IPO

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February 17, 2023

Navi Technologies IPO: All You Need To Know

On September 5, 2022, Navi Technologies received SEBI approval for ₹3,350 crore IPO. Founded in 2018, Sachin Bansal’s Navi Technologies has become a major FinTech player in India, offering personal loans, mutual funds, health insurance, and other services.

In this article, we will go over Navi Technologies IPO in-depth and see if there is a compelling reason to subscribe.

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Navi Technologies IPO Details

Navi Technologies filed its IPO application or draft red herring prospectus on March 14, 2022, proposing to raise ₹3,350 crores through fresh issuance of equity shares to investors. The company may also consider a pre-IPO allotment of equity shares worth ₹670 crores, according to the draft paper, reducing the total size of the IPO to ₹2,680 crores.

The company has not decided on the IPO launch and distribution of its IPO among different investors category.

IPO Status	Not Announced
IPO Date	Not Announced
Total IPO Size	₹3,350 crores
No. of shares of IPO	Not Announced
Issue Type	Book Built
Issue Price Band	Not Announced
IPO listing at	NSE & BSE
Face Value	₹100

Source: DRHP

What Does Navi Technologies Do?

Navi Technologies was incorporated in 2018 in Bengaluru by former Flipkart chairman Sachin Bansal and Ankit Agarwal to provide online financial and investment services to Indian users.

Sachin Bansal is a famous Indian entrepreneur and is known as the co-founder of the e-commerce major Flipkart. He exited the e-commerce platform in 2018 by selling his stake to retail giant Walmart. He is the largest shareholder in Navi Technologies with a 97.77% stake.

Ankit Agarwal is a successful banker with over 10 years of experience in Bank of America and Deutsche Bank and is an IIM and IIT alumni. His holding in the company is 0.98%. To date, the founders have infused over ₹4,000 crores of equity capital in the company.

Navi operates through its two subsidiaries, Navi Finserv Pvt. Ltd and Navi General Insurance Ltd. It has presented itself as a technology-first direct-to-consumer company to grab the opportunities in India’s highly underpenetrated financial services market. It uses artificial intelligence and machine learning (AI/ML) based underwriting processes for its lending products and offers a smooth experience to customers.

Navi uses data analytics to write its lending algorithm to offer better pricing and loan management, giving it an edge in digital and on-field collections. To date, the company disbursed over ₹11,725 crores of loan amount and sold more than 68,000 health insurance policies to millions of its user base.

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How Is Navi Technologies Transforming The Financial Services Sector?

Through its app, Navi Technologies has built a one-stop solution for users to access financial services needs, be it lending, investments, or insurance. By using digital technology, the company is reducing friction points. For instance, the company can do new customer signup in less than 4.5 minutes in the personal loan segment and under 2.5 minutes in the health insurance segment.

As of December 2021, almost 62% of the health insurance products sold on the Navi app were approved without human assistance. Also, Navi allows users to pay health insurance premiums through EMIs, making it affordable for general users.

Navi Technologies Acquisitions

Navi acquired Chaitanya India Fin Credit for ₹739 crores in 2019 to enter the microfinance segment. And in February 2020, it acquired erstwhile DHFL General Insurance Limited for an undisclosed sum.

Navi applied for a universal banking license in 2022 with the Reserve Bank of India, but its application was rejected. It would have allowed Navi to accept customer deposits and use funds for lending purposes.

Navi Technologies Financials

In FY21, the company’s group revenue was ₹780 crores. Navi Technologies reported a profit of ₹71.1 crores. And in the first nine months of FY22, the company reported a revenue of ₹719 crores but reported a loss of ₹206.4 crores. Check out the table below for a more detailed view of the financials.

Particulars	FY19 (10^th December 2018 to 31^st March 2019)	FY20	FY21	FY22 (as of December 31^st, 2021)
Revenue (in crores)	₹16.9	₹207	₹780	₹719.37
Net Profit (in crores)	₹2.69	(₹8.07)	₹71.1	(₹206.4)
EBITDA (in crores)	₹4.56	(₹47.7)	₹234.2	(₹77.8)
Net NPA	–	–	0.89%	0.98%
Adjusted EPS	₹7.31	(₹2.09)	₹2.47	(₹7.16)

Segment-wise Revenue Breakup

Segment	FY20 (in cr.)	FY21 (in cr.)	FY22 (as of December 31, 2021) (in cr.)
Insurance	₹18.2	₹137.04	₹97.5
Personal, Housing, and other loans	₹40.12	₹336.68	₹316.2
Microfinance	₹89.6	₹233.65	₹233.9
Mutual Funds	–	₹5.74	₹5.77
Others	₹63.29	₹86.93	₹92.2

What Will Navi Technologies Do With IPO Money?

According to the DRHP filed with SEBI, Navi Technologies aims to invest ₹2,370 crores of the IPO money in Navi Finserv Limited (NFL), ₹1,50 crores in Navi General Insurance Limited (NGIL), and the remaining sum will be utilized in general corporate purposes.

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Should You Subscribe to Navi Technologies IPO?

In the financial services space, India is a highly underserved market with enormous growth opportunities for FinTech companies like Navi Technologies, which are expanding their user base by leveraging India’s high smartphone penetration, high-speed internet usage, and use of AI and ML technologies.

Some of the things that are working for Navi Technologies are:

The mobile-first approach enables Navi to reach customers directly and achieve the shortest turnaround time (TAT) for retail health insurance policy issuance and lending.
Full in-house technology stack with AI & ML technologies resulting in innovation and efficient product management and delivery.
Better cross-selling and up-selling of products. During the nine months ending December 31, 2021, it served over 481000 customers extending Rs. 0.2 crores to them. The retail health insurance segment accounted for ₹. 6.32 crores from the total Gross Written Premium of ₹. 66.77 crores during the same period ending December 31, 2021.

Some of the risks are:

Multiple FinTech players like Paytm and Policybazaar target the same user segment, which can erode Navi’s market share and impact the bottom line.
Faces direct competition from established players like Bajaj Finance and other small finance banks.
Have to continuously invest in technology and improve data science capabilities to make Navi more agile and scalable.
Higher borrowing costs make Navi less competitive against traditional players with banking licenses who can accept deposits from the public.

Despite the risks, Navi Technologies has strengthened its footprint across India in a very short period. In the 21 months since its inception, Navi’s personal loan business has served customers in over 84% of India’s pin codes, with an average loan ticket size of ₹ 50,990. It shows the strong execution capabilities of the company, where banks and informal lenders dominate.

Looking at the digital lending market in India, it is expected to grow to $1.3 trillion by 2030, up from $270 billion in 2022, at a CAGR of 22%, as per Inc42’s latest report ‘State Of Indian Fintech Ecosystem Q3 2022. Furthermore, other financial products on the Navi app are expected to grow rapidly due to improved cross-selling and increased awareness of the importance of purchasing health insurance and investing.

