IPO Archives

Allied Blenders and Distillers IPO: IPO Key Details & Financial Statements

On the weekends, you hang out and drink beer in a club with your buddies. Do you know you can invest in businesses that produce and sell alcohol? Indeed, a corporation is planning an initial public offering (IPO) to list on exchanges. The company is referred to as “Allied Blenders and Distillers.”

In today’s blog, we will introduce you to Allied Blenders and Distillers, a new company planning to go public.

Allied Blenders Company Overview

One of the biggest companies in the alcoholic beverage sector is Allied Blenders and Distillers (ABD). Kishore Chhabria, formerly employed by Shaw Wallace, another Indian liquor producer, founded the business in 1988. The company initially aims to give Indians access to reasonably priced spirits. Launched in 1988, Officer’s Choice whiskey was the company’s initial product, and from 2016 to 2019, it was among the world’s best-selling whiskies in terms of yearly sales volume. As of December 2021, the company exported its goods to 22 nations, including North and South America, Africa, Asia, Europe, and the Middle East.

The company owns a distillery that is 25,000 square feet in build-up size and spans 74.95 acres in the Telangana district of Rangpur. Thirty two bottling facilities are essential to the manufacturing industry; some are run by them directly, while others are contracted. The company’s headquarters are located in Mumbai.

Product Portfolio

The company has a wide range of product portfolios, a description of which is mentioned below-

Whiskey – It features names like Srishti Premium Whiskey, Officers Choice, and famous white whiskey, among others.
Brandy – The has a wide selection of brandy, including Sterling Reserve Premium Cellar Brandy and Kyron Premium Brandy.
Rum – Jolly Roger rum is the product offered by the company.
Vodka – It also offers various vodkas.

Promotors

Kishore Rajaram Chhabria and Bina Kishore Chhabria are the company’s promoters, and they own roughly 52.2% of the company’s shares. Resham Chhabria and Jeetenda Hemdev are the company’s other two largest shareholders, owning about 24.05% of the business.

Details of Allied Blenders IPO Issue

An initial public offering (IPO) by Allied Blenders and Distillers Limited would comprise a 500 crore offer for sale and a new 1000 crore issuance. The minimum lot size determined by the company is 53 shares, and the price range of the issuance is INR 267 to 281.

Allied Blenders IPO Key Details

Face Value of Share	INR 2
Price Band	INR 267 to INR 281
Employee Discount	INR 26 per share
Lot Size	53 Shares
Total Fresh Issue Size	1000 Crores.
Total offer for sale	500 Crores.

Allied Blenders IPO Timeline

IPO Open Date	25^th June 2024
IPO Close Date	27^th June 2024
Basis of Allotment	28^th June 2024
Initiation of Refund & Credit of shares into Demat account	1^st July 2024
Listing Date	2^nd July 2024

Allied Blenders Allotment Size

Applicant	Market Lot	Share	Amount (INR)
Retail (Min)	1	53	INR 14,893
Retail (Max)	13	689	INR 193,609
High Net Worth Individual (Min)	14	742	INR 208,502
High Net Worth Individual (Max)	67	3,551	INR 997,831

Allied Blenders IPO Objectives

The issue’s proceeds will be used for both general corporate operations and the repayment of loans that the company has obtained.

Allied Blenders IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Maximum 50%
NII Shares	Minimum 15%
Retail Shares Offered	Minimum 35%

Allied Blenders Financial Statements

Allied Blenders Balance Sheet

Metric	31^st March 2023	31^st March 2022	31^st March 2021
Current Asset	1,798	1,457	1,410
Non-Current Asset	688	790	887
Current Liabilities	1916	1629	1685
Non-Current Liabilities	165	214	231
Total Equity	406	404	381

(All above figures are in INR Crore unless stated otherwise)

We may deduce from the above table that while non-current assets have been steadily declining over the last three financial years, current assets for the company are on the rise.

Allied Blenders Income Statement

Metric	31^st March 2023	31^st March 2022	31^st March 2021
Total Income	7,116	7,208	6,397
Total Expenses	6,920	7,000	6,184
Profit before tax	5.9	3.8	12.7
Profit after tax	1.6	1.4	2.5

(All above figures are in INR Crore unless stated otherwise)

The company’s total income is increasing each year while the expenses have reduced in 2023 as compared to 2022. Even though total income is increasing, but due to increase in expenses, there are hardly any profits.

