Libas Consumer Products : Letter of offer of Libas Consumer Products Limited (Final Offer Document filed with Stock Exchanges)

TABLE OF CONTENTS

SECTION I-GENERAL ..............................................................................................................................................................

1

DEFINITIONS AND ABBREVIATIONS ...................................................................................................................................

1

NOTICE TO INVESTORS...........................................................................................................................................................

6

NO OFFER IN THE UNITED STATES ......................................................................................................................................

8

PRESENTATION OF FINANCIAL INFORMATION AND USE OF MARKET DATA ..........................................................

9

FORWARD-LOOKING STATEMENTS ..................................................................................................................................

10

SECTION II-LETTEROF OFFER SUMMARY ......................................................................................................................

12

SECTION III-RISKFACTORS..................................................................................................................................................

14

SECTION IV - INTRODUCTION .............................................................................................................................................

30

THE ISSUE ................................................................................................................................................................................

30

GENERAL INFORMATION .....................................................................................................................................................

31

CAPITAL STUCTURE ..............................................................................................................................................................

35

SECTION V - PARTICULARS OF THE ISSUE ......................................................................................................................

37

OBJECTS OF THE ISSUE.........................................................................................................................................................

37

STATEMENT OF TAX BENEFITS ..........................................................................................................................................

41

SECTION VI - ABOUT THE COMPANY ................................................................................................................................

42

OUR INDUSTRY.......................................................................................................................................................................

42

OUR BUSINESS ........................................................................................................................................................................

51

HISTORY AND CORPORATE STRUCTURE .........................................................................................................................

59

OUR MANAGEMENT ..............................................................................................................................................................

61

SECTION VII-FINANCIALINFORMATION .........................................................................................................................

63

FINANCIAL STATEMENTS ....................................................................................................................................................

63

ACCOUNTING RATIOS AND CAPITALIZATION STATEMENT .......................................................................................

64

MARKET PRICE INFORMATION...........................................................................................................................................

65

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION . 66

SECTION VIII - LEGAL AND OTHER INFORMATION .....................................................................................................

74

OUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTS...............................................................................

74

GOVERNMENT AND OTHER APPROVALS.........................................................................................................................

76

OTHER REGULATORY AND STATUTORY DISCLOSURES..............................................................................................

77

SECTION IX - OFFERING INFORMATION..........................................................................................................................

81

TERMS OF THE ISSUE ............................................................................................................................................................

81

STATUTORY AND OTHER INFORMATION ......................................................................................................................

116

SECTION X- OTHER INFORMATION.................................................................................................................................

117

MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION .................................................................................

117

Term

Description

Articles or Articles of Association or

The Articles of Association of our Company, as amended from time to time

AOA

"Libas

Consumer

Products

Libas Consumer Products Limited, a public limited company incorporated

Limited",

or

"Libas",

or

under the provisions of the Companies Act, 1956.

"Company", or "Our Company"

or "we", "us", or "our" and the

"Issuer Company".

"We" or "us" or "our"

Unless the context otherwise indicates or implies, refers to Libas Consumer

Products Limited

₹/Rs./Rupees /INR

Indian Rupees

ASBA

Application Supported by Blocked Amount

AY

Assessment Year

Board of Directors

Board of Directors of our Company

Companies Act

The Companies Act, 2013 and rules issued thereunder, as amended

Depositories Act

The Depositories Act, 1996 and amendments thereto

DP or Depository Participant

Depository Participant as defined under the Depositories Act

Eligible Shareholder(s) or "Eligible

Eligible holder(s) of the equity shares of Libas Consumer Products Limited

Equity Shareholder(s)"

as on the Record Date

EPS

Earnings Per Share

IT Act

The Income Tax Act, 1961 and amendments thereto

Indian Accounting Standards prescribed under Section 133 of the

Ind AS

Companies Act, 2013, as notified under Companies (Indian Accounting

Standards) Rules 2015, as amended

NAV

Net Asset Value per share.

NEFT

National Electronic Fund Transfer

NR/Non- Resident

A person resident outside India, as defined under the FEMA and includes

an NRI, FPIs registered with SEBI and FVCIs registered with SEBI

NRE Account

Non-resident external account

NRI

Non-resident Indian

OCB

Overseas Corporate Body

PAN

Permanent Account Number

PAT

Profit After Tax

RBI

Reserve Bank of India

RONW

Return on Net Worth

SCORES

SEBI Complaints Redress System

SCRA

Securities Contracts (Regulation) Act, 1956

SCRR

Securities Contracts (Regulation) Rules, 1957

Term

Description

Securities and Exchange Board of India (Listing Obligations and

SEBI

Listing Regulations/

SEBI

Disclosure Requirements) Regulations, 2015, as amended from time to time

LODR Regulations

SEBI

Regulations/

SEBI

ICDR

The SEBI (Issue of Capital and Disclosure Requirements) Regulations,

Regulations

2018 and amendments thereto

SAST Regulations, 2011/ Takeover

SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Regulations

and amendments thereto

Stock Exchange

National Stock Exchange of India Limited ("NSE")

Issue Related Terms

Term

Description

Abridged Letter of Offer

The abridged Letter of Offer to be sent to the Equity Shareholders as on the

Record date with respect to this Issue in accordance with SEBI Regulations

Allotment

Unless the context requires, the allotment of Equity Shares pursuant to the

Issue

Allottee(s)

Persons to whom Equity Shares are issued pursuant to the Issue

Eligible Equity Shareholder(s) and/or Renouncee(s) who are entitled to

Applicant(s) or Investor(s)

apply or make an application for the Rights Equity Shares pursuant to this

Issue in terms of this Letter of Offer

Application made through (i) submission of the Application Form or plain

paper Application to the Designated Branch of the SCSBs or online/

Application

electronic application through the website of the SCSBs (if made available

by such SCSBs) under the ASBA process, to subscribe to the Rights Equity

Shares at the Issue Price.

