Home >> Blog >> Magenta Lifecare Limited IPO: Review, Valuation, Date & GMP
Magenta Lifecare Limited IPO: Review, Valuation, Date & GMP
![Magenta Lifecare Limited IPO](../admin/media/Magenta Lifecare Limited IPO.jpeg)
Table of Contents
- Magenta Lifecare Limited IPO - Complete Overview
- Magenta Lifecare Limited IPO Overview
- Company Financial
- The Objective of the Issue
- Peers of Magenta Lifecare Limited IPO
- Evaluation
- IPO's Strengths
- IPO's Weaknesses
- IPO GMP Today
- Promoters and Management of Magenta Lifecare Limited
- Magenta Lifecare Limited IPO Lead Managers
- Dividend Policy
- Conclusion
Magenta Lifecare Limited IPO - Complete Overview
Magenta Lifecare Limited, founded in 2015, is a mattress and pillow manufacturer based in Gujarat, India.
They market their products under the "Magenta" brand and offer a wide variety of sleep solutions. This includes memory foam, latex, and spring mattresses alongside memory foam and contour pillows. The company also imports and distributes processed raw foam and adjustable bed frames under its brand.
Magenta utilizes a multi-channel distribution strategy, selling through brick-and-mortar stores, a network of dealers, and online e-commerce platforms.
Their manufacturing facility boasts a production capacity of 60,000 mattresses and 70,000 pillows annually.
With a team of 41 skilled and unskilled workers, Magenta primarily caters to retail customers, hotels, and institutions.
Magenta Lifecare Limited IPO Overview
Magenta Lifecare Limited IPO date is slated to be open for subscription from June 5, 2024, to June 7, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.
Magenta Lifecare Limited IPO price is fixed at Rs.35 per share.
The total issue size of this IPO amounts to Rs.7.00 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.
Company Financial
Compared to the financial year ending March 31, 2023, and March 31, 2022, Magenta Lifecare Limited has seen growth in total revenue and net worth but a decrease in total assets. The profit after tax has increased while the total borrowing decreased.
Amount in Lakhs
Period |
31 Dec 2023 |
31 Mar 2023 |
31 Mar 2022 |
Total Assets |
1,505.71 |
1,250.93 |
1,415.60 |
Total Revenue |
630.74 |
955.29 |
938.47 |
PAT |
24.36 |
24.55 |
18.89 |
Net worth |
634.18 |
520.81 |
361.73 |
Reserve & Surplus |
147.19 |
366.57 |
219.72 |
Total Borrowings |
447.83 |
453.01 |
757.53 |
Product-wise Revenue Breakup
(Amount in Lakhs)
Name of Products |
December 31, 2023 |
Fy 2023 |
FY 2022 |
Mattress |
221.54 |
491.96 |
462.62 |
Pillow |
349.73 |
11.82 |
12.11 |
Raw Foam |
6.54 |
302.64 |
395.73 |
Hydraulic Bed |
10.97 |
63.4 |
36.01 |
Other Products |
13.05 |
36.79 |
17.93 |
Total Rs. |
601.83 |
906.61 |
924.4 |
Geography-wise Revenue Breakup
(Amount in lakhs)
Geography |
December 31, 2023 |
Fy 2023 |
FY 2022 |
Andhra Pradesh |
3.52 |
2.26 |
4.31 |
Assam |
- |
- |
0.11 |
Chattisgarh |
49.40 |
63.53 |
45.75 |
Dadra and Nagar Haveli |
- |
- |
- |
Delhi NCR |
- |
- |
0.74 |
Gujarat |
409.78 |
547.49 |
637.77 |
Haryana |
2.82 |
2.22 |
1.91 |
Jharkhand |
- |
- |
0.19 |
Karnataka |
36.24 |
61.01 |
35.04 |
Kerala |
0.55 |
0.68 |
0.64 |
Madhya Pradesh |
13.27 |
15.5 |
10.78 |
Maharashtra |
20.30 |
82.2 |
83.47 |
Rajasthan |
31.50 |
89.6 |
90.28 |
Tamil Nadu |
6.38 |
8.57 |
5.14 |
Telangana |
2.04 |
7.69 |
2.63 |
Uttar Pradesh |
25.44 |
25.86 |
5.51 |
West Bengal |
- |
- |
0.13 |
Total Rs. |
601.83 |
906.61 |
924.4 |
Segment-wise Revenue Breakup
(Amount in Lakhs)
Name of Products |
December 31, 2023 |
Fy 2023 |
FY 2022 |
Online |
0.48 |
0.88 |
0.78 |
Offline |
600.75 |
905.73 |
923.62 |
Total Rs. |
601.23 |
906.61 |
924.4 |
The Objective of the Issue
The Company proposes to utilize the Net Proceeds to fulfil the following objectives:
1. Funding working capital requirements.
2. General corporate purposes.
Peers of Magenta Lifecare Limited IPO
Name of the Company |
Face Value (Rs) |
EPS (Rs) |
P/E Ratio |
Magenta Lifecare Limited |
10 |
0.53 |
65.97 |
Sheela Foam Limited (Consolidated basis) |
5 |
20.81 |
44.65 |
Tirupati Foam Limited (Standalone Basis) |
10 |
4.31 |
17.85 |
Evaluation
The IPO is priced at Rs.35 per share.