At first glance, Navi Technologies appears to be a fundamentally strong company with strong growth potential. Still, we must be cautious with IPO investments because a lot of information and disclosures come after the shares are listed.

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Disclaimer Note: The stocks and financials mentioned in this article are for education purposes only. They shouldn’t be considered as a recommendation by Research & Ranking. We will not be liable for any losses that may occur. The securities quoted, if any are for illustration only and are not recommendatory.

FAQs

Who founded Navi Technologies?

Navi Technologies was founded by a famous Indian entrepreneur and former founder of Flipkart, Sachin Bansal, in 2018. Pre-IPO Sachin Bansal holds a 97.77% stake in the company.

When Navi Technologies IPO is coming?

Navi Technologies’ ₹3,350 crores IPO got SEBI approval on September 5, 2022, and is expected to launch soon.

Is Navi Technologies a profitable company?

As a recently incorporated company, Navi Technologies has been gyrating between making profits and losses in the past. In FY22, revenue rose to ₹1,061 crores from ₹780 crores in the previous year, but the company reported an overall loss of ₹362 crores on investments made for future business growth.

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February 15, 2023

Fab India IPO: All You Need To Know

Fab India, founded in 1960 by John Bissell, is a leading consumer lifestyle platform that offers sustainable handcrafted garments, furnishings, fabrics, and ethnic products. The company offering the Fab India IPO has a business model involving a network of vendors working with artisans and farmers across India.

The Indian traditional lifestyle products company has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise 4000 crores through the Fab India IPO, This article looks at the upcoming Fab India IPO, which will soon debut in the stock markets.

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Fab India IPO details

Fab India Ltd, headquartered in New Delhi, filed its DRHP with market regulators to obtain approval to float the Fab India IPO designed to raise funds by selling equity of existing shareholders/investors.

Details of the proposed Fab India IPO are as below-

IPO Status	Not Announced
IPO Date	Not Announced
Total IPO Size	Fresh issue – Rs. 500 Crores and Offer For Sale – Rs. 3500 Cr
No. of Shares for IPO	Not Announced
Issue Type	Book Built
Issue Price Band	Not Announced
IPO listing at	BSE and NSE
Face Value per Equity Share	Rs. 1/-

Category-wise Shares Offered

Category	% of Offer
Institutional Investors	75%
Non-Institutional Investors	15%
Retail Investors	10%

About the Ethnic Wear Brand Planning the IPO

Fab India Ltd is a multi-category store brand with a distinct ethnic, artisanal positioning in fashion, lifestyle, home décor, and personal care. Fab India and Organic India are leading brands that work on the core tenets of “Celebrating India” and “Healthy Conscious Living,” respectively.

As of September 30, 2021, Fab India Ltd had 309 retail outlets spread across 123 cities in 26 Indian states and union territories, including 185 COCOs (Company-owned-and-operated stores including one flagship store), 28 Experience Centers, and 96 FOFOs (Franchise-owned-and-operated stores). Outside of India, the company operates 11 retail stores.

Revenue Break-up (during the six months ended 30 September 2021)

Percentage The Company Holds in its Subsidiaries

FABINDIA LIMITED has

(a) three direct Indian Subsidiaries: (1) Organic India Private Limited, (2) Fabcafe Foods Private Limited; and (3) Biome Life Sciences India Private Limited;
(b) one direct foreign Subsidiary: Fabindia International Pte. Limited; and
(c) three indirect foreign Subsidiaries: (1) Indigo Origins Pte. Limited (2) Organic India USA, LLC and (3) The Clean Program Corp, USA, while filing the DRHP.

The table below shows the share the company holds in its direct subsidiaries.

Subsidiaries	Shareholding %
Organic India Private Limited (OIPL)	63.79%
Biome Life Sciences Pvt Ltd	50.01%
FabCafe Foods Pvt Ltd (FFPL)	68.46%
Fab India Pte International Ltd	100%

Key Business Offerings of Fab India

Apparel and Accessories

It offers a wide range of daily and occasional wear, ethnic and western footwear, handcrafted apparel, and accessories to meet every customer’s wardrobe needs.

Home & Lifestyle

Covers furniture, soft home furnishings, home décor, giftware, and an interior design studio feature focusing on natural fiber.

Personal Care

Encompasses a broad range of skin and hair care products and fragrances made with naturally inspired ingredients.

Organic Food

The company offers various Infusions, teas, staples, healthy snacks, detox kits, preserves, agri-products, Ayurveda supplements, and organic personal care products. Also serves healthy dining with regionally inspired foods and beverages.

Financial Analysis of the Company

Revenue increased from 1481 crores in FY2019 to 1524 crores in FY20. However, it fell to 1087 crores in FY21 due to the pandemic-led restrictions that forced the retailer to shut shop during the lockdown. Restricted timings throughout the year added to their woes. It was the first time the 60-year-old ethnic retailer, known for selling products sourced chiefly from rural areas, posted a loss and sales decline in over two decades.
Net Profit has fallen from Rs. 84.36 crores on March 19 to Rs. 30.69 crores on March 20 and then to Rs. -117.13 crore on March 21.
Adjusted EPS has slumped from Rs. 0.81 on March 19 to Rs. 0.37 on March 20 to Rs. -0.76 in March 2021.
The EBITDA Margin% has slumped from 23.77% in March 2019 to 18.06% in March 2020 and 9.05% in March 2021.

Particulars	Mar 2019	Mar 2020	Mar 2021
Net Sales (in Cr)	1139	1161	659
Total Expenditure (in Cr)	919.10	910.53	604.78
Net Profit (in Cr)	84.36	30.69	-117.13
Adjusted EPS (in Rs.)	0.81	0.37	-0.76
Total Assets (in Cr)	2131	2466	2103
EBITDA Margin (in %)	23.77%	18.06%	9.05%

The Strengths and Weaknesses of the Company Offering Fab India IPO

Leading consumer lifestyle platform focusing on genuine handcrafted and organic products blending indigenous craft techniques with contemporary designs. With consumers becoming more aware of products that address environmental concerns and social integration, the company has an advantage over its competitors.
With a customer base of over 4.32 million, Fab India is distinctively positioned to leverage emerging trends in the lifestyle, food, and wellness segments thanks to the strength of its organic, sustainable, and natural products.

Fab India has an extensive supplier community and supply chain infrastructure to gain a competitive advantage. As of March 2021, the team consisted of 50,000 artisans from 109 districts spread across 21 states, direct access to over 2200 farmers, and indirect access to 10,300 farmers via associates from 11 districts spread across 5 states.

Omni-channel retail network of 311 stores across 118 cities in India, 14 international stores, and 74 Organic India stores to provide customers with personalized service and the best digital experience.

