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Issue Offer

Issue Opens on Dec 15, 2021Issue Close on Dec 17, 2021 Total IPO size (cr)125.96 Fresh issue (cr) 113.44 Offer For Sale (cr) 12.53 Price Band (INR) 262-274 Market Lot 50 Face Value (INR)10 Retail Allocation 10% Listing On NSE, BSE

Objects of the issue

⮚ For funding the working capital.

‍⮚ Capital expenditure for expansion.

Issue Break-up (%)

QIB Portion 75 NIB Portion 15 Retail Portion 10

⮚ Shareholding (No. of Shares)

Pre Issue1,42,34,947Post Issue1,83,74,947

Indicative Timetable

Finalization of Basis of Allotment 22-12-2021 Refunds/Unblocking ASBA Fund 23-12-2021 The credit of equity shares to DP A/c 24-12-2021 Trading commences 27-12-2021

Registered in 2019, HP Adhesives Limited is an adhesives and sealants company. The company manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC, and uPVC solvent cement,  synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants, and PVC pipe lubricants.

These adhesives and sealant products have applications in multiple industries such as plumbing and sanitary, drainage and water distribution, general-purpose building/ construction, and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing,  and other varied industries.

⮚ Apart from the above products, the company also sells ancillary products like ball valves, thread seals, and other tapes and FRP products for drainage and architectural solutions.

⮚ The company has grown from a single product to a multi-product adhesives company with sales across India (through a pan-India distribution network) and also in international markets.

⮚ Over the years, Company’s brands “HP” and “Strong Weld” in the PVC adhesives product category have gained increasing acceptance on account of high product quality and efficient pricing.

⮚ The company has a solid business model that focuses on consistently expanding its product portfolio by introducing new product categories and SKUs to cater to a wide range of end-use applications and selling them through its distribution network across India.

⮚ As of September 30, 2021, its distribution network comprised of 4 depots situated in Delhi, Kolkata, Bengaluru, and Indore and more  than 750 distributors who cater to more than 50,000 dealers in  India

⮚ The company wants to expand its manufacturing capacity at Village Narangi, Raigad, Maharashtra to cater to the growing demand for several product categories.

Outlook & Valuation:

In the last 3 years, the company has shown stable growth in revenue where it grew from Rs 87.97 cr to Rs 123.87 cr over the period of FY19 to FY21, during the same period profit has grown from Rs 4 cr in FY19 to Rs 10.05 cr in FY21, but the company faced a huge loss of Rs. (4.67) cr in FY20 on the back of exceptional item.

The industry is expected to grow at a CAGR of 6-8% while the company is in a growth phase and is expanding installed capacities for its product lines and is also expanding its portfolio.

The IPO is valued at a PE of 35x and  P/BV of 28x to its FY21 earnings. However, if we annualized FY22  earnings PE and P/BV work out to be 81x and 10.38x which is in line with the peer. Due to its small size, the SME-IPO is going to be listed in the  T2T segment.

We have an "AVOID" rating for the IPO.

For additional information & risk factors please refer to the Red Herring Prospectus

IPO Note

HP ADHESIVES LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Anjana Haresh Motwani, with over 40 years of experience in the adhesive industry, is currently designated as the  Executive Director and Chairperson of the Company.

⮚ Karan Haresh Motwani currently holds the position of Managing Director of the Company. He was admitted to the partnership M/s. HP International in 2007.

⮚ Mr Mihir Shah, is the chief financial officer of the Company. He has been associated with the Company since  May 2021. He has an overall experience of nearly 15 years in investment banking.

⮚ Ms Jyoti Nikunj Chawda is the Company Secretary & Compliance Officer of the Company. She is a commerce and law graduate from the University of Mumbai and holds an overall experience of nearly 7 years in secretarial and compliance functions.

⮚ Ms Nidhi Haresh Motwani is the Vice President – Operations of the Company, She has been associated with the Company since February 2016. She has an overall experience of 10 years in the fields of branding, marketing, and sales.

⮚ Mr Saurabhraj Bhatt is the Vice President – Sales and Marketing, of the Company. He has an overall experience of about 22 years. He handles the product promotion, branding, sales, and marketing functions of the Company.

