Objective
1) Repayment of certain borrowings.2) To meet the Working Capital requirements.3) General Corporate Expenses.4) Issue Expenses.

Description

Objective
1. Funding of working capital requirements of the Company 2. General Corporate Expenses 3. Issue Expenses

Description

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.

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