Risks

In the event of a COVID-19 pandemic outbreak or resurgence, Fab India’s business, operating results, cash flows, and even the performance of the upcoming Fab India IPO could suffer. As evidenced in the past, due to the pandemic’s disruptions, revenue from operations fell by 29.73% year on year in FY 2021.

Fab India had net cash outflows from operating activities in the past. It may continue to have net cash outflows in the future due to uncertainties such as inflation, regulatory changes, or the recurrence of a crisis. In 2021, net cash outflow (in Rs. Crores) was -6.13; in 2021, it was -111.71 due to the impact of Covid-19.

Certain products are highly susceptible to seasonal variations in demand and pricing, which may result in stocking too much inventory, resulting in lower margins than expected.

Fab India and Organic India sell small amounts of their products to countries like Myanmar, Turkey, Russia, and Ukraine, specifically targeted by US sanctions. Any change in US laws can jeopardize the company’s business.

The Objective of Offering Fab India IPO

The company has proposed three primary goals for offering Fab India IPO-

For voluntary redemption of Non-Convertible Debentures (NCD) aggregating to Rs. 250 Crores along with the accrued interest.

Prepayment or scheduled repayment of a portion of Fab India outstanding borrowing aggregating to Rs. 125 crores and the accrued interest thereon.

General Corporate purposes

Should You Invest in Fab India IPO or let it pass?

Suppose you are considering investing in Fab India IPO. In that case, you must first evaluate the factors affecting its performance, like the company’s financial status, growth opportunities, sectoral performance, and market dynamics.

Fab India Ltd has a strong market position and a well-known brand with a large customer base. It employs a fully integrated supply chain model, working with contract manufacturers directly engaged with artisans and managing the entire value chain. This integrated supply chain model offers superior visibility and agility, making it easier for the company to be nimble and respond quickly to changing designs and trends.

However, we must not overlook how the pandemic has impacted its profits, revenue, and cash flows. It will be interesting to see how the company plans to fix its valuation and issue a price band once the final prospectus/ Red Herring prospectus of Fab India IPO is made public.

2022 was bittersweet for IPOs, as markets experienced a sharp correction and several companies reached new milestones. Given the geopolitical tensions, rising inflationary fears, and less-than-impressive IPO performance in the past, predicting how the Fab India IPO will fare is difficult.

Disclaimer*: The numbers mentioned in this article are for information purposes only. He/she should not consider this a buy/sell/hold recommendation from Research & Ranking. The company shall not be liable for any losses that occur.

FAQs

What are the Fab India IPO allotment dates?

The company has yet to announce the exact allotment dates for the Fab India IPO once its DRHP has been approved by SEBI.

Who is the Fab India IPO’s registrar?

Link IntiIPO’sdia Pvt. Ltd is the registrar of Fab India IPO.

When will my order be placed if I pre-apply for Fab India IPO?

Pre-applying lets you apply for the Fab India IPO two days before the subscription period begins. Your order will be processed as soon as the Fab India IPO bidding begins. You will also receive the UPI request within 24 hours of the bidding period starting.

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January 25, 2023

EbixCash IPO: All You Need To Know About Its Indian Dalal Street Debut

NASDAQ-listed Ebix Inc’s Indian arm has applied for an IPO. This article will thoroughly analyze EBIXCash, including its business, operations, promoters, and financial standing. This analysis may help you decide whether to subscribe or not.

About EBIXCash

Ebix Inc, a US-based company headquartered in Atlanta, has grown over the years into a diverse corporation with operations in multiple countries and continents. Originally incorporated as Delphi Information Systems in 1976, the company went public under that name in 1987.

The company struggled financially until Indian-American businessman Robin Raina became involved as VP in 1997 and was later promoted to President and CEO in 1999. Under Raina’s leadership, the company has seen tremendous growth in revenue and profit, and he now owns 13.9% of the company.

EbixCash is a sister company of Ebix, a leading fintech company that provides a wide range of financial services, including money transfer, foreign exchange, travel, insurance, and e-commerce. The company has a strong presence in over 60+ countries across the globe.

EbixCash leverages technology to provide fast, reliable, and convenient financial services to individuals, small businesses, and corporations. With a focus on innovation and customer satisfaction, EbixCash is constantly expanding its offerings and exploring new opportunities to serve its customers better.

EBIX IPO Details

EbixCash Limited is a fintech company that offers a range of digital products and services, including payment solutions, financial technologies, travel, and business processing outsourcing services.

The company leverages its integrated business model and technology to provide a comprehensive platform for its customers, combining the advantages of B2B, B2C, and B2B2C models.

It utilizes a “phygital” strategy combining physical distribution outlets with a digital platform for a smooth customer experience.

EBIXCash, which has its headquarters in Delhi, India, filed a DRHP with SEBI on March 9, 2022, for new issuance of 6,000 crores.

Category-wise Percentage of shares offered

Shareholding Pattern

Mr. Robin Raina is the Chairman and Non-Executive Director, holding a 14% stake in the holding company, with major investors like Blackrock and Vanguard also holding a stake.

What does EbixCash do?

EbixCash Limited offers various payment solutions, including domestic and international money transfers, foreign exchange, and prepaid/gift cards. The company mainly generates revenue from commissions and transaction fees. Although COVID-19 affected one quarter of the financial year 2020 negatively, the remaining three quarters were relatively unaffected.

The firm offers various travel-related services, both B2B and B2C. These include corporate travel services, bookings through VIA.com, MICE, and luxury travel services and products. The company has over 2,200 employees, a network of 212,450 agents, 25 branches, and over 10,000 corporate clients.

Products & Services

The company provides financial technology products and services through EbixCash Financial Technologies. It offers on-demand software technology services for clients in wealth, insurance, asset and lending management, travel, and bus exchange channels. It has adopted a backward integration approach to offer end-to-end technology services that allow them to retain clients and cross-sell other services and products.

They also provide BPO services to clients across India, offering customer retention and customer experience services such as inbound/outbound contact call centers, email, chat, and social media contact centers, feet on the street, and last-mile delivery services, hiring, onboarding, payroll, and human resources helpdesk services, and IT, digital transformation services like knowledge management, application development, and infrastructure management.

It has a list of key clients, including HDFC Bank. The company serves over 25 large companies in India, with an average tenure of more than nine years.

Additionally, it actively evaluates small businesses and start-ups for acquisition or partnership opportunities, which has previously provided opportunities for the company to invest in start-ups such as AHA Taxis to invest in asset-light technology start-ups that offer a strategic position in emerging sectors such as agritech, fintech, health tech, insuretech, and wealth tech.

Financial Health

The largest segment is Payments which includes Domestic Remittance, Forex, International Remittance, and Pre-paid Cards. It largely generates revenue based on commissions and transaction fees in each case. Payments account for 77% of the business as of H1FY22 compared to just 12% in FY19.

