IPO News

Vishnu Prakash R Punglia has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO comprises a fresh issue of 3.12 crore equity shares with no offer-for-sale (OFS) component.

The IPO size is expected to be Rs 300 crore. Proceeds from the fresh issuance to the tune of Rs 58.64 crore will be utilised for purchasing capital equipment, Rs 140 crore will be used for funding the working capital requirements of the company and the balance for general corporate purposes. Choice Capital Advisors and Pantomath Capital Advisors are the book-running lead managers. The equity shares are proposed to be listed on BSE and NSE.

The Jodhpur-based company has experience in the design and construction of major infrastructure projects for the central and state governments, with ongoing projects in nine states.

Go Digit General Insurance has refilled draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) after making certain changes to its employee stock appreciation rights scheme. This came after SEBI returned Go Digit's draft IPO papers on January 30 and asked the company to refile the documents with certain updates. The company had first filed the DRHP with Sebi in August 2022 to raise funds through an initial share sale.

The size of the company's IPO remain unchanged in the revised documents. The IPO comprises fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders. Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes. ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the issue. The equity shares of the company will be listed on BSE and NSE.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

Zaggle Prepaid Ocean Services has received the Securities and Exchange Board of India’s (SEBI) approval to float an initial public offering (IPO).

Proceeds from the fresh issue would be utilised towards customer acquisition and retention, development of technology and products, payment of debt and for general corporate purposes. ICICI Securities, Equirus Capital, IIFL Securities and JM Financial have been appointed as merchant bankers to manage the IPO. The equity shares of the company will be listed on the BSE and NSE.

Founded in 2011, Zaggle Prepaid Ocean Services operates in the business-to-business-to-customer segment. It has created a market niche in the country by offering a combined solution for spend management through prepaid cards and employee management (through SaaS).

Cyient DLM has received the Securities and Exchange Board of India’s (SEBI) approval to float an initial public offering (IPO).

The funds raised through the IPO would be utilised for funding incremental capital requirements, capital expenditure, debt payment, achieving inorganic growth through acquisitions as well as for general corporate purposes. Axis Capital and JM Financial are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Cyient DLM, a subsidiary of Cyient, is the leading integrated EMS and solutions provider with a focus on the entire life cycle of a product, including design, build and maintenance. It has three state manufacturing facilities in Hyderabad, Bengaluru and Mysore.

Aeroflex Industries has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 350 crore through an initial public offering (IPO).

Proceeds from the fresh issue will be utilised to the extent of Rs 35 crore for the payment of debt, Rs 84 crore for funding its working capital requirements, and a certain amount will be used for general corporate purposes and acquisitions for inorganic growth. Pantomath Capital Advisors is the sole book-running lead manager to the issue. The company’s equity shares are proposed to be listed on the BSE and NSE.

Aeroflex is a manufacturer and supplier of metallic flexible flow solution products, catering to global markets. It exports its products to more than 80 countries including Europe, USA and others and generates 80 per cent of its revenue from exports.

SPC Lifesciences has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The Initial Public Offering (IPO) consists of fresh issuance of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.39 lakh equity shares by promoter -- Snehal Rajivbhai Patel.

The proceeds from the fresh issue will be used to pay debt, to support working capital needs and to fund capital expenditure requirements for setting up Phase-2 at its Dahej facility in order to expand product offerings of pharmaceutical intermediates, and for general corporate purpose. Ambit and HDFC Bank are the book running lead managers to the issue. The shares of the company will be listed on the BSE and NSE.

SPC Lifesciences is a leading manufacturers of advanced intermediates for certain key active pharmaceutical ingredients.

Netweb Technologies India has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 700 crore through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth Rs 257 crore and an offer for sales of 85 lakh equity shares by promoters.

Proceeds of the fresh issue to the tune of Rs 32.77 crore will be used to fund capital expenditure, Rs 128.02 crore to support long-term working capital, Rs 22.5 crore for debt payment, besides, general corporate purposes. Equirus Capital and IIFL Securities are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Netweb Technologies is one of the country's leading high-end computing solutions (HCS) providers. It is one of the few original equipment manufacturers (OEMs) in the country and is a recipient of production-linked incentives schemes of the Government of India.

JG Chemicals has received the Securities and Exchange Board of India’s (SEBI's) approval to float an initial public offering (IPO). The IPO comprises fresh issue of equity shares worth up to Rs 202.50 crore and an offer-for-sale (OFS) of 57 lakh equity shares by its existing promoter group shareholders. Equity shares of the company will be listed on BSE and NSE.

