Accretion Pharmaceuticals

• Accretion Pharmaceuticals is coming out with an initial public offering (IPO) of 29,46,000 equity shares in a price band Rs 96-101 per equity share.
• The issue will open on May 14, 2025 and will close on May 16, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.60 times of its face value on the lower side and 10.10 times on the higher side.
• Book running lead manager to the issue is Jawa Capital Services.
• Compliance Officer for the issue is Bhavika Dhaval Makadia.

Profile of the company

Accretion Pharmaceuticals is engaged in the business of manufacturing and marketing of Tablets, Capsules, Oral Liquid, External Preparations (Ointment, Cream, Gel, Lotion, Medicated Shampoo, Mouthwash, Dusting Powder), and Oral Powder (Sachet, Dry Syrup) etc.

Apart from manufacturing products for direct sales, the company also manufactures various pharmaceutical products for different marketers on loan license or contract manufacturing basis. Its business is majorly carried out on principle-to-principle basis with different marketers. Also, the company caters to multiple corporate clients on loan licence and/or contract manufacturing basis.

The company is ISO 9001:2015, ISO 14001:2015 and ISO 22000:2018 certified and is led by an experienced board of directors, and a professional and experienced management team with extensive experience in the pharmaceutical.

Proceed is being used for:

• Capital expenditure towards purchase of new equipment/machineries, etc.
• Capital expenditure towards upgradation of existing manufacturing facility
• Repayment/prepayment of certain borrowings availed by the company
• Funding working capital requirements
• General corporate purpose

Industry Overview

India’s pharmaceutical market currently valued at $50 Billion is the world's third largest by volume. With a diversified product base covering generic drugs, active pharmaceutical ingredients, bulk drugs, over-the-counter drugs, vaccines, biologics and biosimilars, the Indian pharmaceutical industry has a strong presence at the global level. “Pharmacy of the world” as it is often called offers around 60,000 generic brands across 60 therapeutic categories, accounting for 20 per cent of global generic drug exports by volume. Not surprisingly, eight of the top 20 global generic companies are based in India.

India’s pharmaceutical sector boasts high rates of quality compliance, with 70311 US FDA approved facilities (as of April 2023), 38612 European GMP-compliant plants (as of November 2022) and 241813 WHO-GMP-approved plants. To further bolster the regulatory framework, in December 2023, revised pharma manufacturing rules were notified under Schedule-M relating to Good Manufacturing Practices, a mandatory requirement that safeguards quality and brings the existing regime in line with global standards.

The pharmaceutical industry in India is expected to reach $65 billion by 2024 and to $130 Bn by 2030. The pharmaceutical industry in India is currently valued at $50 billion. India is a major exporter of Pharmaceuticals, with over 200 countries served by Indian pharma exports. India supplies over 50% of Africa’s requirement for generics, 40% of generic demand in the US and 25% of all medicine in the UK. India also accounts for 60% of global vaccine demand, and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHO’s vaccines (as per the essential Immunization schedule) are sourced from India. 

Pros and strengths

Wide range of products: Vision of the company is to ensure the quality health care products & to meet the standards of their clients, commitment to provide world class quality, competitive pricing and a constant urge expand their product portfolio has gained reputation as a global manufacturer of various formulation with world class quality products. The company’s variety of product offerings has enabled it to cater to a large customer base in the domestic market as well as international market.

Long-standing relationship with clients and suppliers: It continually invest in strengthening its relationships with its clients and suppliers. Its sales and marketing operations are led by its Promoters Hardik Mukundbhai Prajapati and Vivek Ashok Kumar Patel who has got rich experience in the business of the company.

Quality standards: Quality plays one of the most vital roles in the success of any organization. The company is focused on providing quality products. It constantly strives to improve its industrial processes at every step in the production chain. Its focus on quality is evidenced by the quality certification from ISO 9001:2015 for maintaining quality standards and ISO 14001:2015 for meeting safe environmental standards and policies. Ensuring global standard products will attract domestic and international customers to the company.

Risks and concerns  

Maximum revenue comes from few clients: The company is dependent on certain customers who have contributed a substantial portion of its total revenues. The company has garnered 72.98%, 70.01% and 38.31% of its total revenue from top 10 customers in FY24, FY23 and FY22, respectively. The company has not entered into long term agreements with majority of these customers and the success of its business is accordingly significantly dependent on maintaining good relationship with them. The loss of a significant client or clients may have a material adverse effect on its results of operations/cash flow.

Maximum revenue comes from exports: A substantial share of its revenue is generated from export sales, while its domestic sales contribute a comparatively smaller portion. Its profitability is largely influenced by factors affecting the export market, including fluctuations in foreign exchange rates, changes in international trade policies, regulatory requirements in different jurisdictions, geopolitical uncertainties, and competitive pricing pressures. Any reduction in export demand, increase in production or compliance costs, or unfavorable currency movements could negatively impact its profit after tax (PAT) and PAT margins.

Limited operating history as a company: The company was incorporated as Accretion Pharmaceuticals Limited on November 29, 2023, under the provisions of the Companies Act, 2013. Prior to the incorporation of the company, the current business was being carried its under M/s Accretion Pharmaceuticals, a partnership firm registered under the provisions of the Partnership Act, 1932 and whose erstwhile Partners are the current Promoters of the company, viz., Harshad Nanubhai Rathod, Vivek Ashokkumar Patel, Mayur Popatlal Sojitra and Hardik Mukundbhai Prajapati. It has a very limited operating history from which the investors might evaluate its business and future prospects and viability.