Strengths of ECL

EbixCash Limited (ECL) is a technology-enabled provider of digital products and services that serves customers’ needs across their entire digital journeys. The company’s integrated business model combines the advantages of B2B, B2C, and B2B2C models within a single platform.

The company uses an Omni channel approach through online and offline distribution networks to provide a broad range of services to clients, corporates, and end-users.

It develops, deploys, and typically has end-to-end control over all the aspects of its products, including technology and customer experience, resulting in many touchpoints for consumers and back-end entities, ensuring high customer stickiness.

The company operates in regulated industries such as payment solutions, forex, remittance, bill payments, insurance, and travel and is required to obtain and maintain certain licenses. As of December 31, 2021, it had licenses to operate in payment solutions, forex, remittance, and bill payments.

ECL has a history of acquiring complementary businesses and integrating them into its ecosystem. It leverages its approach to centralize costs, compliance, and internal systems to achieve growth and improved performance of the newly acquired business.

The company’s highly reputed Board includes members such as former US SEC Chief Economist and Padma Shri Awardee (2020) Sriprakash Kothari, former BSE’s Chairman and current Tourism Finance Corporation of India chairman Sethurathnam Ravi, former deputy managing director of the Corporate Accounts Group at SBI, Sunil Srivastav, former RBI’s executive director Uma Shankar, and former Alight Solutions LLC India managing director Pavan Bhalla.

Opportunities ECL Has

Key segments like Prepaid cards and domestic remittance are expected to grow 12-13%, and pre-paid cards market has grown significantly post covid.

COVID-19 resulted in a reduction in the demand for forex and remittance services. But, over FY20-21, it experienced significant growth in pre-paid cards business in retail and corporate segments leading to remarkable revenue growth in the last 2 years.

Threats EBIXCash Faces

EbixCash Limited operates in highly competitive industries and faces challenges in staying ahead of the curve by introducing new products and services. As the company has limited experience in offering these new products and services, it cannot guarantee that they will be profitable.

Additionally, the company may not be able to successfully diversify its product and service offerings or enter into new lines of business, which could impact its prospects and financial performance. EbixCash Limited may also struggle to keep up with rapid technological changes by developing new products and services that meet the needs of its customers.

The industries in which EbixCash Limited operates are highly competitive, and its ability to compete effectively is vital to its growth strategy. The company operates in a market sensitive to price and is subject to pressure from customers to lower its services and solutions fees. It could decrease margins and impact the company’s operating results.

Acquiring other businesses may disrupt ECL’s current operations, divert its resources, and require significant management attention that would otherwise be devoted to the ongoing development of its current business.

It may need to make additional capital investments or undertake remediation efforts to ensure the success of the acquisitions, which could reduce the benefits of such acquisitions.

ECL may need to use a substantial amount of cash or issue debt or equity securities to complete an acquisition or realize the potential of an alliance. Doing so could deplete its cash reserves and/or dilute the existing stockholders. All these risks could significantly impact the company’s financial performance.

The company plans to use the net proceeds from this offering to undertake inorganic growth, but the target for this growth has not been identified yet. The company may seek alternative funding if the net proceeds are insufficient to fund the proposed acquisitions and other strategic initiatives.

The IPO cash will be used for the following:

A share of the money will help the subsidiaries Ebix Travels Private Limited and EbixCash World Money Limited satisfy their working capital needs.
ECL will compulsorily buy convertible bonds from Ebix Asia Holdings Inc. in Mauritius with the money from the IPO.
They plan to use the funds to finance strategic purchases, investments, and corporate activities.

Should You Subscribe to EBIX IPO or Not?

IPO investments are subject to market risks. You must research the company and understand your risk tolerance before investing.

Final Words

Ebix IPO presents an opportunity for investors to gain exposure to the company’s diverse operations and strong growth potential, but it also carries risks such as competition and acquisition execution.

FAQs

When is the EbixCash IPO taking place?

The exact date of the EbixCash IPO has not been announced yet. The company is expected to go public around March 2023.

What is the price of the EbixCash IPO?

The price of the EbixCash IPO has not been announced.

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January 20, 2023

Mankind Pharma IPO: All You Need To Know

Mankind Pharma, a company known for its brands Manforce and Prega News, will launch its IPO soon. We have a full review of Mankind Pharma, including what the firm does, the promoters, the company’s financials, and how the company expects to use the money from the public offering. Understanding these facts could help you decide if you should subscribe or pass.

About Mankind Pharma

Mankind Pharma Ltd is a significant player in India’s pharmaceutical industry, coming in fourth for domestic sales and second for sales volume during the 2022 fiscal year. They research, produce, and sell a range of pharmaceuticals and consumer healthcare goods to meet acute and long-term requirements. With a strong emphasis on the local market, the bulk of their income – 97.60% – came from activities in India during the fiscal year 2022, making them one of the most successful firms in this respect among their peers.

Mankind Pharma IPO Details

Mankind Pharma, the biggest pharmaceutical company in India, is planning to launch an initial public offering (IPO) with a 100% offer for sale or book-built issue. The table below contains all the details about the Mankind Pharma IPO.

Category-wise Percentage of shares offered.

What is the objective of the Mankind IPO?

The net proceeds from the issue will be used to
• Pay the Selling shareholders their share
• Enjoy the benefits of listing on the Stock Exchanges

Upcoming IPOs in 2023

Mankind Pharma Business Analysis

Research and development are one of Mankind Pharma primary business sectors. This sector is responsible for researching and developing new pharmaceutical products and enhancing those already on the market. This is an essential business component since it enables them to stay one step ahead of the competition and offer cutting-edge therapies.

Manufacturing is another crucial aspect of business for Mankind Pharma. The company’s medicinal items are produced in this department. The whole manufacturing process is covered, from raw materials to completed goods. Production of both generic and exclusive items is included in this.

Sales and marketing make up Mankind Pharmaceuticals’ third line of operation. The items of the business are promoted and sold in this region. This covers sales, public relations, promotions, and advertising. The marketing and sales team collaborates closely with the research and development team to ensure that the products are efficiently promoted to the appropriate target market.

Furthermore, a distribution network is also present for Mankind Pharmaceuticals. The company’s products are delivered to clients via this department. Hospitals, merchants, and wholesalers are included in this. T dIn addition, this division manages inventory levels, logistics, and shipping for the company’s goods.

Mankind Pharma Primary Products

The business offers a variety of condoms under the Manforce brand. Manforce placed first in the male condom category for domestic sales in the Financial Year 2022, with a market share of around 30.2%.

Prega News is a simple-to-use home pregnancy screening tool that uses urine samples to identify pregnancies. Prega News rated first in the pregnancy test kit category for Domestic Sales in the Financial Year 2022, with a market share of around 80.1% as of March 31, 2022.

