Forcas Studio is engaged in manufacturing and selling of menswear and men’s garments under our own brand, through white-labelling, i.e., for other brands. Forcas Studio IPO is an issue of Rs 37.44 crores. The issue is entirely a fresh issue of 46.8 lakh shares.
IPO opens
August 19, 2024
IPO Closes
August 21, 2024
IPO Size (Rs.)
₹37.44 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹77 to ₹80 per share
Minimum Lot
1600 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Horizon Management Private Limited
Registrar
Mas Services Limited
Market maker
Giriraj Stock Broking.
Company was initially established in the year 2010 as a partnership firm under the name ‘Forcas Apparels’
Company is well known by the brand name ‘FTX’,‘TRIBE’ and ‘Conteno’ which personifies style, attitude, value for money and comfort in the mass Men’s clothing industry.Company is into Menswear and deals in men’s garments such as Shirts, Denims, T-shirts, trousers, Cotton pants, sports-wear, party-wear, fashion wear, boxers etc. and cater pan India through online and wholesale in our own brand and also white-labelling for other brands such as Landmark Group, V-Mart Retail, V2 Retail, Highlander, Cobb, Kontail and many more.
Company is in the business of manufacturing and selling of menswear garments through online e- commerce platforms and wholesale under the name of ‘FTX’, ‘Tribe’ and ‘Conteno’. Our Company sells products under its own brand through the most popular retail online e-commerce platforms namely, flipkart, Myntra, Meesho, Amazon, Ajio, Jio Mart, Glowroad, Limeroad, Solvd and Shopsy. The wholesale business comprises of sale to wholesalers who purchase in bulk for onward sales to garment retailers in different states of the country. Further, our brand also are sold through large format stores including V-Mart Retail, V2 Retail, City Kart, Metro Bazar, Kothari Retail and Sarvana Retails.
Financials: Forcas Studio IPO
Particulars/ Rs. Lacs
February 29, 2024
March 31, 2023
March 31,
March 31, 2021
2022
Revenue from operations
9,607.24
6,960.46
5,320.02
5,051.04
Profit after Tax
514.75
117.19
80.71
58.38
Share Capital
1,290.00
860.26
830.84
711.94
Net Worth
1,901.97
860.26
830.84
711.94
Total borrowings
2,861.04
2,325.26
2,419.99
2,437.92
Post issue Share Capital
1758
FV
10.0
IPO price
80.0
EPS Fy23
0.7
PE Fy23
120.0
EPS Fy24
3.2
PE Fy24
25.0
Market cap in Lacs
14,064
Market cap / Sales
1.60
Anchors: Forcas Studio IPO
Forcas Studio IPO: Salient Points
Company is engaged in manufacturing and selling of menswear and men’s garments under their own brand, through white-labelling, i.e., for other brands such as, Landmark Group, V-Mart Retail, V2 Retail, Highlander, Cobb, Kontail, etc., through wholesalers and through online e-commerce platforms
Net proceeds use:
Sr. No.
Particulars
Estimated amount Lacs
1.
Funding of upgradation of warehouse
Upto 165.67
2.
Prepayment or repayment of all or a portion of certain loans availed by our Company
Upto 1,300.00
3.
Funding of working capital requirements of our Company
Upto 1,200.00
4.
General corporate purposes(1)
[●]
Operates on asset-light model by outsourcing manufacturing while maintaining control over design and quality.
Their warehouse and a majority of their contract manufacturers are exclusively based in a single geographical region in and around Kolkata.
Peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
Forcas Studio
80.0
96.07
514.75
535.8%
25.0
1.34
Aditya Birla Fashion & Retail
319
13,996
-829
129
2.28
95% of the products priced below ₹499/-.
currently targeting Tier-2, Tier-3 and Tier-4 cities dedicated to providing value to customers with fashionable and comfortable product ranges.
The Company has firmly established itself in the readymade menswear segment through online marketplaces, large format stores and white-label manufacturing.
Their men’s fashion brand having presence in more than 15,000 plus pin codes nationwide through online marketplaces.
PE 24: 25x
I intend to apply in Forcas Studio IPO subject to availability of funds. Garment and fashion are a fast-paced segment that is continuously growing. adapting to the latest trends.
GMP as reported on social media has been Rs. 82 (102.5%)
The lead manager has a good track record.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