The company, which filed the draft red herring prospectus with the SEBI in January 2023, got the regulator’s approval on March 20, 2023. Proceeds from the fresh issue will be used for investment in its material subsidiary BDJ Oxides. It will use Rs 45 crore in repayment of borrowings availed by its arm, Rs 5.31 crore will be used for setting up a Research & Development centre, Rs 65 crore will be used to fund the long-term working capital requirements of its material arm. It will also use Rs 35 crore for funding the long-term working capital requirements of the company and other general corporate purposes. Centrum Capital, Emkay Global Financial Services and Keynote Financial Services are the book-running lead managers to the issue.

The Kolkata-based firm is India's largest zinc oxide manufacturer in terms of production and revenue.

IndiaFirst Life Insurance Company has received the Securities and Exchange Board of India’s (SEBI) approval to float an initial public offering (IPO). The IPO comprises a fresh issue of up to Rs 500 crore along with an offer for sale (OFS) of up to 14,12,99,422 equity shares by the promoters and existing shareholders of the company.

The company, which filed the draft red herring prospectus with the SEBI in October 2022, got the regulator’s approval on March 15, 2023. The net proceeds from the fresh issuance worth Rs 500 crore will be used towards augmentation of its capital base to support solvency levels.

ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers to the issue. The equity shares will be listed on the BSE and NSE.

IndiaFirst Life Insurance Company (IndiaFirst Life) is one of the fastest growing private life insurers in India. IndiaFirst Life is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India's biggest public sector banks.

Tata Technologies, a subsidiary of Tata Motors, has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The equity shares of the company are proposed to be listed on both -- NSE and BSE.

The IPO is purely an offer for sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital.  Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company. JM Financial, Citigroup Global Markets India and BofA Securities India are the book running lead managers to the issue.

Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs).

IPO Name Price Band Open Date Close Date Minimum Qty Apply
GRAPHISAD 111 30-11-2023 05-12-2023 1200

IPO type

EQUITY

Face value

10

Lot size (qty)

1200

Category

Retail

Retail discount

0.00

Min - Max inv amt

111

Issue size

4812000

MARINETRAN 26 30-11-2023 05-12-2023 4000

IPO type

EQUITY

Face value

10

Lot size (qty)

4000

Category

Retail

Retail discount

0.00

Min - Max inv amt

26

Issue size

4200000

NATL 16 - 18 30-11-2023 04-12-2023 8000

IPO type

EQUITY

Face value

1

Lot size (qty)

8000

Category

Retail

Retail discount

0.00

Min - Max inv amt

16 - 18

Issue size

4080000

IPO Details

COMPANY NAME
Graphisads Ltd.
ADDRESS
4/24 A, A B House , Asaf Ali Road , Near Delhi Gate
CITY / STATE / PINCODE
New Delhi Delhi 110002
WEBSITE
www.graphisads.com
PHONE
9871276731
EMAIL
cs@graphisads.com
LEADMANAGER
First Overseas Capital Ltd.
PROMOTERS
Alok Mukesh Gupta, Mukesh Kumar Gupta, Padma Gupta
PRE SHARE CAP
13463100
OFFER TO PUBLIC
4812000
PRE PROMOTER HOLDER
99.99
POST PROMOTER HOLD
73.66
REGISTRAR
K FIN Technologies Ltd.-(Karvy Fintech Pvt Ltd.)
ADDRESS
4/24 A, A B House , Asaf Ali Road , Near Delhi Gate , 500032
Registrar Phone
040 - 67162222/18003094001
Registrar EMail
einward.ris@kfintech.com
Registrar Fax
Registrar WebSite
www.kfintech.com
Objective
1) Repayment of certain borrowings.2) To meet the Working Capital requirements.3) General Corporate Expenses.4) Issue Expenses.

Description

COMPANY NAME
Marinetrans India Ltd.
ADDRESS
801/802, 8th Floor , Vindhya Commercial Complex Plot No. 1 , Sector 11, C B D Belapur
CITY / STATE / PINCODE
Navi Mumbai Maharashtra 400614
WEBSITE
www.marinetrans.in
PHONE
7777045320
EMAIL
compliance@marinetrans.in
LEADMANAGER
Swaraj Shares & Securities Pvt Ltd.
PROMOTERS
Tiraj Kumar Babu Kotian
PRE SHARE CAP
4263000
OFFER TO PUBLIC
PRE PROMOTER HOLDER
50
POST PROMOTER HOLD
REGISTRAR
Skyline Financial Services Pvt Ltd
ADDRESS
801/802, 8th Floor , Vindhya Commercial Complex Plot No. 1 , Sector 11, C B D Belapur , 110020
Registrar Phone
91-011-26812682/84
Registrar EMail
admin@skylinerta.com
Registrar Fax
91-11-26292681
Registrar WebSite
Objective
1. Funding of working capital requirements of the Company 2. General Corporate Expenses 3. Issue Expenses

