Finelistings Technologies Ltd IPO: Review, Valuation, Date & GMP

Finelistings Technologies Limited IPO  - Complete Overview

Established in 2018, Finelistings Technologies Limited operates in two main areas: retailing pre-owned luxury cars and providing software development services. 

In its pre-owned luxury car business, the company focuses on selling premium and high-end luxury cars with an average sale price of Rs. 40.00 lakhs. Its first showroom, branded as "Finecars," opened in August 2022 at Ambience Mall, Vasant Kunj, National Capital Region. 

Using a buy-and-sell retail model, the company has sold over 37 cars, 35 cars, and 14 cars for the periods ended March 31, 2023, 2022, and 2021, respectively, along with 14 cars for the stub period ended July 31, 2023. 

Since 2020, the company has derived 30% of its sales from showroom sales and 70% from its online platform. 

The pre-owned luxury car business offers a variety of vehicles, including sedans, SUVs, sports cars, and convertibles. 

In software development services, the company offers cloud-based services and IT consulting services such as big data analytics, cloud architecture, data engineering, and IoT solutions. It also provides solution-based services like business intelligence analytics, cloud development, data management, digital transformation, IoT development, and web development.

 

Finelistings Technologies Limited IPO Overview

Finelistings Technologies Limited IPO date is slated to be open for subscription from May 7, 2024, to May 9, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Finelistings Technologies Limited IPO price is fixed at Rs.123 per share. 

The total issue size of this IPO amounts to Rs.13.53 Cr. The company has allocated shares 50% to retail investors, 50% to other investors.

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Finelistings Technologies Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

Amount in Lakhs

Period	31 Jul 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,002.96	1,015.99	154.33
Total Revenue	743.61	1,390.62	694.32
PAT	123.20	178.92	-8.33
Net worth	475.03	351.83	47.91
Reserve & Surplus	221.41	98.21	46.79

 

The Objective of the Issue

The Net Proceeds from the Issue will be utilised for the following objectives:

i. Purchase of Software

ii. To meet working capital requirements

iii. General Corporate Purpose

 

Peers of Finelistings Technologies Limited IPO 

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Finelistings Technologies Limited	10	8.78	-
CarTradeTech Limited	10	6.71	92.73
Cambridge Technology Enterprises Limited	10	4.15	16.56
Globalspace Technology Limited	10	0.46	48.39

 

Evaluation

The IPO is priced at Rs 123 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 8.78 from the last year, the resulting P/E ratio is 14.09x.

• Taking into account the weighted EPS of Rs (4.11) for the last three years, the P/E ratio amounts to (29.92)x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 52.56x.

As a result, the IPO price range, with a P/E ratio ranging from 14.09x to (29.92)x, seems over priced to the industry average of 52.56x.

 

IPO's Strengths

• The company offers a wide range of products and services.

• Strong brands and focus on customer experience create powerful network effects.

• Emphasis on quality assurance.

• The company is led by experienced promoters and a management team.

 

IPO's Weaknesses

• The company, along with its promoters, directors, and group companies, is involved in certain legal proceedings.

• A substantial portion of the company's revenue relies on a limited number of customers.

• The used car business faces increased competition from both online and offline players, including authorized dealers and unorganized sellers, which could negatively impact the company.

• The market for technology services is highly competitive, which may affect the company's pricing and market share.

• The company's car showrooms are concentrated in a single region, namely Delhi-NCR, and any challenges in operating or expanding within this region could adversely affect its business.

 

IPO GMP Today

The Latest GMP of Finelistings Technologies Limited is Rs. 21.

Finelistings Technologies Limited IPO timetable (Tentative)

Finelistings Technologies Limited IPO is scheduled from May 7 to May 9, 2024, with allotment on May 10, refund initiation on May 13, and listing on May 14, 2024.

Events	Date
IPO Opening Date	May 7, 2024
IPO Closing Date	May 9, 2024
IPO Allotment Date	May 10, 2024
Refund initiation	May 13, 2024
IPO Listing Date	May 14, 2024

 

Finelistings Technologies Limited IPO Details 

Finelistings Technologies Limited IPO, with a face value of Rs.10 per share, opens on May 7 and closes on May 9, 2024, offering 1,100,000 shares at Rs.123 per share, with a lot size of 1000 shares, aiming to raise Rs.13.53 Cr, and will be listed on BSE SME.

IPO Opening & Closing Date	May 7, 2024 to May 9, 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 123 per share
Lot Size	1000 Shares
Price of 1 lot	Rs. 123,000
Issue Size	1,100,000 Shares (aggregating up to Rs.13.53 Cr)
Fresh issue	1,100,000 shares (aggregating up to Rs.13.53 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Private Ltd

Finelistings Technologies Limited IPO Lot Details 

For Finelistings Technologies Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.123,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs.246,000.

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

 

Finelistings Technologies Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Promoters and Management of Finelistings Technologies Limited

• Aneesh Mathur

• Arjun Singh Rajput

Pre-issue Promoter shareholding	71.65%
Post-issue Promoter shareholding

 

Finelistings Technologies Limited IPO Lead Managers

• Fedex Securities Pvt Ltd 

 

Dividend Policy

The Company has not paid any dividend on the Equity Shares.

 

Conclusion

The company operates in a competitive market and has faced losses in the past. The recent surge in revenue may appear as a superficial attempt to enhance its value for the upcoming IPO. Investors are advised to be careful and may choose to avoid participating in this IPO altogether. Alternatively, if you are willing to undertake high risk you may consider applying, but should do so with careful consideration.

 

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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