Allied Blenders Cash Flow Statement

Metric	31^st March 2023	31^st March 2022	31^st March 2021
CFO	229	178	246
CFI	(18.3)	32.13	(59.3)
CFF	(202.8)	(255.7)	(216)

(All above figures are in INR Crore unless stated otherwise)

According to the above table, the company’s cash flow from operations has increased over the past fiscal year. Cash inflow due to investing activities has turned negative in 2023 and decrease in cash outflow was observed in financing activities in 2023 as compared to 2022.

Allied Blenders Key Performance Indicators

Particulars	31^st March 2023	31^st March 2022	31^st March 2021
Return on Equity (%)	0.39	0.37	0.66
Current Ratio (x)	0.94	0.89	0.84
Inventory Turnover Ratio (Days)	45.13	42.09	53.63
Net Profit Ratio (%)	0.05	0.05	0.11
Debt to Equity Ratio (x)	1.92	2.10	2.50
Basic Earnings Per Share (EPS)	0.07	0.06	0.10

(Source – Company’s DRHP)

Strengths of Allied Blenders

Future growth in the Indian alcohol market is expected to be substantial due to rising disposable income levels among citizens.
When comparing the fiscal year 2023 to the fiscal year 2022, the company’s earnings after taxes grew.
The company can easily compete with the consumer because of its excellent brand recognition.
It provides a large selection of products to meet the needs of different customers.

Weaknesses of Allied Blenders

Businesses may see a decline in market share due to increased competition from domestic and foreign competitors.
Any economic downturn or a shift in consumer purchasing patterns could negatively impact sales and income.
Since the alcohol beverage industry is heavily regulated, any significant changes to government regulations could hurt business performance.
Consumer preferences may alter due to shifting health and lifestyle trends, which lowers the demand for alcoholic beverages.

Read Also: What is the IPO Allotment Process?

Conclusion

Allied Distillers and Blenders offer a fantastic chance to be involved in the expanding alcohol industry. They have declared a profit for the last three fiscal years yet their cash flow from financing and investing activities is negative. The company’s broad selection of alcoholic beverages contributes to the growth of its brand value. However, as we usually advise, consult your financial advisor before making any investment.

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Frequently Asked Questions (FAQs)

When will Allied Blenders and Distillers IPO open?
The IPO for Allied Blenders and Distillers will be open for applications from June 25 to June 27, 2024. Investors can apply within this time frame.
When were allied blenders and distillers established?
The company was founded in 1988.
Is Allied Blenders and Distillers a profit-making company?
The business did report a profit for the preceding three years. It declared a profit of INR 1.601 crore for FY 2023, a YoY increase.
What is the minimum lot size that retail investors can subscribe to?
Retail investors must subscribe for at least 1 lot, or 53 shares, for 14893 INR.
What is the name of the company that offers Officer Choice Whisky?
The Mumbai-based Indian-made international liquor corporation Allied Blenders and Distillers owns Officers Choice, also referred to as OC.

Stanley Lifestyles IPO: Key Details, Financials & Business Model Case Study

Are you ready to see the latest innovative designs and invest in the future of design? Stanley Lifestyles, a leading name in super-premium and luxury furniture in India is about to make its highly-anticipated debut on the Indian stock exchanges. With its rich heritage spanning over three decades, the company is captivating discerning customers with its exquisite craftsmanship and timeless designs. As the company opens its doors to the investors, let us explore the key details of the IPO to learn the opportunities it will present.

Stanley Lifestyles Limited Company Overview

Stanley Lifestyles Limited is a top luxury furniture brand in India, known for its large-scale manufacturing and retail. Sunil Suresh and Shubha Sunil founded a partnership firm called ‘Stanley Seating’ in the year 2007. The company ranks fourth in home furniture revenue in India and uniquely covers super-premium, luxury, and ultra-luxury segments.

‘Stanley Seating’ was converted from a partnership firm to a public limited company in the name of ‘Stanley Lifestyles Limited’ in 2008.

The company initially offered leather upholstery services for top car brands worldwide.

Stanley Lifestyles IPO Details

IPO Date	June 21, 2024 to June 25, 2024
Listing Date	Friday, June 28, 2024
Price Band	INR 351 to INR 369 per share
Lot Size	40 Shares
Total Issue Size	14,553,508 shares
Issue Type	Book Built Issue IPO
Basis of Allotment	Wednesday, June 26, 2024
Initiation of Refunds	Thursday, June 27, 2024

The company offers to utilize the Net Proceeds towards the funding of the following objects:

Expenditure for opening new stores under the formats of “Stanley Level Next”, “Stanley Boutique” and “Sofas & More by Stanley” (“New Stores”);
Expenditure for opening anchor stores (“Anchor Stores”);
Expenditure for the renovation of existing stores under the formats of “Stanley Level Next”, “Stanley Boutique” and “Sofas & More by Stanley” (“Existing Stores”);
Funding the capital expenditure requirements for purchasing new machinery and equipment by the company and Material Subsidiary, SOSL; and
General corporate purposes.