Unless the context otherwise requires, an application form through the

Application Form

website of the SCSBs (if made available by such SCSBs) under the ASBA

process) used by an Applicant to make an application for the Allotment of

Rights Equity Shares in this Issue

Application Money

Aggregate amount payable at the time of Application, in respect of the

Rights Equity Shares applied for in this Issue

ASBA/

Application

Supported by

Application used by an investor to make an application authorizing the

SCSB to block the Application Money in an ASBA account maintained with

Blocked Amount.

the SCSB

Account maintained with SCSBs which will be blocked by such SCSBs to

ASBA Account

the extent of the appropriate amount in relation to an application by an

ASBA Investor

An investor (Equity Shareholder or Renouncee) who is intending to

ASBA/Investor/ASBA applicant

subscribe the Equity Shares of our Company under this Issue applying

through blocking of funds in a bank account maintained with SCSBs.

Banker(s) to the Issue/ Public Issue

The banks which are clearing members and registered with SEBI as Banker

to an Issue with whom the Public Issue Account will be opened and in this

Bank(s).

case, being Yes Bank Limited.

Such branch of the SCSBs which coordinate Applications under this Issue

Controlling Branch of SCBs

by the ASBA Applicants with the Registrar to the Issue and the Stock

Exchange and a list of which is available at http://www.sebi.gov.in, or at

such other website as may be prescribed by SEBI from time to time.

Designated Stock Exchange

National Stock Exchange of India Limited ("NSE")

Draft Letter of Offer/DLoF

The Draft Letter of Offer dated August 25, 2022

Equity Share(s) or Share(s)

Equity shares of our Company having a face value of ₹10.00 each unless

otherwise specified in the context thereof

Equity Shareholder/Shareholder

Means a holder of Equity Shares of our Company

Term

Description

Financial

Year/ Fiscal/Fiscal Year/

Any period of twelve months ended March 31 of that particular year, unless

FY

otherwise stated.

Issue of up to 88,20,000 Equity Shares of face value of ₹10.00 each of our

Company for cash at a price of ₹21.00 per Rights Equity Share aggregating

Issue/ Rights Issue

up to ₹1,852.20 lakhs on a rights basis to the Eligible Equity Shareholders

of our Company in the ratio of 1 (One) Rights Equity Share for every 2

(Two) Equity Shares held by the Eligible Equity Shareholders of our

Company on the Record Date i.e. September 16, 2022.

Investor(s)

Equity Shareholders as on Record Date and/or Renouncees applying in the

Issue.

Issue Closing Date

September 27, 2022

Issue Opening Date

October 07, 2022

₹21.00 for Rights Securities issued in one Rights Entitlement, (i.e. ₹21.00

Issue Price

per Rights Equity Share, including a premium of ₹11.00 per Rights Equity

Share).

Issue Proceeds

The proceeds of the Issue that are available to our Company

Issue Size

The issue of 88,20,000 Equity Shares for an amount aggregating up to

₹1,852.20 Lakhs.

Letter of Offer

This Letter of Offer dated September 12, 2022

Listing Agreement

The listing agreements entered into between our Company and the Stock

Exchange

The renunciation of Rights Entitlements undertaken by the Investor by

trading them over the secondary market platform of the Stock Exchange

On Market Renunciation

through a registered stock broker in accordance with the SEBI Rights Issue

Circular and the circulars issued by the Stock Exchange, from time to time,

and other applicable laws, on or before October 03, 2022.

The renunciation of Rights Entitlements undertaken by the Investor by

transferring them through off market transfer through a depository

Off Market Renunciation

participant in accordance with the SEBI Rights Issue Circular and the

circulars issued by the Depositories, from time to time, and other applicable

laws

All Investors including sub-accounts of FIIs/ FPIs registered with SEBI,

Non-Institutional Investors

which are foreign corporate or foreign individuals, that are not QIBs or

Retail Individual Investors and who have applied for Equity Shares for a

cumulative amount more than ₹2.00 Lakhs

The Promoters of our Company, being Nishant Mitrasen Mahimtura, Riyaz

Promoters

Ganji, Suchitra Nishant Mahimtura, Reshma Ganji, Seetharam K Shetty,

Pushpalatha S Shetty

Unless the context requires otherwise, the entities forming part of the

Promoter Group

promoter group in accordance with the SEBI Regulations and which are

disclosed by our Company to the Stock Exchange from time to time

Offer Document

Means Letter of Offer/ Abridged Letter of Offer

QIBs or

Qualified Institutional

Qualified institutional buyers as defined under Regulation 2(1)(ss) of the

Buyers

SEBI (ICDR) Regulations, 2018.

Record Date

September 16, 2022

Refund through electronic transfer of

Refunds through NECS, Direct Credit, RTGS, NEFT or ASBA process, as

Funds

applicable

Registrar to the Issue

Bigshare Services Private Limited

Renouncees

Any persons who have acquired Rights Entitlements from the Equity

Shareholders through renunciation

Retail Individual Investors

Individual Investors who have applied for Equity Shares for an amount not

more than ₹2.00 lakhs (including HUFs applying through their Karta)

RE-ISIN

The RE-ISIN for Rights Entitlement of full paid-up shares being

INE908V20012

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