Wagons Learning

• Wagons Learning is coming out with an initial public offering (IPO) of 46,80,000 equity shares in a price band Rs 78-82 per equity share.
• The issue will open on May 2, 2025 and will close on May 6, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 7.80 times of its face value on the lower side and 8.20 times on the higher side.
• Book running lead manager to the issue is Khandwala Securities.
• Compliance Officer for the issue is Neeru Saini.

Profile of the company

Wagons Learning is engaged in providing corporate training, digital learning and skill development solutions. The company functions on a B2B model wherein it provides Training and Certifications, Digital Learning solutions, skill development solutions, trainer outsourcing and payroll management solutions to its clients. It specializes in corporate training and consulting across a broad range of domains such as sales training, customer service training, soft skills and behavioural training, functional training and knowledge-based, skill based training solutions to the employees of corporate operating in the industries like Automotive, Banking and financial services, Pharma and healthcare services etc. Its corporate training programs provide holistic solutions and it is committed to a philosophy of excellence. Its team has a broad network to offer training and organizational development resources.

In addition to certifications and training offerings, it provides a comprehensive and advanced digital learning solutions. Its Digital library is compatible with all Learning Management Systems (LMS) and Learning Experience Platforms (LxP). Its full suite of software service offerings includes LMS, LxP, digital libraries to corporates, universities, schools and colleges. It is a National Skill Development Corporation (NSDC) certified company for conducting a range of skill development programs under the Skill Sathi program and its term sheet is valid till January 04, 2027.

The company caters to professional across various industries and domains and offer assistance to organizations in formulating their learning and development strategies. Its dedication lies in offering, its clients with the best possible service with trainers available on demand around the clock. It provides skill development and skill upgradation to graduates and post graduates to make them industry and job-ready. The company has skilled 550,000 professionals through Classroom, Virtual and digital modules and it has garnered the expertise on providing training solutions on various subject matter. 

Proceed is being used for:

• Meeting out the working capital requirements of the company
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
• Offer related expense
• Meeting out the general corporate purposes

Industry Overview

The Corporate Training Market in India is in its growth stage and will continue to be so for the next 10-15 years. Considering the size and magnitude of growth factors such as a robust IT and service industry, large and young workforce and India’s fast GDP growth the corporate training market is very much underpenetrated in India. Its size is small when compared to the global corporate training market size therefore, indicating lots of untapped potential for growth. From FY13-FY19 market was growing quickly at healthy double digit CAGR however in FY21 the overall market growth contracted due to the Covid-19 pandemic. In the review period 2017-2022P, the Corporate Training Market in India grew at a positive CAGR of 9.8%. Even though there was a negative contraction in FY21, market was able to maintain a positive CAGR as IT and service companies quickly resumed operations by adopting hybrid and work from home model and training companies were able to deliver online through various modes of e-learning.

The Corporate Training Market in India is a very competitive and a fragmented space with the presence of 500-600 companies. However, a good chunk of the market share is captured by 7 companies namely NIIT, Manipal Global Education, CADD Centre, Aptech Limited, Centum Learning, Koenig Solutions and Hughes Global. Price, post training support, brand value, clientele, trainers’ qualification, customizations and value-added services like assessment, performance and ROI evaluation are the competitive parameters in the industry. In order to have an edge over the competition many companies offer other services as well like staffing, HR management, IT support, coaching, audit etc. Lately, many self-based learning platforms like Udemy, Coursera, Simplilearn, upGrad have also become popular offering courses and modules keep working professionals need in mind.

The Corporate Training Market in India is expected to grow with a healthy CAGR of 16.3% in FY’22P and FY’27F. The focus would be on to keep the learners and engaged by enhancing experiential learning therefore use of technologies like AR/VR, Metaverse and Micro learning concept would be prevalent in future. Courses on data and business analytics, AI-ML, cyber security, cloud infrastructure would be in high demand. IT and BFSI are going to be the larger support pillars for the corporate training market. 

Pros and strengths

In-house domain experts: The company has PAN India location reaches across tier 1, 2, 3, and 4 cities. It has in-house domain experts, experienced retainer ship trainers and empanelled trainers. Also, it has in-house Subject Matter Experts (SME) & Instructional Designers (ID) for content development. The company also has SMEs & content team follow the 3D Model. Further, the company has comprehensive in-house digital platform support to enhance and reinforce in-person Instructor-Led Trainings (ILT).

Flexibility and Scalability: Digital learning allows for flexible schedules, catering to diverse learner needs. The Company can reach a wide audience without significant infrastructure costs. Moreover, compared to traditional learning methods, digital learning often requires fewer resources. Further, the content is tailored to individual learner needs, enhancing engagement and comprehension.

Customization capabilities: The ability to tailor training programs to meet the specific needs of corporate clients are its strong selling point. Customization enhances the relevance and effectiveness of the training. Moreover, offering a variety of training methods such as in-person workshops, online courses, and blended learning options cater to different learning styles and preferences.

Risks and concerns  

Maximum revenue comes from BFSI sector: The company is mainly catering to Banking, Financial Service and Insurance (BFSI), Automotive, IT & ITES, Pharmaceutical & Healthcare sector clients. Out of these, the company is generating majority of the revenue from BFSI sector clients. The company has garnered 57.68%, 35.69%, 36.70% of the total revenue from BFSI sector in FY24, FY23 and FY22 respectively. Any slowdown or regulatory changes in the BFSI sector may impact the business operations and revenue of the company.

The company is subject to foreign exchange control regulations: The company may be involved in business transactions with international clients located globally in future and has to conduct the transactions in accordance with the rules and regulations prescribed under FEMA. Its international operations make it susceptible to the risk of currency fluctuations, which may directly affect its operating results. In case it is unable to adhere to the timelines prescribed under the applicable laws or are unable to mitigate the risk of currency fluctuation, it may adversely affect its business, results of operations, financial conditions and cash flows.

Present promoters of the company are first generation entrepreneurs: The company’s present Promoters are first generation entrepreneurs. Their experience in managing and being instrumental in the growth of the company. The concern is that their limited experience and knowledge could potentially hinder the company's growth in the future. The statement is being cautious and transparent about this uncertainty, as it cannot assure that the promoters' inexperience won’t affect the company’s success.

Outlook

Wagons Learning is engaged in providing corporate training, digital learning, and skill development solutions. The company operates on a B2B model, offering services such as training and certifications, digital learning (LMS/LXP), skill development, trainer outsourcing, and payroll management. It serves clients across India and has expanded internationally with a branch office in Dubai, UAE, offering education technology solutions, digital libraries, government project execution, and content development. The company is also entering the B2C space by launching industry-ready certification courses. On the concern side, the company’s major revenue is sourced from Banking, Financial Service and Insurance (BFSI) sector clients. Its inability or failure to manage and attract more clients could adversely affect its business. The present promoters of the company are first generation entrepreneurs; their limited experience may restrain the growth of the company. Moreover, the company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.

The company is coming out with a maiden IPO of 46,80,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 78-82 per equity share. The aggregate size of the offer is around Rs 36.50 crore to Rs 38.38 crore based on lower and upper price band respectively. On performance front, total Income has increased by Rs 1,734.15 lakh (107.27%) from Rs 1,616.57 lakh in the fiscal Year ended March 31, 2023 to Rs 3,350.72 lakh in the fiscal Year ended March 31, 2024. The increase was because of better macro conditions and preparedness of the company to serve new client with better and new training modules and further avail the benefits of the tail winds. Moreover, net profit after tax, extraordinary items and Minority interest has increased by Rs 490.29 lakh (691.31%) from Rs 70.92 Lakh in the fiscal Year ended March 31, 2023 to Rs 561.21 lakh in the fiscal Year ended March 31,2024 due to increase in the client base and lower spending on content creation.

With digital learning, the company can expand its reach beyond geographical boundaries, tapping into international markets. Collaborating with educational institutions, corporations, or other organizations can provide opportunities for growth and innovation. Collaborating with other companies or organizations to offer complementary services or reach new audiences can create synergies and generate new business opportunities. Moreover, integration of emerging technologies like AI, VR, and AR can enhance learning experiences and attract new customers. 

Kenrik Industries

• Kenrik Industries is coming out with an initial public offering (IPO) of 34,98,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 25 per equity share.
• The issue will open on April 29, 2025 and will close on May 6, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced 2.50 times higher to its face value of Rs 10. 
• Book running lead manager to the issue is Turnaround Corporate Advisors.
• Compliance Officer for the issue is Zalakben Chintan Gajjar.

Profile of the company

Kenrik Industries has commenced its business in manufacturing, wholesaling and supplying of plain and studded gold Jewellery and Ornaments. The company is mainly focused on traditional Indian jewellery. Its products include handmade gold jewellery studded with precious and semi-precious stones such as diamond, ruby, cubic zirconia etc. Its product portfolio includes rings, earrings, armlet, pendants, nose rings, bracelets, chains, necklaces, bangles, watches, luxury items and other wedding jewellery. Its products cater to the customers across high-end, mid-market and value market segments. The jewelleries are made as per the specific requirements by the customer and the same are manufactured on job work basis at its manufacturing unit situated in Ahmedabad, Gujarat.

Although the company has several regular suppliers with whom it frequently sources its raw material from, the company does not have any fixed supplier contracts. The primary reason for not having any long term supply contracts is the volatility in pricing of the raw material which makes it impossible to have any long term arrangement. The raw material it requires is essentially gold which is a very standardised product and is widely available from a number of suppliers. Availability of raw materials is generally not a big issue in the business. The company maintains full flexibility in sourcing, ensuring that the company can take advantage of competitive pricing and better-quality materials from various suppliers in the market.

The company operates its business in a region that is well known for its dynamic bullion and jewellery market, where numerous buyers and sellers interact, providing the company with ample opportunities to connect with a diverse range of suppliers. This enables it to pivot quickly and choose from a broad range of vendors depending on current market conditions. 

Proceed is being used for:

• Meeting working capital requirements
• General corporate purposes

Industry Overview

India’s gold and diamond trade contributed 7% to India’s Gross Domestic Product (GDP). The gems and jewellery sector has employs 5 million. Based on its potential for growth and value addition, the Government declared the gems and jewellery sector as a focus area for export promotion. The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India. 

India’s gems and jewellery market size was at $78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and the fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. India’s total gems and jewellery exports reached $37.73 billion in 2022-23. From April-January 2024, India's gems and jewellery exports were at $26.35 billion, a 16.03% decline compared to the previous year's period.

In the coming years, growth in the gems and jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry. The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilisation of gold prices at lower levels is also expected to drive volume growth for jewellers over the short to medium term. India has 450 organised jewellery manufacturers, importers & exporters and is the hub for jewellery manufacturing. These players have benefited greatly due to the increasing liberal policies by the government. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. India’s gems and jewellery industry is expected to reach $100 billion by 2027. 