Stanley Lifestyles Business Model

The company makes and sells its products in our stores across India. The company holds 38 Company-owned and company-operated (COCO) and operates them in Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad. These stores are located in major cities. It also holds 24 ‘Franchise-Owned and Franchisee Operated (FOFO) stores that are owned and operated by franchisees in 21 cities spanning nine states and Union Territories in India. Product sales is the primary source of revenue.

Stanley Lifestyles has three different types of stores to meet the preferences of premium customers.

Stanley Level Next, which is for customers looking for ultra-luxury home furnishings.
Stanley Boutique caters to the luxury furniture category.
Sofas & More by Stanley focuses on attracting customers who are interested in high-quality furniture.

The company product categories include:-

Seating: Stanley designs, produces, and sells customisable seating products like four-seater or three-seater sofas with different leg and upholstery options including Scandinavia Max, Euro Nappa / Tuscana Nova Cashmere / Poach Molba.

Cased goods: These are made with a strong outer case, usually wood, which provides durability and beauty, offering storage solutions and a touch of elegance.

Products under cased goods are coffee tables, dining tables, end tables, and consoles.

Kitchen & Cabinetry: These include a wide range of materials, finishes, and styles for our kitchen and cabinetry products. These options are versatile and can accommodate various design preferences and lifestyle needs.

The products include kitchens, wardrobes, laundry & utility, bar units, shoe racks, prayer units, and bedside tables.

Mattresses and Beds: The company makes and sells beds and mattresses. Further, it also sells bedding and bedroom accessories like pillows

Automotive and Others: Stanley designs and manufactures customisable footwear in different sizes, including half sizes, to meet customer needs and provide car seat upholstery services for top automotive brands worldwide.

Additionally, the company imports and sells lighting and switches from other companies using their brand and sells carpets that are outsourced from other local manufacturers under private labels.

Stanley Lifestyles Consolidated Financial Statements

Stanley Lifestyles Balance Sheet

Key Metrics	FY 2023	FY 2022	FY 2021
Total current assets	227	229	209
Total non-current assets	231	192	137
Total current liabilities	104	102	76
Total non-current liabilities	130	113	82
Total equity	223	205	187

(All values are in INR Crore)

Stanley Lifestyles Income Statement

Key Metrics	FY 2023	FY 2022	FY 2021
Total Revenue	425	297	201
Total Expenses	379	265	195
Profit for the year	34	23	1.9

(All values are in INR Crore)

Stanley Lifestyles Cash Flow Statement

Key Metrics	FY 2023	FY 2022	FY 2021
Net cash flow from operating activities	67	28	32
Net cash used in investing activities	(27)	(11)	(3)
Net cash used in financing activities	(41)	(18)	(23)
Cash and cash equivalents at the end of the year	9	10	12

(All values are in INR Crore)

Stanley Lifestyles Key Performance Indicators

KPIs	FY 2023	FY 2022	FY 2021
EBITDA Margin (%)	19.74	20.19	15.21
PAT Margin (%)	8.35	7.95	0.98
Return on Equity (%)	16.29	11.81	1.03
Return on Capital Employed (%)	16.63	12.90	5.52

Competitive Strengths

The brand is the largest and fastest growing in the luxury furniture market.
It offers a wide range of home solutions at different prices.
The company has stores all over India which focuses on innovative designs and manufactures its products.
The company has a successful business model and an experienced management team.

Risks Involved

The company does not own the brand name ‘Stanley’, and is registered in the name of one of its promoters, Sunil Suresh. Although Stanley has already entered into the assignment deeds with Sunil Suresh, the trademarks have yet to be registered in our name.
Not having the necessary approvals, licenses, or permits for the business could harm the company’s financial performance.
Any shortage of leather and wood, which the company needs to make its products, could affect the cash flows of the business since Stanley depends on limited suppliers for the supply of leather, one of its primary raw materials.
The company’s growth strategy involves opening new stores, new stores but managing a large retail network can be complex and may cause issues with store location, staffing, or marketing, impacting profitability.

Conclusion

To sum it up, Stanley Lifestyles Limited has established itself as a leader in the Indian furniture market. A vertically integrated model enables them to have full control over the design, production, and quality of super-premium, luxury, and ultra-luxury furniture. The company’s future relies on managing risks, leveraging strengths, and establishing itself as a top luxury furniture brand in India.