Description

COMPANY NAME
Net Avenue Technologies Ltd.
ADDRESS
New No. 16, Old No. 13 , 1st Floor Prithvi Avenue , Alwarpet, Teynampet
CITY / STATE / PINCODE
Chennai Tamil Nadu 600018
WEBSITE
www.natl.in
PHONE
9043336159
EMAIL
investor@natl.in
LEADMANAGER
Shreni Shares Pvt Ltd.
PROMOTERS
Rajesh Nahar, Ritesh Katariya
PRE SHARE CAP
7140000
OFFER TO PUBLIC
5700000
PRE PROMOTER HOLDER
45.31
POST PROMOTER HOLD
REGISTRAR
Bigshare Services Pvt Ltd
ADDRESS
New No. 16, Old No. 13 , 1st Floor Prithvi Avenue , Alwarpet, Teynampet , 400093
Registrar Phone
91-022-62638200
Registrar EMail
Investor@bigshareonline.com
Registrar Fax
91-022-62638299
Registrar WebSite
Objective
1. Customer Acquisition - Marketing & Awareness2. Funding Working Capital Requirement3. General Corporate Purpose4. To Meet the Issue Expenses

Description
Our Company is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories. Our company alsohas presence in International cross-border e-commerce direct-to-consumer for its products. Our product range includes Indian ethnic wear and accessories for women, men, teens and kids.
IPO Analysis

Graphisads coming with IPO to raise Rs 53.41 crore

The issue will open for subscription on November 30, 2023 and will close on December 5, 2023

Details

Graphisads 

  • Graphisads is coming out with an initial public offering (IPO) of 48,12,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 111 per equity share.
  • The issue will open for subscription on November 30, 2023 and will close on December 5, 2023.
  • The shares will be listed on NSE Emerge Platform.
  • The share is priced 11.10 times higher to its face value of Rs 10.
  • Book running lead manager to the issue is First Overseas Capital.
  • Compliance Officer for the issue is Shobharam Dhama.

Profile of the company

Graphisads is integrated marketing, advertising and communications agency, providing 360 degree solutions to its wide array of clients. The company is in the same industry for the past 35 years and is continuously expanding its business horizons with the moving trends across the world, reflecting its growing expertise in the marketing and advertising industry. The company provides advertising services on the work orders received by Government sector, Private sector and Public sector entities. The company neither outsource/sub-contracts the services provided to its clients nor does it have any contract with third party in this respect. It endeavors to maintain the quality of its services, follow strict procedures to ensure quality, timely delivery and competitive prices. It endeavors in going beyond just media, to understanding business needs of the brand and delivering complete communications solutions.

Wide area of scope of work being offered and provided by Graphisads to its clients make it is one of the few agencies that can truly claim to be a fully integrated and independent in providing the marketing and communications solutions. By integrated it mean that it offer creative, marketing strategy, on ground & virtual activation capabilities, and design solutions that help its clients in brand building. It provide high-end ecosystem and end-to-end ad-tech communication solutions platform for advertising media services consisting of Brand Strategy, Communication Strategy, Creative Services, Media Planning, Media Buying & Media Release services which covers advertisement modes such as Newspapers, Magazines, Radio and TV, Events & Exhibitions, Digital Media, Brochures Printing, and display of Outdoor Hoardings, Digital screens and street furniture In all such mediums of advertising ‘Creative’ exists i.e.; all the services are given keeping in the necessity of being creative, so that Graphisads can deliver most compelling communications to grab attentions of the public at large.

Proceed is being used for:

  • Repayment of certain borrowings.
  • Meeting the Working Capital requirements.
  • General Corporate Expenses.
  • Issue Expenses.

Industry overview

The Indian advertising market size reached Rs 743.0 Billion in 2022. Looking forward, expects the market to reach Rs 1,412.5 Billion by 2028, exhibiting a growth rate (CAGR) of 11.2% during 2023-2028. The growing adoption of advertising to enhance brand awareness, increasing number of media and entertainment models, and rising demand for digital advertising solutions represent some of the key factors driving the market. At present, the rising adoption of advertising by various companies to increase customer retention and attract new buyers represents one of the key factors supporting the growth of the market in India. Besides this, the growing adoption of advertising to enhance brand awareness and loyalty of a business is offering a positive market outlook in the country. 

Additionally, there is a rise in the need for convenient and cost-effective advertising solutions among the masses. This, coupled with the increasing demand for digital advertising due to the rapid adoption of smartphones and smart devices with the ease of internet facilities, is propelling the growth of the market in the country. Apart from this, the rising trend of advertising through various sports events is offering lucrative growth opportunities to industry investors in India. Moreover, the increasing consumer preference towards online shopping, along with the burgeoning e-commerce industry, is positively influencing the market. In addition, various advertising agencies are rapidly investing in digital advertising in the country, which is contributing to the growth of the market. Furthermore, the rising number of media and entertainment models is strengthening the market growth in India.  