Outlook

Accretion Pharmaceuticals is a pharmaceutical company that manufactures and sells tablets, capsules, and other healthcare products. The company holds ISO 9001:2015, ISO 14001:2015, and ISO 22000:2005 certifications, reflecting its dedication to quality and environmental management systems. The company has expanded its global footprint, marking its presence in more than 20 countries, including regions in Africa, Southeast Asia, and the Middle East. On the concern side, a significant portion of its revenue is derived from exports, and any decline in export profitability may adversely impact its overall financial performance. Also, the company has a very limited operating history, which may make it difficult for investors to evaluate its historical performance or future prospects.

The company is coming out with a maiden IPO of 29,46,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 96-101 per equity share. The aggregate size of the offer is around Rs 28.28 crore to Rs 29.75 crore based on lower and upper price band respectively. On performance front, the company’s total revenue increased to Rs 3,393.86 lakh for the year ended on March 31, 2024, as compared to Rs 2,953.15 lakh for the year ended on March 31, 2023. Moreover, profits after tax as a percentage of total income is 13.72% during the year ended March 31, 2024. In absolute terms, profit after tax was Rs 465.77 lakh during the year ended March 31, 2024. During the year ended March 31, 2023, profit after tax was 0.35% of Total Income. In absolute terms, profit after tax was Rs 10.39 lakh during the year ended March 31, 2023.

The company’s product portfolio is primarily focused on offering differentiated products and registered formulations based on customer’s requirements. It intends to continue to grow its sales by registering more and new products in these markets as well new market. Its growth strategy will vary from country to country depending on their specific regulatory and product requirements. It may either form important relationships with companies having strong local presence or alternatively appoint local distributors through which it can undertake its own sales and marketing. Further, the company also proposes to get registration of its plant and products with the respective authority of the countries globally so as to enable the company to directly export its products to global market.

Integrity Infrabuild Developers

• Integrity Infrabuild Developers is coming out with an initial public offering (IPO) of 12,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 100 per equity share.
• The issue will open on May 13, 2025 and will close on May 15, 2025.
• The shares will be listed on SME Platform of NSE.
• The share is priced 10 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Aryaman Financial Services.
• Compliance Officer for the issue is Krupa Dholakia.

Profile of the company

Integrity Infrabuild Developers is an integrated Civil Contract Company registered as a Class-A contractor since August 24, 2018 and has received the renewed certificate dated June 29, 2024 with the Government of Gujarat. The company specializes in contracting and sub-contracting services for various government projects, including road construction, building, and bridge construction.

Subcontracting involves a main contractor, awarded a project by a government entity, delegating part or all of the work to specialized subcontractors. The main contractor retains overall responsibility for the project, ensuring deadlines, quality standards, and delivery are met. The subcontracting process includes identifying needs, selecting qualified subcontractors, formalizing agreements, and supervising execution.

The subcontractor completes the work as per the contract, while the main contractor ensures it aligns with project specifications, timelines, and budget. Both parties must adhere to legal, safety, and regulatory standards, with the main contractor ultimately accountable for the project's success. 

Proceed is being used for:

• Capital expenditure toward purchase of Machinery and Equipments
• Funding working capital requirements
• General corporate purpose

Industry Overview

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs 11.11 lakh crore ($133.86 billion), which would be 3.4 % of GDP. As per the Interim Budget 2023-24, a capital outlay of Rs 2.55 lakh crore ($30.72 billion) has been made for the Railways, an increase of 5.8% over the previous year. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of $1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.

Further, India has the second-largest road network in the world, spanning a total of ~6.7 million kilometres (kms). This road network transports 64.5% of all goods in the country and 90% of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with improvement in connectivity between cities, towns and villages in the country. National Highways Authority of India (NHAI) spent a record-breaking Rs 2,07,000 crore ($24.79 billion) on the construction of national highways in the fiscal year 2023-24. This was the highest capital expenditure ever recorded, representing a 20% increase from last year. India's road network has grown 59% to become the second largest in the world in the last ten years. As of December 2024, India has a total of 146,195 kilometres of National Highway and 2,474 National high-speed corridors.

The infrastructure sector has become the biggest focus area for the Government of India. India's GDP is expected to grow by 8% over the next three fiscal years, one of the quickest rates among major, developing economies, according to S&P Global Ratings. India and Japan have joined hands for infrastructure development in India’s Northeast states and are also setting up an India-Japan Coordination Forum for development of Northeast to undertake strategic infrastructure projects for the region. India being a developing nation is set to take full advantage of the opportunity for the expansion of the infrastructure sector, and it is reasonable to conclude that India's infrastructure has a bright future ahead of it. 

Pros and strengths

Focused on roads, buildings and bridge construction: Since FY 2021-22, the company has successfully completed 111 projects with a total contract value of Rs 21,336.63 lakh. The company’s objective is to utilize its project management skills to ensure quality in construction. The company has implemented industry best practices, including regular mock drills and safety orientation programs, to foster a safe working environment. The company’s fleet of construction equipment and vehicles allows it to handle multiple projects at once. Its understanding in project execution, focus on quality, financial performance, and reasonable pricing help it bid and complete projects.