Frequently Asked Questions (FAQs)

What does Stanley Lifestyles do?
Designs, manufactures, and retails super-premium, luxury furniture for homes in India.
Do they only sell goods associated with their brand?
No, Standley also sells products sourced locally from the manufacturers.
Is Stanley Lifestyles a good investment?
This depends on your investment goals and risk tolerance. Carefully consider the company’s financials and the risks, before making a decision.
How much amount do I need to apply for the IPO?
If you are a retail investor, the minimum amount is INR 14,760 for 1 lot and a maximum of INR 191,880 for 13 lots.
What is the expected listing date for Stanley Lifestyle?
The listing date for the company is June 28, 2024.

June 24, 2024

IXIGO, also known as Le Travenues Technology Limited, is an online travel company that started in 2007. It is a one-stop shop for travelers, providing many services. It currently sits as a major player in the Indian online travel market, offering various travel planning and booking services. Recently, IXIGO came out with an IPO.

In today’s blog post, we will learn more about the IXIGO IPO and understand its finances.

IXIGO IPO Overview

Rajnish Kumar and Aloke Bajpai, alums of the Indian Institute of Technology Kanpur (IIT-K), founded the company in 2007. It uses artificial intelligence and data science to improve users’ travel experiences. IXIGO focuses on Indian travellers’ needs, offering features such as cancellation protection for domestic flights.

Business Model of IXIGO

The company’s platform offers booking for train, flight, bus tickets, and hotels. It also provides travel tools and services developed using the company’s algorithms, including train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, alternate route or mode planning, flight status updates, automated web-check ins, instant fare alerts for flights, AI-based travel itinerary partner, and automated customer-based support services.

Some of IXIGO’s platforms are given below:

IXIGO Flights — This vertical was launched in 2007. The idea behind creating the website was to help travellers find the best flight deals and provide accurate travel information. They can then easily buy their tickets from third-party airlines and websites. The website also empowered travellers to conduct thorough research, compare prices effectively, and make informed bookings for their preferred flights at a cost-efficient rate.

IXIGO Trains — In 2013, the IXIGO Trains app was launched for Android to enhance the journey of Indian train travellers. This user-friendly app revolutionised train travel by enabling users to search for train-related information easily.

ConfirmTkt – It is another train-focused mobile app that predicts wait lists and helps with booking. It aims to ensure that users get a confirmed ticket.

AbhiBus – It sells bus tickets by partnering directly with operators or sourcing inventory from bus ticketing aggregators in the country to strengthen its foothold in the bus travel industry.

Hotels — In December 2023, the company launched a hotel booking section on its website and apps, allowing users to search, compare, and book hotels on platforms in India and worldwide. It offers properties in both domestic and international hotels, spanning budget, mid-range, and luxury price points.

Did you know?

IXIGO’s market share in India in the OTA (Online Travel Industry) rail market was 46.15% in FY 2023 and increased from 46.4% in the first half of FY 2023 to 52.4% in the first half of FY 2024.

Revenue Structure of IXIGO

IXIGO sells train tickets as a B2C ticketing agent and has partnered with IRCTC since November 2017. The company generates the majority of revenue from train tickets users buy through the platform. This revenue is received via agent service fees and payment gateway charges.

In addition, IXIGO makes money from ads and by promoting other services like IXIGO Assured Flex, which allows users to cancel train tickets for a small fee and get a full refund before the chart is prepared.

IRCTC charges IXIGO a maintenance fee for each ticket sold, as well as charges for using the enquiry API and promotional activities like showing advertisements, offering cashback, cross-selling, and free cancellation.

Furthermore, IXIGO’s revenue also comes from other bookings like the flight tickets. Flight tickets generate revenue via convenience fees, commission/net rates, rescheduling charges, cancellation charges, and incentives.

Revenue also comes from convenience fees, Abhi Assured fees, and commissions on bus ticket bookings that users book through our platforms.

Did you Know?

In July 2023, IXIGO became the first Online Travel Agency (OTA) in India to launch a generative AI-based travel planning tool.

IXIGO IPO Details

IPO Date	June 10, 2024 to June 12, 2024
Price Band	INR 88 to INR 93 per share
Lot Size	161 Shares
Total Issue Size	79,580,900 shares
Fresh Issue	12,903,226 shares
Offer for Sale	INR 66,677,674 shares
Issue Type	Book Built Issue IPO
IPO Type	Main-Board IPO
Basis of Allotment	Thursday, June 13, 2024
Initiation of Refunds	Friday, June 14, 2024
Listing Date	Tuesday, June 18, 2024

Objectives of the Issue

The company proposes to utilise the proceeds towards the following:

Partially funding working capital requirements of the company;
Investments in cloud infrastructure and technology; and
Funding inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.