Pros and strengths

Meeting expectation of clients and maintaining long term relationship with clients: Through research, captivating creative work, and smart media planning, the company wants to provide outcomes that meet or exceed its clients' expectations. With its clients, it aspires to establish lasting connections. It aims to gauge customer success by improved brand recognition, effects on sales volume, and other terms that have been mutually agreed upon by the clients. According to it, a key element in ensuring that its organisation keeps expanding is keeping positive client relationships. Through regular communication with its clients, understanding their needs in terms of location, target audience, concept, ad design, etc., and selecting the most suitable media source, it is able to not only draw in new clients but also foster repeat business with its current clients. It will keep placing a priority on providing high-quality services in a timely and correct manner since this will help it build long-lasting connections with its clients and raise its revenue from them. 

Media and advertising: The company’s strength lies in its media and advertising. It develop digital brand strategies, communications, products and services that matter to target group of its clients by novelty, brand authenticity quality for higher brand awareness, engagement, sales and loyalty. It helps grow the brand awareness of its clients by engaging with the target audience and develop lasting customer relations. It helps its clients in giving value, engaging, inspiring, and entertaining their target audience. It also increase public awareness and drive long-term brand loyalty with content marketing for its clients.

Repeat Customers: The company makes an effort to maintain the quality of its services and adhere to tight standards to assure quality control, prompt service delivery, and affordable costs. Its ability to provide the service in accordance with the client's expectations and its understanding of those requirements are its strengths. This entails comprehending the needs of the client, such as location, target audience, concept, ad design, etc., and selecting the best media source that enables it to not only draw in new clients but also encourages repeat business from its current clients.

Risks and concerns

Derive significant portion of revenue from outdoor advertising services: The company derives a significant portion of its revenue from its outdoor advertising services business and is dependent on the cash flow generated from its outdoor advertising services business for the growth. Its outdoor advertising services business accounted for 41.07 %, 53.00 %, and 38.43 % of its total revenue from operations for fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Consequently, factors that adversely affect the demand for outdoor advertising services or its position or reputation as a provider of such outdoor advertising services may adversely affect its business and profitability. The loss of a major customer could lead to a significant decrease in revenue, harm its reputation and reduce its ability to accurately predict cash flow. The risk of such a loss is increased by the fact that the integrated marketing, advertising and communications services are an extremely competitive segment in the advertising and marketing industry in India. All of these factors could have an adverse effect on its business, financial condition and results of operations.

Dependent on availability of space or sites for publishing of ads or displaying hoardings: The company’s main requirement for advertisement in the media, digital media, events, creative and outdoor media is dependent on the availability of ad space in that particular media such as availability of particular space in newspapers or spot time in broadcasting radio stations or availability of space at particular hoarding sites on which client wants to publish/display the advertisements. It procures these spots, spaces or sites on rents/ lease from respective publication houses, radio stations and agencies, whenever there is a requirement. Any non-availability of these space/sites for whatever reason, could adversely affect its sales and profitability. Further, any price volatility of these space/sites and its inability to adjust to the same could adversely affect results of its operations and profitability.

Dependent upon few suppliers for procurement of raw materials: The company is in advertising agency and to provide services to various clients hence, raw materials as such are not applicable in advertising and marketing industry. However, in the case of events and outdoor advertising/ marketing raw materials such as street furniture, site fixtures and fittings and other consumables are required and accordingly deployed. In this regard, for the year ended March 31, 2023, 2022 and 2021, its top 10 suppliers contributed around 57.32%, 47.48% and 46.50% respectively of its purchases. In the event of a delay and/ or inadequacy or default in deliveries and /or non-adherence to quality requirements by any of its vendors, it may not be able to source the raw materials at all or in a timely manner and / or on commercially acceptable terms. In such a scenario, it could adversely affect ability to meet its customers’ requirements, its business, results of operations and financial conditions.

Outlook

Graphisads is an integrated marketing, advertising, and communications agency providing 360-degree solutions to its wide array of clients. It provides advertising services on the work orders received by the Government sector, Private sector and Public sector entities. The company also offers high-end ecosystem and end-to-end ad-tech communication solutions platform for advertising media services consisting of Brand Strategy, Communication Strategy, Creative Services, Media Planning, Media Buying and Media Release services which cover advertisement modes such as Newspapers, Magazines, Radio, and TV, Events & Exhibitions, Digital Media, Brochures Printing, and display of Outdoor Hoardings, Digital screens and street furniture. The company’s Promoter has extensive market knowledge and has contributed significantly to the company's steady growth. Its management and staff pool their knowledge and experience to make plans for the future growth of its business. On the concern side, the sales of the company is widely dispersed throughout India and any failure to maintain such dispersion may impact sales, revenues, and consequently, the financial performance of the company. Further, any failure in expanding its geographical presence within India may lead to loss of opportunity in earning higher revenue thereby effect its growth and profit in the company.

