Ondoor Concepts LTD. IPO - Review, Valuation, Date & Today GMP

Ondoor Concepts Limited - Complete Overview

Established in 2014, Ondoor Concepts Limited has emerged as a rapidly growing regional omni-channel retailer specializing in groceries and essential household items.

The company is one of the early pioneers in the supermarket industry, it inaugurated its first store in Bhopal, Madhya Pradesh in January 2015. Presently, Ondoor Concepts operates a network of 55 stores across various cities in Madhya Pradesh. Among these stores, 17 are company-owned and operated, while the remaining ones are run through a franchisee model.

The company categorizes its product offerings into the following segments:

1. Foods: This category encompasses staples, groceries, fruits and vegetables, snacks, processed foods, dairy, frozen products, beverages, and confectionery.
2. Non-Foods (FMCG): This category includes items related to home care, personal care, toiletries, and various over-the-counter products.
3. General Merchandise: This category comprises crockery, utensils, plastic goods, pooja items, and more.

As of March 2023, the company reported a total revenue of 18,014.52 lacs.

 

What does the company do? 

Ondoor Concepts Limited has emerged as a rapidly growing regional omni-channel retailer specializing in groceries and essential household items.

 

 

IPO Overview 

The Ondoor Concepts Limited IPO date is slated to take place from October 23, 2023, to October 27, 2023. This SME IPO follows the Fixed Price Issue model.

The Ondoor Concepts Limited IPO price is established at Rs. 208 per share, with a face value of Rs. 10 per share. It is anticipated that the listing will occur on November 6, 2023.

The company aims to raise funds amounting to Rs. 31.18 Crores through this upcoming SME IPO. Of the total issue, 50% has been earmarked for retail investors, while the remaining 50% is allocated for other investors.

 

Ondoor Concepts Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	23 October 2023
IPO Closing Date	27 October 2023
IPO Allotment Date	1 November 2023
Refund initiation	2 November 2023
IPO Listing Date	6 November 2023

 

Ondoor Concepts Limited IPO Details

IPO Opening & Closing Date	23 October to 27 October 2023
Face value	Rs.10 per Share
Issue Price	Rs. 208 per Share
Lot Size	600 Shares
Price of 1 Lot	Rs. 124,800
Issue Size	1,498,800 Shares (aggregating up to Rs. 31.18 Cr)
Offer for sale	NA
Fresh issue	1,498,800 Shares (aggregating up to Rs. 31.18 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Ondoor Concepts Limited IPO Lot Details 

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

 

Ondoor Concepts Limited IPO Reservation

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

 

Company Financial

Amount in Lakhs

Period	FY 23	FY 22	FY 21
Total Assets	9,009.46	7,782.37	6,563.49
Total Revenue	18,015.02	17,333.09	18,306.01
PAT	1,306.18	-536.98	-523.44
Net worth	5,120.78	-6,625.38	-6,088.40
Reserve & Surplus	4,734.32	-6,827.89	-6,290.91
Total Borrowings	-	-	-

 

The Company Earned Revenue from sales through Online Delivery and Offline Delivery

(Amount in Lakhs)

Financial Year / Period ended	Offline Mode	Online Mode
2020-21	11024.83	7240.35
2021-22	10574.35	6739.74
2022-23	13194.92	4819.60
31.08.23	5166.81	1859.18

 

Revenue earned from different Categories

(Amount in Lakhs)

Category	FY 2021	FY 2022	FY 2023
Food	14422.58	14004.62	13166.92
Non – Food	2384.25	1830.22	3994.99
General Merchandise	1458.35	1479.25	852.61
Total	18265.18	17314.09	18014.52

 

Objective of the Issue 

The funds from the Net Proceeds are intended to fulfil the following objectives.

• To bolster additional working capital needs.
• For various general corporate purposes.

 

Promoters and Management of Ondoor Concepts Limited

Narendra Singh Bapna, Pramod Ramdas Ingle, Vaishali Pramod Ingle, Swati Bapna, and NSB BPO Solutions Private Limited are promoters of the company.

Pre-issue Promoter Shareholding	51.92%
Post-issue Promoter Shareholding	38.14%

 

Peer Comparison 

Below are the listed peers of On Door Concepts

Name of the Company	CMP (Rs.)	EPS (Rs.)	P/E
On Door Concepts	208.00	56.77	4.56
Osia Hyper Retail	32.45	0.92	51.17

 

IPO's Valuations

To evaluate the IPO valuation, the company has presented data in its DRHP. Ondoor Concepts IPO price has been set at Rs. 208 per share, and the EPS stands at Rs. 56.77. Based on the issue price, the PE ratio is calculated at 3.66.

 

Dividend Policy 

According to the Ondoor Concepts IPO DRHP, the company has not declared any dividends in previous years, and any future dividend payments will depend upon the company's financial performance.

 

IPO's Strengths

• Ondoor operates a comprehensive online business model, encompassing Android and iOS applications, a web portal, a telephone ordering system, and an integrated backend logistics system for order retrieval, packaging, and doorstep delivery to customers.
• It employs a franchisee model.
• It offers a reasonable pricing model.

 

IPO Weaknesses 

• The Company, its Promoters, and its Directors are currently engaged in legal proceedings and potential litigations.
• The company has experienced net loss in the past.
• If the company cannot consistently maintain discounted prices as per its pricing strategy, it risks losing a substantial portion of its customer base.
• The company operates within a highly competitive retail market.
• The company is obligated to secure, renew, or maintain its statutory and regulatory permits, approvals, and other required certifications for its business operations.
• There have been several instances in the past where the company experienced delays or defaults in the payment of statutory dues and the filing of statutory returns.
• The Corporate Promoter of the company, NSB BPO Solutions Private Limited, shares objectives similar to those of the Company.
• The company has previously faced negative cash flows.

 

 

IPO GMP Today

On Door Concepts Limited IPO GMP is not yet available.

 

Conclusion 

The company functions in a highly competitive market and has previously incurred losses. The significant surge in profits in FY 23 might appear to be more of an attempt to enhance the IPO's appeal. Seasoned investors may consider applying for the IPO only after conducting a thorough analysis for better outcomes.

 

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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