Aspire & Innovative Advertising IPO: Review, Valuation, & GMP

Aspire & Innovative Advertising Ltd. IPO  - Complete Overview

Established in 2017, Aspire & Innovative Advertising Limited operates in the trading of a wide range of consumer durables, including kitchen appliances, home appliances, white goods, mobile phones, accessories, and solar products. 

The company offers products from renowned brands such as Bajaj, Prestige, Vivo, Samsung, Crompton, Whirlpool, Hindware, Havells, and others.

Aspire & Innovative Advertising primarily sells its products through intermediaries, namely Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). 

These intermediaries play a vital role in the company's distribution network, with commercial arrangements established with over 15 intermediaries across 19 warehouses located in 16 states.

The company's product portfolio consists of more than 50 items, including pressure cookers, induction cooktops, mixer grinders, dinner sets, sewing machines, ceiling fans, irons, inverter bulbs, electric heaters, mobile phones, televisions, refrigerators, washing machines, headphones, and solar lanterns.

Operating on an asset-light business model, Aspire & Innovative Advertising's primary expenditure is on facilitation fees and commissions paid to intermediaries. 

These intermediaries provide essential services such as marketing products to their existing customer base, field staff and trainer interactions, aggregating expected demand, and offering banking and financial services to rural and semi-urban communities for purchasing products.

As of September 30, 2023, the company has generated revenue totalling 17,710.29 lakhs.

 

Aspire & Innovative Advertising Limited IPO Overview

Aspire & Innovative Advertising Limited IPO date is slated to be open for subscription from March 26, 2024, to March 28, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Aspire & Innovative Advertising Limited IPO price is set in the range of Rs.51 to Rs.54 per share. 

The total issue size of this IPO amounts to Rs.21.97 Cr. The company has allocated 35% to retail investors, 50% to institutional and 15% to non-instituional investors.

 

 

Company Financial

Compared to the previous financial years, Aspire & Innovative Advertising Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowings has also increased.

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	8,135.72	6,256.99	5,328.01
Total Revenue	8,135.72	6,256.99	5,328.01
PAT	393.28	530.85	437.36
Net worth	1,944.53	1,551.25	1,020.39
Reserve & Surplus	833.53	1,440.15	909.29
Total Borrowings	1,160.89	881.53	111.02

 

Category-wise revenue breakup

(Amount in Lakhs)

Category	30 Sep 2023	31 Mar 2023	31 Mar 2022
Kitchen Appliances	6,476.40	13,324.78	12,967.27
Home Appliances	6,319.63	8,152.26	3,820.76
Mobile & Accessories	3,038.03	7,150.44	3,944.63
Solar Products	1,156.64	2,760.81	1,832.26
Other	3.93	0.10	64.99
Total	16,994.63	31,388.39	22,629.91

 

 

 

Geography-wise revenue breakup

(Amount in Lakhs)

Name of State	30 Sep 2023	31 Mar 2023	31 Mar 2022
Uttar Prades	4,070.09	6,017.98	4,766.69
Bihar	3,174.70	8,677.31	6,913.47
Odisha	2,040.15	4,047.23	1,099.98
West Bengal	1,610.05	2,055.82	653.68
Madhya Pradesh	1,024.24	1,409.61	1,422.83
Jharkhand	843.47	2,577.15	1,260.27
Karnataka	835.97	3,266.78	3,177.87
Rajasthan	664.32	1,532.17	1,444.27
Punjab	659.90	475.74	545.48
Assam	581.25	247.06	0.12

 

The Objective of the Issue

The company will utilize the proceeds of the Issue to meet the following objectives: 

1. To meet Working Capital requirements

2. To finance the cost of setting up new warehouses 

3. General Corporate Purpose.

Peers of Aspire & Innovative Advertising Limited IPO

According to the Aspire & Innovative Advertising DRHP, there are no listed companies in India involved in a business line similar to that of the company.

Evaluation

The IPO is priced within the range of Rs.51 to Rs.54 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 4.78 from the last year, the resulting P/E ratio is 11.3x.

• Taking into account the weighted EPS of Rs 3.42 for the last three years, the P/E ratio amounts to 15.78x.

Comparative Analysis with Listed Peers

• There is no peer of the company.

 

 

IPO's Strengths 

• The company boasts a robust portfolio offering a diverse range of products that cater to various consumer preferences.

• Revenue streams are diversified across multiple locations, encompassing rural and semi-urban areas throughout India.

• Stringent quality assurance measures are in place to uphold standardized product quality.

• A network of warehousing and transportation facilities is established across various geographical regions.

IPO weaknesses 

• The company's reliance on specific key intermediaries such as NBFCs, NBFC-MFIs, etc., is significant. Any disruption or loss of relationship with these intermediaries could potentially adversely affect its business.

• Negative operating cash flows have been observed by the company in previous periods.

• Certain approvals or licenses are necessary for the company to conduct its business activities as usual.

• The company faces competition from both organized and unorganized players within the market.

IPO GMP Today 

The Latest GMP of AVP Infracon Limited is Rs.4.

Aspire & Innovative Advertising Limited IPO timetable (Tentative)

Aspire & Innovative Advertising Limited IPO is scheduled from March 26 to March 28, 2024, with allotment on April 1, refund initiation on April 2, and listing on April 3, 2024.

Events	Date
IPO Opening Date	March 26, 2024
IPO Closing Date	March 28, 2024
IPO Allotment Date	April 1, 2024
Refund initiation	April 2, 2024
IPO Listing Date	April 3, 2024

 

Aspire & Innovative Advertising Limited IPO Details 

Aspire & Innovative Advertising Limited IPO, with a face value of Rs.10 per share, opens on March 26 and closes on March 28, 2024, offering 4,068,000 shares at Rs.51 to Rs. 54 per share, with a lot size of 2000 shares, aiming to raise Rs.21.97 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 26, 2024 to March 28, 2024
Face value	₹10 per share
Issue Price	₹51 to ₹54 per share
Lot Size	2000 Shares
Price of 1 lot	₹108,000
Issue Size	4,068,000 shares (aggregating up to ₹21.97 Cr)
Fresh issue	4,068,000 shares (aggregating up to ₹21.97 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Aspire & Innovative Advertising Limited IPO Lot Details 

For Aspire & Innovative Advertising Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.108,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.216,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Aspire & Innovative Advertising Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

 

Promoters and Management of Aspire & Innovative Advertising Ltd.

• Nitesh Agarwalla 

• Rinku Agarwalla

Pre-issue Promoter shareholding	98.84%
Post-issue Promoter shareholding	72.35%

 

Aspire & Innovative Advertising Limited IPO Lead Managers

• Hem Securities Limited 

Dividend Policy

The Company did not distribute any dividends on its Equity Shares in the previous year. The decision regarding future dividend payments will depend on the overall financial performance of the company.

 

 

 

Conclusion

The upcoming IPO of Aspire & Innovative Advertising presents a favourable investment opportunity for investors, given its strong portfolio and established customer base. Nonetheless, the company has experienced negative cash flow in previous periods and operates within a competitive market. Investors are encouraged to apply for the IPO after conducting a thorough analysis to maximize potential returns.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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