Ayurvedic oral antacid powder with many flavors, called Gas-O-Fast, is intended to treat acidity, heartburn, and indigestion symptoms. Gas-O-Fast placed fifth in the molecular category in domestic sales for the Financial Year 2022, with a market share of almost 4.0%.

Unwanted-72 is an emergency contraceptive pill to prevent unwanted pregnancies due to unprotected intercourse or contraceptive failure. To be effective, the medication must be taken within 72 hours following sexual activity.

Unwanted-21 Days, a birth control tablet, is part of this contraceptive line. As a result, unwanted-72 led the emergency contraception market in domestic sales for the Financial Year 2022, with a market share of almost 59.2%.

AcneStar is a clindamycin, nicotinamide-containing anti-inflammatory and anti-bacterial gel used to treat acne. With a market share of around 13.2% in the category of acne preparations for the Financial Year 2022, AcneStar placed second in domestic sales.

The prescription market includes products for high blood pressure (Amlokind), antibiotics (Moxikind-CV), vitamins (Nurokind), and other products.

Financial Health – Mankind Pharma IPO

Mankind Pharma Ltd is a domestic-focused pharmaceutical company with significant growth potential. The company’s market share in the Indian pharmaceutical market (IPM) increased by 0.4% between 2020 and 2022, from 4.0% to 4.4%, making it the fastest-growing among the top 10 corporates in the IPM by Domestic Sales.

The Government of India has implemented Production Linked Incentive (PLI) schemes to promote domestic manufacturing of critical key starting materials, drug intermediates, and APIs, which will help to reduce India’s dependence on imports and support the growth of domestic-focused businesses like Mankind Pharma.

Domestic Sales for Mankind Pharma grew at a CAGR of 16% between 2020 and 2022, outperforming the overall IPM growth in domestic sales by 1.5 times. As a result, they aim to continue increasing their presence in the IPM and have a market presence of approximately 64% of the IPM in terms of Domestic Sales for 2022.

Additionally, Mankind Pharma has established several consumer healthcare brands in various categories, such as condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements, and anti-acne preparations.

Mankind IPO -The threats

Quality control or manufacturing issues may harm the company’s reputation, lead to regulatory action, and result in litigation or other liabilities.
The pharmaceutical and consumer healthcare industries are highly competitive. Therefore, if the company cannot compete effectively, it could lose market share and see a decline in revenues and profits, negatively impacting its business.
Damage to the company’s brands, product image, or reputation could negatively impact market recognition and trust in its products.
Identical products in the market could damage the reputation of the brand.
Disruptions, slowdowns, or shutdowns in the manufacturing or R&D operations could harm the company’s business, financial condition, cash flows, and results of operations.

Should You Subscribe to Mankind Pharma IPO or Not?

IPO investments are subject to market risk research. Please study the company and understand your risk tolerance before investing.

Final Words

In conclusion, Mankind Pharma Limited is a domestic-focused pharmaceutical company with significant growth potential in the Indian Pharmaceutical market as of 2022. The company has several consumer healthcare brands in different categories and is planning to go public by issuing shares to the public through an Initial Public Offering (IPO).

However, like any other investment, there are risks involved, such as intense competition in the pharmaceutical industry, issues with quality control, potential damage to the company’s reputation and brands, and disruptions in manufacturing or R&D operations. It is essential to conduct thorough research and consider these risks before investing in an IPO.

Disclaimer: The numbers mentioned in this article are for information purposes only. He/she should not consider this a buy/sell/hold recommendation from Research & Ranking. The company shall not be liable for any losses that occur.

FAQs

Has Mankind Pharma been publicly traded?

Mankind Pharma will be listed on both the NSE and the BSE.

When is Mankind Pharma IPO going to happen?

The IPO will begin on the 25th and end on the 27th of April 2023.

What is the Mankind IPO’s minimum order quantity?

The minimum lot size is 13 shares for the IPO, and the minimum investment is Rs. 13,338

What is the issue size of the Mankind Pharma IPO?

The IPO is an OFS (offer for sale) of 40.06 million shares with a face value of Rs. 1 per share, totalling to Rs. 4326.36cr.

Who is the registrar of Mankind Pharma IPO?

KFin Technologies Ltd. is the registrar for Mankind Pharma.

What is the price band of the Mankind Pharma IPO?

The price band of the IPO is ₹1026 to ₹1080 per share

What is the allotment date for Mankind Pharma?

The 3rd of May is the allotment date for Mankind IPO

How to apply to the Mankind Pharma IPO?

To apply for the IPO, follow the steps given below
Login to your Demat account and select the issue under the IPO section
Enter the number of lots and price at which you wish to apply for
Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
You will receive a mandate notification to block funds in your UPI app

Who are the promoters of Mankind Pharma IPO?

Ramesh Juneja, Rajeev Juneja, Sheetal Arora, Ramesh Juneja Family Trust, Rajeev Juneja Family Trust, and Prem Sheetal Family Trust are promoting the Mankind Pharma IPO.

What is the objective of the Mankind IPO?

The net proceeds from the issue will be used to
• Pay the Selling shareholders their share
• Get the benefits of listing on the Stock Exchanges

Read more: About Research and Ranking

January 16, 2023

Aadhar Housing Finance IPO: Should You Buy Or Drop?

With their IPO, India’s leading private player in the fastest-growing subsegment of affordable housing is about to enter the stock markets. According to the latest filing with SEBI, the company intends to raise an aggregate of Rs. 3000 crores through its Initial Share Sale.

Aadhar Housing Finance Ltd, with the motto “Ghar Banega Toh Desh Banega,” is a leading provider of affordable housing solutions across India. With a robust technological edge and lofty goals, the Company has decided to foray into the bourses with an upcoming IPO.

As in the previous two years, the IPO market is expected to be hot in 2023. Rising business interest, rapid digitalization, strong listing performance, or a steady increase in investor participation can account for the buoyancy in the market.

Several companies, from unicorns to tech startups and healthcare to finance banks, have announced plans to go public this year. One such company is Aadhar Housing Finance Ltd, which is all set to raise Rs. 3000 crores by combining a fresh issue and an offer for sale.

Let us glance at the Last 3 Years’ IPO Performance-

In FY 20, the large IPOs (with issue size > 15 billion) have been the best performers with the highest average listing gains-

This article will provide a comprehensive overview of the Aadhar Housing Finance IPO, allowing you to make an investment decision.

Aadhar Housing Finance Ltd IPO Details

Aadhar Housing Finance Ltd filed its Draft Red Herring Prospectus (DRHP) on 24th Jan 21 with the market regulator SEBI to launch a mega IPO of Rs. 7300 Crores. The Company targets to raise this aggregate corpus through a combination of Fresh issues worth Rs. 1500 Crores and the secondary issue of shares worth Rs. 5800 Crores from existing shareholders.