Visible growth through a robust order book: The company has gained significant experience and have established track record and reputation for efficient project management, execution and timely completion. It has successfully completed more than 111 projects under various contracting and / or sub-contacting agreements. Its expertise in successful and timely implementation of projects provides it with significant competitive advantages. By diversifying its skill set and order book across different business and geographical regions, it is able to pursue a broader range of project tenders and therefore maximize its business volume and contract profit margins.

Technical capabilities and resources: The company is equipped with comprehensive resources, including advanced technical knowledge, specialized machinery, and skilled labour, enabling it to handle a wide range of construction projects. The company’s team consists of experienced individuals with extensive construction expertise and technical knowledge, supported by a pool of engineers, seasoned site staff, and project managers. Additionally, it has access to contractual labour for construction tasks and a dedicated employee base at its Registered office for administrative functions. It also owns a large fleet of equipment and has established relationships to secure necessary equipment for projects in various locations, allowing it to streamline its workflow and deliver projects efficiently and on schedule.

Risks and concerns  

Substantial portion of revenues comes from limited customers: The company derives a significant portion of its revenues from a limited number of clients. For the period ended December 31, 2024 and financial year ended March 31, 2024, March 31, 2023 and March 31, 2022, its top ten largest clients accounted for around 98.86%, 99.74%, 97.67% and 97.64% of its revenues from operations, respectively. The loss of a significant client or clients would have a material adverse effect on its financial results. It cannot assure that it can maintain the historical levels of business from these clients or that it will be able to replace these clients in case it loses any of them.

Geographical constrain: The company’s entire business is concentrated in the state of Gujarat. It is primarily dependent on the projects undertaken or awarded in the state of Gujarat by the Gujarat State Government, the local authorities in the state of Gujarat and other entities funded by the Gujarat State Government. Therefore, it derives its entire revenues from contracts with government entities and are exposed to risks emanating from economic regulatory and other changes in the State of Gujarat. Any adverse changes in the central or state government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

Business is subject to seasonal fluctuations: The company’s business operations may be affected by seasonal factors which may restrict its ability to carry on activities related to its construction projects and fully utilize its resources. Heavy or sustained rainfalls or other extreme weather conditions such as cyclones could result in delays or disruptions to its operations during the critical periods of its projects and cause severe damages to its premises and equipments. In particular, the monsoon season may restrict its ability to carry on activities related to its projects and fully utilize its resources and may slow its activities on construction projects, which shifts its revenue and accordingly profit recognition to subsequent quarters. Adverse seasonal developments may also require the evacuation of personnel, suspension or curtailment of operations, resulting in damage to construction sites or delays in the delivery of materials.

Outlook

Integrity Infrabuild Developers is a Class-A civil contractor registered with the Government of Gujarat. The company executes construction activities as a contractor for government projects in Gujarat and regularly subcontracts to expand its presence in the state's construction sector. The company is focused on roads, buildings and bridge construction. Also, the company has strong project management capabilities with industry experience. On the concern side, substantial portion of the company’s revenues has been dependent upon its few clients. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability. The company’s entire business is concentrated in the state of Gujarat. It is primarily dependent on the projects undertaken or awarded in the state of Gujarat by the Gujarat State Government, the local authorities in the state of Gujarat and other entities funded by the Gujarat State Government. Any adverse changes in the central or state government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

The company is coming out with an IPO of 12,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 100 per equity share to mobilize Rs 12 crore. On performance front, the company’s revenue from operation has increased by 42.67% to Rs 6,447.02 lakh in FY24 from Rs 4,518.95 lakh in FY23. Such increase was primarily attributable to an increase in tender and orders awarded by government for construction business during the period. Moreover, the company’s profit for the year increased to Rs 94.85 lakh in FY24 from Rs 29.44 lakh in FY23. With the increase in revenue for more than 40%, the profits also rose in line with the order books of the company.

The company intends to continue its practices of strict cost control through (i) ownership and maintenance of modern construction equipments and centralizing procurement of major construction equipments and raw materials; (ii) careful selection of projects; and (iii) cautious expansion into new businesses or new geographical areas. Further, in its efforts to avoid over-leveraging its balance sheet, the company intends to ensure that it is well funded in form of equity capital and hence it proposes to raise working capital finance from this Issue. Such balance sheet management shall augment its financial strength and will be the driving factor for the sustainable growth and expansion of its business in the future.

Virtual Galaxy Infotech

• Virtual Galaxy Infotech is coming out with an initial public offering (IPO) of 65,70,000 equity shares in a price band Rs 135-142 per equity share.
• The issue will open on May 9, 2025 and will close on May 14, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 13.50 times of its face value on the lower side and 14.20 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Anjali Vinay Padhye.

Profile of the company

Virtual Galaxy Infotech is a SaaS product focused company engaged in providing core banking software solution, IT solutions, ERP implementation and customized software solutions development, IT services for the BFSI, ERP, and E-Governance domains. It is primarily involved in the development, customization, installation, and implementation of software applications, along with comprehensive post-implementation support, monitoring, and maintenance services for the delivered solutions. To provide a seamless experience to its clients, it offers a range of essential allied services, ensuring that all software needs are met under one roof. Its wide range of offerings covers services including consultation, architecture, solution design, implementation, monitoring and managed services.

