Zircon Tech receives approval for IPO

The packaging solutions company has received SEBI's approval to enter the equity market through an IPO. The market regulator cleared Zircon Technologies (India) Limited IPO application last week.

The Initial public offering (IPO) is for up to 59,00,000 equity shares of face value Rs. 10 each, as per the company's Draft Red Herring Prospectus. 

Zircon Tech is engaged in label printing for packaging and brand security solutions. The company offers a variety of labels and brand security solutions to wide clientele based in India and aboard. The company also has in-house research capabilities to provide customised high-quality labels to enhance packaging and protect brands from tampering. The company has three manufacturing facilities, of which two are based in Dehradun and one is in Chennai. 

Zircon Tech is promoted Sanjeev Sondhi, who is also the company's MD. The Book Running Lead Manager of the IPO is Systematix Corporate Services. 

According to the company's DRHP, it does not have any listed peers. The company registered net revenues of Rs.  940.78 million, Rs. 872.00 million and Rs. 775.18 million for FY18,  FY17 and FY16, respectively, at a CAGR of 10.16 per cent over the period.