Radiowalla Network LTD IPO: Review, Valuation, Date & GMP

Radiowalla Network Limited IPO - Complete Overview

Founded in July 2010, Radiowalla Network Limited is engaged in providing customer engagement services, which include in-store radio services, an exclusive radio channel for brands on a subscription model basis, corporate radio private channels for employee engagement within organizations, and advertisement services comprising digital signage solutions, content management services, and point-of-purchase advertising to clients. The company provides its services primarily to the business-to-business (B2B) sector.

The company has expanded its business into two verticals:

1. Radio Engagement Solutions and Subscription Services

2. Advertisement Solutions

Furthermore, the company has expanded its services to other countries such as the UAE, Mexico, Sri Lanka, and the Middle East.

As of October 31, 2024, the company has generated revenue of 871.99 lakhs.

 

Radiowalla Network Limited IPO Overview

Radiowalla Network Limited IPO date is slated to be open for subscription from March 27, 2024, to April 2, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Radiowalla Network Limited IPO price is fixed in the range of Rs.72 to Rs.76 per share. 

The total issue size of this IPO amounts to Rs.14.25 Cr. The company has allocated share 35% to retail investors, 50% to institutional and 15% to non instituional investors.

 

Company Financial

Compared to the previous financial year, Radiowalla Network Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowings has also increased.

(Amount in Lakhs)

Period	31 Oct 2023	31 Mar 2023	31 Mar 2022
Total Assets	883.29	813.53	527.53
Total Revenue	871.99	1,402.89	1,050.12
PAT	113.99	102.18	47.01
Net worth	552.75	335.08	36.37
Reserve & Surplus	576.16	362.09	58.25
Total Borrowings	52.05	78.74	69.64

 

Revenue generated from the Top Five Countries

(Amount in Lakhs)

State Name	October 2023	March 2023	March 2022
Domestic Sales
India	739.30	1,195.52	943.02
TOTAL (A)	739.30	1,195.52	943.02
International Sales
Singapore	-	46.75	58.81
MENA	107.61	155.69	45.77
Mexico	24.96	-	-
Sri Lanka	-	-	1.20
TOTAL (B)	132.57	202.45	105.78
GRAND TOTAL (A+B)	871.86	1,397.97	1,048.81

 

Vertical-wise Revenue Breakup

(Amount in Lakhs)

Particulars	October 2023	March 2023	March 2022
Radio Engagement and subscription services	660.28	1,006.06	768.84
Advertising Solutions	211.59	391.91	279.97

 

The Objective of the Issue

The objects of the Issue are: - 

1. To cover the expenses for investment in technology.

2. To cover the capital expenditure for the company.

3. To cover the working capital requirements of the company.

4. To cover general corporate purposes.

5. To cover the issue expenses

 

 

 

Peers of Radiowalla Network Limited IPO

According to the DRHP of Network Limited, there are no other industries providing services in the same domain as the company.

 

Evaluation

The IPO is priced within the range of Rs.72 to Rs.76 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 1.98 from the last year, the resulting P/E ratio is 38.48x.

• Taking into account the weighted EPS of Rs 16.83 for the last three years, the P/E ratio amounts to 4.51x.

Comparative Analysis with Listed Peers

• There are no listed peers of the company.

 

IPO's Strengths 

• A management team with adaptability and extensive experience.

• Robust global presence demonstrated by the company.

• Offering multi-lingual content.

• Accredited by the Directorate of Advertising and Visual Publicity (DAVP), now integrated into the Central Bureau of Communication (CBC).

• Proficiency in comprehending client preferences and continually upgrading services.

• Firmly established client base and partnerships with prominent retailers.

• Demonstrated track record of established operations and success.

 

IPO Weaknesses

• The promoters of the company are facing outstanding litigation.

• The company experiences negative cash flows from both its investing and financing activities.

• Group entities associated with the company have previously incurred losses and may continue to do so in the future.

• The in-store radio services provided by the company rely on licensed music obtained from two key aggregators.

• The primary revenue stream of the company is derived from radio engagement and subscription services, making it susceptible to revenue fluctuations due to any changes or adverse conditions in this segment.

• The company operates within a significantly fragmented and competitive market landscape.

 

IPO GMP Today 

The latest GMP of Radiowalla Network Limited is Rs.38.

 

 

 

Radiowalla Network Limited IPO Timetable (Tentative)

Radiowalla Network LimitedIPO is scheduled from March 27 to April 2, 2024, with allotment on April 3, refund initiation on April 4, and listing on April 5, 2024.

Events	Date
IPO Opening Date	March 27, 2024
IPO Closing Date	April 2, 2024
IPO Allotment Date	April 3, 2024
Refund initiation	April 4, 2024
IPO Listing Date	April 5, 2024

 

Radiowalla Network Limited IPO Details 

Radiowalla Network Limited IPO, with a face value of Rs.10 per share, opens on March 27 and closes on April 2, 2024, offering 1,875,200 shares shares at Rs.72 to Rs. 76 per share, with a lot size of 1600 shares, aiming to raise Rs.14.25 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	March 27, 2024 to April 2, 2024
Face value	Rs.10 per Share
Issue Price	Rs.72 to Rs.76 per Share
Lot Size	1600 Shares
Price of 1 lot	Rs.121,600
Issue Size	1,875,200 Shares (aggregating up to Rs.14.25 Cr)
Fresh issue	1,875,200 Shares (aggregating up to Rs.14.25 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

 

Radiowalla Network Limited IPO Lot Details 

For Radiowalla Network Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.121,600 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.243,200.

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

 

 

 

Radiowalla Network Limited IPO Reservation 

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Radiowalla Network Limited

• Mr. Anil Srivatsa

• Ms. Gurneet Kaur Bhatia

• Mr. Harvinderjit Singh Bhatia.

Pre-issue Promoter shareholding	55.80%
Post-issue Promoter shareholding	40.95%

 

Radiowalla Network Limited IPO Lead Managers

• Narnolia Financial Services Ltd

 

Dividend Policy

The company has not declared dividends in any financial year, and future dividend payments will be contingent upon the financial performance of the company.

 

 

 

Conclusion

Radiowalla Network Limited is gearing up for its upcoming IPO, offering an attractive investment opportunity. The company shows solid financial performance. Still, it faces tough competition in the market. Investors should carefully consider all aspects before applying the IPO to make the best 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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