Financial Statement Highlights

Balance Sheet

Key Metrics	FY 2023	FY 2022	FY 2021
Total non-current assets	336.64	305.55	114.62
Total current assets	249.26	232.91	70.45
Total equity	387.11	342.68	29.93
Total current liabilities	156.28	136.31	104.27
Total non-current liabilities	42.52	59.46	50.86

(In INR Crores)

Income Statement

Key Metrics	FY 2023	FY 2022	FY 2021
Total income	517.57	384.94	138.40
Total expenses	484.29	402.54	135.69
Profit / (Loss) for the year	23.39	(21.09)	7.53

(In INR Crores)

Cash Flow Statement

Key Metrics	FY 2023	FY 2022	FY 2021
Cash Flow from Operating activities	30.70	(34.34)	(15.18)
Cash Flow from Investing activities	22.01	(221.63)	(10.18)
Cash Flow from financing activities	(2.17)	257.88	13.53

(In INR Crores)

KPIs

Key Ratios	FY 2023	FY 2022	FY 2021
Return on Net Worth %	5.74%	(7.15%)	24.13%
EBITDA Margin	8.70%	(1.81%)	4.44%

Key Insights

IXIGO reportedly showcased high revenue growth from FY 2021 to FY 2023, with a CAGR exceeding 90%, which indicates rapid business expansion.

A net profit of INR 23 crores in FY 2023 suggests effective cost management, demonstrating the company’s ability to sustain growth.

Risks Involved

IXIGO depends on partnerships with travel service providers, especially IRCTC, for train bookings. Changes in partnerships or commission structures can affect revenue.
The company has less experience in certain hotel segments compared to established OTAs. This may limit their growth potential in those areas.
Economic downturns, pandemics, and other external factors can affect the travel industry, severely impacting IXIGO’s bookings and revenue.
The online travel market is highly competitive, with strong companies like MakeMyTrip and ClearTrip. IXIGO has to keep innovating and standing out to maintain its market share.
Despite becoming profitable recently, the company has experienced losses in the past. The key to future profitability is effectively managing costs and sustained revenue growth.

Conclusion

On a parting note, IXIGO has positioned itself as a leading player in Indian online travel, offering a user-friendly platform for travelers to easily search, compare, and book flights, trains, and hotels. Its unwavering focus on technology and meeting the specific needs of Indian travelers has been pivotal in driving its success.

Though the company has its merits, the issue does come with its set of risks. Therefore, it is important to analyse all points before investing in the company.

Frequently Asked Questions (FAQs)

What can I do on IXIGO?
You can search and compare travel options, book flights, trains, and buses, and use planning tools like fare alerts and curated itineraries.
Can I book train tickets on IXIGO?
It is known for its train booking features, including search, comparison and booking options for Indian railways.
What are IXIGO’s strengths?
High mobile user base, second largest online travel agency by revenue in India, strong presence in rail bookings, etc.
Should I invest in IXIGO’s IPO?
This depends on your financial goals. Carefully research company financials and risks before making any investment decisions.
What is the listing date of the IPO?
The expected listing date for the IPO is 18^th June 2024.

AWFIS Space Solutions Limited: IPO Analysis and Case Study

Do you aspire to become an entrepreneur but feel frustrated searching for an office that meets your needs? Whether you are a freelancer needing a quiet corner or a startup seeking a collaborative space, finding the right fit can be difficult. This was the exact problem that led to the birth of Awfis Solutions, a company that has now transformed the Indian workspace landscape. Let us explore the inspiring journey of Awfis Space Solutions and discover their upcoming IPO details.

AWFIS Space Overview

Awfis Solutions is a workspace provider in India focusing on flexible solutions. The company was established in 2015 by Amit Ramani. They cater to diverse clients, from individuals and startups to small and medium businesses (SMEs), and even large corporations. If you need a permanent office setup, Awfis can also provide customised solutions. This allows you to access workspaces in different locations as needed. It aims to create a professional and collaborative work environment through its tech-enabled platforms and premium infrastructure.

AWFIS Space Solutions Business Model

Awfis Solutions offers a variety of office solutions, from individual desks to custom offices, for different types of companies, including startups, small and medium enterprises, and large corporations. Clients can opt for these solutions for periods spanning from one hour to several years.

As of June 30, 2023, the company had 136 centres across 16 cities in India, offering a remarkable 81,433 seats.
Over a while, the company has successfully transformed from a mere co-working space into a highly sophisticated and comprehensive integrated workspace solutions platform.

Moreover, Awfis Solutions has expanded its offerings to include Awfis Connect, a networking and community engagement platform, to foster collaboration and connectivity among our clients. This comprehensive suite of services positions the company as a one-stop solution provider for all flexible workspace needs.