The company is coming out with an IPO of 48,12,000 equity shares of Rs 10 each at a fixed price of Rs 111 per share to mobilize Rs 53.41 crore. On performance front, the total income of the company for fiscal year 2023 was Rs 9904.81 lakh as against Rs 8972.49 lakh total income for Fiscal year 2022. Profit after tax for the Fiscal 2023 was at Rs 556.62 lakh as against Rs 558.19 lakh in fiscal 2022, a 0.2% decrease. Meanwhile, the company’s main goals are to have more customer relationships and more relationship managers to take care of such relationships. Its goal is to develop more customer connections, which it will subsequently use to its advantage to introduce a full line of media goods. Having more client ties will stabilise the company’s revenue during market downturns. In order to utilise its current group offers and attract new client connections, it also intends to expand its sales force as part of this.

Marinetrans India coming with IPO to raise Rs 10.92 crore

The issue will open for subscription on November 30, 2023 and will close on December 5, 2023

Details

Marinetrans India 

  • Marinetrans India is coming out with an initial public offering (IPO) of 42,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 26 per equity share.
  • The issue will open for subscription on November 30, 2023 and will close on December 5, 2023.
  • The shares will be listed on NSE Emerge Platform.
  • The share is priced 2.60 times higher to its face value of Rs 10.
  • Book running lead manager to the issue is Swaraj Shares and Securities.
  • Compliance Officer for the issue is Nikhil Kishor Joshi.

Profile of the company

Marinetrans India initially started as a freight forwarder, then went to Door-to-Door Delivery and 3PL services for the logistics industry via informal arrangement with the third-party service providers. It offers its customers a comprehensive range of transport management and freight-related services. Its services encompass Freight Forwarding, including both sea freight and air freight. Additionally, it have informal partnerships with various intermediaries to provide ancillary services such as Transportation, Multimodal Transportation, Project cargo handling, Third Party Logistics, Packaging, loading/unloading and unpacking of items. These additional services enable it to provide end-to-end solutions and other value-added services that cater to its customers’ diverse needs.

Its primary objective is to ensure the safe transportation and delivery of goods from start to finish. It achieves this by leveraging its expertise to identify and recommend the optimal solution for each client’s specific business environment. Its dedicated team of skilled shipping and customs specialists works diligently to provide clients with customized solutions at affordable rates. Strengthening customer relationships and consistently delivering quality products, services and solutions are at the core of its mission.

The company operates from its Head office situated in Navi Mumbai, Maharashtra, along with one of its branches located in Ahmedabad, Gujarat. The company mainly operates through JNPT, Nhava Sheva, Mundra, Kandla, Chennai, Vizag, etc. and can take cargo from any location in India to across the world. The company is mainly responsible for obtaining and confirming the Sales Booking Request, Confirming the Shipping Line, ensuring Direct Customer Transport, Stuffing and ensuring transportation in dock, and co-ordinating with the customer until the delivery of the goods. Since, the company is majorly a point of contact between the Shipping Line, and the customer, the Company does not per se operate through ports.

Proceed is being used for:

  • Funding of working capital requirements of the company.
  • General corporate expenses
  • Issue expenses

Industry overview

The Indian logistics industry is growing, due to a flourishing e-commerce market and technological advancement. The logistics sector in India is predicted to account for 14.4% of the GDP. The industry has progressed from a transportation and storage-focused activity to a specialised function that now encompasses end-to-end product planning and management, value-added services for last-mile delivery, predictive planning, and analytics, among other things. One of the key drivers of this expansion is projected to be the rise of India's logistics industry, which employs 22 million people and serves as the backbone for various businesses. 

The logistics sector in India was valued at $250 billion in 2021, with the market predicted to increase to an astounding $380 billion by 2025, at a healthy 10%-12% year-on-year growth rate. Moreover, the government is planning to reduce the logistics and supply chain cost in India from 13-14% to 10% of the GDP as per industry standards. A warehouse is an essential component of corporate infrastructure and one of the primary enablers in the global supply chain. The Indian warehousing market is predicted to reach $34.99 billion, expanding at a CAGR of 15.64% from 2022 to 2027. Modern warehouse facilities and technology-driven solutions have changed the warehousing sector in India in recent years.