Pros and strengths

Wide range of products: The company offers a wide range of products, including traditional and contemporary jewellery designs, precious and semi-precious stones, and customized pieces, catering to a diverse customer base. Its catalogue reflects the diversity of its customer base, offering an array of products that span from classic to avant-garde. It provides a spectrum of jewellery pieces that incorporate a variety of gemstones, metals, and design philosophies. Its collection includes bespoke pieces tailored to individual preferences, as well as ready-to-wear items that cater to more immediate tastes. This extensive range ensures that it has something to offer for every occasion, taste, and budget.

Competitive pricing: Despite its high standards of quality, it maintains competitive pricing. Its efficient manufacturing processes and strategic sourcing of materials allow it to minimize costs without compromising on craftsmanship. It leverages economies of scale and continuous process improvements to offer its customers the best value for their investment. This pricing strategy enables it to attract a broad customer base and maintain a strong market position.

Strong distribution network: The company has a well-established distribution network that enables it to reach customers across the country and beyond, ensuring timely delivery and customer satisfaction. Its logistics infrastructure ensures that its products are delivered promptly and securely to retailers and customers alike. It has partnerships with trusted carriers and a presence in key markets that enable it to navigate complex distribution channels. Its robust supply chain management guarantees that it can meet delivery commitments consistently, enhancing customer satisfaction and loyalty.

Risks and concerns

Geographical constrain: Over the three fiscal years from 2021-22 to 2023-24, Gujarat has consistently dominated in terms of the amount and percentage of the total. In 2021-22, revenue in the state of Gujarat accounted for an amount of Rs 2322.30 lakh, representing 71.26% of the total revenue from operations. This increased significantly to Rs 4980.74 lakh (96%) in 2022-23, Rs 6934.85 lakh (97%) in 2023-24 and Rs 4218.40 lakh (100%) as on October 31, 2024. The company’s business is highly vulnerable to regional conditions and economic downturns in the region. Any unforeseen events or circumstances that negatively affect these areas could materially adversely affect its sales and profitability. These factors include, among other things, changes in demographics, population and income levels. 

High inventory costs: Due to the nature of its business, the company maintains a substantial inventory. As of October 31, 2024, the company held inventory valued at Rs 1374.43 lakh. Inventory represented 86.02%, 68.04%, 64.17%, and 56.05% of its total assets for the seven months period ended October 31, 2024 and for the fiscal years ending March 31, 2024, 2023, and 2022, respectively. If any portion of this inventory remains unsold due to factors such as shifts in trends or consumer preferences, it could lead to an accumulation of stock. This increase in inventory could negatively affect its business, cash flow, financial condition, and operational results. Overstocking can also elevate its capital requirements and increase its financing costs, including loans and associated interest. Conversely, understocking can hinder its ability to meet customer demand and impair its operating performance.

Income and sales are subject to seasonal fluctuations: The company’s sales have historically exhibited certain seasonal fluctuations, reflecting higher sales volumes and profit margins during festival periods and other occasions such as Akshaya Tritiya, Navratri, Gurupushyamrut and Dhanteras and wedding season. Apart from higher sales seen during festival season, it also promotes sales on new year to increase its sales. While it stocks certain inventory to account for this seasonality, its fixed costs such as lease rentals, employee salaries, store operating costs and logistics- expenses, which form a significant portion of its operating costs, are relatively constant throughout the year. Consequently, lower than expected sales during certain quarters of the fiscal year or more pronounced seasonal variations in sales in the future could have a disproportionate impact on its operating results for the fiscal year or could strain its resources and significantly impair its cash flows.

Outlook

Kenrik Industries is engaged in the design and distribution of traditional Indian jewellery. The company’s product range features handmade gold jewellery studded with precious and semi-precious stones, including diamonds, rubies, and cubic zirconia. It currently operates under a Business-to-Business (B2B) model, catering to customers across high-end, mid-market, and value market segments. The company places strong emphasis on quality control, inventory management, and business development, ensuring all jewellery is certified by BIS Hallmark. On the concern side, majorly the company’s business is in Gujarat any adverse development affecting such a region may have an adverse effect on its business, prospects, financial condition, and results of operations. Moreover, the company’s income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.

The company is coming out with an IPO of 34,98,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 25 per equity share to mobilize Rs 8.75 crore. On performance front, the total income for the financial year ended March 31, 2024, increased significantly by Rs 1,890.14 lakh, from Rs 5,204.14 lakh in the financial year ended March 31, 2023, to Rs 7,094.28 lakhs. This growth is primarily driven by revenue from operations. The combined impact of the above factors led to a substantial growth in profit after tax, surging by Rs 58.63 lakh, from Rs. 47.44 lakh in the financial year ended March 31, 2023, to Rs 106.07 lakh in the financial year ended March 31, 2024. This reflects robust financial performance for the company during this period.

The company would prioritize innovation in its product design and manufacturing processes. This could involve investing in research and development, hiring experienced designers, and creating a culture of creativity and experimentation within the organization. Its strategy involves a multi-faceted approach. Moreover, the company will expand its customer base by targeting new markets and demographics. This could involve developing customized products for specific segments, such as corporate clients or wedding planners, or exploring international markets. Further, it is exploring opportunities in international markets by participating in global trade shows, establishing partnerships with overseas distributors, and launching multilingual marketing campaigns to cater to a global audience.

Arunaya Organics

• Arunaya Organics is coming out with an initial public offering (IPO) of 58,60,000 equity shares in a price band Rs 55-58 per equity share.
• The issue will open on April 29, 2025 and will close on May 2, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 5.50 times of its face value on the lower side and 5.80 times on the higher side.
• Book running lead manager to the issue is Unistone Capital.
• Compliance Officer for the issue is Tanvi Patel.

Profile of the company

Arunaya Organics started its operation in dye industry in the year 2010. The company engaged in trading and manufacturing activities of different types of dyes and its intermediaries. A significant portion of its revenue is generated from outsourcing its key function i.e. manufacturing of its finished product from its group company Chinmay Chemicals Private Limited. It supplies a comprehensive range of products, including reactive, acid, direct, basic, and solvent dyes, as well as dye intermediates. Its products are available in multiple forms, such as standardized spray-dried and tray-dried powders, granules, crude, reverse osmosis-treated products and salt free. 

Additionally, it provides specialty performance chemicals tailored for the paper industry and textile dyeing. Its diverse product portfolio is designed to cater to both domestic and international markets. Its production facility, located in Ahmedabad, Gujarat, has an annual capacity of around 30 metric ton per annum. It is committed to maintaining high standards of quality and environmental management, as evidenced by its ISO 9001:2015 and ISO 14001:2015 certifications.

The company’s manufacturing facility is equipped with the essential infrastructure for raw material storage, product manufacturing, and finished goods storage, all supported by quality control measures. Strategically located in Naroda, Ahmedabad, the company’s facility leverages proximity to Mundra Port and ICD Ahmedabad, enabling logistics for product distribution, raw material procurement, and seamless access to its customers. 

Proceed is being used for:

• Setting up of a new manufacturing facility located at D-3/26/3, Dahej III, Industrial Estate, Dahej-392 130, Vagra, Bharuch, Gujarat (Proposed Greenfield Project)
• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

India is the world leader in dye manufacturing, accounting for 16%-18% of global dyestuff exports. The Indian Dye is exported to 90+ countries. From (April-September) 2023-24 (Provisional), the export of agrochemicals was $1.70 billion, dyes were $867 million and the other dye intermediates were $62 million. The import of agrochemicals was $738 million, dyes were $120 million and the other dye intermediates were $522 million during (April- September) 2023-24 (Provisional). India holds a strong position in international trading of chemicals and ranks 9th in exports and 6th in imports at a global level (excluding pharmaceuticals). India is among the top chemical exporting countries in the world. India exports inorganic and organic chemicals, tanning and dyes, agrochemicals, plastics, synthetic rubber, filaments, etc. In FY23, exports of major chemicals and petrochemical products stood at $23.8 billion. The surge in chemical exports has been achieved because of sustained efforts on the part of the Department of Commerce & Industry and Indian member exporters.

India’s chemical exports promotion council, has also made major efforts by using grants in aid under the market access initiative scheme, organizing B2B exhibitions in different countries, exploring new potential markets through product-specific marketing campaigns with the active involvement of Indian embassies, providing financial aid in statutory compliance in overseas product registration, etc. This export growth has been achieved despite issues like high freight rates and container shortages which has benefitted small and medium exporters from key states like Gujarat, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh. In FY24 (Until August 2023), the exports of major chemicals and petrochemicals stood at $8.4 billion. In FY22, India’s total chemical products exports were valued at $24.31 billion, an increase of 38.67% YoY. The export growth of chemicals has been achieved because of a surge in shipments of organic, and inorganic chemicals, agrochemicals, dyes and dye intermediates and speciality chemicals.

Exports of Chemicals and Chemical products (excluding pharmaceutical products and fertilizers) contributed 11.7% of total export in the year 2021-22 compared to 12.9% in the year 2020-21. It contributed 10.8% of total export in the year 2022-23 (up to Sept 2022). CAGR in Export of total Chemicals and Chemical products (excluding pharmaceutical & fertilizer products) during the period 2017-18 to 2021-22 was 13.86% while CAGR of total national export was 12.62%. The compounded average growth rate (CAGR) during the period 2017-18 to 2021-22 was 4.4% for manufactured product based on WPI while it was 4.4% for Chemicals and Chemical Products. Going forward, the market size of Chemicals & Petrochemicals sector in India is around $215 billion; expected to grow to $300 billion by 2025. 

Pros and strengths

Wide product portfolio: The company has varied products for dye industry in the market and multiple product categories such as Acid Dye, Basic Dye, Direct Dyes or Substantive Dye, Solvent Dye, Intermediate, and Reactive Dye. It offers over six types of dyes, each with various colour options to meet customer preferences. Additionally, it provides customized solutions tailored to specific needs, enabling it to serve a broad range of customers and applications effectively. Its constant efforts are focused towards continuously identifying market demands and introducing relevant products with high quality.

R&D capability: Research, Development and Quality Control are pillars of the continued growth over the years. It gives equal importance to both these areas as one i.e. R&D leads to new product development required for growth of its business and profitability, whereas the other i.e. QC to achieve customer quality standards for the continued supply of products required by the end user industries. Once it has achieved development of a product in its RD Laboratory, achieving commercial scale with the available equipment is another challenge. Product development on a commercial scale with the QC meeting customer and prescribed standards requires coordination between these functions to ensure that the new products developed are able to scale up, meeting customer quality requirements.

Quality Assurance: The company is committed to upholding the highest standards of quality across its products, processes, and materials. It holds ISO 9001:2015 certification for its Quality Management System, which covers the manufacture, supply, and export of dyestuffs and intermediaries. Additionally, it is accredited with ISO 14001:2015 for its Environmental Management System in the same areas. Its adherence to the quality standards is key to achieving consistent results. Timely delivery of quality products is a core objective, and it allocates significant resources to quality assurance to ensure that its standards are consistently met.

