QVC Exports Ltd IPO: Review, Valuation, Opening Date & GMP

QVC Exports IPO-Complete Overview

QVC Exports IPO an SME IPO is a fixed price issue of Rs.24.07 crore by QVC Exports Ltd. which was founded in August 2005 and engages in the trading of ferroalloys, including ferro silicon, high-carbon ferro manganese, low-carbon ferro manganese, and high-carbon ferro chrome. 82.95% of the company's revenue as of March 31, 2024, came from its export business.

As of January 31, 2024, the company was exporting to several nations, including Afghanistan, Korea, Italy, Ukraine, the United Kingdom, Belgium, and Oman. It is also exported to Japan, Bangladesh, Vietnam, Thailand, and Afghanistan. The organization complies with the ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 management system standards.

The company plans to launch its SME IPO on August 21, 2024.

QVC Exports IPO Overview

The Rs.24.07 crore QVC Exports Ltd. IPO consists of a fresh issue of 20.5 lac Shares totaling Rs.17.63 crore and an offer for sale (OFS) of 7.49 lac Shares summing up to Rs.6.44 crore, of which 50% to retail investors, and 50% to other investors.

QVC Exports IPO date is from August 21 to August 23, 2024. The expected IPO listing date is Wednesday, August 28, 2024, on NSE and SME. QVC Exports IPO price is Rs.86 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 31 March 2024.

• The total assets of the company are Rs.9,386.23 lac.

• The total revenue of the company is Rs.45,462.68 lac.

• PAT of the company is Rs.392.76 lac.

• The net worth of the company is Rs.3,407.9 lac.

• The company’s EBITDA is Rs.1071.42 lac.
  
  

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown

(Amount in lac)

 

Country-wise Revenue Breakdown For Fiscals 2024, 2023 and 2022

(Amount in lac)

 

Sales-wise Revenue Breakdown For Fiscals 2024, 2023 and 2022

(Amount in lac)

 

Total Revenue Breakdown For Fiscals 2024, 2023 and 2022

(Amount in lac)

 

The Objective of The Issue

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

• Repayment of some unsecured loans that the company has taken out.

• To fulfill working capital needs

• General corporate purposes.

Peers of QVC Exports Ltd. 

There is no listed company of comparable size involved in the same business as mentioned in the company’s RHP.

Evaluation

The IPO price is Rs.86 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.7.20 from the last year, the resulting P/E ratio is 11.94x.

Considering the weighted EPS of Rs.5.88 for the last three years, the P/E ratio is 14.62x.

Comparative Analysis With Listed Peers

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

IPO's Strengths 

• Long-Term Partnership with Important Clients and Vendors Quality Control.

• Large Selection of Products.

• Knowledgeable managers and seasoned promoters with technical know-how.

• Lower overhead, storage, and warehouse costs
  
  

IPO’s Weaknesses

• A large amount of the company's revenue is dependent upon the steel industry's demand. Any decline in the steel sector or an incapacity to boost or properly oversee its sales could negatively affect the operations of the company.

• The export operations provide it with the majority of its revenue. Any unfavorable developments pertaining to these nations may harm its operational outcomes.

• In previous years, the company's cash flows were negative. A continuously negative cash flow could hinder the company's expansion.

• As the company grows, there is a chance that competition will have an impact on its margins and profitability because all of its product verticals are highly competitive markets.

• The company intends to use a portion of the net proceeds to repay or prepay all or some of the unsecured borrowings that it has obtained; as a result, no tangible assets will be created as a result of using that portion of the net proceeds. 

 

QVC Exports IPO GMP Today

QVC Exports IPO GMP today is Rs.20.

IPO Timetable (Tentative)

The IPO date is from August 21 to August 23, 2024, with allotment on August 26, refund initiation on August 27, and listing on August 28, 2024.

 

 

 

QVC Exports IPO Details

The IPO with a Face Value of Rs.10 per Share is set to start on August 21, 2024, close on August 23, 2024, and offer a total issue size of 2,798,400 Shares (aggregating up to Rs.24.07 Cr) comprising a whole fresh issue size of 2,049,600 Shares (totaling up to Rs.17.63 Cr) and OFS of 748,800 Shares summing up to Rs.6.44 Cr.

QVC Exports IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.137,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.275,200.

 

QVC Exports IPO Reservation

Promoters And Management of QVC Exports Ltd.

• Nilesh Kumar Sharma.

• Madhu Sharma.

• Priti Sharma.

• Matashree Mercantile Private Ltd.

• Unity Vyapaar Private Ltd.
  
  

 

IPO Lead Managers

• Khandwala Securities Ltd.
  
  

Dividend Policy

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

Conclusion

The company has experienced negative cash flow in 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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