The warehousing and logistics industry in India is a dynamic and rapidly growing sector that is expected to play an increasingly important role in the country's economy. Despite some challenges, the sector is well-positioned for long-term growth and presents exciting opportunities for investors and businesses. With the government's focus on improving infrastructure and the rise of e-commerce, the sector is expected to be a key driver of economic growth in the country. Moreover, with the increasing adoption of technology and the government's push for a digital economy, there is also significant potential for logistics players to leverage data analytics, artificial intelligence, and machine learning to improve operational efficiency and enhance customer experience. There are also opportunities for foreign investment as international companies look to tap into India's growing logistics market. The government has made it easier for foreign companies to invest in the sector by allowing 100% foreign direct investment in logistics parks and warehouses.

Pros and strengths

Smooth flow of operations: Developing a wide clientele base through a value-based relationship approach is a significant accomplishment. Overall, its focus on building and maintaining valued-based relationships has been instrumental in developing a wide clientele base and improving its customer retention strategy.

Well-defined organizational structure: Having a qualified and experienced management team is a valuable asset for any company. Their ability to make timely decisions and ensure operational efficiency contributes to the smooth functioning of its business. By empowering its management team, it provides them with the authority and autonomy to make effective decisions, which can streamline processes and drive success. It’s senior’ management's role in pioneering growth and fostering a culture of innovation, entrepreneurship, and teamwork is commendable. By leveraging the expertise of its management team and fostering a motivated workforce, it enhances its competitive advantage and increase the likelihood of achieving success. These factors can significantly contribute to the company's competitiveness and future growth.

Existing supplier relationship: Maintaining relationships with suppliers is crucial for any organization, regardless of its size. Its existing supplier relationships provide several benefits that protect its business and contribute to its success. Building trust and understanding with its suppliers can create a sense of partnership and reliability, fostering long-term collaboration. This can lead to preferential treatment, faster response times, and customized solutions tailored to its specific needs.

Risks and concerns

Heavily dependent on third party service provider: It is heavily depend upon third-party vessels, trucks, trailers and other transportation vehicles of various for supply of assets and services, which inter-alia includes, vehicles, for inland transportation of goods, containers for carrying goods, warehouses for storage etc. Its ability to service its customers depends on the availability reliability, satisfactory and continuous services of such third parties for these outsourced services. Events beyond its control or that of its suppliers such as (i) equipment and vehicles shortages, particularly among contracted truckload carriers and ocean carriers; (ii) interruptions or stoppages in transportation services as a result of labour disputes and strikes; (iii) network congestion, weather related issues, ‘Acts of God’ or acts of terrorism; and (iv) increases in operating expenses for carriers, such as fuel costs, insurance premiums and licensing expenses; may affect the cost, availability or ability to provide their services.

Face competition: It faces competition from a number of domestic third-party logistics service providers, especially as the trend toward larger-scale logistics providers in India continues, and also of some of the international players. Some of its competitors have significantly greater financial and marketing resources and operate larger networks than it does. It may also face competition from new entrants into the logistics service industry. If it cannot maintain, or gain, sufficient market presence or are unable to differentiate ourselves from its competitors, it may not be able to compete effectively.

Success depends on Promoters, Directors and Key managerial personnel: Its success depends upon the continuing services of Promoters, Directors and Key Managerial Personnel who are the natural person in control of the company. Its Promoters, Director, and Key Managerial Personnel have vast experience in the field of logistics and infrastructure. They have established cordial relations with various customers in the past, which has benefited the company’s customer and supplier relations. If its Promoters, Director and Key Managerial Personnel or any member of the senior management team is unable or in unwilling to continue his present position, it may not be able to replace him easily or at all, and its business, financial condition, results of operations and prospects may be materially and adversely affected.

Outlook

The company is engaged in the business of International Freight Forwarding, Non Vessel Common Operating carrier (NVOCC), Sea Freight Booking in the Shipping Industry. The company initially started as a freight forwarder, then went to Door-to-Door Delivery and 3PL services for the logistics industry via informal arrangement with the third-party service providers. On the concern side, there are no entry barriers in its industry which puts it to the threat of competition from new entrants as there are numerous players operating in the industry. It faces tough competition in its business from a large number of unorganized as well as from organized players operating in the similar space.

The company is coming out with an IPO of 42,00,000 equity shares of Rs 10 each at a fixed price of Rs 26 per share to mobilize Rs 10.92 crore. On performance front, the Revenue from operations has decreased by 26.05% from Rs 20,321.22 lakh for FY 2021-22 to Rs 15,027.09 lakh for FY 2022-23. The logistics and supply chain industry experienced significant disruptions due to COVID-19 in 2020-21, leading to record-high container freight rates. Profit after tax has decreased by 17.94% from Rs 186.24 lakh for FY 2021-22 to Rs 152.83 lakh for FY 2022-23. Meanwhile, expanding of sales volume through expansion, diversification, and geographical outreach is a sound growth strategy. By focusing on scaling its operations in other markets, it aims to tap into new opportunities and broaden its client base, ultimately leading to increased revenues.

