Scrip Watch

Ashima Ltd

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Ashima Ltd

Ashima Ltd
FV – Rs 10; 52wks H/L – 21/6; TTQ – 54000; CMP (May 16, 2016; 11.30 am) – Rs 12.6;
Market Cap – Rs 54 Crs

Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Equity Capital

Net worth

Long Term

EPS (Rs)



33.37 (60.93) 61 213 (23.58) (7.07) 33.32 33.38 1.69


The Equity capital does not include ~ 4,50,000 (13%) redeemable cumulative preference shares of Rs 100 each fully paid amounting to Rs 4.5 Crs and 1600000 (11%) redeemable cumulative preference shares of Rs 100 each fully paid amounting to Rs 16 Crs. Total Share capital of the firm equals to Rs 53.87 Crs.

Valuation Parameters

  1. EV/EBITDA: 12.86
  2. EV/Share: Rs 31
  3. EV/Sale: 0.48
  4. Market Cap/ Sale: 0.25


  • Ashima Limited is engaged in the textiles business.
  • The Company manufactures and sells denim fabrics, and yarn dyed cotton fabrics.
  • The Company’s divisions include Denim Division, Spinfab Division and Attires Division.
  • The Company offers its products under ICON and Frank Jefferson brand names.
  • The Company’s products include denims, shirting, bottom weights and interlinings.
  • It offers the denim variants, such as open end denim, ring denim, slub denim, cross-hatch denim, stretch denim, fashion denim, polyester denim, Floc coated denim, linen denim and over dyed denim, among others.
  • Its shirting products include yarn dyed shirting, piece dyed shirting and fully bleached white shirting.
  • Its bottom weights include twills, chinos, gabardine, tussore, canvass and bedford cord structured fabrics. Its shirting range includes poplins, twills, cord, satin, combination weaves and dobby weaves.
  • The Company offers interlinings in soft, medium and stiff finishes.

Denim Division ~ Performance of Denim Division has further deteriorated, faced limitations in product offering in changing customer preferences in a market plagued with problem of oversupply.

Spinfab Division ~ has cut losses, saw lower volumes, but higher sales to brands, which as a segment offers better margins, which led to its improved performance.

Other Problems faced by the company ~ ageing machinery, Inability to meet demand of higher credit in the markets due to constraints of working capital.

Rights Issue

  • The Rights Issue had opened on November 18, 2015 and closed on December 2, 2015. On December 3rd, HDFC Bank had filed an Interim application seeking inter alia attachment from funds collected in the Rights Issue and on the same day Debt Recovery Tribunal – II had passed an order of status quo until December 17, 2015.
  • Later on, the Company on December 09, 2015 filed an application praying inter-alia rectification/modification of the said Order with DRT-II, Mumbai to enable all concerned parties to complete all formalities as per time lines prescribed in SEBI Circular dated April 22, 2010, more particularly the refund of excess amount received from rights share applicants pursuant to Letter of Offer dated October 28, 2015. DRT-lI vide order dated December 11, 2015 rejected the company’s prayer.
  • The Debt Recovery Tribunal-II, Mumbai (DRT) on December 23, 2015 passed an order for continuing the status-quo till January 11, 2016.
  • The Company subsequently filed a writ petition in the High Court of judicature at Bombay seeking appropriate reliefs against the orders of DRT and DRAT.
  • HDFC Bank on February 2nd filed a writ petition at Bombay High Court, seeking to quash and set aside the said DRAT orders of January 27, 2016. This petition was heard on February 9th and 11th. Since the DRAT Order dated January 27th was not clear on certain aspects, the Company put forth its view that it would also file a writ petition as due to ambiguity prevailing in the Order, bankers to the issue have refused to act on the order and sought more clarity on refund aspect.
  • In late February, the case moved to another Division Bench of High Court.
  • The Company has taken the matter with the Bankers to the Issue ~ ICICI Bank and Yes Bank. ICICI Bank on April 14, 2016 agreed to lift the freeze and instructions were accordingly given by the Registrars to the Issue to ASBA banks to transfer subscription monies to Rights Issue account with ICICI Bank and to unblock the balance money being the refund(s) amount.
  • Accordingly, all ASBA banks have unblocked the ASBA accounts, except Yes Ban and the subscription monies were transferred to rights issue account with ICICI Bank. However, Yes Bank belatedly on April 18, 2016 came up with a stand that they were still not clear on the clarification provided by the High Court Order and did not lift the freeze on rights issue account.
  • Thus, the Non ASBA refunds and unblocking of ASBA with Yes Bank has remained pending. Therefore, the procedure relating to completion of refunds and allotment could not take place.
  • Rights Issue Details ~ 80085089 Equity Shares of Rs 10 each for cash at par for an amount aggregating to Rs 80.09 Crs on a rights basis to the existing equity shareholders in the ratio of 24 Equity Shares for every 10 fully paid up equity sharesheld by the existing Equity Shareholders.
  • The entire Proceeds of the Rights Issue amounting to Rs 80.09 Crs would be utilized towards part repayment of outstanding principal secured debt as per proposed scheme of arrangement.

Scheme of Arrangement

  • The Company had a draft scheme of arrangement for reconstruction and compromise between the Company and its equity shareholders, preference shareholders and secured creditors with the Stock Exchanges and is in the process of filing the same with the Hon’ble High Court of Gujarat.
  • This Scheme of Arrangement is proposed as financial reconstruction of the Company pursuant to Re-organisation of preference share capital and settlement of Outstanding Secured Debts of the Secured Creditors of the Company.


Mr Chintan N. Parikh is the Chairman & Managing Director

Shareholding Pattern as on March 31, 2016

The Equity Capital is @Rs 33.37 Crs consisting of 33368787 Equity Shares of FV Rs 10 currently held as under

3% of the promoter’s holding is pledged

Sr No Major Non-Promoters % Stake
1 Malay Jayendra Dalal 1
2 Nehaben Hemangbhai Patel 1.17
3 Patel Hemang Sukhdevprasad 1.24
4 Aditya H. Patel 1.48
5 JMP Securities Pvt. Ltd. 1.14
6 Mentor Capital Limited 1.13
7 Geek Technologies Pvt. Ltd. 6.58
8 MP Investments India Limited 3.23


Share Price Trend



Standalone Financial Trends ~ Amt in Rs Crs

 Particulars FY 16 FY 15 FY 14 FY 13 FY 12 FY 11
Equity Paid Up 33.37 33.37 33.37 33.37 33.37 33.37
Networth -61 -269 -257 -244 -230 -216
Long Term Debt 61 457 468 468 471 471
Total Sales 213 271 268 268 245 259
PAT -23.56 -16.2 -310.91 -297.98 -333.04 -321.1
EPS (Rs) -7.06 -4.85 -93.17 -89.30 -99.80 -96.22
Book Value (Rs) -18 -81 -77 -73 -69 -65


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