⮚ Mr. K. P. Unnikrishnan is the Assistant Vice President – New Product Development of the Company. He has a  multi-functional experience of 36 years

⮚ Mr. Sabrinath Gopalkrishnan Nair is the Senior Manager – Purchase of the Company. He has experience of over 28 years in accounts, inventory control and logistics operations.

COMPETITIVE STRENGTHS

⮚ Consistently growing company with established brand presence

⮚ Wide Product Portfolio and Multiple SKUs

⮚ Focusing on multiple end-user industries

⮚ Extensive distribution network across India catering to customers.

⮚ Efficient manufacturing set-up with scope for expansion

⮚ Effective quality checks

⮚ R&D set up for constant product improvement and new product development

KEY STRATEGIES

⮚ Further, strengthen brand image

⮚ Expansion of manufacturing facility

⮚ Further expansion of distribution network across India and globally

KEY CONCERNS

⮚ The impact of the COVID-19 pandemic on business and operations is uncertain.

⮚ The company does not have any long-term arrangements with its distributors.

⮚ Restrictions on the import of raw materials may adversely impact the business.

⮚ Prices of the principal raw materials are subject to changes in the prices of crude oil.

⮚ The company has incurred losses in the recent past.

IPO Note

HP ADHESIVES LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS (AS OF 31ST MARCH 2021)

Name of the Company EPS (Basic) NAV P/E Total Income (Mn) RoNW (%)HP Adhesives Limited 7.74 9.74 35 118.16 79%Peer GroupPidilite Industries Limited 22.26 114.78 81.28 7293.00 114.78

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Lakh) FY 2021 FY 2020 FY 2019Equity Share Capital 1,300.00 1,300.00 1,300.00Other Equity (34.12) (1,051.56) 166.23Net Worth 1,265.88 248.44 1,466.23Total Borrowings 3,138.52 3,405.98 2,358.33Revenue from Operations 11,816.16 9,547.93 8,741.75EBITDA 1,768.67 691.95 870.09Profit Before Tax 1,323.02 (536.06) 405.91Net Profit for the year 1,005.96 (467.05) 400.07

Rating SUBSCRIBE Issue Offer Issue Opens on Dec 13, 2021Issue Close on Dec 15, 2021Total IPO size (cr) 1,398.30Fresh issue (cr) 600.00Offer For Sale (cr) 798.30Price Band (INR) 780-796Market Lot 18Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE

‍Objects of the issue

‍⮚ For funding working capital requirement of the subsidiary.

⮚ For general corporate purposes. Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion

⮚ Shareholding (No. of Shares)Pre Issue 111,761,165Post Issue 119,305,676

‍Indicative Timetable

‍Finalisation of Basis of Allotment 20-12-2021Refunds/Unblocking ASBA Fund 21-12-2021Credit of equity shares to DP A/c 22-12-2021Trading commences 23-12-2021

Incorporated in 2006, Medplus Health Services is India's second-largest pharmacy retailer in terms of the number of stores and revenue.

The company offers pharmaceutical and wellness products i.e. medicines,  vitamins, medical devices, test kits, and fast-moving consumer goods i.e. home and personal care products, baby care products, sanitisers, soaps,  and detergents, etc.

It is also the first pharmacy retailer in India to offer an omnichannel platform wherein customers can purchase products through stores, place orders over the telephone, online orders, and a  Click and Pick facility.

⮚ According to the Technopak Report, it is India's first pharmaceutical retailer to offer an omnichannel platform. This approach aims to broaden and expand the Company's client base while also enhancing  "convenience" as a primary customer value proposition and retaining customers inside its ecosystem.

⮚ As of September 30, 2021, we operated 546 stores in Karnataka,  475 stores in Tamil Nadu, 474 stores in Telangana, 297 stores in  Andhra Pradesh, 224 stores in West Bengal, 221 stores in  Maharashtra and 89 stores in Odisha.

⮚ The company has an established track record of delivering strong financial performance. Between the financial year 2019 and financial year 2021, total revenue from operations grew at a compound annual growth rate (“CAGR”) of 16.21% from ₹22,727.37 million to  ₹30,692.69 million.