Net Avenue Technologies coming with an IPO to raise upto Rs 10.25 crore

The issue will open on November 30, 2023 and will close on December 04, 2023

Details

Net Avenue Technologies

  • Net Avenue Technologies is coming out with an initial public offering (IPO) of 56,96,000 equity shares of face value of Rs 1 each in a price band Rs 16-18 per equity share.
  • The issue will open on November 30, 2023 and will close on December 04, 2023. 
  • The shares will be listed on NSE Emerge platform.
  • The share is priced 16 times of its face value on the lower side and 18 times on the higher side.
  • Book running lead manager to the issue is Shreni Shares.
  • Compliance Officer for the issue is Dadwani Bhumisha Darshan.
Profile of the company

Net Avenue Technologies is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories. The company also has presence in International cross-border e-commerce direct-to-consumer for its products. Its product range includes Indian ethnic wear and accessories for women, men, teens and kids.

The company’s core business is to sell Indian Ethnic wear and accessories, primarily catering to the South Asian Diaspora, a segment it reaches through its website and mobile applications. Furthermore, the company extends its reach by distributing its products through various prominent Ecommerce platforms, including but not limited to Myntra, Nykaa, and Ajio, among others.

The company has crafted its business foundation through iterative innovation to enhance consumer satisfaction and optimise purchasing behaviour. The company acknowledges that the consumer's path to product selection often involves a substantial amount of time dedicated to exploration. Consequently, the company is committed to gaining insights into the decision-making process and providing support at crucial junctures throughout a consumer's journey on its platform. To this end, it has strategically integrated across multiple touchpoints, enabling it to engage consumers and curate personalised browsing and purchasing experiences that cater to the diverse needs of its valued customers.

Proceed is being used for:

  • Customer acquisition - marketing & awareness
  • Funding working capital requirement
  • General corporate purpose
  • Meeting the issue expenses
Industry overview

In recent years India has experienced a boom in internet and smartphone penetration. The number of internet connections in 2021 increased significantly to 830 million, driven by the ‘Digital India’ programme. Out of the total internet connections, 55% of connections were in urban areas, of which 97% of connections were wireless. The smartphone base has also increased significantly and is expected to reach 1 billion by 2026. This has helped India’s digital sector and it is expected to reach $1 trillion by 2030. The Indian online grocery market is estimated to reach $26.93 billion in 2027 from $3.95 billion in FY21, expanding at a CAGR of 33%. India's consumer digital economy is expected to become a $1 trillion market by 2030, growing from $537.5 billion in 2020, driven by the strong adoption of online services such as e-commerce and edtech in the country. The B2C E-commerce is expected to grow steadily over the forecast period, recording a CAGR of 8.68% during 2023-27. India’s e-B2B market is projected to reach a GMV of $100 billion by 2030. According to Grant Thornton, e-commerce in India is expected to be worth US$ 188 billion by 2025.

India is the world’s second-largest producer of textiles and garments. It is also the fifth-largest exporter of textiles spanning apparel, home and technical products. The textiles and apparel industry contribute 2.3% to the country’s GDP, 13% to industrial production and 12% to exports. Around 45 million people are working in the textile business, including 3.5 million people who work on handlooms. The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach $190 billion by 2025-26. The Indian apparel market stood at $40 billion in 2020 and is expected to reach $135 billion by 2025. India enjoys a comparative advantage in terms of skilled manpower and in cost of production relative to other major textile producers. During April- November in FY23, the total exports of textiles stood at US$ 23.1 billion. India’s textile and apparel exports (including handicrafts) stood at $44.4 billion in FY22, a 41% increase YoY. Exports of readymade garments including cotton accessories stood at $16.2 billion in FY23. India’s ready-made garment (RMG) exports are likely to surpass $30 billion by 2027, growing at a CAGR of 12-13%.

Further, the government has allocated funds worth Rs 17,822 crore ($2.38 billion) between FY16-22 for the ‘Amended Technology Upgradation Fund Scheme’ (A-TUFS) to boost the Indian textile industry and enable ease of doing business. Amazon India has signed a MoU with the Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL), a Government of Manipur entity, to encourage the development of weavers and artisans throughout the state. To support the handloom weaver entrepreneurs, the Weaver MUDRA Scheme was launched to provide margin money assistance at 20% of the loan amount subject to a maximum of Rs. 10,000 ($134.22) per weaver. The loan is provided at an interest rate of 6% with credit guarantee of three years. The new Economic Cooperation and Trade Agreements with Australia and the UAE will open multiple opportunities for textiles and handloom. Indian textile exports to Australia and the UAE will now face zero duties, and the government is expecting that soon, Europe, Canada, the UK and GCC countries would also welcome Indian textile exports at zero duty. Top players in the textiles sector are attaining sustainability in their products by manufacturing textiles that use natural recyclable materials.