Evaluation of P/E Ratio
-
Considering the FY23 EPS of Rs 0.53 from the last year, the resulting P/E ratio is 65.97x.
-
Taking into account the weighted EPS of Rs 0.50 for the last three years, the P/E ratio amounts to 69.71x.
Comparative Analysis with Listed Peers
-
The industry's average P/E is 31.25x.
As a result, the IPO price range, with a P/E ratio ranging from 65.97x to 69.71x, seems aggressively priced to the industry average of 31.25x.
IPO's Strengths
-
Diversified customer base and long-standing relationships.
-
Extensive and well-developed pan-India sales and distribution network.
-
A diversified product portfolio caters to a broader range of customers.
-
Promoter Directors with extensive domain knowledge provide strong industry expertise and guidance.
-
Quality assurance and accreditations demonstrate commitment to product quality and adherence to standards.
IPO's Weaknesses
-
The company need to obtain, renew or maintain permits, licenses, and approvals to operate its business.
-
The company faces a challenging competitive environment with factors beyond its control.
-
Past issues with delayed compliance or errors raise concerns about future adherence to regulations.
-
Ongoing litigation and claims may impact the company financially and reputationally.
-
The company has had Negative cash flow from operations and investment activities.
IPO GMP Today
The latest GMP of Magenta Lifecare Limited is Rs. 28.
Magenta Lifecare Limited IPO Timetable (Tentative)
Magenta Lifecare Limited IPO is scheduled from June 5 to June 7, 2024, with allotment on June 10, refund initiation on June 11, and listing on June 12, 2024.
Events |
Date |
IPO Opening Date |
June 5, 2024 |
IPO Closing Date |
June 7, 2024 |
IPO Allotment Date |
June 10, 2024 |
Refund initiation |
June 11, 2024 |
IPO Listing Date |
June 12, 2024 |
Magenta Lifecare Limited IPO Details
Magenta Lifecare Limited IPO, with a face value of Rs.10 per share, opens on June 5 and closes on June 7, 2024, offering 2,000,000 shares at Rs.35 per share, with a lot size of 4000 shares, aiming to raise Rs. 7.00 Cr, and will be listed on BSE SME.
IPO Opening & Closing Date |
June 5, 2024 to June 7, 2024 |
Face Value |
Rs.10 per share |
Issue Price |
Rs.35 per share |
Lot Size |
4000 Shares |
Price of 1 lot |
Rs.140,000 |
Issue Size |
2,000,000 shares (aggregating up to Rs.7.00 Cr) |
Offer for sale |
NA |
Fresh issue |
2,000,000 shares (aggregating up to Rs.7.00 Cr) |
Listing at |
BSE SME |
Issue Type |
Fixed Price Issue IPO |
Registrar |
Cameo Corporate Services Limited |
Magenta Lifecare Limited IPO Lot Details
For Magenta Lifecare Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (4000 shares) at Rs.140,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.280,000.
Minimum Lot Investment (Retail) |
1 lot |
Maximum Lot Investment (Retail) |
1 lot |
Minimum Lot Investment (HNI) |
2 lot |
Magenta Lifecare Limited IPO Reservation
Other Investors share Portion |
50% |
Retail Investors share Portion |
50% |
Promoters and Management of Magenta Lifecare Limited
-
Divyesh Modi
-
Khyati Modi
Pre-issue Promoter shareholding |
84.06% |
Post-issue Promoter shareholding |
59.59% |
Magenta Lifecare Limited IPO Lead Managers
-
Fedex Securities Pvt Ltd
Dividend Policy
The company has not declared any dividend on the equity share since incorporation.
Conclusion
The company operates in a competitive segment and has previously reported negative cash flow. Additionally, the company's financial performance is inconsistent. Experienced investors may apply for the upcoming IPO to gain long-term profits.
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.
Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!
Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!
Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.
Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.
Frequently Asked Questions
The IPO is scheduled to open for subscription on June 5, 2024.
The issue price for Magenta Lifecare Limited IPO is set at Rs. 35 per share.
The total issue size of the IPO is Rs.7.00 Cr, with 50% reserved for retail investors.
The IPO is set to close on June 7, 2024.
The IPO's net proceeds will be allocated towards Funding working capital requirements and General corporate purposes of the company.