Risks and concerns  

Maximum revenue comes from limited customers: The company is engaged in the business of trading and manufacturing of dyes for various industries. It is dependent upon its long-term customers. The company has garnered 72.86%, 77.73% and 76.22% of its total revenue from its top 10 customers in FY24, FY23 and FY22 respectively. Currently, the company lacks any long-term or exclusive agreements with its customers, leaving it unable to guarantee the continuation of historical sales volumes to these parties. If its competitors offer better margins or incentives, there’s no assurance that its customers will maintain their orders with it. Typically, its transactions with customers operate on a purchase order basis without a fixed volume commitment, further exposing it to uncertainty regarding future orders. Moreover, there’s no guarantee that its customers will adhere to existing terms or continue placing orders with it. Any changes in customer business practices or terms, including payment terms, could significantly impact its business, financial operations, operational results, and cash flow.

Geographical constrain: The company’s existing and proposed manufacturing units are located within the state of Gujarat, India. Its manufacturing operations and consequently its business is dependent upon its ability to manage the unit, which is subject to operating risks, including those beyond its control. In the event of any disruptions at its unit, due to natural or man-made disasters, workforce disruptions, delay in regulatory approvals, fire, failure of machinery, lack of continued access to assured supply of electrical power and water at reasonable costs, changes in the policies of the states or local government or authorities or any significant social, political or economic disturbances or civil disruptions in and around Gujarat its ability to manufacture its products may be adversely affected.

Significant working capital requirement: The company’s working capital needs for a specific period are influenced by various factors, such as the size and timing of orders to be fulfilled, the size of the order backlog, and customer payment terms. Based on historical trends, it anticipates a significant increase in its working capital requirements. The company’s business requires funds towards working capital requirements. In case there are insufficient cash flows to meet its working capital requirement, or it is unable to arrange the same from other sources or there are delays in disbursement of arranged funds, or it is unable to procure funds on favourable terms, at a future date, it may result into its inability to finance its working capital needs on a timely basis which may have an adverse effect on its operations, profitability and growth prospects.

Outlook

Arunaya Organics is engaged in the manufacturing and exporting of specialty dyes and intermediates. The company has garnered a strong reputation for delivering high-quality chemical products across various industries, including textiles, paints, plastics, mining, and food processing. The company has strong R&D capability and also has wide product portfolio. On the concern side, the company is dependent on a few customers for a major part of its revenues. Further it does not enter long-term arrangements with its customers and any failure to continue its existing arrangements could adversely affect its business and results of operations. Moreover, the company does not have any long-term agreements with its raw material suppliers. If it faces difficulties in obtaining the necessary quality and quantity of raw materials in timely manner and at fair prices, or if it fails to secure them altogether, it could detrimentally affect its business, financial performance, and cash flow.

The company is coming out with a maiden IPO of 58,60,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 55-58 per equity share. The aggregate size of the offer is around Rs 32.23 crore to Rs 33.99 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations the financial year 2023-24 is Rs 6,223.32 lakh compared to the previous financial year’s revenue of Rs 7,585.02 lakh. The reason for the decrease in revenue is majorly due to decline in export sales due to less global demand for its industry products. Moreover, the Profit After Tax (PAT) for the financial year 2023-24 reached Rs 405.68 lakh, marking a notable increase from Rs 173.44 lakh in the financial year 2022-23.

The company currently sources Amino C Acid, J ACID, Mixed Cleves Acid, J Acid Urea from the third-party suppliers or imports it, which is a raw material used for manufacturing dye. In its effort to enhance operational efficiency and cost-effectiveness, it plans to implement backward integration by producing Amino C Acid, J ACID, Mixed Cleves Acid, J Acid Urea- which is essential the raw material for Paper dyes at its new manufacturing facility. This strategic move aims to reduce its dependency on external suppliers and imports. By producing Amino C Acid, J ACID, Mixed Cleves Acid, J Acid Urea in-house, it expects to lower its material costs. Consequently, this reduction in expenses will lead to a decrease in its overall production costs. This enhanced cost efficiency is expected to provide it with a competitive advantage in the market, allowing it to offer more competitive pricing and improve its profit margins.

Iware Supplychain Services

• Iware Supplychain Services is coming out with an initial public offering (IPO) of 28,56,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 95 per equity share.
• The issue will open on April 28, 2025 and will close on April 30, 2025.
• The shares will be listed on SME Platform of NSE.
• The share is priced 9.50 times higher to its face value of Rs 10. 
• Book running lead manager to the issue is Getfive Advisors.
• Compliance Officer for the issue is Shweta Sharma.

Profile of the company

Iware Supplychain Services is an integrated pan India logistics company primarily operating in five different type of services (i) Warehousing (including third-party logistics (3PL) and Carrying & Forwarding Agent), (ii) Transportation (Including Carrying & Forwarding Agent) (iii) Rake Handling Services and (iv) Business Auxiliary Services (v) Rental Income. It operates through its network of its various business offices situated in the state of Gujarat, West Bengal, Uttar Pradesh, Rajasthan, Punjab, Haryana and Delhi.

The company provides transportation services through two primary modes: i) Road Transport - Own Vehicle Fleet: The company operates a fleet of 47 vehicles, each with a National Permit, enabling unrestricted movement across different regions of India. This allows for flexible and efficient goods transportation via roadways. ii) Rail Transport - Rake Handling Services: The company also facilitates rake handling services by hiring rail cargo for bulk transportation. This service includes overseeing the loading and unloading process, ensuring smooth and efficient goods movement between regions through the railway network.

With over 6 plus years of operational experience since inception, backed by the combined experience of more than 20 years of its individual promoters Krishnakumar Jagdishprasad Tanwar and Rajnish Gautam) in the logistics industry. The company provides logistics support and solutions with its: (a) Pan-India presence, (b) integrated service offerings, and (c) large network of vehicle fleet. Its management is assisted by a team of qualified and experienced personnel’s who has provided significant contribution in the growth from 15 vehicles in financial year 2022 to a fleet of 47 vehicles out of which 15 vehicles are of 22 Feet Open Body and remaining vehicles are 32 Feet Containers. 

Proceed is being used for:

• Funding the capital expenditure requirement for the construction of new industrial shed
• Funding working capital requirements
• General corporate purpose

Industry Overview

The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the country's economic growth as it connects various elements of the economy and consists of transportation, warehousing, and other supply chain solutions ranging from suppliers to end customers. The Department of Commerce set up a logistics division in July 2017 to oversee the integrated development of the sector. Led by the Special Secretary to the Government of India, the division aims to enhance the sector by devising action plans for policy reforms and process enhancements, addressing challenges, and embracing technology. The Indian economy, ranked fifth globally with a GDP of approximately US$ 3.7 trillion in 2023, experienced rapid growth from 2015 to 2019, with an average annual growth rate exceeding 7%. However, due to strict COVID-19 lockdowns, GDP fell by 7.3% in 2020. A robust recovery followed in 2021 and 2022, driven by a resurgence in the service sector, revitalization of manufacturing, and growth in agriculture, leading to an impressive overall growth of 15.3% over those two years.

The warehousing, industrial, and logistics (WIL) sectors are projected to be crucial for attaining India's vision of being a $5 trillion economy by FY25. The warehouse and logistics industry have benefited the most from the COVID-19 epidemic, increasing its share from 2% in 2020 to 20% in 2021. Because of the growing shift from discretionary to essential internet buying during the COVID-19 epidemic, the e-commerce industry became more appealing and attractive. The expansion of this industry is likely to be aided by a robust economy, government efforts to improve infrastructure, and a favourable business environment. Increasing consumerism and a huge consumer base are fostering the growth of retail and e-commerce in India. The Indian retail sector's market size is predicted to increase at a CAGR of 9% between 2019 and 2030, totalling more than $1.8 trillion.

India's warehousing and logistics sector is vibrant and expanding swiftly, poised to become a critical component of the nation's economic development. While the sector faces some hurdles, it is strategically positioned for sustained growth, offering attractive prospects for both investors and companies. Driven by governmental initiatives to bolster infrastructure and the burgeoning e-commerce industry, this sector is anticipated to significantly fuel India's economic expansion. Additionally, the increasing integration of technology and the government’s encouragement of a digital economy provide substantial opportunities for logistics companies to adopt data analytics, artificial intelligence, and machine learning to enhance operational efficiencies and customer service. 

Pros and strengths

Diversified Service Range: The company's strength lies in its diversified service range, which spans in five different type of services (i) Warehousing (including third-party logistics (3PL) and Carrying & Forwarding Agent), (ii) Transportation (Including Carrying & Forwarding Agent) (iii) Rake Handling Services and (iv) Business Auxiliary Services (v) Rental Income. This extensive portfolio allows it to tailor effective solutions to its client under one roof.

Experienced Management Team: The company's strength is significantly enhanced by its diverse team of 200 individuals of different age and experience. Such a varied team help it to achieve its set target and helps to manage the customer base, enabling it to effectively serve different industries and demographics. This capability not only broadens its market reach but also strengthens its position in the industry.

Diversified Locations: The company’s offices, located across various regions enhancing its market reach and operational resilience. This geographical spread allows it to tap into local markets, adapt to regional demands, and mitigate risks associated with any single location. It fosters closer customer relationships and ensures faster delivery of services and products. This not only enhances the company's stability by spreading market risks but also enriches its expertise across different market dynamics and consumer behaviours.

Risks and concerns

Geographical constrain: The company operates its business operations from its registered office at Ahmedabad, Gujarat and has a presence in North and Central part of India. These states contribute to a substantial portion of its revenues. The company has garnered 67.38%, 48.06% and 47.59% of its total revenue from Gujarat for the year ended on March 31, 2025, 2024 & 2023. Any factors relating to political and geographical changes, growing competition and any change in demand may adversely affect its business. The company cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

Significant working capital requirement: The company’s business operations require a significant amount of working capital. In its business, working capital is often required for its day-to-day business operations including managing freight, forwarding and fuel expenses. In the event the company is unable to source the required amount of working capital, it might not be able to efficiently satisfy the demand and preferences of its customers in a timely manner or at all. Even if it is able to source the required amount of funds, it cannot assure that such funds would be sufficient to meet its cost estimates and that any increase in the expenses will not affect its business.

Company may experience the effects of seasonality: The company experiences the effects of seasonality, which may result in its operating results fluctuating significantly. Some of its customers’ businesses are subject to seasonality, which in turn affects its business. For instance, its customers in the Automobile and FMCG industry experience higher demands during festival season in India, and its operations from such customers increase accordingly during such periods. As a result of such seasonality, its quarterly financial results may fluctuate significantly. Accordingly, results for any one quarter are not necessarily indicative of results to be expected for any other quarter and declines in demand during its peak seasonal periods could materially and adversely affect its business, financial condition or results of operations.

