Forcas Studio Ltd IPO: Review, Valuation, Opening Date & GMP

Forcas Studio IPO-Complete Overview

Forcas Studio IPO an SME IPO is a book-built issue of Rs.37.44 crore by Forcas Studio Ltd. which was founded in April 2010. The company sells Men's apparel, including boxers, party wear, sportswear, jeans, t-shirts, trousers, and cotton pants. Customers from all around India can purchase these products from the company online in large quantities. Additionally, it provides white-labeling services for other brands, including Cobb, Kontail, Highlander, V-Mart Retail, V2 Retail, and Landmark Group.

For the Indian menswear market, the company provides a large selection of items, such as boxers, shirts, denim, t-shirts, pants, cotton pants, sportswear, party wear, and fashion wear. The brands "FTX," "Tribe," and "Conteno" are used by the corporation to sell its goods online. All of the major online marketplaces, such as Flipkart, Myntra, Meesho, Amazon, Ajio, Jio Mart, Glowroad, Limeroad, Solvd, and Shopsy, have seen the establishment of the company's presence.

The business has also sold goods through several large-format retailers, including City Kart, Metro Bazar, V-Mart Retail, V2 Retail, Kothari Retail, and Sarvana Retail. The organization has provided services for over 15,000 pin codes. Being present in more than 500 large-format stores and on well-known online marketplaces, the brand has a significant offline presence. They have a catalog with more than 1200 SKUs and a large selection of products. The company manages its supply chain out of 4 warehouses in Kolkata.

The company plans to launch its SME IPO on August 19, 2024. 

Forcas Studio IPO Overview

The Rs.37.44 crore Forcas Studio Ltd. IPO consists of a fully fresh issue of 46.8 lac Shares, of which 49.96% are allowed to institutional investors, 35.03% to retail investors, and 15.01% to non-institutional investors.

This SME IPO date is from August 19-August 21, 2024. The expected IPO listing date is Monday, August 26, 2024, on NSE and SME. Forcas Studio IPO price band is Rs.77 to Rs.80 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

Below is the synopsis of the company's financial data for the period that concluded on 29 Feb 2024.

• The total assets of the company are Rs.12,379.43 lac.

• The total revenue of the company is Rs.9,648.78 lac.

• PAT of the company is Rs.553.31 lac.

• The net worth of the company is Rs.1,901.97 lac.

• The company’s EBITDA is Rs.927.59 lac.
  
  

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown

(Amount in lac)

 

Platform-wise Revenue Breakdown

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing warehouse improvements

• Early payback or repayment of some secured loans that the business has taken out

• To fulfill working capital needs

• General corporate purposes.

Peers of Forcas Studio Ltd.

Evaluation

The IPO price is Rs.77 to Rs.80 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2023 with an EPS of Rs.1.36 from the last year, the resulting P/E ratio is 58.82x.

Considering the weighted EPS of Rs.1.14 for the last three years, the P/E ratio is 70.17x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

IPO's Strengths 

• Product Design.

• Broad Market Reach.

• Providing Urban Bharat Young with fashion.

• Robust Sales & Marketing Team.

• Highly Skilled Management Team.

• Robust Relationships with Suppliers and Customers.

• Broad Product Selection.
  
  

IPO’s Weaknesses

• The demand for its products may decrease if the company is unable to predict and adapt quickly to shifting consumer tastes and fashion trends. This might harm the company's operations, financial performance, and prospects.

• The business, operating results, and financial situation could suffer if any new brands or items that the company introduces are not as successful as it had hoped.

• The business, operational outcomes, and prospects may suffer if the company is unable to maintain its creative spirit or adapt to the rapidly evolving textile industry trends.

• The seasons affect its business. Reduced sales during the fiscal year's holiday season could harm the company's operations, finances, and prospects.

• The company might not be able to continue making as much money as it is now because of rising expenses or falling trading spreads or margins.

Forcas Studio IPO GMP Today

Forcas Studio IPO GMP today is Rs.85.

IPO Timetable (Tentative)

The IPO date is from August 19 to August 21, 2024, with allotment on August 22, refund initiation on August 23, and listing on August 26, 2024.

 

 

Forcas Studio IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 19, 2024, close on August 21, 2024, and offer a total issue size of 4,680,000 Shares (aggregating up to Rs.37.44 Cr) comprising a whole fresh issue size of 4,680,000 Shares (totaling up to Rs.37.44 Cr).

Forcas Studio IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.128000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,56000.

 

Forcas Studio IPO Reservation

Promoters And Management of Forcas Studio Ltd.

• Sailesh Agarwal

• Sourav Agarwal
  
  

 

IPO Lead Managers

• Horizon Management Private Limited.

Dividend Policy

The company has not declared dividends during the last 3 years.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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