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Macfos Limited IPO comprises of entirely an offer-for-sale (OFS) of up to 23.28 lakh equity shares with a face value of Rs 10 each. Macfos Limited IPO opens for subscription on Friday, February 17. The Pune-based e-commerce company is looking to raise Rs 23.74 crore from its initial stake sale. The company will be selling its shares in the range of Rs 96-102.

• Anchor Investors: The response to anchor issue was as follows:

• Fueled by the desire to provide an easy access to hard-to-find electronic items under one roof and at a reasonable price to various consumers, MACFOS was started as a partnership firm in 2012.
• It started the electronics e-commerce store website Robu.in in 2014 and launched the Mobile application in 2017.
• Upon incorporation of the Company, the business of the partnership firm along with its assets and liabilities were acquired by our Company in the year 2018 and 2019.
• Macfos Limited broad portfolio consists of over +12,000 SKU’s of electronics components and parts that facilitate consumers such as manufacturers, electrical & mechanical engineering students, educational institutions, researchers and developers, to turn their ideas into reality as well as to speed up their product R&D and prototyping cycle.
• Through an e-commerce website and its mobile application, Robu.in, Macfos Limited sells a broad range of electronic items, including robotic parts, drone parts, E-bike parts, IoT & Wireless items, 3d printers & parts, DIY learning kits, development boards, Raspberry Pi (Single board computers& Peripherals), sensors, motors, motor drivers, pumps, batteries, chargers, electronic modules & displays and various other mechanical and electronic components.
• Macfos Limited presently operates its entire business through its fulfillment centre in Pune, Maharashtra comprising of 7,900 sq. ft. area and registered office located at Pune, Maharashtra. and using third-party logistics services, it delivers the products across India and overseas.
• Promoters of Company are Atul Maruti Dumbre, Binod Prasad and Nileshkumar Purshottam Chavhan.

Product Mix:

Macfos Limited IPO: Financials

Key performance indicators

Salient Points

• The Indian electronics manufacturing industry is projected to reach US$ 520 billion by 2025.
• Its competitors include a number of online marketplaces, retailers with physical stores, and brands that take a direct-to-consumer approach, effectively removing us from the distribution and sales process. The internet and mobile networks provide new, rapidly evolving and competitive channels for the sale of all types of goods and services. Consumers who purchase goods and services through us have other alternatives, and sellers have other channels to reach consumers
• It sells a broad range of electronic components which finds application in basic and advanced engineering products & projects, including emerging technologies such as IoT, Robotics, Automations, Drone, Electric Vehicles, 3D Printing and Auto Guided Vehicles,
• It is primarily an e-commerce based Company focused on the marketing of a broad range of electronic components which finds application in basic and advanced engineering products & projects, including emerging technologies such as IoT, Robotics, Automations, Drone, Electric Vehicles, 3D Printing and Auto Guided Vehicles.
• In order to continue its business, it intends to continuously and efficiently invest in warehousing infrastructure, managing existing and future relationship with vendors and delivery companies and other participants in the network to establish and maintain mutually beneficial relationships with them. It has recently obtained a property on lease at Chakan Industrial Area, Phase I, Mhalunge, Khed, Pune, which it plans to use it as fulfillment centre in future.

• Company is connected with over +140 overseas and domestic vendors for sourcing the electronic items and parts.
• Macfos Limited also have a portfolio of 3 owned brands. These are manufactured/procured from third parties based on the specifications built by them through the R&D efforts. its owned brand portfolio is executed by identifying gaps in the market, both across requirements of diverse consumers and multiple price points, and building brands to suit these needs, with a focus on high quality electronic components. The manufacturing/procurement for such brand items is carried out by third parties. For Fiscal 2022 and six months period ended September’22, its revenue from sale of owned branded products were Rs. 442.79 lakhs and Rs. 284.21 lakhs respectively which constituted 7.98% and 7.94% of total revenue from operations.
• For F.Y. 2021-22, its revenue from operations were Rs. 5551.47 lakhs of which 62.59% were from online mode (website and mobile application) and 37.41% were through offline channel. For six months period ended September’22, it derived 51.47% of the revenue from online mode (website and mobile application) and 48.53% through offline channel. Under the offline channel, its generally serves Corporates and large enterprises. Some of the esteemed customers include ONGC, M&M, Hindustan Aeronautics Ltd., Tata Power Solar Systems Ltd., Central Electronics Engineering Research Institute, Pilani, Wipro Enterprises Pvt. Ltd., Bharat Forge Ltd., Tata Communications Ltd., Schneider Electric India Private Limited etc.
• Social media reports indicate a GMP of about Rs. 75 plus on the issue price.
• PE ratio is 15x (fy22 earnings)  and 15.2x (fy23 annualized)
• Macfos Limited revenues and profits have improved consistently.
• Macfos Limited has taken emergency loans and unsecured business loans for working capital requirements from several banks and host pf NBFCs like Fullerton, Bajaj, aditya Birla, clix, first capital etc. The loans range from 15% to 20% interest p.a. strangely the comnapy is not coming with any fresh offer of shares and issue is only offer for sale.
• Macfos Limited IPO may see quite heavy subscription.
• I intend to apply in Macfos Limited IPO
• SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
• The Lead Manager is Hem Securities Ltd. and market maker for this company. They have a good track record with expect for 1-2 issues, all SME IPOs lead managed by them have listed with gains.  
• Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.

• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in 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. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.