Outlook

Iware Supplychain Services is pan-India integrated logistics company providing a wide range of services including warehousing (with third-party logistics (3PL) and carrying & forwarding agent operations), transportation, rake handling services, business auxiliary services, and rental income operating across multiple states in India like Gujarat, West Bengal, Uttar Pradesh, Rajasthan, Punjab, Haryana, and Delhi essentially offering comprehensive supply chain management solutions through their extensive network across the country. On the concern side, the company’s business is dependent on the sale of its services to certain key Industries and certain customers including its Promoter Group Companies. The negative change in industry and/or loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company is coming out with an IPO of 28,56,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 95 per equity share to mobilize Rs 27.13 crore. On performance front, total income of the company for the year ended March 31, 2025 stood at Rs 8,610.96 lakh whereas in the financial year 2023-24, the total income stood at Rs 5,876.86 lakh, representing a growth of 46.52%. The increase in total income is due to significant growth in the revenue from operation of the company from Rs 5,870.63 lakhs in FY 2024 to Rs 8,582.25 lakhs in FY 2025. Moreover, restated profit after tax for the financial year 2024-25, stood at Rs 801.93 lakh which is 9.31% of the total income, whereas, in FY 2023-24, the profit after tax was Rs 416.96 lakh, representing 7.09% of the total income.

The company maintains good relationships with customers is a most critical factor in its business to keep growing. Through regular interaction with its clients and understanding the client requirements, enables it to not only attract new customers but also leads to recurring business with its existing clients. The company will continue to focus on timely and accurate delivery of quality services which will help in forging strong relationships with its customers and gaining increased business from them.

Ather Energy

• Ather Energy is coming out with a 100% book building; initial public offering (IPO) of 9,74,43,193 shares of Rs 1 each in a price band Rs 304-321 per equity share.
• Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
• The issue will open for subscription on April 28, 2025 and will close on April 30, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 304 times of its face value on the lower side and 321 times on the higher side.
• Book running lead managers to the issue are Axis Capita, HSBC Securities and Capital Markets (India), JM Financial and Nomura Financial Advisory and Securities (India).
• Compliance Officer for the issue is Puja Aggarwal.

Profile of the company

Ather Energy is a pioneer in the Indian electric two-wheeler (E2W) market. The company is a pure play EV company that sells E2Ws and the associated product ecosystem, comprised of its software, charging infrastructure and smart accessories, all of which are conceptualised and designed by it in India. Other than battery packs which are manufactured in-house and portable chargers and motors which are designed and manufactured by its suppliers, other key E2W components, such as motor controllers, transmissions, vehicle control units, dashboards, DC-DC converters, harnesses, and chassis are designed in-house and outsourced to suppliers for manufacturing. It developed all components of the Atherstack software that powers its products in-house. The company was founded by Tarun Sanjay Mehta and Swapnil Babanlal Jain in 2013, with a focus on product and technology development in India in order to build an E2W ecosystem. 

It builds products with a focus on quality and user experience. Its products are positioned at a premium price in their respective segments. It launched its first product, the Ather 450, in June 2018. With the Ather 450, it introduced connected features through a 3G SIM card, touchscreen dashboard, aluminium chassis and cloud integration for the first time in the E2W industry in India. It was also the first E2W to offer a top speed of 80 kmph, comparable to internal combustion engine (ICE) scooters and had the highest top speed among E2Ws in India in 2018. Its current E2W portfolio comprises two product lines - the Ather 450 line, which caters to customers seeking performance scooters, and the Ather Rizta line, which is targeted at customers seeking convenience scooters for their family.

The company’s E2Ws are complemented by its product ecosystem which comprises charging infrastructure, accessories and the Atherstack, its in-house developed software that powers its products. It was the first two-wheeler (2W) OEM to establish a 2W fast charging network, the Ather Grid, in India. The company’s software, the Atherstack, introduced industry-first connected features such as Over-The-Air (OTA) updates and ride statistics on the Ather app. It has a vertically integrated approach to the design of its products and key technologies. This integrated approach is applicable to both its hardware and software, and has enabled it to pioneer several EV technological advancements. Through this approach towards design, it seeks to establish new standards for performance, efficiency and user experience in the E2W market.

Proceed is being used to:

• Capital expenditure to be incurred by the company for establishment of an E2W factory in Maharashtra
• Repayment/ pre-payment, in full or part, of certain borrowings availed by the company
• Investment in research and development
• Expenditure towards marketing initiatives
• General corporate purposes

Industry Overview

India is the largest motorised two-wheeler market by volume in the world as of CY 2023 (according to Mordor intelligence) and had domestic sales of 18.4 million units in fiscal 2024. Indian automobile segment primarily consists of two-wheelers (2W), passenger vehicles (PV), commercial vehicles (CV), three wheelers (3W) and tractors. In fiscal 2024, Two-wheeler was the largest segment and contributed 73% to the total auto market by volume followed by the passenger vehicle segment which contributed 16.7%. The share of Two-wheeler segment in total auto market reached to 75% by volume as of Apr - Dec period of fiscal 2025, followed by passenger vehicle segment with 15% share. In the last 15 years (fiscal 2009 to fiscal 2024), the domestic two-wheeler industry has grown at a CAGR of 6.2% and reached a volume of 18.4 million in fiscal 2024. Within this period, the industry accelerated at a much faster pace of 11.1% CAGR over the 10-year period from fiscal 2009 to fiscal 2019 and reached a historic high of volumes of 21.2 million in fiscal 2019.

The industry is expected to continue its growth momentum over the long-term horizon led by the positive microeconomic and macroeconomic environment, favourable rural demand, premiumization, intermittent launches, shrinking replacement cycle and continued support from financers. Moreover, continued R&D investments by the OEMs and the technological advancements in the industry to provide an added support to the growth of the industry over the long-term horizon. Additionally, the fast-rising EV segment, with EV portfolio expansion by legacy players, capacity expansion by new age players will accelerate the industry growth. Entry of legacy players like HMSI, Suzuki and Royal Enfield in the EV space will provide further thrust to the segment growth.

Further, the electric two-wheeler retails rose at a sharp growth pace of 101% CAGR in the last 6 years, albeit off the small base of fiscal 2019. Going ahead the growth momentum in the industry is expected to continue over the long-term horizon led by rising awareness, improving TCO for electric vehicles, bridging acquisition cost gap between EV and ICE counterparts, larger vehicle portfolio, expanding charging infrastructure, furthering financing support, increasing EV manufacturing capacity, and continued government support. If the government continues with the demand incentive (FAME, EMPS or an equivalent alternate form) at least for the next 1 year (till fiscal 2026), the EV retails is expected to rise at a healthy pace of 41% CAGR and reach volumes of 10.3 million in fiscal 2031. And the EV penetration to reach 35% by fiscal 2031. Such expansion will make E2Ws one of the fastest growing segments in the automotive industry in India.

Pros and strengths

The company’s E2Ws are positioned at a premium: The company’s focus on quality and user experience enables it to position its E2Ws at a premium price within both the performance and convenience scooter segments. It had 4,535 unique tests to validate all components of its E2W, as of December 31, 2024, and its software-defined ecosystem is designed to generate engagement to enhance its product quality and elevate the user experience. For instance, it offers features such as Trip Planner, a data-driven feature in its Ather app which allows customers to plan their daily commutes and charge requirements. Data collected from app usage further drives its product development and user engagement.

Vertically integrated approach to product design with strong in-house R&D capabilities: The company’s control over the design of key components of its E2Ws and accessories, including the underlying software, gives it speed to market, control over quality, cost management capabilities, access to partnerships with large technology companies and the ability to deliver an improved user experience. It makes improvements to its products at a fast pace and introduce new models quickly. For instance, it made 204 component upgrades in Fiscal Year 2024 via engineering changes, which enabled it to drive higher sales volumes and adapt to market developments. This approach also braced the company to respond to the global semiconductors shortage which occurred between Fiscal Year 2021 and 2023, during which its sales volume increased despite the disruption in supplies.

Scalable technology platform enabling accelerated product launches: The company’s technology platform, comprising its battery, powertrain, electronics, chassis and Atherstack, serves as the backbone of its entire product lineup. As of December 31, 2024, its scooters based on the Ather 450 platform have clocked 4.11 billion kilometres since launch. The company’s technology platform offers scalability, adaptability and cost structures that accelerate the development of new products. It leverages common elements across its platform, such as the chassis, battery and BMS, to accelerate the rate at which it is able to develop new products, thereby reducing its time-to-market while maintaining its quality standards. Its platform’s modular architecture enables cost-efficient integration of new features and advancements, enabling it to continue innovating in the evolving EV market. It was able to develop the new Ather Rizta scooter model within 13 months from the first proof of concept.

Software-defined ecosystem that drives customer engagement and margins: Powered by the in-house developed Atherstack, its software-defined ecosystem aims to improve user experience and drive customer engagement. Its continued innovation and improvements to its product ecosystem, driven by insights from the Atherstack, generate a flywheel effect. Continuous technological upgrades enhance its products’ appeal to customers, enabling it to grow its customer base and harness more user data. The insights derived from the data collected guide its investments and serve as real-time feedback in its efforts to enhance the Ather ecosystem.

Risks and concerns

Maximum revenue comes from sale of limited electric two-wheeler models: The company mainly derive its revenue from the sale of electric two-wheelers (E2Ws), with its E2W portfolio comprising variants of the Ather 450 series and the Ather Rizta series. In the nine months ended December 31, 2024 and in Fiscal Year 2024, the company’s revenue from the sale of E2Ws was primarily dependent on the sale of the Ather Rizta Z (3.7 kWh) and Ather 450X (3.7 kWh). There is no assurance that its future revenue will be more evenly distributed across its E2W offerings. If its electric two-wheelers are not well-received by the market, its business and future prospects could be adversely impacted.

The company incurred losses since incorporation: The company has incurred losses since incorporation and it had stagnant revenue growth in Fiscal Year 2024 and loss before tax of Rs 5,779 million and Rs10,597 million in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. It may continue to incur operating losses as it invests in expanding its manufacturing capabilities, distribution network, product portfolio and charging infrastructure. It may not realise expected returns from such investments in the future. There is also no assurance that it will be able to increase its revenue in the future.

Geographical constrain: Sales from its retail centres in south zones in India contributes to a significant portion of its revenue. Due to this geographical concentration, any occurrences affecting southern India’s economy could disrupt its sales activities and reduce its overall sales volume, thereby adversely affecting its business, operating results and financial condition. Natural disasters, regional unrest and regulatory changes in south zones in India could have a disproportionate impact on the demand for its E2Ws. Although it has not experienced any major disruptions to its sales in south zones in India in the nine months ended December 31, 2024 and in Fiscal Years 2024, 2023 and 2022, it cannot guarantee that such disruptions will not occur in the future.

Stiff competition: The company competes with both E2W manufacturers and traditional automotive companies in the highly competitive Indian automotive industry. It cannot assure that it will be able to compete successfully within India, or in other jurisdictions that it expands into. Its existing and future competitors may have significantly greater experience and financial, technical, manufacturing, marketing and other resources than it does and may be able to devote greater resources to the design, development, manufacturing, marketing, sales and support of their vehicles.

