Fonebox Retail Ltd IPO - Review, Valuation, Opening Date & GMP

Fonebox Retail Limited IPO  - Complete Overview

Fonebox Retail Limited, known by the names Fonebook and Fonebox, is a store that sells smartphones and accessories from various brands such as Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG, and Micromax. They also offer other products like laptops, washing machines, smart TVs, air conditioners, and refrigerators from brands including TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, and OnePlus.

Customers can purchase these items on credit or through monthly instalment plans, and the company has partnered with major financial institutions such as Bajaj Finance, HDB Financial Service, HDFC Bank, and IDFC First Bank for this purpose.

As of September 25, 2023, Fonebox Retail Limited operates a total of 153 stores in Gujarat. This includes 40 company-owned and operated stores and 113 under the franchisee and company-operated model, spread across more than 20 cities in the state. The company employed a total of 130 people as of July 31, 2023.

 

Fonebox Retail Limited IPO Overview

Fonebox Retail Limited IPO date is slated to be open for subscription from January 24, 2024, to January 29, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Fonebox Retail Limited IPO price is fixed at Rs. 66 to Rs. 70 per share. 

The total issue size of this IPO amounts to Rs. 20.37 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

Fonebox Retail Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	24 January 2024
IPO Closing Date	29 January 2024
IPO Allotment Date	30 January 2024
Refund initiation	31 January 2024
IPO Listing Date	01 February 2024

 

Fonebox Retail Limited IPO Details

IPO Opening & Closing Date	24 January to 29 January 2024
Face value	Rs. 10 per share
Issue Price	Rs. 66 to Rs. 70 per share
Lot Size	2000  Shares
Price of 1 lot	Rs. 1,40,000
Total Issue Size	2,910,000 Shares (aggregating up to Rs. 20.37 Cr)
Fresh issue	2,910,000 Shares (aggregating up to Rs. 20.37 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

Fonebox Retail Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2000
Maximum Lot Investment (Retail)	1 lot	2000
Minimum Lot Investment (HNI)	2 lot	4000

 

Fonebox Retail Limited IPO Reservation

QIB Shares Offered	Minimum 50%
Retail Shares Offered	Maximum 35%
Other Shares Offered	Maximum 15%

 

 

Company Financial

Fonebox Retail Limited's financial snapshot as of September 30, FY 23, reflects substantial total assets, revenue of 13,975.84 Lakhs, a net worth of 210.26 Lakhs, and total borrowings of 506.57 Lakhs.

(Amount In Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	4,342.27	3,861.05	2,110.70
Total Revenue	13,975.84	19,626.09	9,092.33
PAT	155.19	159.86	12.79
Net worth		210.26	60.23
Reserve & Surplus	190.48	170.29	10.43
Total Borrowings	506.57	1,058.22	584.26

 

Product-Wise Revenue Bifurcation

FY 23 revenue: 96.84% from mobile accessories, 3.16% from other gadgets.

(in %age)

Particulars	Jun 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Mobile and other Mobile Accessories	96.84	98.35	99.28
Other Electrical Gadgets and Equipment	3.16	1.65	0.72
Total	100.00	100.00	100.00

 

Store Category-Wise Revenue Bifurcation  

FY 23 store revenue: 44.24% from owned stores, 55.76% from operating franchises.

(in %age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Owned Stores	44.24	58.79	65.09
Franchises Operating	55.76	41.21	34.91
Total	100.00	100.00	100.00

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• To Meet Working Capital Requirements

• General corporate purposes

• To meet Public Issue Expenses

 

 

Promoters and Management of Fonebox Retail Limited IPO

1. Mr. Manishbhai Girishbhai Patel.

2. Mr. Jigar Lallubhai Desai.

3. Mr. Jigneshkumar Dashrathlal Parekh.

4. Mr. Amitkumar Gopalbhai Patel.

5. Mr. Parth Lallubhai Desai.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	71.64%

 

Fonebox Retail Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd 

 

Peers of Fonebox Retail Limited IPO

Fonebox Retail Limited's IPO valuation (P/E ratio of 30.43) is competitive among peers.

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Fonebox Retail Limited	10	30.43	2.17
Jay Jalaram Technologies Limited	10	71.73	2.55
Bhatia Communications & Retail (india) Ltd	1	25.10	0.68

 

Evaluation

The IPO is priced within the range of Rs. 66 - 70 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 2.3 from the last year, the resulting P/E ratio is 30.43x.

- Taking into account the weighted EPS of Rs 1.23 for the last three years, the P/E ratio amounts to 56.92x.

 

Comparative Analysis with Listed Peers:

- Jay Jalaram Technologies Limited has a P/E ratio of 71.73x (the highest).

- Bhatia Communications & Retail (india) Ltd has a P/E ratio of 25.10x (the lowest).

- The industry's average P/E is 48.41x.

 

As a result, the IPO price range, with a P/E ratio ranging from 30.43x to 56.92x, seems neutral in comparison to the industry average of 48.41x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

 

IPO's Strengths

• Experienced Promoters and Management Team.

• Widespread distribution network.

• Wide range of Products.

• Strategic location and facilities.

 

IPO GMP Today

The Latest GMP of Fonebox Retail Limited IPO is Rs. 130.

 

Conclusion

In conclusion, Fonebox Retail Limited presents an IPO with a comprehensive overview, showcasing a diverse range of products, an extensive distribution network, and an experienced management team. The IPO is scheduled to open for subscription from January 24, 2024, to January 29, 2024, with an issue price ranging from Rs. 66 to Rs. 70 per share.

The IPO's valuation, with a P/E ratio ranging from 30.43x to 56.92x, appears neutral when compared to industry peers, with the latest GMP standing at Rs. 50.

 

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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