Founded in 1997 in Nagpur, the company has been delivering secure core banking solutions within a seamlessly integrated banking and financial ecosystem. Under the leadership of Avinash Narayanrao Shende and Sachin Purushottam Pande, it has built a diverse clientele including banks, microfinance institutions and non-banking financial companies (NBFCs). Its flagship product, E-Banker is a core banking solution designed specifically for banks, societies, and NBFCs. It is available “on-premises with infrastructure” i.e., it offers the flexibility to the customer to deploy E-Banker on their own premises with customized infrastructure.

Alternatively, it is also available as off-the-shelf banking software solution in a 'Software as a Service' (SaaS) model. This covers bundled solutions of software and hosting infrastructure on a rental basis for those preferring a hassle-free solution. In addition, it offers IBS-ERP, an ERP solution tailored for small and mid-sized enterprises, and e-APMC, an e-governance software developed for Agricultural Produce Market Committees (APMCs) and government organizations. Recently, it has expanded its product portfolio with V-Pay, a comprehensive enterprise digital payment solution, V-SOC, E-Autopsy Software, VGST and LOS (Loan Origination System / Module).

Proceed is being used for:

• Capital expenditure towards setting up additional development facility in Nagpur, Maharashtra
• Repayment/ prepayment of certain borrowings availed by the company
• Investment in procuring GPU, server & storage system at Data Centre
• Funding of expenditure related to enhancement, maintenance and upgrading existing products through manpower hiring
• Funding for business development and marketing activities 
• General corporate purpose

Industry Overview

The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.5% of India’s GDP in FY23, and it is expected to contribute 10% to India’s GDP by 2025. As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the Internet. The current emphasis is on the production of significant economic value and citizen empowerment, thanks to a solid foundation of digital infrastructure and enhanced digital access provided by the Digital India Programme. India is one of the countries with the quickest pace of digital adoption. This was accomplished through a mix of government action, commercial innovation and investment, and new digital applications that are already improving and permeating a variety of activities and different forms of work, thus having a positive impact on the daily lives of citizens.

The Indian IT industry’s revenue touched $227 billion in FY22, a 15.5% YoY growth and was estimated to have touched $245 billion in FY23. The IT spending in India is estimated to record a double-digit growth of 11.1% in 2024, totalling $138.6 billion up from $124.7 billion last year. The Indian software product industry is expected to reach $100 billion by 2025. Indian companies are focusing on investing internationally to expand their global footprint and enhance their global delivery centres. The data annotation market in India stood at $250 million in FY20, of which the US market contributed 60% to the overall value. The market is expected to reach US$ 7 billion by 2030 due to accelerated domestic demand for AI.

The IT industry is likely to accelerate in the coming years, on the back of investments being made by various firms in key areas such as AI, GenAI implementation, Management Discussion and Analysis cost optimization, digital transformation, operational excellence, productivity improvement, customer experience programs, innovation in products and services, talent management, future of workplace and workforce, and ESG initiatives. A stable economy, the expansion of e-commerce, the upgrade of mobile networks to 4G and 5G, and the implementation of ‘Make in India’ and PLI Schemes are some of the elements that will contribute to the expansion of the IT industry in India. As digital transformation remains paramount for enterprises, IT spending is expected to remain healthy, which will provide IT companies opportunity to capture additional market share. 

Pros and strengths

One stop solution provider: The company provides a comprehensive one-stop solution for the banking and financial services sector, catering to the industry's needs with integrated software solutions. Its mission is to empower financial institutions with latest technology, streamlined processes, and strict compliance adherence, enhancing their operational efficiency and customer experience. Its core banking solution incorporates a wide range of functionalities, delivering a responsive and efficient platform for its clients. By integrating major functionalities, the company ensures that financial institutions can seamlessly manage their operations, meet regulatory requirements and offer exceptional service to their customers.

Diversified business across several verticals: The company’s clientele spans multiple domains, including BFSI, ERP, and E-Governance. Its clientele includes commercial bank, state cooperative banks, urban cooperative banks, district central cooperative banks, cooperative societies, NBFCs, Savings and Credit Cooperative Societies (SACCOs) under BFSI domain, various corporate clients under Sugar, Solvex, Textiles, Fertilizer & Seed, Education industry under ERP domain and under E-governance domain, it is serving to Maharashtra Labour Welfare Board and Maharashtra State Agricultural Marketing Board (MSAMB). 

Growing business through intellectual property capabilities: The company is committed to investing in the creation of new intellectual property, which has led to the development of several proprietary products. It holds copyrights for “E-Banker”, “LOS (Loan Originating System/Module)”, “IBS-ERP”, “VPAY (Web Version)”, “VPAY (Mobile Version)”, and “E-Autopsy Software”. In addition to copyrights, it has registered trademarks for its logos, including “VirtualGalaxy”, “E-Banker”, “eAPMC”, “VPAY”, “VIRTUALPAY”, and “V-Connect”. Its ongoing efforts in intellectual property development have resulted in value-added products and services. It plans to continue investing in this area to build systems that showcase its credibility and technical expertise. It aims to monetize its intellectual property by offering premium services and licensing its proprietary software solutions to customers.