Outlook

Ather Energy is an Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. The company operates as a vertically integrated EV manufacturer with a focus on product and technology development. The company’s strategy is built on four pillars: Vertically integrated design and engineering, a software-defined product ecosystem, Premium market positioning and Capital-efficient operations. On the concern side, the company currently derives its revenue predominantly from the sale of limited electric two-wheeler models. If its electric two-wheelers are not well-received by the market, its business and future prospects could be adversely impacted. Moreover, the company’s sales are geographically concentrated in South India, exposing it to additional risks of business disruptions arising from natural disasters, regional unrest and regulatory changes in South India.

The issue has been offering 9,74,43,193 shares in a price band of Rs 304-321 per equity share. The aggregate size of the offer is around Rs 2962.27 crore to Rs 3127.92 crore based on lower and upper price band respectively. Minimum application is to be made for 46 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations slightly decreased to Rs 17,538 million in Fiscal Year 2024 from Rs 17,809 million in Fiscal Year 2023. The decrease was mainly due to the reduction in the FAME subsidies. The company’s loss for the year increased to Rs 10,597 million in Fiscal Year 2024 from a loss of Rs 8,645 million in Fiscal Year 2023. 

The company aims to achieve profitability and reduce its risk exposure by implementing the strategies below in its future business operations. It is in the process of designing a new battery platform using the lithium-iron phosphate (LFP) cathode chemistry to augment its existing battery platform. This new battery platform is expected to be compatible with some of its existing products and leverage the price difference between LFP and nickel based chemistries. It is exploring the use of heavy rare earth-free and rare earth magnet-free motors to reduce its dependence on the rare earth metals while reducing its costs. Additionally, it will continue to invest significant efforts in the expansion of its software capabilities and improve its ecosystem products.

Tankup Engineers

• Tankup Engineers is coming out with an initial public offering (IPO) of 13,95,000 equity shares in a price band Rs 133-140 per equity share.
• The issue will open on April 23, 2025 and will close on April 25, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 13.30 times of its face value on the lower side and 14.00 times on the higher side.
• Book running lead manager to the issue is HEM Securities.
• Compliance Officer for the issue is Rajat Srivastava. 

Profile of the company

Tankup Engineers is engaged in the business of manufacturing specialised vehicle superstructure for complex mobility and storage solutions of various capacities. This involves manufacturing large containers or tank like solutions used for transporting/ storing various materials, which could include liquids, gases or solids, depending on customer product range. These tanks may be custom-built to meet specific client requirements regarding size, material, capacity, and features. It caters to a broad spectrum of end-use industries like: Petroleum, Mining, Infrastructure, Defence etc. The company’s manufacturing activity involves focus on fabrication of tanks dedicated to delivering mobile solutions that may be deployed for a wide range of commercial use. For example, the company manufactures various types of tanks like: Mobile Refueller, Water Sprinkler, Mobile Service Van, Explosive Van, Tank Truck, Blasting Shelter etc. Its diversified range of product applications has helped it to evolve as manufacturer of special purpose vehicle with superstructures to address complex mobility and storage solutions required by its customers.

The company’s focus on mobile solutions is intended to provide convenient solutions for transporting and dispensing goods like: fuel, water, other consumables in complex applications. These mobile tanks facilitate transportation from a storage facility to a remote site. Its tanks are mainly designed to cater to locations where access to products like: fuel, water, explosives is limited, such as construction sites, mining operations or remote industrial facilities. They serve as a backup during emergencies or in areas prone to power outages or disruptions in supply, ensuring continuity of operations. It manufactures these tanks in various sizes and configurations to suit different needs of customers, from smaller units mounted on trailers or skids to larger capacities for heavy-duty applications.

Addressing the specific logistical challenges of industries and operations that rely on diesel fuel, the Refueller manufactured by it is equipped with IoT monitored hardware modules where it has Components like: Dispensing Unit, GPS and Lock attached to it. It allows for the controlled dispensing of diesel fuel directly into machinery, vehicles, or storage tanks, ensuring that fuel is delivered where it's needed without the need for a fixed fuelling station.

Proceed is being used for:

• Repayment in full or in part, of certain of its outstanding borrowings
• Funding to meet working capital requirements
• General corporate purpose

Industry Overview

The Mobility Solutions sector is undergoing a transformative shift driven by urbanization, environmental concerns, and technological advancements. This sector encompasses a wide array of innovations including electric vehicles (EVs), shared mobility, autonomous driving, and Mobility-as-a-Service (MaaS) platforms, all aimed at making transportation more efficient, sustainable, and accessible. Governments worldwide are pushing for cleaner alternatives through subsidies and regulations, while private players are investing heavily in R&D and infrastructure. Key trends include the rise of EV adoption, integration of AI and IoT in traffic systems, and growing consumer preference for flexible, on-demand mobility. 

Moreover, the manufacturing of vehicle superstructures for the complex mobility segment includes electric buses, ambulances, military vehicles, high-end transport vans, and customized logistics platforms. It is a growing niche within the broader mobility industry. These superstructures are specialized frameworks mounted on base chassis to serve sector-specific needs such as passenger safety, ergonomic design, cargo optimization, or equipment integration. The segment demands high precision engineering, advanced lightweight materials (like aluminum alloys, composites), and modular design flexibility to accommodate a variety of use cases and regulations. With the shift toward electric and autonomous mobility, there is an increased emphasis on aerodynamics, weight reduction, thermal management, and electronics integration. 

Key growth drivers include urban public transport reforms, defense modernization, last-mile delivery demands, and healthcare infrastructure expansion. The sector is increasingly adopting CAD/CAM, 3D prototyping, and AI-based design validation to meet evolving standards. Challenges include compliance with diverse homologation norms, high initial investment, and managing supply chain complexity for low-volume, high-customization production. Nonetheless, strategic collaborations with OEMs, government support, and the push for sustainable mobility position this sector for steady growth.

Pros and strengths

Diverse range of product portfolio: Over the years the company has evolved as specialised vehicle superstructure solutions company. It has a diverse range of product portfolio finding applications across multiple industry such as Petroleum, Mining, Infrastructure, Defence and Aviation. Its diversification of revenue across multiple verticals allow it to prevent any possible industry concentration in any of its product categories. Its diverse portfolio limits its exposure to downturns associated with a particular vertical. It also ensures that its revenues are consistent across periods on account of its customers serving different industry verticals with different business or industry cycles. Its experience and exposure to sell its products to such diversified industries allows it to explore its capabilities across other industry applications and to cross sell them.

In-house product fabrication capabilities: The company operates from its manufacturing facility situated in Lucknow, Uttar Pradesh. It has comprehensive in-house fabrication capabilities. Its operations involve Chassis Procurement wherein it sources or provide the chassis from trusted commercial vehicle manufacturers, ensuring compatibility and quality and superstructure manufacturing which is designed and built at its factory. All raw materials procured for its fabrication activities are sourced from trusted vendors and its quality control team applies stringent quality measurements at every stage to ensure low rejection rate such that its finished product confirms to the exact requirement of its customers and successfully passes all test, validations and quality checks.

Stringent quality control mechanism ensuring standardized product quality: The company maintains the standard quality for its product offerings. It is dedicated towards quality of its products to ensure Compact and Sturdy Design for enhanced strength and long life along with pilferage proof tanks to ensure optimum unitization of goods. It adheres to quality standards as prescribed by its customers and employ stringent quality control mechanism at each stage of fabrication process, which are required to ensure that its finished product conforms with the exact requirement of its customers and successfully passes all validations and quality checks. It accredited with ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certification. The company is recognised as approved fabricator of Tank Trucks/Refueller for fabrication by Ministry of Commerce & Industry Petroleum & Explosives Safety Organisation (PESO).

Risks and concerns

Maximum revenue comes from few customers: The company is dependent on certain key customers for sale of its products. For the stub period ended on November 30, 2024 and fiscals 2024, 2023 and 2022, its top ten customer’s contributed to 67.71%, 63.80%, 82.42% and 99.96% of its revenue from operations. Further, the company’s sales to its group companies contributed to 13.07%, 18.83%, 34.20% and 38.69% respectively of its revenue from operations. The loss of these customers or a loss of revenue from sales to these customers may materially affect its business, financial condition, results of operations and cash flows. As a result, the volume of sales to its customers may vary due to changes in its customers’ sourcing strategies. It cannot assure that it will be able to significantly reduce customer concentration in the future. Most of its business comprises direct supply to its customers, for which it does not have long term agreements.

Limited operating history: The company was incorporated as a private limited company under the Companies Act, 2013, with the Registrar of Companies, as evidenced by its Certificate of Incorporation dated November 3, 2020. As a result, its operating history is limited, which may impact the ability to fully assess its business performance, future prospects, and overall viability. Its future business operation and financial position may not be comparable, difficult to estimate and could fluctuate significantly and as a result the price of its Equity Shares may remain volatile.

Geographical constrain: The company generates its major turnover from the State of Uttar Pradesh. For the stub period ended on November 30, 2024 and the financial year ended March 31, 2024, March 31, 2023 & March 31, 2022, it derived major portion of its revenue from the state of Uttar Pradesh i.e. 23.77%, 36.26%, 53.68% and 97.23% of total revenue from operations, respectively. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Outlook

Tankup Engineers is engaged in the manufacturing of vehicle superstructure for complex mobility and storage solutions. The company offers products including self-bunded fuel tanks, mobile diesel bowsers, aircraft refuelers, fire tenders, and ground support equipment. The company specializes in manufacturing custom-built tanks for transporting or storing liquids, gases, or solids, tailored to client specifications in size, material, capacity, and functional features. On the concern side, the company’s business is dependent on the sale of its products to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Also, the company derives a significant portion of its revenue from the sale of its key product i.e. Refuellers. Any decline in the sales of its key product could have an adverse effect on its business, results of operations and financial condition.

The company is coming out with a maiden IPO of 13,95,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 133-140 per equity share. The aggregate size of the offer is around Rs 18.55 crore to Rs 19.53 crore based on lower and upper price band respectively. On performance front, total income of the company for the financial year 2023-24 stood at Rs 1,954.06 lakh whereas in Financial Year 2022-23 the same stood at Rs 1,185.20 lakh representing an increase of 64.87%. The main reason of increase was increase in the volume of business operations of the company. Moreover, the company’s profit after tax for the year increase by 225.69% from net profit of Rs 78.87 lakh in FY 2022-23 to net profit Rs 256.88 lakh in FY 2023-24.

The company is continuously approaching to different customers in the domestic market and endeavouring its efforts towards developing new products catering to new industry vertical. Recently, the company has initiated to expand its operations catering to defence and aerospace industry. The company has received order from Department of Defence Research & Development for supply of Mobile Refueller. Moreover, the company has also participated and successfully submitted the tender for supply of refuellers to be deployed at Kempegowda International Airport. With its experience in fabrication of various type of tank-like storage solutions with technical capabilities and standard quality, it will be able to successfully deliver new projects in new industry vertical.