⮚ The company’s business operations across the entire value chain are backward integrated and are wholly managed and operated by itself. The company's operations are supported by its technology-driven supply chain and distribution infrastructure, which is arranged in a hub-and-spoke model and gives it a strong foundation and substantial power to continue to grow.

Outlook & Valuation:

Over the period of FY19 to FY21, company revenue increased from Rs 2,284.94 crore to Rs 3,090.81 crore, while profits grew from Rs 11.92 crore in FY19 to Rs 63.11 crore in FY21 with only a slight dip in FY20.

Margins of the company are increasing slowly.

The company is the second-largest pharmacy retailer in India which offers an omnichannel platform. After a dismal performance for  FY20, the company posted super earnings recently.

The company has low margins, but it is expanding. We believe that there are growth opportunities in the industry and might perform better over the period. There are no listed peers and IPO is arriving at a PE of 71x to its annualized FY22 earnings.

Prima-facie the valuation looks expensive but over the period of time, we believe the company's growth may justify its valuation.

IPO Note

MEDPLUS HEALTH SERVICES LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Ganga Madhukar Reddy is the Managing Director and Chief Executive Officer of the Company. He is one of the Promoters of the Company and has been a Director of the Company since its incorporation on November  30, 2006. He holds a bachelor’s degree in medicine and surgery and a master’s degree in business administration.

⮚ Cherukupalli Bhaskar Reddy is the Chief Operating Officer – outlet operations of the company. He joined the company on March 1, 2007. He has over 14 years of experience in the pharmaceutical industry.

⮚ Surendranath Mantena is the Chief Operating Officer – MedPlus Mart of the company. He joined the company on October 1, 2010.

⮚ Hemanth Kundavaram is the CFO of the company. He joined the company on January 2, 2021. He has over 15  years of experience in corporate finance and accounting in various industries.

⮚ Parag Jain is the company secretary and compliance officer of the company. He joined the company on March  10, 2014. He has 14 years of experience as a company secretary.

⮚ Atul Gupta is the Non-Executive Director of the company. He has over 13 years of experience in the investment industry.

⮚ Murali Sivaraman is the Non-Executive Independent Director of the company. He was previously associated with Philips Lighting.

COMPETITIVE STRENGTHS

⮚ India’s Second Largest Pharmacy retailer Company.

⮚ Strong brand name and customer value proposition.

⮚ Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion  Approach

⮚ High-Density Store Network Enhancing Omni-channel Proposition

⮚ Lean Cost Structure and Technology-Driven Operations

⮚ Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team

⮚ Strong promoter background and an experienced and entrepreneurial management team

BUSINESS STRATEGIES

⮚ Strengthen the Market Position by Increasing Store Penetration in Existing Clusters and Developing New Cluster

⮚ Further Develop the Omni-channel Platform with a Hyper-local Delivery Model

⮚ Increase the Share of Private Labels and Enhance the Stock Keeping Unit (“SKU”) Mix

⮚ Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability

⮚ Enhance Revenue and Increase Customer Wallet Share.

KEY CONCERNS

⮚ Changes in prescription medicine prices and commercial terms may have a negative impact on their business.

⮚ Their company, subsidiaries, promoters, and directors are involved in ongoing legal procedures.

⮚ Privacy and security rules govern the use and sharing of personally sensitive information, especially personal health information.

⮚ Their financial success may be harmed if they will not effectively manage inventory and forecast demand.

⮚ Any negative news or occurrence related to the Indian pharma industry may have a negative impact on their business.