The Aadhar Housing Finance IPO is the first in the last five years of an Indian portfolio company backed by Blackstone, a US-based private equity behemoth.

IPO Status	Approved
IPO Date	8th to10th May, 2024
Total IPO Size	₹3,000.00 Cr ( Fresh issue – Rs. 1000 and OFS – Rs. 2000 cr)
No. of Shares for IPO	47 shares
Issue Price Band	₹300 to ₹315 per share
IPO listing at	BSE and NSE
Face Value per Equity Share	8th to10th May 2024
Issue Type	Book Built Issue IPO

About Aadhar Housing Finance Ltd Company

Aadhar Housing Finance Ltd is an unlisted public limited company owned by U.S. investment giant Blackstone. This Company, headquartered in Bangalore, has an Authorized share capital of Rs. 500 Crore and a Paid-up capital of Rs. 395 Crore.

Company	Shareholding %
BCE Topco VII Pte Ltd	98.72
ICICI Bank Ltd	1.18
IEPF Authority	0.03
Other Resident Shareholders	0.07

Aadhar Housing Finance Ltd employs over 2700 people and operates through a network of 341 branches and offices across India. The housing finance company has expanded to 20 states and union territories and has been titled “The Best Brand 2021” by The Economic Times.

Aadhar Housing Finance Ltd is the largest Housing finance company serving the low-income housing market, with an AUM of Rs. 14778 (as of March 31, 2022). The Company boasts best-in-class metrics, with a 10.9% increase in gross AUM and a 12.6% increase in loan disbursements.

Key Business Offerings of Aadhar Housing Finance Ltd

The Company offers a broad array of mortgage-related products that include-

Home Loan For Self-Employed/ Business Class/ Salaried Employees
Loans for Improvement/ Construction/ Extension
Loans against Property (LAP)
Loans for Purchase of Residential/ Non-Residential Property

Financial Analysis of Aadhar Housing Finance Ltd

Due to lower penetration and less competition in this small ticket size ( <15 Lacs) home finance, the Company focused on low-income growth and recorded an increase in AUM of Rs. 14778 Crore in FY 22.
Due to a drop in incremental cost of funds from 8.15% to 7.23%, a sharp rise in Net Profit Margins (NIM) can be seen.

Net Worth/ Total Equity and ROE % have improved over the last three years.

Aadhar Housing Finance Ltd. has shown a robust growth of 30.8 % over the last financial year in Profit After Tax (PAT).

Increasing trends in key financial metrics such as earnings per share (EPS), revenue from operations, and ROE percentage suggest the Company’s good health.

In FY 2022, the Company delivered a strong Return on Assets (ROA) of 3.18% and a Return on Equity (ROE) of 15.23%, compared to 2.62% and 13.49% in FY 2021.

	31st Mar 20 (in Crores)	31st Mar 21(in Crores)	31st Mar 22 (in Crores)
AUM	11,432	13327	14778
Income	1372	1550	1693
PAT	189	340	445
Net Worth/Total Equity	2347	2693	3145
ROE%	11.81%	13.49%	15.23%

Upcoming IPOs in 2023

The Strengths and Weaknesses of Aadhar Housing Finance Ltd

Strengths

Because of the wide geographical presence, there is a low concentration of risk exposure, and no single state adds more than 15% AUM value.

With an average ticket size of Rs. 8.75 Lacs, 100% secured retail advances are available. Meets the RBI/priority NHB’s sector lending requirements.

Significant growth in collection efficiency over the last year, from 91% in April to 104% on March 22, is testimony to well-integrated and efficient systems for underwriting, collections, and asset quality monitoring.

The high share of loans to salaried employees—61.5% of the Company’s AUM—demonstrates that salaried employees are more economically resilient and contribute to the Company’s stability.

Risks

Housing Finance Companies are sensitive to changes in interest rates and prudential norms laid down by RBI/NHB. Other risks surrounding HFCs are Credit Risk, Liquidity Risk, Cash Management Risk, and Collateral Risk.

The percentage of Retail NPA on AUM has increased over the years. If not checked, it may adversely affect the Company’s financial health.

The continuous impact of the pandemic led to an increase in customer delinquency.

	31st Mar 20	31st Mar 21	31st Mar 22
RETAIL NPA(%)	0.82	1.07	1.45

Objectives of Aadhar Housing Ltd IPO

Through IPO, Aadhar Housing Finance Ltd aims to access cheaper funds to sustain cost-efficient long-term financing. This will also help the Company reduce its overall borrowing costs, thereby increasing profit margins.

Aadhar Housing Finance Ltd.’s debt-to-equity ratio has been reduced from 3.85% in 2021 to 3.39% in 2022, indicating the Company’s intention to expand its capital base.

Should You Buy Aadhar Housing Finance IPO or Let it Pass?

Though financial ratios enhance positive sentiment for purchasing Aadhar Housing Finance IPO, they do not eliminate financial companies’ susceptibility to potential risks. Increasing NPA levels can potentially dent the Company’s revenue and PAT.

Any potential downgrade in Aadhar Housing Finance Ltd. can increase the lending rates for new debt, damaging its net profit margins.

The strong parentage of Aadhar Housing Finance Ltd from Blackstone Inc. and government policies supporting affordable housing loans could aid the company’s growth after capital infusion. However, given geopolitical tensions, frequent rate revisions by the RBI, and high inflation, it may be challenging to make reliable predictions about the IPO’s performance.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

When is Aadhar Housing Finance IPO expected to be listed on the stock markets?

These details are yet to be finalized.

Where can I check the Allotment status of the Aadhar Housing Finance IPO?

You can check the status of the IPO on the NSE website or the website of the Registrar and Transfer agent.

Read more: About Research and Ranking.

January 6, 2023

Tata Technologies IPO: Date, Price, Review & Details

November 10, 2025

In 2022, India saw an overwhelming response in terms of IPO volumes but a sizable slowdown in overall proceeds by almost 56% compared to 2021. On the other hand, 2022 had a bright spot, with one of the largest IPOs, Life Insurance Corporation, raising $ 2.7 billion. Amidst stymied investor sentiments due to weak market scenarios and dismaying post-IPO performances, the Tata Technology IPO announcement popped up.

IPOs and IPO Performances

Tata Technologies Share Price and Updated IPO Details

Tata Motors subsidiary Tata Technologies filed an addendum on 4 October 2023 with SEBI to its DRHP. According to the addendum filed with SEBI, Tata Tech, one of the most-awaited IPOs on the Street, will now have 9.57 crore shares in its planned initial public offering (IPO) with a face value of ₹2 per share.

The Tata Motors subsidiary filed the DRHP (draft red herring prospectus) on 10th March. The Tata Technology IPO structure may include an Offer for Sale (OFS) and new shares.