Additionally, the company offers a variety of ancillary services. These services include food and beverage options, IT support services, infrastructure services such as storage and customisation, and event hosting and meeting arrangements.

Workspace Formats

Awfis has two different workspace formats, each with its unique features, branding, target audience, and purpose. These two formats are:

Awfis Value Offerings: It is the company’s core standard format that targets the value customer segment, delivering high-quality designs and infrastructure across key micro-markets in Tier 1 and 2 cities.

Awfis Gold premium Offerings: It includes premium workspace solutions, designed for the company’s discerning customer segment. These workspaces are strategically located across Grade A buildings in the prime micro-markets of Tier 1 cities such as Mumbai, Bangalore, Hyderabad, Kolkata, and Chennai.

The company has implemented two distinct models for obtaining and maintaining workspaces: the Straight Lease (SL) and the Managed Aggregation (MA) Models.

Under the SL model, developers or space owners lease space to flexible workspace operators on traditional leases. These leases have specific market terms and conditions, such as a fixed monthly, rental, common area maintenance charges, security deposit, minimum lock-in period, lease tenure, and escalations.

In the MA model, developers or space owners usually pay for part or all of the fit-out costs, while the operator (if there is one) covers the rest. They might also give up fixed rent for a minimum guarantee and receive a share of the revenue or profit based on pre-arranged terms.

The MA arrangements are generally based on a profit or revenue-sharing model with the space owner and include a minimum guarantee payment, which usually starts between the 5th and 13th month of operations and continues until the end of the contract term.

The company is currently operating in all Tier 1 cities and seven Tier 2 cities, totalling 16 cities and 48 micro markets across India.

AWFIS Space Solutions Key IPO Details

IPO Date	May 22, 2024 to May 27, 2024
Price Band	INR 364 to INR 383 per share
Lot Size	39 Shares
Total Issue Size	15,637,736 shares
Fresh Issue	3,342,037 shares
Offer for Sale	12,295,699 shares
IPO Type	Book Built Issue IPO
IPO Open Date	Wednesday, May 22, 2024
IPO Close Date	Monday, May 27, 2024
Basis of Allotment	Tuesday, May 28, 2024
Initiation of Refunds	Wednesday, May 29, 2024
Listing Date	Thursday, May 30, 2024

Objectives of the Issue

The Company aims to utilise the Net Proceeds towards funding capital expenditure (establishment of new centres), funding the working capital requirements, and general corporate purposes.

Consolidated Financial Statements

Let’s have a look at the financials of the company:

Balance Sheet (in INR crore)

Key Metrics	FY 2023	FY 2022	FY 2021
Non-current Assets	791.97	437.56	357.7
Current Assets	138.62	122.12	150.87
Total Equity	169.36	94.72	150.75
Non-current Liabilities	480.78	251.91	248.82
Current Liabilities	280.45	213.05	1,089.46

Income Statement (In INR Crore)

Key Metrics	FY 2023	FY 2022	FY 2021
Total Income	565.78	278.71	216.02
Total Expenses	612.42	335.87	258.66
Net Profit / (Loss)	-46.63	-57.15	-42.64

The basic EPS of the company stands at (15.48), (18.97), and (14.15) for the FY 2023, 2022, and 2021 respectively.

Cash Flow Statements

Key Metrics	FY 2023	FY 2022	FY 2021
Net cash flow from operating activities	195.18	82.69	57.44
Net cash flow used in investing activities	-170.1	-7.21	-37.73
Net cash flow used in financing activities	-27.77	-79.85	-16.68
Cash and cash equivalents at the end of the period/year	2.61	5.3	9.68

Ratio Analysis

Key Ratios	FY 2023	FY 2022	FY 2021
ROCE	25.26%	1.75%	10.88%
EBITDA Margin	42.01%	32.29%	31.12%
Return on Net worth	(28.29) %	(60.34) %	(27.54) %
Debt to equity ratio	0.06	0.13	0.02

Real Also: What is Grey Market Premium (GMP) in IPOs?

Financial Statements – Key Insights

The company’s revenue appears to be growing. However, it has not been profitable, with negative earnings per share for the past three years.
ROCE has shown a significant improvement, going from 10.88% in March 2021 to 42% in FY 2023 which suggests that the company is getting better at generating returns on the capital it uses.

To sum it up, the company is in its growth stage, and focusing on market expansion over immediate profitability.

Conclusion

Awfis Solutions is committed to providing workspace solutions for all types of users through innovation and adaptation. From a single co-working space in Delhi to a nationwide network of premium offices, the company has achieved remarkable growth. The upcoming IPO and emphasis on expansion position the company to sustain its growth trajectory and play a pivotal role in shaping the future of workspaces in India.