IPO Note

MEDPLUS HEALTH SERVICES LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to  provide an industry comparison in relation to the Company

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019 Equity Share Capital 4.48 1.94 1.94Other Equity 7,301.05 5,276.08 2,911.43 Net Worth 7,305.53 5,278.02 2,913.37 Total Borrowings 1,352.35 1,050.51 1,044.02 Revenue from Operations 30,692.69 28,706.03 22,727.37 EBITDA 2,382.13 1,509.62 1,313.47 Profit Before Tax 950.98 293.59 227.51 Net Profit for the year 631.11 17.94 119.22

सोने की कीमतों में मजबूत डॉलर इंडेक्स और बढ़ती हुई बांड यील्ड के कारण पिछले सप्ताह भी ऊपरी स्तरों पर दबाव रहा।

ओमीक्रॉन वायरस के प्रभाव को भी कम माना जा रहा है जिसके कारण कीमती धातुओं में निवेश की मांग नहीं बढ़ी है। वैक्सीन बनाने वाली कंपनी फ़ाइज़र का कहना है की नए वायरस पर वैक्सीन की तीन खुराक,दो खुराक की तुलना में ज्यादा कारगर है। जिसके बाद से कीमती धातुओं में बिकवाली का दबाव बना रहा।

बढ़ती मुद्रास्फीति को नियंत्रित करने के प्रयास में ब्राजील के सेंट्रल बैंक ने अपनी बेंचमार्क ब्याज दर 150 आधार अंकों को दूसरी बार बढ़ाकर 9.25 प्रतिशत कर दिया, जो 2017 के बाद से सबसे अधिक है। लेकिन,  कच्चे तेल के भाव पिछले सप्ताह में 400 रुपये प्रति बैरल तक बढ़ गए है जो सोने के भाव को निचले स्तरों पर फिर से सपोर्ट दे सकते है। सऊदी अरब ने जनवरी क्रूड की कीमत में 80 सेंट की बढ़ोतरी की है। अमेरिकी प्रेसिडेंट बाइडन के मुताबिक कच्चे तेल के साथ कुछ और कमोडिटी पर कीमते कम हुई है लेकिन वर्तंमान मुद्रास्फीति के आकड़ो में यह दिखाई नहीं देंगी।

हालांकि, ओमीक्रॉन वायरस की खबरे फिर से दिखाई देने लगी और यूरोप से एशिया तक, सरकारों ने नवीनतम कोरोनावायरस के प्रसार को सीमित करने के लिए प्रतिबंधों को बहाल करना शुरू कर दिया है, ब्रिटेन ने लोगों को फिर से घर से काम करने का आदेश दिया है, डेनमार्क ने स्कूलों को जल्दी बंद कर दिया और रेस्तरां और बार के लिए घंटों को सीमित कर दिया और चीन ने ग्वांगडोंग से पर्यटक यात्राओं को रोक दिया है।

ओमीक्रॉन के नए मामले बढ़ना कच्चे तेल में बढ़त को सीमित करता दिख रहा है। लेकिन हाल ही की खबर से पता चला कि ओमीक्रोन, डेल्टा संस्करण की तुलना में 4.2 गुना अधिक फैलने वाला है, जिसके कारण दुनिया भर में अस्पताल में भर्ती होने और मौतों में बढ़ोतरी हुई है। मृत्यु दर इस नए वायरस में कितनी है यह अभी ज्ञात नहीं है, हालांकि इसकी प्रसार दर भय पैदा करने के लिए पर्याप्त है। जो कीमती धातुओं को सपोर्ट कर सकती है।

लेकिन, कम दरों और उच्च मुद्रास्फीति के बावजूद साल 2021 में सोने और चांदी ने अब तक लाभ नहीं कमाया है, जो कीमती धातु की विकास संभावनाओं के लिए अच्छा नहीं है। हालांकि, सोने के लिए नकारात्मक आर्थिक परिदृश्य तेज हो सकता है क्योंकि दुनिया भर के केंद्रीय बैंकों को मौद्रिक नीतियों को अत्यधिक उदार रखने की आवश्यकता है। दुनिया भर की अर्थव्यवस्था मुद्रास्फीति को कम करने की कोशिश में है लेकिन महामारी से अनिश्चितता बनी हुई है जिससे सोने के भाव सीमित दायरे में है।

तकनीकी विश्लेषण

इस सप्ताह बुधवार को अमेरिकी फ़ेडरल रिज़र्व की बैठक है, जिसका प्रयास बढ़ती हुई मुद्रास्फीति को कम करना है और यह कीमती धातुओं के लिए महत्वपूर्ण है। सोने और चांदी के भाव में इस सप्ताह दबाव रह सकता है। दिसंबर वायदा सोने में 47000 रुपए पर सपोर्ट और 48800 रुपए पर प्रतिरोध है। चांदी में 58000 रुपए पर सपोर्ट और 62000 रुपए पर प्रतिरोध है।

