Net Avenue Technologies IPO plans to raise 10.25 crores. The issue is entirely a fresh issue of 56.96 lakh shares. Net Avenue Technologies Ltd. is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories.
IPO opens
Nov 30, 2023
IPO Closes
Dec 04, 2023
IPO Size (Rs.)
₹10.25 Cr
IPO Size (shares)
5,696,000 shares
Breakup
Fresh issue only
Face Value:
₹ 1
IPO Price in Rs :
₹16 to ₹18
Minimum Lot
8000 Shares
Listing At
NSE SME
QIB (includes anchor, Market Maker)
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Shreni Shares
Registrar
Bigshare Services
Market maker
Shreni Shares
About Net Avenue Technologies:
Company is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories.
Company also has presence in international cross-border e-commerce direct-to-consumer for its products.
Their product range includes Indian ethnic wear and accessories for women, men, teens and kids.
Also sell Indian Ethnic wear and accessories primarily to South Asian Diaspora through our website and mobile applications.
They also sell products through other E-commerce websites such as Myntra, Nykaa, Ajio etc.
Product categories includes
• Lehenga Choli,
• Salwar Kameez,
• Gowns,
• Kurtas,
• Sherwani,
• Kurta Sets,
• Kids wear
• Accessories
Company is promoted by Mr. Rajesh Nahar and Mr. Ritesh Katariya.
Financials: Net Avenue Technologies
Particulars / Rs. In Lacs
2023 (03)
2023
2022
2021
Total Revenue
783.89
3451.26
3276.16
1447.54
Profit after Tax
94.39
176.4
261.51
23.11
Share Capital
22.13
22.13
22.13
22.13
Net Worth
328.7
233.54
42.57
-228.37
Diluted Earnings Per Share
1
1.87
2.77
0.24
Net Asset Value
3.91
2.78
0.51
-2.72
Total Borrowings
292.69
276.06
84.24
191.07
Post issue Share Capital
215
FV
1.0
IPO price
18.0
EPS Fy23
0.8
PE Fy23
21.9
EPS Fy24 (annualized)
1.8
PE Fy24 (annualized)
10.3
Market cap in Lacs
3,870.0
Market Cap/sales
16.6
Anchor: Net Avenue Technologies IPO
Net Avenue Technologies IPO: Salient Points
Company is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories
75% of company’s revenue comes from exports.
In the international market, all orders are prepaid, ensuring seamless transactions. For domestic customers in India, they offer the convenience of Cash on Delivery (COD) as a payment option.
To facilitate international transactions, they have established a subsidiary in the United States, serving as a collection agency. This subsidiary is responsible for collecting payments from our international customers and transferring them to us every week.
Cbazaar.com, owned by Net Avenue Technologies was rated as one of the best online shops in the United States in 2020 and one of the fastest growing brand in the United States in 2022.
They sell own products under our Ethnovog private label on their website.
They list third-party vendor products on our website, offering customization options.
All vendor products are sold under the Cbazaar brand.
They are placing major thrust is enhance the marketing digitally through platforms like Google (search, videos, shopping) & Meta (Facebook, Instagram and WhatsApp) across the key markets mainly in the USA, UK, Canada and India. They have identified a large market opportunity in countries where there is a large south Asian diaspora.
For this purpose, they propose to utilize ₹698.64 Lakhs from the Net Proceeds of the Issue to fund the sales and marketing requirements of the Company in Fiscal Years 2024 and 2025.
Key Performance Indicators of Company:
Key Financial Performance
June 30, 2023
March 31, 2023
March 31, 2022
March 31, 2021
Revenue from Operations
759.76
3343.54
3123.34
1380.02
EBITDA
86.34
210.77
305.98
12.25
EBITDA Margin
11.36%
6.30%
9.80%
0.89%
PAT
78.47
185.70
279.63
25.93
PAT Margin
10.33%
5.55%
8.95%
1.88%
Net Avenue Technologies IPO is coming at a PE ratio of 21.9x(fy23 earnings) and 10.3x (fy24 annualized earnings).
I intend to apply in Net Avenue Technologies IPO subject to release of funds from other IPOs.
GMP as reported on social media has been around Rs. 11.
Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include KK Shah Hospitals Limited, Marco Cables & Conductors Limited, Meson Valves India Limited, C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes LimitedS, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
SME IPO are more risky than mainboard IPOs. This post is not a suggestion to apply for this IPO.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational/ exploratory 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.