FAQs (Frequently Asked Questions)

What are the benefits of using Awfis Space Solutions?
Benefits include flexibility, affordability, access to a professional work environment, and various other amenities like IT support, and meeting rooms.
Does the company offer anything besides workspace?
Yes, Awfis provides additional services like food and beverage, infrastructure management, IT support, and event hosting.
What is the minimum lot size for applying to the Awfis IPO?
The minimum lot size for applying to the Awfis IPO is 39 shares.
When will I know if my IPO application was successful?
The allotment of shares is expected to be finalised by May 28th, 2024. And, the listing date of the IPO is 30 May 2024.
Should I invest in Awfis Space Solutions IPO?
It entirely depends on your risk profile and investment style. Go through the company’s financials, and market conditions, and consult a financial advisor before making the investment decision.

May 27, 2024

Aadhar Housing Finance: IPO And Key Insights

If you want to buy a house but don’t have enough money, you’ll go to a bank and ask for a loan. But what if they say no? Is there another way to secure a loan and buy the house of your dreams? Indeed, some businesses offer housing loans to individuals and are governed by the Reserve Bank of India.

In this blog, we will introduce you to Aadhar Housing Finance, a company that plans to go public this May 2024.

Company Overview

India’s largest housing finance company is Aadhar Housing Finance Limited, founded in 2010 by the Dewan Housing Finance Corporation Limited (DHFL). The company targets consumers with monthly incomes of INR 5,000 to INR 50,000 and higher. Its primary goal is to provide inexpensive solutions to the lower and middle classes. It offers house loans for various purposes, including home improvements, purchases, and extensions.

The company joined forces with DHFL Vysya in 2017, and on 4 December 2017, the combined entity was rebranded as Aadhar Housing Finance. This merger expanded the company’s reach throughout India.

A prominent investment business with an AUM of $991 billion, Blackstone, also known as BCP Topco VII Pte. Ltd., promotes Adhar Housing Finance Limited. They own around 98.72% of the company’s stock, and ICICI Bank holds 1.18%.

Aadhar Housing in Numbers (As per Prospectus)

Total loan disbursement by the company is nearly INR 5,903 crores, with a total AUM of INR 17,233 crores.
The company is present across 20 states and union territories and has more than 479 offices and branches.
It has more than 2,33,000 active loan accounts.
The company has 4700+ channel partners and 11600+ Aadhar Mitras, to whom they offer referral fees for sourcing customers.
As of September 2023, the company had 3,695 employees, and its subsidiary, Aadhar Sales and Services Private Limited (ASSPL), had 1,851 employees.

Details of IPO

An initial public offering (IPO) of Aadhar Housing Finance will comprise an INR 2,000 crore offer for sale and an INR 1,000 crore new issue. The IPO price range is INR 300 to 315 per share, with a minimum lot size of 47 shares. The proceeds from the IPO issue will be used for general corporate purposes, lending, and future capital requirements.

Key Details

Face Value of Share	INR 10
Price Band	INR 300 to INR 315 per share
Employee Discount	INR 23 per share
Market Lot	47 Shares
Total Fresh Issue Size (INR)	1,000 crores
Total offer for sale (INR)	2,000 crores

Timeline

IPO Open Date	8th May 2024
IPO Close Date	10th May 2024
Finalization of Allotment	13th May 2024
Refund and credit of shares	14th May 2024
Listing Date	15th May 2024

Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the issue
NII Shares	Not less than 15% of the issue
Retail Shares Offered	Not less than 35% of the issue
Total Shares Offered	95,238,095

Financial Highlights

Let’s have a look at the financials of the company:

Balance Sheet (INR crore)

Particulars	31st March 2023	31st March 2022	31st March 2021
Fixed Asset	122.2	116.76	130.66
Current Asset	16,495.67	14,259.05	13,499.67
Total Asset	16,617.87	14,375.81	13,630.33
Share Capital	3,697.66	3,146.69	2,692.82
Current Liability	12,872.42	11,180.79	10,890.64

The above chart shows that while the company’s current liabilities are increasing at a rate of 15% on a year-over-year basis, its current assets are expanding. They were INR 14,259 crores in FY 2022 and climbed to INR 16,495 crores in FY 2023.