Rating SUSBCRIBE Issue Offer Issue Opens on Dec 09, 2021Issue Close on Dec 13, 2021 Total IPO size (cr) 1,039.61Fresh issue Nil Offer For Sale (cr) 1,039.61Price Band (INR) 1,000-1,003 Market Lot 14 Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE

‍Objects of the Issue

‍⮚ For achieving the benefits of listing on the  stock exchanges.

Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35

C.E. Info systems limited (MapmyIndia) is a leading provider of advanced  digital maps, geospatial software, and location-based IoT technologies  in India. The company is a data and technology products and platforms  company, offering proprietary digital maps as a service (MaaS), software  as a service (SaaS), and platform as a service (PaaS). The company  provides products, platforms, application programming interfaces (APIs),  and solutions across a range of digital map data, software, and IoT for  the Indian market under the (MapmyIndia) brand, and for the  international market under the (Mappls) brand.

⮚ Company provide 2D and 3D visual and voice-based navigation  platforms that are interactive, capable of outdoor and indoor map  rendering, location search, geocoding and reverse geocoding, as well  as traffic and turn-by-turn route planning optimization.

⮚ Its geo-analytics services assist customers in a variety of industries  in analyzing their markets and developing prediction models using  geographical patterns offered by them. These services also give  consumers with near-real-time dashboarding and monitoring  capabilities.

⮚ Company’s IoT platform, ‘InTouch’, enables connectivity with real  world sensors, phones and IoT devices. It provides a wide range of  applications for near real-time vehicle and asset tracking, geo fencing alerts, historical movement and driver behavior analysis,  predictive vehicle health alerts, as well as fleet, transport and  logistics management

⮚ The company's digital maps comprehensively cover India; approximately its digital maps cover 6.29 million kilometers of roads  in India, representing 98.50% of India’s road network.

Outlook & Valuation:

Shareholding (No. of Shares)Pre Issue 53,242,967Post Issue 53,242,967

‍Indicative Timetable

‍Finalisation of Basis of Allotment 16-12-2021Refunds/Unblocking ASBA Fund 17-12-2021Credit of equity shares to DP A/c 20-12-2021Trading commences 21-12-2021

The company has shown stable growth in revenue, where it grew from Rs 163.35 cr to Rs 192.27 cr over the period of FY19 to FY21, over the same period profit, has grown from Rs  33.56 cr in FY19 to Rs 59.43 cr in FY21 with a minor dip in FY20.  MapmyIndia is the leader in digital mapping in India and has an early mover advantage. We believe that new edge technology including  SaaS, PaaS, and MaaS platform providers has a sparkling future for the next few years. The company serves various industries and sectors which is also a positive. The company saw stable revenue growth in the last few years where the margins have improved too also there are no  listed peers currently. The IPO is arriving at a PE of 93x and P/BV of  15x on FY21 earnings, being the first mover the company is seeking higher valuation.

IPO Note

C.E. INFO SYSTEMS LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Rakesh Kumar Verma is the Chairman and Managing Director of the Company. He co-founded this Company along with Rashmi Verma in 1995 and has significant experience as an entrepreneur in the field of digital maps and geospatial information technologies.

⮚ Rohan Verma is the Whole-time Director and the CEO of the Company. He joined this Company in 2007 and worked in various capacities and was appointed as CEO of the Company with effect from April 1, 2019.

⮚ Anuj Kumar Jain is the Chief Financial Officer of the company and has been associated with the company since  May 2011. He has significant experience in the field of finance, taxation, and accounting.

⮚ Saurabh Surendra Somani is the Company Secretary and Compliance Officer of the company with effect from  July 27, 2021. He has significant experience in the fields of legal, secretarial and listing compliance.