Risks and concerns  

Substantial portion of revenues is dependent upon Core Banking software: A significant portion of its revenues is reliant on its Core Banking software, E-Banker. Potential loss of any major client utilizing E-Banker could have a material impact on its business operations and profitability. The loss of a significant clients would have a material effect on its financial results. The company’s revenue from E Banker for the period ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, amounted to Rs 7,956.27 lakh, Rs 4,210.48 lakh, Rs 3,801.29 lakh and Rs 2,750.95 lakh constituting 78.58%, 68.50%, 65.00% and 64.54% respectively of its revenue from operations. It cannot assure that it can maintain the historical levels of business from these clients or that it will be able to replace these clients in case it loses any of them.

Geographical constrain: The company has derived a significant portion of its revenue from operations from customers located in Maharashtra region. The company has garnered 82.37%, 73.25% and 87.76% of its total revenue from the customers located in Maharashtra in FY24, FY23 and FY22, respectively. The concentration of its revenues from Maharashtra heightens its exposure to adverse developments related to competition, as well as economic, political, regulatory circumstances including on account of any on-going economic slowdown and inflationary trends. The existing and potential competitors to its businesses in India may increase their focus in the said region, which could reduce its market share. The occurrence of or its inability to effectively respond to, any such events or effectively manage the competition in the region, could have an adverse effect on its business, results of operations, financial condition, cash flows and future business prospects.

Revenues are dependent on clients concentrated in the BFSI segment: The company’s revenues are dependent on clients concentrated in the BFSI industry. During the period ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, amounting to Rs 9,435.16 lakh, Rs 5,625.31 lakh, Rs 5,419.56 lakh and Rs 4,015.68 lakh constituting 93.19 %, 91.52%, 92.67% and 94.22% respectively of its revenue from BFSI segment. The performance of the BFSI industry depends on macroeconomic factors, and any downturn in the global economy could negatively affect its business, financial condition and results of operations. Further, due to the concentration of its clients in the BFSI sector, the success of its business also depends on its ability to innovate and develop relevant skills and capabilities to address the rapid technological developments in the BFSI sector and integrating new technologies in its products.

Outlook

Virtual Galaxy Infotech is an IT services and consulting firm based in Nagpur, Maharashtra. It delivers innovative software products and services across multiple sectors, including Banking and finance, ERP, e-government, Web Services, Cloud Computing, Big Data, IoT, and System Integration. On the concern side, the substantial portion of the company’s revenues has been dependent upon its Core Banking software i.e. E-Banker. The loss of any one or more of its major clients would have a material effect on its business operations and profitability. The company derives a significant portion of its revenue from customers located in Maharashtra. Any adverse developments in the region could adversely affect its business, results of operations, cash flows and financial condition.

The company is coming out with a maiden IPO of 65,70,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 135-142 per equity share. The aggregate size of the offer is around Rs 88.70 crore to Rs 93.29 crore based on lower and upper price band respectively. On performance front, the revenue from operations has shown a growth of 5.10% from Rs 5,848.40 lakh in Fiscal 2023 to Rs 6,146.39 lakh in Fiscal 2024. This is mainly due to increase in revenue in overall business segments of the company. Moreover, the company reported a net profit of Rs 1,630.19 lakh in Fiscal 2024 as compared to a net profit of Rs 179.53 lakh in Fiscal 2023 which got increased due to higher revenue from operation at increased margins and reduction in operating expenses due to increased operational efficiency during the year.

The company aims to meet the growing demands of its existing customers while expanding its customer base by enhancing its geographical reach. Currently, it is serving customers in various state of India including Maharashtra, Goa, Mizoram, Uttar Pradesh, Telangana, Rajasthan, Manipur, Madhya Pradesh, Himachal Pradesh, Delhi etc. Expanding its presence into additional regions will allow it to tap into larger markets and gain direct access to clients, enabling a deeper understanding of their needs. In addition to its strong domestic presence, it is also focused on expanding its footprint in international markets. The company has identified Africa as a key growth market for its banking and fintech solutions. The company has already secured core banking orders in Tanzania and Malawi. The company intends to leverage these initial successes to expand its presence across other African countries, targeting both urban and rural financial institutions.

Manoj Jewellers

• Manoj Jewellers is coming out with an initial public offering (IPO) of 30,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 54 per equity share.
• The issue will open on May 5, 2025 and will close on May 7, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced 5.40 times higher to its face value of Rs 10. 
• Book running lead manager to the issue is Jawa Capital Services.
• Compliance Officer for the issue is Vaneeta Khanna.

Profile of the company

Manoj Jewellers is engaged in the retail and wholesale business of jewellery and ornaments made from gold and diamonds, embellished with precious and semiprecious stones. The company’s extensive portfolio includes a wide range of items such as rings, earrings, armlets, pendants, gajrahs, nose rings, bracelets, chains, necklaces, bangles, and other wedding jewellery pieces. The company’s diverse collection caters to various tastes and occasions, offering customers a selection of exquisite pieces to choose from. It aims to provide high-quality and beautifully crafted jewellery to meet the needs and preferences of its clientele.

