WomenCart LTD. IPO - Review, Valuation, Date & Today GMP

WomenCart Limited - Complete Overview

Established in 2018, WomenCart Limited is a digital, customer-centric retail platform that offers a wide array of both established and emerging branded beauty and wellness products for skincare, body care, hair care, and fragrances, catering to both men and women.

In addition to this, the company retails lifestyle brands such as makeup, imitation jewellery, and lingerie. WomenCart Limited also operates brick-and-mortar stores where customers can explore, shop, and engage with the brand.

The company's product portfolio includes approximately 10,000 SKUs, featuring their own brand as well as various national and international brands. They have a physical store located in Shalimar Bagh, Delhi, and have introduced their proprietary brands, including Wondercurve, Sayda Jewels, Faeezah, and Feya.

Furthermore, WomenCart Limited has incorporated four subsidiaries, which have taken over the operation of online businesses listed on their website. As of March 31, 2023, the company has achieved revenue generation of 874.95 lakhs.

 

What does the company do?

WomenCart Limited operates as a digital consumer-focused retail platform, offering a broad selection of established and emerging brands' beauty and wellness products. Their product range encompasses skincare, body care, hair care, and fragrances for both men and women.

 

 

Company Products  

The company's product lineup encompasses a range of beauty and wellness products, catering to skincare, body care, and hair care, as well as fragrances for both men and women. Additionally, they offer lifestyle brands that include makeup, imitation jewellery, and lingerie.

 

IPO Overview 

The WomenCart Limited IPO date is scheduled to be available for subscription from October 16, 2023, to October 18, 2023. The SME IPO is expected to be listed on October 27, 2023.

WomenCart Limited IPO price has been set at Rs. 86 per share, with a face value of Rs.10 per share. The company aims to raise Rs. 9.56 Crores through this upcoming SME IPO to fulfil specific objectives.

To get the full IPO review and stay informed about upcoming IPOs, visit the Finowings IPO section.

 

WomenCart Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	16 October 2023
IPO Closing Date	18 October 2023
IPO Allotment Date	23 October 2023
Refund initiation	25 October 2023
IPO Listing Date	27 October 2023

 

WomenCart Limited IPO Details

IPO Opening & Closing Date	16 October to 18 October 2023
Face value	Rs.10 per Share
Issue Price	Rs. 86 per Share
Lot Size	1600 Shares
Price of 1 Lot	Rs. 137,600
Issue Size	1,112,000 Shares (aggregating up to Rs. 9.56 Cr)
Offer for sale	NA
Fresh issue	1,112,000 Shares (aggregating up to Rs. 9.56 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Maashitla Securities Pvt. Ltd.

 

WomenCart Limited IPO Lot Details 

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

 

WomenCart Limited IPO Reservation

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

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	515.09	385.41	134.96
Total Revenue	874.95	425.67	135.15
PAT	47.01	20.74	-17.94
Net worth	311.13	264.12	16.38
Reserve & Surplus	200.33	153.32	-18.62
Total Borrowings	122.15	79.11	92.28

 

Consolidated revenue of the company from both sales to subsidiaries/ associates and to consumers directly (B2C)

(Amount in Lakhs)

Year	Subsidiaries/Associates	B2C Total	Total
31-08-2023	87.56	759.55	847.11
2022-23	769.20	195.10	964.30

 

Standalone revenue of the company from both business to business (B2B) and business to consumer (B2C)

(Amount in Lakhs)

Year	Subsidiaries/Associates	B2C Total	Total
31-08-2023	87.56	675.13	762.69
2022-23	769.20	104.89	874.09
2021-22	421.21	2.15	423.37
2020-21	111.03	24.07	135.10

 

Revenue bifurcation for online and offline sale of the company

(Amount in Lakhs)

Particulars	2022-23	2021-22	2020-21
Online Sales	10,082.00	153.00	52.00
Offline Sales	86,348.00	42,183.00	13,458.00

 

Revenue bifurcation of the owned brand and other brands of the company

(Amount in Lakhs)

Particulars	2022-23	2021-22	2020-21
Owned Brand	11,837.36	Nil	Nil
Other Brand	84593.48	42,337.07	13,510.87
Total	96,430.84	42,337.07	13,510.87

 

Sales bifurcation of the products of the company 

(Amount in Lakhs)

Particulars	2022-23	2021-22	2020-21
Makeup	18,744.43	9,934.66	2,459.87
Fragrance	37,846.22	20,587.99	5,534.72
Skin Care & Haircare	16,779.70	4,967.33	1,229.94
Health & Wellness	9,441.25	4,189.60	3,352.77
Imitation Jewellery	9,980.73	827.41	-
Lingeries & Accessories	3,638.50	1,830.08	933.58
Clothing	-	-	-
Total	96,430.84	42,337.07	13,510.87

 

Objective of the Issue

The company aims to achieve the following objectives through this issuance:

• Covering expenses related to branding and marketing.
• Funding the development of the company's mobile app.
• Fulfilling working capital needs.
• Addressing general corporate purposes.
• Covering the expenses associated with the issuance itself.

 

Promoters and Management of WomenCart Limited

Mrs Veena Pahwa is the promoter of the company.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding

 

Peer Comparison

Below are the listed peers of Womancart Limited

Company Name	CMP	EPS	P/E Ratio
Womancart Limited	86.00	1.87	45.99
FSN E-Commerce Ventures Ltd (Nykaa)	148.75	0.22	564.77

 

IPO's Valuations

The WomenCart Limited IPO price is established at Rs. 86 per share, with an EPS of Rs. 1.87, to calculate the data for IPO Valuations of the company, we get the P/E ratio of 45.99.

 

Dividend Policy

According to the WomenCart Limited IPO DRHP, the company has not declared any dividends in the past. Furthermore, the potential payment of dividends in the future will be contingent upon the company's future performance.

 

IPO's Strengths 

• Demonstrates authority across its product segments.
• Utilizes an omni-channel strategy, involving both offline and online sales.
• The company Places a strong emphasis on delivering exceptional customer service.
• Possesses proprietary brands featuring distinctive and exclusive products.

 

IPO Weaknesses 

• The company's current promoter is a first-generation entrepreneur.
• The company has a short operating history.
• In one of the three preceding financial years, the company incurred a loss.
• The company experiences negative cash flows from both its operating and investing activities.
• There is a potential for the company to face penalties or liabilities due to non-compliance with specific provisions of the GST Act, Income Tax, and other applicable laws over the last three years.
• Legal proceedings are pending involving the company, its promoters, and directors.
• The company operates in a sector characterised by intense competition and fragmentation.
• The company is exposed to potential payment-related risks, including those associated with cash on delivery and payment processing.
• The company needs to make significant investments in enhancing user experience.
• The company has to maintain a high inventory.

 

 

IPO GMP Today

The Latest GMP of WomenCart SME IPO is Rs. 10.

 

Conclusion 

The company operates in a highly competitive and fragmented sector, and its growth has been consistently average over the years. Additionally, the company has faced losses in previous financial years, and given its relatively small equity base post-IPO, it will likely take a longer time to transition to the mainboard. Investing in this company is recommended for experienced investors after conducting a thorough analysis.

 

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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