Infonative Solutions

• Infonative solutions is coming out with an initial public offering (IPO) of 31,28,000 equity shares in a price band Rs 75-79 per equity share.
• The issue will open on March 28, 2025 and will close on April 3, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 1 and is priced 75 times of its face value on the lower side and 79 times on the higher side.
• Book running lead manager to the issue is Share India Capital Services.
• Compliance Officer for the issue is Shakshi.

Profile of the company

Infonative Solutions is principally engaged in business of developing and designing of e-learning Content and services and courseware & other product including providing cloud-based learning management system (LMS) etc. In the year 2014, the company started modestly, operating from a small, 10-seater office at the bustling IT hub of Delhi at Nehru Place, New Delhi. Within a year, the dedication and hard work paid off. Infonative Solutions outgrew its initial space and moved into a larger, 50-seater office, reflecting the company’s rapid growth and increasing client base. The expansion was not just physical; it marked the beginning of Infonative Solutions’ journey towards becoming a significant player in the e-Learning industry. In 2018, Infonative Solutions made a strategic move that set the stage for future success by Investing in Mindscroll, a leading LMS software. This investment was a game-changer, enabling Infonative to offer a comprehensive suite of eLearning solutions that integrated cutting-edge technology with innovative educational methodologies.

Currently, the company is engaged in crafting Bespoke e-Learning Solutions, Learning Consulting and Courseware & Off the Shelf content including Learning Management Systems. It provides cutting-edge e-learning Delivery services designed to enhance business impact for clients. Its team of learning professionals assists the world’s top Companies in revolutionizing their training functions. These services not only reduce costs and add measurable value but also amplify business impact, enabling customers to reallocate resources and focus on their core business operations.

Proceed is being used for:

• Meeting the expenses for development of new products, courses and new features in LMS and purchase of laptop
• Meeting the working capital requirements
• Meeting out the expenses for General corporate purposes and unidentified acquisitions

Industry overview 

E-learning, which stands for electronic learning, refers to acquiring knowledge, skills, or training through electronic or digital mediums, typically delivered via the Internet or computer networks. It consists of several forms of educational content, including online courses, virtual classrooms, digital resources, and interactive multimedia materials. LMS market is poised for significant growth, driven by technological advancements, the need for flexible learning solutions, and the increasing importance of continuous education and training in both academic and corporate settings. The current demand for LMS in the market is substantial and continues to grow rapidly. 

The India e-learning market was valued at $10.24 billion in 2023 and is projected to reach $28.46 billion by 2029, growing at a CAGR of 18.57% during the period. The adoption of e-learning in India has witnessed significant growth over the past few years. Owing to the proliferation of affordable smartphones and widespread internet access, e-learning has become more accessible to learners across urban and rural areas, thus driving the market.

The rise of eLearning has made it possible to learn at anytime, anywhere. By embracing technologies like AI, ML, and IoT, eLearning institutions and companies are adapting their pedagogies for online teaching and providing these cutting-edge courses through the digital medium for a fraction of the cost. The e-Learning sector’s potential to close the learning gap in the future appears to be quite promising given the trajectory of its expansion.

Pros and strengths

Scalable business model: Its business model (eLearning business) is inherently scalable due to its digital nature, which allows for easy expansion without the significant manpower and Infrastructure costs and logistical challenges associated with traditional Instructor led learning methods. Once an eLearning platform or course is developed, it can be delivered to a virtually unlimited number of users across different geographies simultaneously. The content can be updated, replicated, and distributed at minimal additional cost, making it possible to reach a global audience efficiently. Furthermore, advancements in cloud computing, mobile technology, and internet connectivity have further enhanced the scalability of eLearning by enabling access to educational resources anytime and anywhere. This scalability allows eLearning businesses to rapidly grow their user base and revenue while maintaining high levels of service and content quality.

Commitment to meeting market needs: The company is aiming to create a comprehensive range of professional upskilling courses and training programs which includes Softskill, Selling Skill, Anti Bribery, Business Consulting, Cyber Security, Artificial Intelligence, Content Writing and Data Science through a distinct brand Mindscroll. These educational offerings are designed to help busy professionals to learn high demand skills, develop a strong demonstrable track record & access international as well as domestic remote jobs and freelance work. Some of the popular courses cover subjects like Time Management, Excel Dashboarding, Project Management, Cyber Crime, Cyber Security, Email writing skills, Insurance, Selling Skills, POSH, Anti Money Laundering, GDPR etc.

Expanding the off the shelf library: Recognizing that the demand for off-the-shelf content is growing, Infonative Solutions sets ambitious goals for the future. The company aims to continuously expand its content library to meet the evolving needs of the eLearning market. Plans include creating new courses, adding new topics, updating existing materials to keep them current, and incorporating advanced learning technologies such as virtual reality and gamification.

Risks and concerns

Rely on information technology systems: It heavily relies on the performance, reliability, and security of its tech enabled platform and technology infrastructure, as well as its service providers that facilitate and process transactions. Its information technology systems serve a vital role in managing both the customer-facing front-end interface and digital mobile applications, as well as the back-end operations that support its internal enterprise-wide digital systems, client integration, document management etc. Any disruption in its information technology systems could have adverse effects on its operations and reputation.

Working capital requirement: The company’s working capital requirement was Rs 184.77 lakh and Rs 150.53 lakh for the financial years ended March 31, 2023 and March 31, 2022 respectively. In case there are insufficient cash flows to meet its working capital requirement or it is unable to arrange the same from other sources or there are delays in disbursement of arranged funds, or it is unable to procure funds on favourable terms, at a future date, it may result into its inability to finance its working capital needs on a timely basis which may have an adverse effect on its operations, profitability and growth prospects.

Delays and/or defaults in customer payments: It may be exposed to payment delays and/or defaults by its customers. Its financial position and financial performance are dependent on the creditworthiness of its customers. As per its business model, it supplies its services and products directly to its customers. Delays in payments from customers may require the company to make a working capital investment. If a customer defaults in making its payments on an order on which the company has devoted significant resources, or if an order in which the company has invested significant resources is delayed, cancelled or does not proceed to completion, it could have a material adverse effect on the company’s results of operations and financial condition.

Outlook

Infonative Solutions is engaged in crafting Bespoke e-Learning Solutions, Learning Consulting and Courseware & Off the Shelf content including Learning Management Systems. It provides cutting-edge e-learning Delivery services designed to enhance business impact for its clients. On the concern side, it operates in a competitive atmosphere. Some of its competitors may have greater resources than those available to the company. It competes with organized and as well as unorganized players in the industry, who may have better financial position, market share, product ranges, human and other resources. There are no entry barriers in its industry which puts it to the threat of competition from new entrants.

The company is coming out with a maiden IPO of 31,28,000 equity shares of Rs 1 each. The issue has been offered in a price band of Rs 75-79 per equity share. The aggregate size of the offer is around Rs 23.46 crore to Rs 24.71 crore based on lower and upper price band respectively. On performance front, the company’s total revenue has decreased by 13.72% from Rs 2095.16 lakh in the financial year ended March 31, 2023 to Rs 1807.80 lakh in the financial year ended March 31, 2024, primarily due to decrease in the revenue from operations. Moreover, the company recorded an increase of 35.70% in profit after tax from Rs 106.87 lakh in financial year ended March 31, 2023 to Rs 145.02 lakh in financial year ended March 31, 2024.

Given the ongoing growth of technology and the evolving needs of its clients, it is committed to expanding into new sectors with innovative and forward-thinking ideas. Historically, it has concentrated on serving enterprises that are heavily focused on technology and information, leveraging its strong capabilities in e-learning. To build on this foundation, it now plans to diversify its business activities by entering new domains, including product development, training, and capacity building. By expanding its offerings to include these areas, it aims to cater to a broader range of client needs and deliver its services more comprehensively. Its goal is to become a full-service provider, capable of supporting its clients throughout the entire process chain, from initial concept to final execution.

Spinaroo Commercial 

• Spinaroo Commercial is coming out with an initial public offering (IPO) of 19,94,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 51 per equity share.
• The issue opens on March 28, 2025 and will close on April 3, 2025.
• The shares will be listed on BSE SME Platform.
• The share is priced at 5.1 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Ankita Periwal.

Profile of the company

The company is engaged in manufacturing of Aluminium Foil Container, Aluminium Home Foil, Paper Cups, Paper Plates, Paper Bowls, Semi Processed Material for Paper Cups viz. paper coating, printing, blanking etc. It also deals in wide range of Paper Cup related Machinery like High-Speed Paper Cup Making Machine, Flexo Printing Machine, Automatic Roll Die Cutting Machine etc. with full end to end support.

The company offers a wide range of products made from superior-quality raw materials sourced from its highly reliable vendors. Under the guidance of experienced professionals, these products are manufactured to ensure exceptional performance and premium quality. In addition to delivering quality products, it provides these products at competitive prices and ensure timely delivery, tailored to meet its clients' precise specifications. Its paper cup making machines are procured from reputable and trusted vendors within the industry, who ensure the highest quality standards. These certified vendors utilize state-of-the-art machines and tools to manufacture products that meet specific client requirements. They are well-versed in understanding and fulfilling the unique demands of its customers.

The company has established two manufacturing facilities, both located within the Jalan Industrial Complex. The first facility is situated at Gate-1, Right Lane-6, P.O. Jangalpur, Begri Gram Panchayat, Kolkata, Howrah, and also serves as its registered office. The second facility is located at Gate-1, Right Lane-3, within the same industrial complex. Having both manufacturing units in close proximity within the same complex is highly advantageous, providing it with significant cost-efficiencies both logistically and commercially. This setup allows for streamlined operations and effective resource management. Its manufacturing facilities are equipped with the necessary tools, machineries, other equipment’s and amenities, to support a seamless manufacturing process, hassle-free production, Quality testing, storage and packaging. All its machineries are periodically upgraded and lubricated with experienced personnel so as to retain production rate.

Proceed is being used for: 

• Meeting the Working Capital Requirements
• General Corporate Purposes

Industry Overview

Packaging currently stands as the fifth largest sector in the Indian economy, reflecting its pivotal role in driving industrial growth and innovation. With an annual growth rate of 22-25%, the industry has become a preferred hub for packaging solutions, bolstered by advancements in technology and infrastructure. Notably, the industry boasts a robust structural framework, comprising over 900 paper units with an installed capacity of nearly 4,990 thousand tons. Furthermore, India is home to 861 paper mills, with 526 operational units, showcasing the nation's significant capacity for paper and paperboard production. The government's progressive policies, including permitting 100% FDI through the automatic route, have stimulated foreign investments in the packaging sector. FDI inflows in the Paper and Pulp industry totalled $ 1.71 billion from April 2000 to March 2024, highlighting investor confidence in India's packaging landscape. Innovative ventures, such as SIG's establishment of the first aseptic carton packs in Ahmedabad, underscore the industry's commitment to technological advancements and sustainability. With plans to invest Rs. 880 crores ($ 106.02 million) between 2023 and 2025, SIG exemplifies the industry's drive towards pioneering solutions.