The company's dedication is to maintain high-quality products through strict quality control procedures, timely delivery, and competitive pricing. The company also emphasizes on offering a variety of regular designs and ensuring on-time delivery to its valued customers. Additionally, it goes to extra mile by getting its jewellery hallmarked by a BIS recognized Assaying and Hallmarking Centre. BIS hallmark serves as a mark of conformity widely accepted by consumers, providing them with added confidence in the purity of the company's gold jewellery. Overall, these practices demonstrate the company's commitment to quality, customer satisfaction, and transparency in their operations.

Proceed is being used for:

• Repayment/ prepayment of certain borrowings availed by the company
• General corporate purposes

Industry Overview

India is the second largest jewellery market. The gold market forms a deeply intrinsic part of India. For the population of 1.4 billion, gold, and specifically gold jewellery, plays a central role, acting both as an adornment and a form of investment. It is therefore not surprising that for decades India was the largest consumer of gold before being overtaken by China in 2009. In 2021, India bought 611 tonnes of gold jewellery, second only to China (673 tonnes) but comfortably ahead of all other gold-consuming markets. Much of the Indian gold market is very traditional, reflecting important cultural and religious ties. This can be seen in the long-standing preference for 22-carat jewellery and the dominance of bridal jewellery. But the gold market is evolving, with changing tastes and designs driven by economic growth, globalisation and changing consumer preferences. In recent years, for example, demand has grown for lightweight and studded jewellery.

Overall, the Indian market will continue to evolve as the younger generation drives trends and as organised retailers gain market share. Retailers are trying to tap into the sizeable young population by offering products that suit their tastes and budget. It has made it adjust not just its product offerings, but also how it does business and interact with consumers. While the South dominates the landscape, changes have emerged within the region. In particular, gold demand in Andhra Pradesh and Telangana has superseded other Southern states due to the inflow of investment since the state of Andhra Pradesh was sub-divided and Telangana was created. A robust policy framework and a good response mechanism have helped encourage investment in these two states.

On the other hand, demand in Kerala has been negatively impacted due to the slowdown in the Gulf during the COVID19 pandemic. Southern India’s gold market is dominated by plain 22-carat gold jewellery, although demand for 18-carat diamond pieces has increased in recent years driven by younger consumers who are more open to buying diamondset products. North and West India enjoy 20%26 and 25%27 of market share respectively. In contrast, Eastern India has a market share of just 15%. The Northern and Western markets are quite diverse, with a preference for 23, 22, 18 and 14 carat items. Unlike the South and West, the Eastern part of the country remains economically underdeveloped due to a lack of connectivity and difficult terrain. However, during the last few years the government has focused on developing the North-East, a policy that will likely result in a rise of market share in this region. 

Pros and strengths

Wide product range: The company’s 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, usages and price points. The gold and diamond jewellery inventory in its showroom reflects regional customer preferences and designs. 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. In addition, its access to a wide range of independent manufacturers from various parts of India allows it to offer a diverse product range.

Customer satisfaction: The company makes mutually beneficial relationship with its customers by providing them optimum quality jewellery pieces at highly affordable market prices. In a zest to attain maximum customer satisfaction, it assures accurate and timely delivery of these jewelleries, at the customer’s end. Its strength lies in understanding the requirement of the customer and its execution capabilities this enables it to attract new customers. The intricacies of its designs and quality of its products finish enable it to get better margins on its products.

Quality assurance: It endeavours to maintain the quality of its products, follow strict procedures to ensure control quality, timely delivery and competitive prices. It offers regular designs and guarantee its esteemed customers for the time bound delivery of the products. It gets the jewellery hallmarked from BIS recognized Assaying and Hallmarking Centre for its customers. The BIS hallmark, a mark of conformity widely accepted by the consumer bestow the additional confidence to the consumer on the purity of its gold jewellery.

Risks and concerns

Income and sales are subject to seasonal fluctuations: The company operates in an industry that is driven by fluctuation seasonal fluctuations. Its sales peak during festival/wedding seasons and on occasions such as Akshay Tritiya, Dhanteras, Diwali, wedding season, etc. While it stocks certain inventory to account for this seasonality, its fixed costs such as lease rentals, employee salaries, showroom operating costs and logistics-related expenses, which form a significant portion of operating costs, are relatively constant throughout the year. Consequently, lower than expected net sales during the third or fourth 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 impair its cash flows.

Geographical constrain: Its Showrooms are located in Chennai, Tamil Nadu. It essentially carries its business operations, including procuring of raw material and sale of its products, in the state of Tamil Nadu only. This reliance on specific operating location heightens its exposure to adverse developments related to economic and demographic changes in this region, which may adversely affect its business prospects, financial conditions and results of operations. While it strives to maintain a stable supply chain, various factors - such as economic fluctuations, regulatory changes, or natural disruptions impacting the state of Tamil Nadu, could impact its procurement process. As such, there may be potential risks that could affect availability and pricing of the raw materials required by it.