Tata Motors, which has a 74.69% stake in Tata Tech, will sell up to 81.1 million shares or 20% stake in the company, while Alpha TC Holdings will sell 9.7 million shares and Tata Capital Growth Fund I will sell 4.9 million shares. The company will disclose granular details of the IPO once SEBI approves the DRHP.

The company has reserved a quota for employees whose maximum bid amount must be under Rs. 5 lakh and a Tata Motors shareholders’ quota where the maximum bid amount will be Rs 2 lakh. The company has engaged financial institutions such as JM Financials, Citi, and BofA Securities to assist in the IPO process.

Tata Motors Share Price

Tata Steel Share Price

Tata Power Share Price

TCS Share Price

Tata Tech IPO Details

IPO Status	Approved
IPO Date	November 22 -24, 2023
IPO Size	₹3,042.51 Cr (OFS of 60,850,278 shares )
Issue Price Band	₹475 to ₹500 per share
IPO listing at	BSE and NSE
Face Value per Equity Share	Rs. 2/- (after the corporate action in Jan 2023)

Investor Share of IPO

QIB	50%
Retail Investors	35%
HNIs	15%

The Utilization of the IPO Proceeds

Tata Technologies will not receive any proceeds from the Offer for Sale from the Selling Shareholders. Each Selling Shareholder will get their respective proportion of the proceeds after deducting their portion of the offer-related expenses and the relevant taxes.

On December 12, 2022, Tata Motors approved the Board of Directors’ decision to divest a portion of its stake through the Tata Technologies IPO. Tata Motors, the parent company, owns 72.48% of Tata Ltd., according to the company’s Annual Return for 2021-22.

Tata Elxsi Share Price

Tata Chemicals Share Price

Tata Consumer Product Share Price

Life Story of Ratan Tata

Shareholding Pattern of Tata Technologies

Let us explore if the news of Tata Technologies IPO will successfully revive dwindling investor sentiment or will fade away with time. In this article, we will delve deeper into the fundamental analysis of the company, including its line of business, financial performance, and so on. It will help you in taking your final call on Tata Technology IPO.

Upcoming IPOs in 2023

About Tata Technologies Ltd Company

Tata Technologies Limited, a subsidiary of Tata Motors, existed in 1989. In 1994, the wholly owned subsidiary of Tata Motors was spun off as an individual business unit with 17 delivery centers across the globe. It is headquartered in Singapore with regional HQs in Pune, India, Warwick in the UK, and Detroit in the US.

The CEO, Warren Kevin Harris, leads the company, which is about to debut on the bourses with Tata Technologies IPO. Tata Technologies is leading the global electric vehicle revolution to align itself with changing consumer preferences.

The company used proven methodologies to become a leading product engineering and digital services company. To develop sustainable solutions, it offers original equipment manufacturers (OEMs) in the aerospace, engineering, automotive, manufacturing, and IT industries.

With a diverse talent pool from 18+ countries, Tata Technologies Ltd is a public Limited company with an Authorized share capital of Rs. 60.70 Cr and Paid capital of Rs. 41.81 Cr as of March 31, 2022. Tata Technologies has a cumulative global workforce of 9300+ employees servicing 100+ international clients across 17 Asia-Pacific, Europe, and North America delivery centers.

Business Segments

Tata focuses on four key industries:

Automobiles
Aerospace
Industrial Machinery
Industrials

Its services and areas of expertise include:

Engineering, Research, and Development (ER&D) services
Digital Enterprise Solutions (DES)
Education Offerings
Products and Value-added Reselling

Key Business Highlights

Tata Technologies confirmed a 47% increase in revenue and a 74% boost in profits after tax in FY22, the best-ever YOY growth.

Tata Technologies likely will benefit from OEMs’ increasing investment budgets in R&D, automation, digital, and cloud technologies. The global engineering research and development market is expected to grow by 11% CAGR to $1.9 trillion by 2023.

It ranked in the Automotive ER & D 2021 leadership zone for providing turnkey solutions in end-to-end Electric Vehicle manufacturing, lowering manufacturing costs.

Financial Analysis of Tata Technologies Limited

The company has been debt-free for the last three years and has a strong balance sheet with cash of Rs.7.8bn as of March 2021. The receivables have increased in the previous few years, increasing working capital.

While revenue growth has been tepid over the last 5 years mainly due to a slowdown in R&D spending in the global automotive space, which also impacted operating margins, it has maintained margins over 15%.

Revenue for FY21 primarily decreased due to the impact of the COVID-19 pandemic and the overall slowdown in the auto industry in general and China in particular. However, Tata Technologies has maintained decent RoE and RoCE numbers in the last 5 years and has been debt-free for the previous 2 years.

For the year ended March 31, 2022, Tata Technologies delivered revenue of USD 473.5 M (INR 3529.6 Cr), with an operating profit of USD 86.5 M (INR 645.6 Cr) and PAT of USD 58.0 M (INR 437.0 Cr). It equated to year-on-year growth of 47% in revenue, 65% in operating profit, and 74% in after-tax profit in USD.

In FY22, Tata Technologies’ operating margin was 18.3%, up 200 basis points from the FY21 operating margin of 16.3%, while the cash balance increased from $115 M to $165 M, a 43% increase yearly.

The Services order book increased to $250 million as of 31-Mar-22, a 29% uptick over the Services order book as of 31-Mar-21. Their Days Sales Outstanding (DSO) reduced from 95 days in FY21 to 77 days in FY22.

What made Tata Motors consider Tata Technologies’ IPO?

The Board of Directors gave in-principle approval to sell a portion of its stake in Tata Technologies Ltd through an IPO. Some of the factors driving

Tata Technology Ltd derives a significant portion of its total revenue from captive accounts such as Jaguar and Land Rover. The non-captive accounts share increased to 64% in FY 2022, up from 46% in FY 2020. As a result, it reduced the over-reliance on captive accounts (TML and JLR) for revenue generation.

Tata Motors could not build and deliver Jaguar Land Rover vehicles despite high demand due to a shortage of semiconductors.
Tata Motors posted a net loss of Rs. 945 Crore in Q2, the seventh consecutive quarter of net loss. Tata Motors’ net auto debt, including leases, increased by 19% to Rs. 48,679 crores in 2022.
Tata Motors has set a lofty goal of achieving near-zero net automotive debt by 2024. It could be accomplished by selling some non-core assets. The proceeds of Tata Technologies IPO are expected to assist the automaker in recouping its losses.

In 2018, Tata Motors dropped a $360 M deal with Warburg Pincus to sell its 43 % stake in Tata Technologies. The company cited inordinate delays in regulatory approvals from SEBI for dropping the deal.

Increased emphasis on non-automotive sectors to develop a roadmap to reduce its exposure to the global uncertainties that dominate the auto industry. Changing the revenue mix with an idea to earn consistent revenue in the future.

What’s Next?