The India paper cups market size reached 22.7 billion Units in 2023. The market is projected to reach 28.7 billion Units by 2032, exhibiting a growth rate (CAGR) of 2.64% during 2023-2032. The rising application in social and public gatherings, increasing demand for cost-effective and sustainable solutions, and the growing environmental concerns represent some of the key factors driving the market. Paper cups, also known as disposable cups, are made from bleached virgin paper pulp and coated with plastic and wax to prevent liquid from soaking through the paper and leaking. They are also coated with polyethylene, which aids in enhancing their durability and performance by controlling the condensed moisture from absorbing in and retaining the original flavor of the product. At present, the rising consumption of beverages among consumers represents one of the key factors supporting the growth of the market in India. Besides this, the growing demand for disposable packaging in quick service restaurants (QSRs) and fast-food chains to reduce leakage and spillage of beverages is offering a positive market outlook in the country. Additionally, there is a rise in the need for sustainable and environment friendly solutions among the masses. This, coupled with the increasing demand for paper cups as they easily decompose in the environment and do not add to landfill wastes or pollute water bodies, is propelling the growth of the market. 

Pros and strengths

Strategic advantage of dual manufacturing units within same industrial complex: The company operates two manufacturing units within the same industrial complex, providing significant strategic advantages in terms of production capacity and logistics. This proximity allows it to efficiently scale up production during peak demand periods, ensuring that it meet increased customer requirements without compromising on delivery timelines. Additionally, the ample space provided by these two facilities gives it sufficient room for both production and storage. It can manage inventories and finished goods effectively, allowing it to capitalize on market opportunities during high business seasons. The close proximity of the units further enhances its logistics, reducing transportation time and costs between facilities, ensuring smooth coordination of operations, and optimizing resource allocation. This setup positions it to be highly responsive to market fluctuations while maintaining operational efficiency. 

Innovation and efficiency through a dedicated R&D team: The company's success is driven in part by the efforts of its Research and Development (R&D) team, whose innovative approach has enabled it to expand its product line and optimize production processes. With their expertise, it has successfully introduced the manufacturing of paper plates alongside its existing machinery, despite the requirement for specialized equipment. Their forward-thinking solutions have also allowed it to offer a wide range of new designs for both paper cups and plates, keeping pace with the evolving tastes and preferences of its customers. In addition to product innovation, its R&D team has played a critical role in enhancing its operational efficiency. 

Establishing long-term client relationships and driving repeat business: The company has built a strong reputation in the industry, securing repeat orders from many prominent clients, even amid rising competition. This success stems from its unwavering commitment to understanding and addressing the unique needs of each client. By consistently delivering on expectations, it has cultivated long-lasting relationships that not only enhance client satisfaction but also strengthen its client retention strategy. These established relationships serve as a key competitive advantage, enabling it to attract new clients and grow its business. The experience it gains from executing current orders continually enhances its understanding of client requirements. This insight allows it to evaluate the scope of future businesses and assess associated risks more effectively. It deeply values the trust its clients place in it and remain dedicated to not only meeting but exceeding their expectations. This focus on quality service and relationship-building helps solidify its position as a trusted partner in the industry, contributing to its long-term success. 

Risks and concerns

Maintains high level of inventory for uninterrupted production activities: The company’s requirement of maintaining inventory is high when compared to other companies in the same industry. Maintaining such high level of inventory requires extensive investments in working capital and strains its financial resources. Further, stocking high inventory may also lead to risks of scrapping of raw material, decay due to time, wear and tear. It continues to assess and maintain inventory level strategically giving importance to both operational and financial performance. The results of operations of its business are also dependent on its ability to effectively manage its inventory and stocks. To effectively manage its inventory, it must be able to accurately estimate customer demand and supply requirements and manufacture new inventory accordingly. If its management has miscalculated expected customer demand it could adversely impact the results by causing either a shortage of products or an accumulation of excess inventory. 

Geographical concentration: The company carries its manufacturing operations from its manufacturing facility located at West Bengal. Due to the geographical concentration of its manufacturing operations in these locations, its operations are susceptible to local, regional and environmental factors, such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in the transport of its products and raw materials, loss of key managerial personnel, and/or otherwise adversely affect its business, financial condition and results of operations. Its Productions were disrupted due to natural calamity such as Amphan cyclone and Covid in the past. 

Do not have long-term contracts with clients: The company does not have any long-term contracts with its clients and any change in the business pattern of its existing clients could adversely affect the business of the company. As a result, its customers can terminate their relationships with it due to a change in preference or any other reason on immediate basis, which could materially and adversely impact its business. Consequently, its revenue may be subject to variability because of fluctuations in demand for its products and services. The company's customers have no obligation to work with it and may either cancel, reduce, or delay the business. The business by the company's customers is dependent on factors such as the customer satisfaction with the level of service that the company provides, fluctuation in demand for the company's products, customer’s inventory management, amongst others. Although it has satisfactory business relations with its clients and has received continued business from them in the past, there is no certainty that the same will continue in the years to come and may affect its profitability. 

Outlook

Spinaroo Commercial is engaged in manufacturing of aluminium home foils, aluminium containers, paper cups, paper plates and paper bowls. Its raw materials for paper cups, plates, and bowls are of the highest quality, ensuring superior end products. It sources sustainable, food-grade paperboard that offers excellent strength and rigidity. These materials are carefully selected for their smooth surface, which allows for high-quality printing and coating adhesion. Its raw materials meet strict safety standards, making them ideal for food contact applications. They are also engineered to optimize production efficiency, reducing waste and improving cost-effectiveness for manufacturers. It also sells raw materials (semi-finished) for Papers cups, plates and bowls after certain processing and modification. On the concern side, the company operates in the highly competitive industry. There are no entry barriers in its industry which puts it to the threat of competition from new entrants. Besides, as a labour-intensive business, it depends heavily on its workforce to ensure smooth production and manufacturing processes. Any disruptions, such as strikes, lockouts, or industrial action, could have a considerable negative impact on its financial health, operational efficiency, and reputation.

The company is coming out with an IPO of 1994000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 51 per equity share to mobilize Rs 10.17 crore. On performance front, the total revenue consist of revenue from operation and other income has decreased to Rs 4121.31 lakh in FY 2023-24 from Rs 5319.30 lakh in FY 2022-23 i.e. total revenue decreased by Rs 1197.99 lakh (22.52% for the said period) primarily due to decrease in revenue from manufacturing activities of the company. The restated Profit after Tax for FY 2023-24 has been increased to Rs 140.05 lakh (3.40% of total income) as against Rs 93.06 lakh (1.75% of total income) in the FY 2022-23. 

Meanwhile, to bolster the production of the company’s aluminium products, specifically Aluminium Home Foils and Aluminium containers, it is imperative to strategically source raw materials which is primarily Aluminium reels. The company plans to utilize a portion of the proceeds from this IPO to procure aluminium reels from countries i.e. Thailand and also from other countries wherever it finds a competitive pricing. It intends to explore new opportunities within its existing Aluminium foil and paper cup/plate/bowl business by developing innovative products and designs that align with evolving consumer preferences. By broadening its product offerings, it will further enhance the diversification of its business, allowing it to cater to the varied needs of different customer segments. 

Aten Papers & Foam

• Aten Papers & Foam is coming out with an initial public offering (IPO) of 33,00,000 equity shares in a price band Rs 91-96 per equity share.
• The issue will open on March 28, 2025 and will close on April 2, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.1 times of its face value on the lower side and 9.6 times on the higher side.
• Book running lead manager to the issue is Swastika Investmart.
• Compliance Officer for the issue is Neha Munot. 

Profile of the company

The company operates as an important intermediary in the Paper Product Supply Chain. As a crucial middleman in the paper product supply chain, it procures paper from different paper mills and resell them to clients in the packaging products industry. Examples of these products include Kraft Paper and Duplex Board. It also purchases Wastepaper from stockiest and sell them to Paper mills which is crucial raw material for such mills. A wide range of grades, thicknesses, widths, and standards are available in its product portfolio for Kraft papers and Duplex boards and other according to customer specifications. 

The paper products manufactured by its customers have a variety of end use applications and are used mainly in the packaging industry. It sells papers in the domestic markets specially in the state of Gujarat. It attributes its growth to the expertise and dedication of its management team. Their extensive experience of more than two decades, they play a pivotal role in guiding its strategic decisions and daily operations. its Promoters, Mohamedarif Mohamedibrahim Lakhani and Amrin Lakhani, with their deep knowledge, vision, and industry insight, have been instrumental in shaping and executing its growth strategies. Their leadership has allowed it to adapt to evolving market demands and successfully expand its business.

Proceed is being used for:

• Capital expenditure
• Meeting working capital requirements
• General corporate purposes 

Industry overview 

India was one of the first countries to invent paper for sale. Papermaking became an important small job in middle India, making good paper for use inside India and to sell outside. Indian paper was brought to places like Arabia, Indonesia, and Europe in the early Middle Ages. The paper packaging industry experienced growth over the last decade, owing to substrate choice changes, new market expansion, ownership dynamics, and government initiatives to ban plastic. Sustainability and environmental issues continue to be emphasized, and various innovations catering to paper and paper board packaging are expected to drive market growth in India.

The India Paper and Paperboard Packaging Market size is estimated at $12.87 billion in 2024, and is expected to reach $17.74 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029). The paper industry in India produces 5% of the world's total paper. India accounts for about 5% of the global paper market. The market will be worth about $8 billion by 2022. India is the 15th largest paper producer in the world. The paper production increased by 67,100 tons in January 2023. During April 2022-January 2023, the paper production increased by 6.7%.

India's paper and packaging sector has a bright future ahead of it, thanks to the nation's expanding urbanization, increased disposable income, and expanding population. The need for packaging materials is increasing due to the quick growth of e-commerce, and the industry is being forced to come up with greener solutions as sustainability becomes more and more of a priority. It is anticipated that government programs like ‘Make in India’ and infrastructure development projects would increase manufacturing and improve supply chains.

Pros and strengths

Variety of products: It provides a one stop shop to its clientele for their customized paper product supply needs. As a trading company, it is in a position to always provide the latest products collected in house for its customers and also conduct market expansion activities for its suppliers. Its continuous effort and belief in maintaining a healthy relationship with its suppliers ensures adequate inventory at any point. It procures, stock and supply a diverse and multi-application range of papers and paper products to satisfy the growing requirements of customers. It procures various types of paper from Paper Mills, which are used for varied purposes including Packaging and Printing, which inter-alia includes retail mono packaging boxes and shipper carton manufacturing.