Income Statement (INR crore)

Particulars	31st March 2023	31st March 2022	31st March 2021
Total Income	2,043.52	1,728.56	1,575.55
Total Expenses	1,322.70	1,161.20	1,143.04
Profit before tax	695.82	567.36	432.51
Profit after tax	544.76	444.85	340.13

The company’s overall income went from INR 1,728 crores in FY 2022 to INR 2,043 crores in FY 2023. In contrast, the company’s profit after taxes climbed at an average rate of 22% in FY 2023 and 30% in FY 2022 relative to their prior years.

Cash Flow Statement (INR crore)

Particulars	31st March 2023	31st March 2022	31st March 2021
Net Cash flow from operating activities	-1,155.69	-906.75	-1,202.29
Cash flow from investing activities	-476.53	822.57	-480.48
Cash flow from financing activities	1,463.19	274.85	701.39

Strength and Weakness of the Company

Strength

The company has a solid and comprehensive process to track the underwriting, collections, and asset quality.
A vast network of branches and sales channels also helps the company increase its loan growth rate.
The company’s profit after tax has been increasing for the last three years, which indicates that the company has been performing well.

Weakness

Any unfavourable change in interest rates by the regulator, i.e., RBI, can significantly impact their profit margin.
If the company fails to effectively mitigate the risks associated with the loans it extends to the public, non-performing assets will rise, thus compromising the quality of its loan portfolio.
The company has had negative cash flow from operating activities for the past three years. However, remember that most companies operating in the lending business have a negative operating cash flow because lending is the operational activity of such companies.

Awards and Recognitions

The company has been awarded “Pradhan Mantri Awas Yojana – Empowering India 2022” for its significant contribution towards housing for all initiatives.
It has also won the “Best Data Transformation” award by Elets Technomedia for being a data-driven organization.
The Economic Times recognized Aadhar Housing Finance as one of the best brands of 2022.
Synex Group awarded the company “Resilient Organisation of the Year” at the India Credit Risk Management Summit 2023.

Conclusion

Aadhar Housing Finance, one of India’s biggest housing finance companies, is coming with an IPO. Along with its income, the company’s profitability is rising yearly, even though its net interest margin decreased in FY 2023 compared to FY 2022. If you are planning to apply for the IPO of this company, then you must go through all the risk factors and consult your investment advisor before making any investment decision.

Frequently Asked Questions (FAQs)

When will the Aadhar Housing Finance IPO open?
Aadhar Housing Finance IPO will open from May 8th, 2024, to May 10th, 2024, and an investor within these three days can apply for it.
When was Aadhar Housing Finance established?
The company was founded in 2010 by the Dewan Housing Finance Corporation Limited (DHFL).
Is Aadhar Housing Finance a profit-making company?
Indeed, the company has reported a profit for the previous three years. In FY 2023, it reported a profit of INR 544.76 crores, a 22% YoY increase.
What is the minimum lot size that retail investors can subscribe to?
A retail investor is required to subscribe to a minimum of 1 lot of 47 shares amounting to INR 14,805.
What is the tagline of Aadhar Housing Finance?
The tagline of the company is “Ghar Banega, Toh Desh Banega”.

May 7, 2024

Category: IPO

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Allied Blenders Company Overview

Product Portfolio

Promotors

Details of Allied Blenders IPO Issue

Allied Blenders IPO Key Details

Allied Blenders IPO Timeline

Allied Blenders Allotment Size

Allied Blenders IPO Objectives

Allied Blenders IPO Reservation

Allied Blenders Financial Statements

Allied Blenders Balance Sheet

Allied Blenders Income Statement

Allied Blenders Cash Flow Statement

Allied Blenders Key Performance Indicators

Strengths of Allied Blenders

Weaknesses of Allied Blenders

Conclusion

Frequently Asked Questions (FAQs)

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Stanley Lifestyles Limited Company Overview

Stanley Lifestyles IPO Details

Stanley Lifestyles Business Model

Stanley Lifestyles Consolidated Financial Statements

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Stanley Lifestyles Income Statement

Stanley Lifestyles Cash Flow Statement

Stanley Lifestyles Key Performance Indicators

Competitive Strengths

Risks Involved

Conclusion

Frequently Asked Questions (FAQs)

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IXIGO IPO Overview

Business Model of IXIGO

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IXIGO IPO Details

Objectives of the Issue

Financial Statement Highlights

Balance Sheet

Income Statement

Cash Flow Statement

KPIs

Key Insights

Risks Involved

Conclusion

Frequently Asked Questions (FAQs)

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AWFIS Space Overview

AWFIS Space Solutions Business Model

Workspace Formats

AWFIS Space Solutions Key IPO Details

Objectives of the Issue

Consolidated Financial Statements

Balance Sheet (in INR crore)

Income Statement (In INR Crore)

Cash Flow Statements

Ratio Analysis

Financial Statements – Key Insights

Conclusion

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