Forecasting the success of the Tata Technologies IPO is impossible. It would be subject to market volatility, regulatory clearances, statutory approvals, and other critical considerations.

Despite the pandemic’s inflationary pressure and extreme challenges, Tata Technologies has delivered stellar results and piqued investors’ interest. In recent years, Tata Technologies Ltd has served up record revenues, operating profits, and profit after tax (PAT). Not only has the company outgrown its operating margins, but it has also generated significant cash flow.

Tata Technologies’ electric vehicle solutions have helped reduce product development time by almost 30%. Tata Technologies Ltd has garnered many awards and accolades that testify to its ability to withstand global competition. At the Economic Times ET Brand Equity Award for the best B2B Marketing campaign, Tata Technologies Ltd qualified for Gold, which endorses the brand value of Tata Group. Tata Group is India’s most valuable brand. It ranked 86th in the Brand Finance Global 500 list, clocking an impressive 12% jump from the previous year.

Despite the above accomplishments, the future of Tata Technology IPO cannot be predicted with certainty due to geopolitical tensions, interest rate hikes, market volatility, and the ongoing semiconductor crisis.

FAQs

When will the Tata Technologies IPO launch?

The specifics of the IPO and Tata Technologies Share Price details have been revealed. The IPO will be on between November 22 and 24, 2023

Is Tata Technologies Share Price listed on a Stock exchange?

No, not yet. Tata Technologies Ltd is a subsidiary of Tata Motors, which has decided to raise funds for future growth will be listed on the market will list by 5th December 2023.

Read more: About Research and Ranking

November 4, 2022

Sula Vineyards IPO – Should You Subscribe Or Not?

Sula Vineyards – In 2021, it rained IPOs like there was no tomorrow. Then came 2022, and the IPO rush slowed down. To put this into perspective, the same period last year had 44 IPOs debuting on the Indian stock markets, including the new age companies like Zomato, Nykaa, and others. However, in 2022 the number of IPOs listed between January and October is 22, which is 50% less than last year.

We mentioned the reasons for the drying up of IPOs in 2022 in another article titled “Why the IPO Boom Came To An End? Read the Article To Know More”. Does this mean the IPO performance has also been dismal? Interestingly, there is not much difference in the listing day performance of IPOs in 2021 and 2022. Refer to the table below to see the performance

*The IPO period for both years is considered from January to October. Research & Ranking internal analysis

The table indicates that if you had invested in all the IPOs listed between Jan and Oct 2022 and exited on the listing days, you would have made profits 68% of the time.

So, let’s return to the topic of this article, SULA Vineyards IPO – Should You Subscribe or Not. The winemaker has filed the Draft Red Herring Prospectus (DRHP) with SEBI and is awaiting approval.

In this article, we will talk about the details of Sula Vineyards IPO, what the company does, the promoters, the company’s financials, and how the company intends to use proceeds from the public offering. This will give you a clearer idea if you should subscribe or give it a pass.

Sula Vineyards IPO Details

India’s largest winemaker is going for a 100% offer for sale or Book Built issue, and the company will not receive any proceeds from the IPO. If the application goes through, Sula Vineyards will be the first winemaker to list on the Indian markets.

Category-wise % of shares offered.

What does Sula Vineyards do?

Being the producer of alcohol-based beverages, it’s easy to understand Sula Vineyard’s business. The company’s business is broadly divided into two streams – the production of wine and wine tourism.

The winemaker produces 56 different labels of wine, including several well-known brands such as Sula, RASA, Dindori, Madera, and others. The company has production plants in Maharashtra and Karnataka. With market leadership in the burgeoning sector, Sula Vineyards services close to 8,000 hotels, resorts, and caterers in India.

The wine business also includes producing, importing, and distributing wines and spirits. In addition, as a part of its wine tourism business, the company owns two functional vineyard resorts in Nashik, Maharashtra. Sula Vineyards is the inventor of wine tourism in India and is home to the first wine tasting room, winery tours, vineyard resorts, and wine music festival.

Leading the D2C Pie

An interesting fact is that the wine tourism business has opened a D2C (direct-to-consumer) stream to sell wine directly to consumers. The D2C stream generated a whopping Rs. 24.21 crores in FY21. In addition, Sula Vineyards wines are also available on various eCommerce websites, helping it capture a sizeable pie in the D2C stream. As a result, the company recorded the highest D2C sales in the Indian wine industry in FY21.

Financial Health – Sula Vineyards IPO

Sula Vineyards added Rs. 454 crores to its topline and contributed Rs. 52 crores to the bottom line in FY22. A look at the following chart will give you an impression of a drop in revenue; however, the profits have increased.

In the financial year 2021, Sula Vineyard’s revenue dropped around 20% compared to the previous year. The decline can be attributed to the period of COVID-19. However, the numbers recorded in the financial year 2022 indicate that business activities are nearing pre-pandemic levels. Interestingly, despite the decline in businesses, the profits have increased by 425% during FY20-22.

What Will Sula Vineyards Do with IPO Money?

Sula Vineyards intends to carry out a sale of the existing 2.55 crore shares in the IPO. The sellers will be existing shareholders. Since it’s a pure offer for sale, the company will not receive any sum from the money generated from the offer. Instead, the winemaker will distribute the funds with the selling shareholders in proportion to their shareholding.

Should You Subscribe for Sula IPO or Not?

Should You Subscribe for Sula IPO or Not? – SULA Vineyards filed the DRHP with SEBI a few months ago, so the IPO may come anytime soon. From the information available in the DRHP, the winemaker appears to be a good company. However, as mentioned at the beginning of the article, the IPO rush has indeed remained slow in terms of volumes. Still, there is not much difference regarding the listing day performance of the companies’ IPO-ed in 2021 and 2022.

Although no winemaker is listed in India, Sula Vineyards considers United Breweries Ltd., Radico Khaitan Ltd., and United Spirits Ltd. its closest competitors. So, being the first winemaker to get listed gives the winemaker a competitive advantage. Only time can tell how the markets treat Sula Vineyards IPO.

Will Sula pop open a bottle on its listing day? Let us know your thoughts.

As a SEBI registered investment advisor, we cannot recommend a stock(s) for investment without assessing an investor’s risk profile. Hence, subscribe to our investment advisory services to get sound investment advice.

FAQ

What is Sula Vineyards IPO?

A total of 2.54 crore equity shares in Sula Vineyards are being offered for sale by shareholders.

What is Sula Vineyards IPO lot size?

The Sula IPO lot size is 42 shares.

When will Sula Vineyards IPO allotment be available?

The allotment will be done on 19th December, while credit to Demat a/c will happen on 21st December.

What is the minimum subscription lot size for retail investors?

Retail investors must apply for at least one lot of 42 shares.

The Sula Vineyards IPO’s subscription period will begin when.

The subscription will begin on 12th December and end on 14th December 2022.

Read more: About Research and Ranking

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