Pros and strengths

Diverse product range: The company offers a wide range of premium Indian Ethnic fashion to South Asians worldwide through its E-commerce platform. These offerings cater to various cultural and traditional preferences, including wedding clothing, festive attire, party wear, and related accessories. The company boasts extensive experience in international cross-border direct-to-consumer operations.

Sustainable fashion advocate (Just-In-Time): The company has ingrained sustainability into its culture and processes, positioning itself as a sustainable fashion brand. The concept of just-in-time manufacturing, coupled with customised stitching, is a testament to this commitment. It has designed its operational model to scale just-in-time manufacturing, minimising waste and reducing environmental impact.

Data-driven body sizing for optimal fit: The company possesses a wealth of body measurement data, having stitched millions of custom outfits for hundreds of thousands of customers since inception. Leveraging machine learning, the company has improved customer comfort and fit.

Risks and concerns

Top ten suppliers contribute majority of purchases: Purchases made from its top 10 suppliers for the period ended June 30, 2023 and financial year ended March 31, 2023, 2022 and 2021, were Rs 92 Lakh, Rs 1,820 Lakh, Rs 2,089 Lakh and Rs 954 Lakhs respectively. However, its top suppliers may vary from period to period depending on the demand-supply mechanism and thus the supply process from these suppliers might change as it continues to seek more cost effective suppliers in normal course of business. Since its business is concentrated among relatively few significant suppliers, it could experience a reduction in its purchases and business operations if it loses one or more of these suppliers, including but not limited on account of any dispute or disqualification. While the company maintained good and long term relationships with its other suppliers too, there can be no assurance that it will continue to have such long term relationship with them. It cannot assure that it shall do the same quantum of business, or any business at all, with these customers, and loss of business with one or more of them may adversely affect its purchases and business operations.

Seasonal fluctuations in business: The company has historically experience seasonal fluctuations in its sales, with higher sales volumes associated with the festive sale period in the third quarter of each Financial Year, which encompasses holidays such as Diwali, Christmas and annual sales events. It expects to continue to experience seasonal trends in its business, making results of operations variable from quarter to quarter. This variability can make it difficult to predict sales and can result in fluctuations in its revenue between periods. Any failure by the sellers, or brand relationships, or by the company, to stock or restock popular products in sufficient quantity or to develop sufficient fulfilment and delivery capacity to meet consumer demand during periods of seasonal or peak demand, could adversely affect consumer experience and its results of operations.

No long-term agreement with raw material suppliers: The company has not entered into long term contracts with its suppliers and prices for raw materials are normally based on the quotes it receives from various suppliers. The company relies on pre-booking capacity with its suppliers, based on its demand projections. Since it has no formal arrangements with its suppliers, they are not contractually obligated to supply their products to it and may choose to sell their products to its competitors. Non-availability or inadequate quantity of raw material or use of substandard quality of the raw materials in the manufacturing of its products, could have a material adverse effect on its business. Further, any discontinuation or a failure of these suppliers to adhere to the delivery schedule or failure to deliver the required quality and quantity could hamper its manufacturing schedule.

Outlook

Net Avenue Technologies is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories. The company started out as a gifting portal - chennaibazaar.com, one of the first Indian gifting portals, offering gifting solutions to Indians living abroad. The company subsequently diversified its offerings and launched cbazaar.com and ethnovog.com providing Indian ethnic clothes and jewellery. On the concern side, the company’s business depends on the growth of online commerce industry in India & Abroad and its ability to effectively respond to changing user behaviour on digital platforms. Moreover, the company operates in a highly competitive industry and its failure to compete effectively could have a negative impact on the success of its business and/or impact its margins.

The issue has been offered in a price band of Rs 16-18 per equity share. The aggregate size of the offer is Rs 9.11 crore to Rs 10.25 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations had increased by 7.05% from Rs 3123.34 lakh in Fiscal 2022 to Rs 3343.54 lakh in Fiscal 2023. The change was primarily due to increase in sales of products through exports & Other Operating Revenue. Moreover, the company reported a net profit of Rs 185.70 lakh in Fiscal 2023 as compared to a net profit of Rs 279.63 lakh in Fiscal 2022.

The company’s core growth strategy centres around providing a high level of personalization to consumers, offering distinct 'Looks' for each design launch. These 'Looks' cater to different customer segments based on age groups, including young adults, individuals in their thirties, and those in their forties and above. This approach, combined with its 'Made to Measure' service, effectively addresses online shoppers' fit concerns. Going forward, the company plans to expand its product availability to more countries by leveraging its marketing expertise and relationships, enhancing customer satisfaction. This entails fulfilling orders promptly, nurturing strong customer relationships, and re-establishing connections with existing buyers. 

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