In-house Logistics: It has its own in-house commercial vehicles which facilitates door-to-door delivery service to its customers, in order to minimise transportation costs by providing effective material handling system. It owns four commercial vehicles for this purpose. Transportation mainly includes carrying the products from the paper mills and delivering them to the customers. At times, when needed, it also outsources its transportation-to-transportation agencies.

Ready stock: Stock capacity plays an immensely important role in the paper market. It is stock capacity that one stores that can determine the level of growth. At the Company it is always stock and supply pattern that is followed. It keeps ready stock of all the paper, it deals in all the sizes and GSMs with the required amount of quality at its respective warehouse which helps it stays at a stable position throughout the year and also helps it in serving its customers with timely delivery of orders.

Risks and concerns

Dependent on few numbers of customers: Its top ten customers contribute 36.68%, 34.62%, 28.00% and 28.20% of its total sales for the period ended on September 30, 2024 and for the year ended on March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Moreover, 7.88%, 17.04%, 11.30% and 10.54% of its total revenue is from related parties / group companies /entities. All transactions with related parties entered into by the Company in past were at arm’s length basis, in compliance with applicable provisions of Companies Act, 2013. The company is engaged in the business of paper trading. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows. 

Maximum sale generated from Gujarat: For the period ended on September 30, 2024 and for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 sales within the state of Gujarat was 97.90%, 99.18%, 99.86% and 99.59% respectively of its total revenue from operations. It anticipates continuing to expand its sales efforts in this region. However, this high concentration in Gujarat exposes it to increased competition, as existing and potential competitors may intensify their focus on this market to capture a larger share. This heightened competition, along with other adverse developments such as economic, political, or demographic changes, could significantly impact its market share and overall business performance. Consequently, any negative event affecting its sales in Gujarat could materially harm its business prospects, financial condition, and operational results.

Working capital requirements: It operates as an important intermediary in the Paper Product Supply Chain. As a crucial middleman in the paper product supply chain, it procures paper from different paper mills and resell them to clients in the packaging products industry. The business of the company is working capital intensive. The successful operation of its business heavily relies on significant working capital, which is essential for various aspects, including financing project operations, inventory management, and the purchase of raw materials of proposed processing Units. However, changes in credit terms and payment delays can adversely impact its working capital, resulting in lower cash flows and increased funding requirements. Inadequate financing of its working capital needs may arise due to several factors, such as delays in disbursements under financing arrangements, higher interest rates, increased insurance costs, or borrowing and lending restrictions. Such circumstances could have a material adverse effect on its overall business, financial condition, and prospects.

Outlook

Aten Papers & Foam operates as an important intermediary in the Paper Product Supply Chain. As a crucial middleman in the paper product supply chain, it procures paper from different paper mills and resell them to clients in the packaging products industry. It also purchases Wastepaper from stockiest and sell them to Paper mills which is crucial raw material for such mills. A wide range of grades, thicknesses, widths, and standards are available in its product portfolio for Kraft papers and Duplex boards and other according to customer specifications. On the concern side, it is dependent on third party transportation providers for supply of its products to its customers. Any failure on the part of such service providers to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.

The company is coming out with a maiden IPO of 33,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 91-96 per equity share. The aggregate size of the offer is around Rs 30.03 crore to Rs 31.68 crore based on lower and upper price band respectively. On performance front, the company’s total revenue from operations for the year ended on FY 2023-24 was Rs 9,679.82 lakh as compared to Rs 9,099.72 lakh during the FY 2022-23. Revenue from Operations mainly includes revenue from trading of papers. Moreover, the profit after tax Increased to Rs 278.10 lakh in FY 2023-24 from Rs 50.26 lakh in the FY 2022-23.

Meanwhile, the company, currently engaged in the paper trading business, is excited to announce its plans to expand operations by setting up wastepaper processing units. This strategic move will mark its entry into wastepaper processing, which will serve as a key raw material supply for its trading activities. It plans to invest around Rs 425.00 lakh to purchase requisite machineries for setting up waste paper processing Units. These units will enhance its supply chain efficiency and sustainability by providing a reliable source of processed wastepaper.

Retaggio Industries

• Retaggio Industries is coming out with an initial public offering (IPO) of 61,98,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 25 per equity share.
• The issue opens on March 27, 2025 and will close on April 2, 2025.
• The shares will be listed on BSE SME Platform.
• The share is priced at 2.5 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Gretex Corporate Services.
• Compliance Officer for the issue is Nayan Mehta.

Profile of the company

Retaggio Industries is a Jewellery manufacturing company with a strong presence and experience in catering to B2B segment of the industry. It specializes in the production and sale of a wide range of jewellery products, including gold jewellery, diamond jewellery, precious stones, and other fancy jewellery and bullion in the form of coins and bars. Jewellery manufacturing is the process of designing and creating jewellery, including rings, bangles, necklaces, bracelets, earrings, and other types of decorative pieces. It specializes in crafting heritage and high-end jewelry pieces, emphasizing craftsmanship and unique designs. Jewellery manufacturing is a skilled trade that requires experience, attention to detail, and creativity. Mass-produced jewellery is often made using automated processes, while custom-made jewellery is crafted by hand and may take longer to produce. The quality of the final product is largely dependent on the skills of the manufacturer, and it is passionate about crafting beautiful, high-quality jewellery that tells a unique story. Right from the initial design phase to the final product, every step of the manufacturing process is carefully planned and executed to create pieces that are both stunning and durable. It also has display centre at its registered office.

Its talented team of designers starts by sketching out ideas for new pieces of jewellery, drawing inspiration from nature, history, and the latest fashion trends. Once a design is finalized, it uses state-of-the-art technology to create a 3D model of the piece, allowing the company to refine every detail before it goes into production. It might have a signature style or aesthetic that sets it apart from other jewellery manufacturers, such as a focus on natural materials like wood or stone, or a commitment to using sustainable and eco-friendly materials and processes. The company might also be known for its customer service, with a focus on helping each customer find the perfect piece of jewellery to suit their style and budget. Using the 3D model, it creates a wax or resin model of the jewellery piece, which is used to create a mold. The mold is then used to cast the piece in the desired metal, such as gold, silver, or platinum.

Proceed is being used for:

• Repayment/Prepayment of certain debt facilities
• Working capital requirements

Industry Overview

As of January 2022, India’s gold and diamond trade contributed around 7% to India’s Gross Domestic Product (GDP). The gems and jewellery sector has employs around 5 million. Based on its potential for growth and value addition, the Government declared the gems and jewellery sector as a focus area for export promotion. The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India. 

India’s gems and jewellery market size was at $78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and the fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. In FY24, India's gems and jewellery exports were at $22.27 billion, a 14.94% decline compared to the previous year's period. Exports of gems & jewellery at stood at $2.54 billion in September 2024.

In the coming years, growth in the gems and jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry. The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilisation of gold prices at lower levels is also expected to drive volume growth for jewellers over the short to medium term. India has 450 organised jewellery manufacturers, importers & exporters and is the hub for jewellery manufacturing.

Pros and strengths

Product quality & timely delivery: It has a set of standards for itself when it comes to timeliness and the quality of service it provides to its customers. The stringent systems ensure that all the products reach its customers on the stipulated time and there are minimum errors to ensure reduced product rejection. Its quality service has earned the company goodwill from its customers, which has resulted in customer retention and order repetition. It has also helped the company to add to its existing customer base. It has developed an internal procedure of checking the client orders at each stage from customer order to delivery. 

Wide product range: Its wide range of product offerings caters to diverse customer segments, from the value market to high-end customized jewellery. Its product profile includes traditional, contemporary and combination designs across jewellery lines, and price points. Its focus on design and innovation, its ability to recognize consumer preferences and market trends, the intricacy of its designs and the quality and finish of its products are its key strengths.

Timely fulfilment of orders: Timely fulfilment of the orders is a prerequisite in its industry. The company has taken various steps in order to ensure adherence to timely fulfilment and also to achieve greater cost efficiency at its existing unit. The company constantly endeavors to implement an efficient business process so as to ensure cost efficiency in procurement.

Risks and concerns

Changes in consumer preferences and fashion habit: The demand for its products is based on its strength in identification of the latest trends and its continued ability to offer products that are acceptable to the consumers. If consumer preferences change due to shifts in consumer demographics, national, regional or local economic conditions, change in trend and fashion which it is not able to adapt, its consumers may begin to seek alternative options, which would adversely affect its financial results. If it is unable to procure products to successfully meet changes in fashion and trends, its business and financial condition may be materially and adversely affected.

Geographical concentration: The major portion of its revenue for the half year ended on September 30, 2024 and for the financial year ended on March 31, 2024 is from only one city of Maharashtra. 80.22 % of Revenue for the half year ended on September 30, 2024 and 59.39 % for the financial year ended on March 31, 2024 were from the state of Maharashtra. Such geographical concentration of its business heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in these regions which may adversely affect its business prospects, financial conditions and results of operations. Factors such as competition, culture, regulatory regimes, business practices and customs, industry needs, transportation, in other markets where it may expand, its operations may differ from those in which it is currently offering. 

Face competition: The market in which the company is doing business is highly competitive on account of both the organized and unorganized players. Players in this industry generally compete with each other on key attributes such as technical competence, distribution network, pricing and timely delivery. Some of its competitors may have longer industry experience and greater financial, technical and other resources, which may enable them to react faster in changing market scenario and remain competitive. Moreover, the unorganized sector offers their products at highly competitive prices which may not be matched by us and consequently affect its volume of sales and growth prospects. Growing competition may result in a decline in its market share and may affect its margins which may adversely affect its business operations and its financial condition.

Outlook

Retaggio Industries is a Jewellery manufacturing company with a strong presence and experience in catering to B2B segment of the industry. It specializes in the production and sale of a wide range of jewellery products, including gold jewellery, diamond jewellery, precious stones, and other fancy jewellery and bullion in the form of coins and bars. On the concern side, fluctuation in prices, non-availability or high cost of quality of gold, silver, diamonds and other precious and semi-precious stones may have an adverse effect on its business, results of operations and financial condition. Further, its business is dependent on its continuing relationships with its customers. The company neither has any long-term contract with any of customers nor has any marketing tie up for its products

The company is coming out with an IPO of 61,98,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 25 per equity share to mobilize Rs 15.50 crore. On performance front, the company’s revenue from operations is Rs 2,327.83 lakh for the financial year 2023-24 as compared to Rs 2,306.59 lakh for the financial year 2022-23 representing an increase of 0.92% on account of expansion of business. The profit after tax increased by 8.13% to Rs 334.11 lakh for the financial year 2023-24 from Rs 308.99 lakh for the financial year 2022-23.

Meanwhile, it is focused on establishing and increasing its manufacturing facilities as this will allow it to exercise control over manufacturing costs and the quality of the finished products. Additionally, it intends to enhance the brand recognition of its services through its presence in major cities. It does market through traditional channels such as word of mouth and intend to do other marketing as well. Its marketing and advertising initiatives shall be directed to increase brand awareness, acquire new customers, drive customer traffic across its retail channels and strengthen its brand recall value.