards Limited, a 50 year old Company, proposes to soon enter the capital markets with a public issue of upto Rs 27 crore to fund its proposed expansion plan for retail and manufacturing. It had filed DRHP with Sebi for the purpose and has received Sebi nod. Ashika Capital Limited is the sole BRLM for the Issue.
As a part of its expansion plan and in order to have a wider reach to public, the Company proposes to expand its retail marketing through establishing 4 more direct retail outlets in addition to 6 own retail outlets it already has. Presently, the Company is operating through direct outlets located at various places across Tamil Nadu. The Company is operating through 5 franchisee outlets as well and intend to set up more franchisee outlets so that there is more equitable distribution of its outlets across the country. All these retail outlets shall operate under its brand name “Olympic”.
Under the brand “OLYMPIC”, the Company is one of the leading manufacturers of paper / board based products, with a strong presence in southern India. Olympic Cards Ltd is presently engaged in the business of manufacturing and trading Wedding Invitation Cards, Greeting Cards, Envelopes, Letter Heads, Business Cards, Calendars, Notebooks, Account Books, etc.
Olympic Cards Ltd proposes to utilize part of the money raised through this IPO to fund its expansion plan of setting up a new manufacturing unit near Chennai in addition to establishing four (4) own retail outlets. The Company’s total income for the year ended 31st March 2011 was Rs 457.2 million and profit after tax was Rs 21.8 million as against total income of Rs 348.6 million and PAT of Rs 12.9 million for the year ended 31st March 2010.
The Company’s premier product is Wedding Invitation Cards accounting for more than 45% of total group sales. Its invitation cards for Bharatanatya Arangetram and brochures for Arangetram functions are most popular among the Non- Resident Indians who are nurturing Indian traditions to their children abroad. During 2000-01 the Company began export of products including Wedding invitation cards, Greeting cards, Visiting cards, Envelopes and Printing inks to foreign countries such as Malaysia, Singapore, Sri Lanka and Dubai. It has plans to expand its market presence both within and outside India.
Olympic Cards at present has three manufacturing facilities at Chennai and its average production of cards per day is approximately 1,50,000 number of cards. Some of the competitive strengths of the Company are existence of the group in the business for over four decades; large-scale, versatile manufacturing infrastructure; high-quality products; cost-efficiencies through scale, experience and technology and research and development facilities.