⮚ Rashmi Verma is the co-founder and chief technology officer of the company. Prior to founding the company,  she worked in the U.S.A., including with the IBM Corporation till 1988. She has significant experience as an  entrepreneur in the fields of information technology, management, and the geospatial industry, and digital  mapping in India.

⮚ Shishir Verma is the senior vice-president, human resources and corporate affairs, and had joined the company  on January 17, 2014. He has to look after corporate and legal affairs of the company.

COMPETITIVE STRENGTHS

⮚ Pioneers of digital mapping in India having an early mover advantage.

⮚ Leading the B2B and B2B2C market for digital maps and location intelligence in India.

⮚ Market position built around proprietary technology and network effect resulting in strong entry barriers.

⮚ Independent, global geospatial products and platforms company with strong data governance. ⮚ Prestigious customers across sectors with strong relationships.

⮚ Profitable business model with consistent financial track record, high operating leverage and strong cash flows.

KEY BUSINESS STRATEGIES

⮚ Continue to scale and expand the customer reach leveraging market presence in India.

⮚ Augment company products, platforms and the technology lead.

⮚ Drive expansion in international markets and geospatial sector

⮚ Pursue selective strategic acquisitions and investments to grow their business

KEY CONCERNS

⮚ The entire proceeds of the IPO is Offer for Sale. Means, the IPO proceeds would go to selling shareholders and  company would not get anything except for listing gains.

⮚ Part of the business is dependent on the performance of the auto sector in India. Any adverse changes in the  conditions affecting this sector can impact the business.

⮚ Company’s inability to maintain or update its map database or errors in its map database could harm the  reputation of the company.

⮚ Company depends on a limited number of customers for a significant portion of its revenues.

⮚ Company is dependent on trends in the sectors where enterprise customer operates.

IPO Note

C.E. INFO SYSTEMS LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to  provide an industry comparison in relation to the Company

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 38.33 38.33 38.33Convertible Preference Shares 1,289.64 1,289.64 1,289.64Other Equity 2,252.01 1,649.43 1,524.03Net Worth 3,579.97 2,977.39 2,851.99Total Borrowings 5.90 8.80 0.00Revenue from Operations 1,524.63 1,486.29 1,352.55EBITDA 543.24 371.87 404.60Profit Before Tax 787.66 315.96 418.02Net Profit for the year 594.33 231.95 335.66

Rating

SUSBCRIBE  (Only Long-Term Investors)Issue Offer

‍Issue Opens on Dec 10, 2021Issue Close on Dec 14, 2021Total IPO size (cr) 1,367.51Fresh issue 295.00Offer For Sale (cr) 1072.51Price Band (INR) 485-500Market Lot 30Face Value (INR) 5Retail Allocation 35%Listing On NSE, BSE

‍Objects of the issue

‍⮚ For meeting Capex requirements.

‍⮚ For general corporate purposes.Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35

Established in 1955, Metro Brands Limited is one of the largest Indian footwear speciality retailers. Customers' footwear demands are met by a  diverse assortment of branded products of Company for men, women,  unisex, and children, as well as for various events. The company targets the mid and premium segments in the footwear market which have a  higher presence of organized players and growth in the overall footwear industry. Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, as well as Crocs, Skechers, Clarks, Florsheim, and Fitflop, are among the company's well-known brands. The company follows the "company owned and company operated" (COCO) model of retailing through their own Multi Brand Outlets (MBOs) and Exclusive Brand Outlets (EBOs),  to manage their stores.

⮚ The company’s total store count has grown from 504 in 116 cities as of  March 31, 2019, to 586 stores across 134 cities as of March 31,  2021, and to 598 stores across 136 cities as of September 30, 2021, also Company had the third-highest number of exclusive retail  outlets in India, in Fiscal 2021

⮚ The company also offers accessories such as belts, bags, socks, masks and wallets, at its stores. It also offers foot care and shoe care products at stores through its joint venture, M.V. Shoe Care Private  Limited, making it a ‘one-stop-shop’ for all footwear and related accessories for customers.

⮚ In Fiscal 2021, In-Store Product Sales, Online Product Sales, and  Omni-Channel Product Sales represented 91.93%, 6.15%, and  1.09%, of the Company’s revenue from operations, respectively.