Dependent upon few suppliers for supply of its products: For the nine months period ended December 31, 2024 and for the financial years ended on March 31, 2024, 2023 and 2022, its top 10 suppliers contributed around 82.61%, 70.03%, 46.38%, and 90.77% respectively and top 5 suppliers contributed around 74.80%, 64.82%, 38.24%, and 72.97%, respectively of its purchases. In the event of a delay, inadequacy or default in deliveries by any of its vendors, it may not be able to source its products on an adequate and timely basis or on commercially acceptable terms. A major disruption to the timely and adequate supplies of products could adversely affect its business, results of operations and financial condition.

Outlook

Manoj Jewellers is engaged in the retail business of various jewellery and ornaments made out of gold and diamonds studded with precious and semiprecious stones. The company ensures product quality through strict procedures, timely delivery, and competitive prices. It offers regular designs, guarantees on-time delivery, and BIS hallmarked jewellery for customer confidence in purity. On the concern side, the operations of the company are located in the state of Tamil Nadu, any adverse developments affecting operations in this region could have a significant impact on its business, and results of operations. Moreover, its 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 30,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 54 per equity share to mobilize Rs 16.20 crore. On performance front, the company’s total income increased by 218.18% from Rs 1363.52 lakh for the Financial Year ended March 31, 2023 to Rs 4338.42 lakh for the Financial Year ended March 31, 2024. This increase was primarily due to an increase in operating income i.e., sale of products, which comprise of domestic sales only. The company’s profit after tax increased by 421.92% from Rs 62.34 lakh in the Financial Year 2023 to 325.37 lakh in the Financial Year 2024.

The company intends to continue to add new design to its existing product portfolio to cater to various customer and price segments in the jewellery markets. It endeavours to maintain the quality of its products, and follow strict procedures to ensure quality control, timely delivery and competitive prices. The company intends to strengthen its product development effort by leveraging skills of its employees and focussing on changing trends in the designs of jewellery and customers demand, which will help to increase the sales of the company and retain customers.

Srigee DLM

• Srigee DLM is coming out with an initial public offering (IPO) of 17,14,800 equity shares in a price band Rs 94-99 per equity share.
• The issue will open on May 5, 2025 and will close on May 7, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.40 times of its face value on the lower side and 9.99 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance Officer for the issue is Shuchi.

Profile of the company

With end-to-end plastic manufacturing capabilities, Srigee DLM focuses on design-driven production to enhance both functionality and manufacturability. Its capabilities cover the full range of plastic production, serving OEM and ODM clients with services such as material selection, extrusion, mould making, precision injection moulding, and final assembly. For OEMs, the company specializes in converting plastic prototypes - such as those used in consumer electronics and automotive parts - into high-quality, production-ready components. For ODMs, it works closely from concept through to the finished product, ensuring smooth integration of design and manufacturing processes.

Its emphasis on design-led manufacturing is central to its service offerings, particularly for leading home appliance brands in the white goods sector, electrical components, and automotive applications. Building on a foundation in plastic injection moulding, the company has expanded its capabilities to include in-house die design and testing, polymer compounding, and assembly, offering a fully integrated solution under one roof.

The company classifies its business segments into four: Plastic Injection Moulding & Assembly; Tool Room & Die Manufacturing; Job Work- Moulding; and Polymer Compounding & Trading. This integrated approach enables it to facilitate swift and cost-effective mold designing and testing, conferring a distinct competitive advantage over other OEM/ODM entities. It caters to Indian companies and MNC’s in the home appliances, mobile manufacturing, and automotive components industries. 

Proceed is being used for:

• Meeting capital expenditure requirements (i) To set up a manufacturing facility at Plot No. 15, Ecotech - X, Industrial Area, Greater Noida, Gautam Budh Nagar, Uttar Pradesh; (ii) Acquisition of machineries to be installed at proposed manufacturing facility 
• Meeting general corporate purposes
• Meeting issue expenses

Industry Overview

The Indian Consumer Electronics and Appliances (CEA) market has been witnessing sustained double digit growth rate in the past few years. Increasing product awareness, affordable pricing, innovative products and the high disposable incomes have aided in the strong growth in the CEA market in India. Rapidly shrinking replacement cycle for consumer durables is observed as sustaining demand in urban India. The existing low penetration rates and the increasing usage of consumer durables have catapulted rural India to the high demand (30% annual growth) generating segment. The market share in the consumer durables industry is moving from the unorganized to the organized sector. According to estimates, 30% of the total market is still unorganized, which provides listed Indian players with a significant opportunity to further increase their market share going forward.

Artificial intelligence and manufacturing automation will be important future trends as consumer awareness increases regarding technology advancements and their applications across multiple sectors. To increase production efficiency of various consumer durables, Industry 4.0 will stimulate investments in R&D, technology infrastructure, and manufacturing processes. The government anticipates that the Indian electronics manufacturing sector will reach $ 300 billion by 2024–25. By FY22, television industry in India is estimated to reach Rs 1,227.34 billion ($17.56 billion). India’s TV production stood at $4.24 billion in FY21, and is expected to reach $10.22 billion by FY26, at a CAGR of 20%.

