Net Avenue Technologies Ltd. IPO - Review, Valuation & GMP

Net Avenue Technologies Limited  - Complete Overview

Since its establishment in 1998, Net Avenue Technologies has risen to prominence as a key player in the online direct-to-consumer industry, specializing in Indian Ethnic wear and accessories. The company has not only expanded its horizons to encompass international cross-border e-commerce but has also made its diverse product range accessible to customers worldwide. With a focus on catering to women, men, teens, and kids, Net Avenue Technologies has carved a niche within the South Asian regions through dedicated websites.

Launched in 2008, the company's exclusive luxury brand, RaiR, embodies pure elegance and glamour. Rooted in the distinctive charm of Indian ethnicity, RaiR specializes in creating and disseminating high-end designer Indian clothing. The triumph of RaiR led to the establishment of a fashion studio. Timeless in its style, RaiR's essence is deeply rooted in classic sartorial traditions, making it a perennial statement of fashion.

Their Notable achievements include the recognition of Cbazaar.com, a platform under Net Avenue Technologies, as one of the top online shops in the United States in 2020. Moreover, in 2022, it earned acclaim as one of the fastest-growing brands in the country. These achievements underscore the company's unwavering commitment to delivering quality, fostering innovation, and sustaining growth in the ever-evolving landscape of online retail.

 

What does the company do?

In addition to its online platforms, strategic partnerships with E-commerce giants like Myntra, Nykaa, and Ajio have further solidified the company's market presence. Through a direct-to-consumer strategy, Net Avenue Technologies has successfully penetrated global markets, with strongholds in key regions such as the United States, United Kingdom, Australia, and Canada.

 

 

 

Net Avenue Technologies Limited IPO Overview

Net Avenue Technologies Limited IPO’s date is slated to be open for subscription from November 30, 2023, to December  4, 2023. This NSE SME IPO follows a Book-Built Issue IPO.

The Net Avenue Technologies Limited price is fixed at Rs. 16 to Rs.18  per share. The upcoming NSE SME IPO will be listed on December 12, 2023.

The total issue size of this IPO amounts to Rs. 10.26 CR. Within this total issue, 35% is issued to retail investors.

 

Net Avenue Technologies Limited Timetable (Tentative):

Events	Date
IPO Opening Date	30 November 2023
IPO Closing Date	4 December 2023
IPO Allotment Date	7 December 2023
Refund initiation	8 December 2023
IPO Listing Date	12 December 2023

 

Net Avenue Technologies Limited Details

IPO opening & closing date	30 November to 4 December 2023
Face value	Rs. 1 per Share
Issue Price	Rs. 16 to Rs. 18 per Share
Lot Size	8000 Shares
Price of 1 lot	Rs. 144,000
Total Issue Size	5,700,000 Shares (aggregating up to Rs. 10.26 Cr)
Fresh issue	5,700,000 Shares (aggregating up to Rs. 10.26 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Net Avenue Technologies Limited Lot Details

Applications	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	8000
Maximum Lot Investment (Retail)	1 lot	8000
Minimum Lot Investment (HNI)	2 lot	16,000

 

Net Avenue Technologies Limited Reservation

QIB Shares Offered	Not more than 50.00%
Retail Shares Offered	Not less than 35.00%
Other Shares Offered	Not less than 15.00%

 

 

Company Financial

(Amount in Lakhs)

Period	FY 23	FY 22	FY 21
Total Assets	1,419.90	1,295.26	769.85
Total Revenue	3,451.26	3,276.16	1,447.54
PAT	176.40	261.51	23.11
Net worth	233.54	42.57	-228.37
Reserve & Surplus	211.41	20.44	-250.50
Total Borrowings	276.06	84.24	191.07

 

Operational KPI’s of the Company

 (amount in % age)

Revenue split between domestic and export	FY 23	FY 22	FY 21
Domestic Market	19.14	20.25	18.57
Export Market	73.87	73.86	77.25
Other Operating Revenue (%)	6.99	5.89	4.18
Total	100	100	100

 

Revenue by Operations

(Amount in Lakhs)

Particulars	FY 23	FY 22	FY 21
Revenue from operations	3343.54	3123.34	1380.02
Other Operating Income	105.16	152.60	70.79
Total	3448.70	3275.94	1450.81

 

The Objective of the Issue

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

• Marketing and Awareness for Customer Acquisition.

• Meeting the Issue Expenses.

• Working Capital Requirement Funding.

• General Corporate Purpose.

 

Promoters and Management of Net Avenue Technologies Limited

1. Mr. Rajesh Nahar 

2. Mr. Ritesh Katariya

Pre-issue Promoter Shareholding	45.31%
Post-issue Promoter Shareholding

Net Avenue Technologies Limited  Lead Managers 

•  Shreni Shares Private Limited

 

Peers of Net Avenue Technologies Limited

Name of the Company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Net Avenue Technologies Limited	1.00	8.57	2.21
Nandini Creations	10	697.00	0.11

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP and RHP. Net Avenue Technologies Limited is fixed at Rs. 16 to Rs. 18 per share, with an EPS of Rs. 2.1. Based on the issue price the company's P/E ratio is calculated at 8.57.

 

Dividend Policy

 According to Net Avenue Technologies Limited's IPO, the company did not distribute dividends in the preceding fiscal years, and its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

• Recognition as a key player in the online direct-to-consumer industry..

• Strategic partnerships with major E-commerce platforms.

• Successful global expansion in key markets.

• Positive financial performance with consistent growth.

 

IPO's Weaknesses

• Intense competition in the market.

• Dependence on strategic partnerships with E-commerce giants.

• Vulnerability to global economic conditions.

• Fast-changing dynamics of the fashion industry.

 

IPO GMP Today

The latest  GMP of  Net Avenue Technologies Ltd. IPO is RS. 3

 

 

 

Conclusion

Net Avenue Technologies Limited demonstrates strengths in market presence, product range, international expansion, and financial performance. However, potential risks such as market competition and dependence on key partnerships should be carefully considered. The IPO's pricing and issue size appear competitive, and ongoing updates on GMP will provide insights into market sentiment. Investors are advised to stay informed and assess the overall risk-reward profile before making investment decisions.

 

 

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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