Indian appliances and consumer electronics industry stood at $9.84 billion in 2021 and is expected to more than double to reach Rs. 1.48 lakh crore ($21.18 billion) by 2025. Electronics hardware production in the country stood at $63.39 billion in 2021. In FY21, the television production in India stood at $4.24 billion. The total active DTH subscriber base stood at 67.04 million in June 2022.As of 2021, the refrigerator, washing machines and air conditioner market in India were estimated at around $3.82 billion, $8.43 billion and $3.84 billion, respectively. The market size of air conditioners is expected to grow to 165 lakh units by 2025 from 65 lakh units in 2019, while refrigerators’ market size is expected to grow to 275 lakh units by 2025 from 145 lakh units in 2019. Further, India's Consumer Electronics and Appliances Industry is predicted to be the fifth largest in the world by FY25. The Indian Appliances and Consumer Electronics (ACE) market is predicted to nearly double in the next 3 years, reaching approximately $ 7.93 billion (Rs 1.48 lakh crore) by 2025. 

Pros and strengths

Strong relationships with established customer base, with potential to expand its customer base: The company is committed to solidifying and enhancing its enduring relationships with renowned customers across various product verticals. It considers these customers as strategic partners and are dedicated to providing them with high-quality end-to-end product solutions. Its clientele comprises esteemed, long-term players in the industry, and its collaborative associations with them have been instrumental in the continuous development, diversification, and improvement of its product portfolio. This strategic alliance enables it to proactively plan production in anticipation of retail demand and maintain an unwavering focus on product quality.

End-to-end solutions provider with a dedicated design and development team: Since its inception, the company has not only expanded its product portfolio but has also diversified its customer base. This journey has sharpened its technological expertise in the intricate field of designing and manufacturing plastic injection molding. At the heart of the company's philosophy is the belief that the integration of design, manufacturing, and a robust service infrastructure is the key to unlocking customer satisfaction. This approach not only cultivates unwavering customer loyalty but also lays the groundwork for enduring relationships.

Flexible and cost-effective manufacturing capabilities: With a proven track record in meeting the diverse product requirements of its customers, it is committed to continually enhancing the efficiency of its manufacturing processes in terms of cost, time, quality, and scale. Its manufacturing facilities maintain flexibility through measures such as multifunctional training and equipment standardization. The scale of its operations, coupled with extensive manufacturing experience, an in-house tool room, timely raw material sourcing, and access to skilled and unskilled manpower, enables it to provide cost-effective solutions to its customers while safeguarding its margins.

Risks and concerns  

Substantial portion of revenues comes from limited customers: The company is dependent on certain customers who have contributed to a substantial portion of its total revenues. In the aggregate, its top ten customers accounted for 93.00%, 88.40%, 94.43% and 87.07% of its revenue from operations for the nine month period ended December 31, 2024 and for the financial years ended March 31, 2024, 2023 and 2022, respectively. There is no guarantee that it will retain the business of its existing key customers or maintain the current level of business with each of these customers. Reliance on a limited number of customers for its business may generally involve several risks. These risks may include, but are not limited to, reduction, delay or cancellation of orders from its significant customers; failure to renegotiate favourable terms with its key customers; the loss of these customers; all of which would have a material adverse effect on the business, financial condition, results of operations and future prospects of the company.

Geographical constrain: A significant percentage of its revenue is generated from operations in the state of Uttar Pradesh. Any adverse developments in this region, including but not limited to economic slowdowns, changes in government policies, labour disruptions, infrastructure challenges, or natural disasters, could negatively impact its ability to conduct business effectively. If it experiences prolonged disruptions or difficulties in these operations, it could materially and adversely affect its financial performance and future growth prospects.

Dependent on few suppliers for purchases of products: The company’s top ten suppliers contribute 43.67%, 38.66%, 47.82% and 46.14% of its revenue from operations for the nine month period ended December 31, 2024 and for the financial year ended on March 31, 2024, 2023, and 2022, respectively based on restated financial statements. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Outlook

Srigee DLM is engaged in design-led manufacturing and assembly services, specializing in plastic injection moulding, tool room & die manufacturing, mobile phone sub-assembly, and polymer compounding & trading. The company is expanding its footprint with a new facility at Ecotech-10, Greater Noida, focused on electronics, electrical assembly, and advanced plastic moulding. On the concern side, the company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations. Moreover, significant revenue is generated from operations in Uttar Pradesh. Any disruption in these operations, whether due to regulatory changes, economic conditions, or unforeseen events, could significantly impact its financial performance and future prospects.

The company is coming out with a maiden IPO of 17,14,800 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 94-99 per equity share. The aggregate size of the offer is around Rs 16.12 crore to Rs 16.98 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2024 was Rs 5,442.73 lakh against Rs 4,714.48 lakh for Fiscal year 2023. An increase of 15.45% in revenue from operations. This increase was due increase volume of sale of goods from its home appliance manufacturing activities. Moreover, profit after tax for the Fiscal year 2024 was at Rs 309.54 lakh against profit after tax of Rs 281.17 lakh in fiscal year 2023. An increase of 10.09%. This increase registered primarily due to decrease in other expenses, finance cost and employee benefit expenses.

Currently, the company’s manufacturing portfolio encompasses the production of Plastic Injection Moulding components and the assembly of plastic-molded components, catering to major home appliances, automotive component manufacturers, and cellular phones. The company’s strategic roadmap involves a continued expansion of offerings within its existing product verticals. It aims to tap into segments that, according to its management, exhibit attractive growth prospects and higher return ratios, leveraging its distinctive competence and presenting compelling value propositions.

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.