⮚ The company’s retail operations are carried out through stores and distributors as well as through online channels. It primarily follows the ‚company owned and company operated‛ (COCO) model of retailing through its own Multi Brand Outlets (MBOs) and  Exclusive Brand Outlets (EBOs), to better manage customer experience at stores.

Outlook & Valuation:

The company's revenue dropped by 33% in the

‍Shareholding (No. of Shares)

‍Pre Issue 265,607,426Post Issue 271,507,426

‍Indicative Timetable

‍Finalisation of Basis of Allotment 17-12-2021Refunds/Unblocking ASBA Fund 20-12-2021Credit of equity shares to DP A/c 21-12-2021Trading commences 22-12-2021

Year FY21 to Rs 878 cr from Rs 1311 cr in FY20 on the back of the  Covid-19 pandemic. Similarly, profit also declined from Rs. 160.5 cr in the year FY20 to Rs. 64.61 cr in the FY21. The margin of the company was flat in FY19 and FY20 while it dropped since COVID. Metro Brands  Limited has demonstrated its growth, profitability, and financial discipline in the past as one of India's leading pan-India footwear retailers. The sector is mostly under-rated and may see a re-rating. The majority of their revenue is from third parties and the company has an asset-light business model however we believe that the IPO is priced aggressively. The IPO is arriving at PE of 205x and P/BV of 16x while if we annualized the FY22 earnings PE works out to be 157x.

SME-IPO Note

METRO BRANDS LIMITED

KEY MANAGERIAL PERSONNEL

⮚ Rafique A. Malik is the Chairman of the Company’s Board. He has been associated with this Company as a  director since January 19, 1977. He has over 50 years of experience in the field of footwear retail.

⮚ Farah Malik Bhanji is the Managing Director of the Company. She has been associated with the Company as a  director since December 5, 2000. She has over 20 years of experience in the field of footwear retail.

⮚ Mohammed Iqbal Hasanally Dossani is the Whole-time Director of the Company. He holds a bachelor’s degree in commerce, Financial Accounting and Auditing.

⮚ Utpal Hemendra Sheth is the Non-Executive Director of the Company. He holds a bachelor’s degree in commerce. He was first appointed as an alternate director in the Company on March 14, 2007.

⮚ Manoj Kumar Maheshwari is the Independent Director of the Company. He has been associated with the  Company as an Independent Director since July 24, 2009.

⮚ Aruna Bhagwan Advani is the Independent Director of the Company. She has been associated with the Company as an Independent Director since July 27, 2010.

⮚ Arvind Kumar Singhal is the Independent Director of the Company. He has been associated with the Company as an Independent Director since August 12, 2016.

⮚ Vikas Vijaykumar Khemani is the Independent Director of the Company. He has been associated with the  Company as an Independent Director since March 12, 2019. He is an associate of the Institute of Chartered  Accountants of India

⮚ Tina Srikanth Velamakanni is the Independent Director of the Company. He has been associated with the Company as an Independent Director since March 25, 2021.

COMPETITIVE STRENGTHS

⮚ One of India's largest footwear retailers brands.

⮚ Wide range of brands and products catering to all occasions across age groups and market segments

⮚ Efficient operating model through deep vendor engagements and TOC based supply chain.

⮚ Asset light business with an efficient operating model leading to sustained profitable growth

⮚ Presence across multiple formats and channel

⮚ Strong track record of growth and profitability and financial discipline

⮚ Strong promoter background and an experienced and entrepreneurial management team

KEY STRATEGIES

⮚ Expand the store network in existing and new Indian cities.

⮚ Increase the contribution of e-commerce and omnichannel sales as a proportion of the sales.

⮚ Expand the portfolio of accessories and grow other allied businesses

KEY CONCERNS

⮚ The ongoing COVID-19 epidemic has had a substantial impact on their business.

⮚ All of their stores and warehouses are leased spaces.

⮚ For the production of all the items they sell, they rely on third parties.

⮚ They may not be effective in maintaining and increasing brand visibility.

⮚ The selling of third party brands accounts for a major amount of their revenues.

For additional information & risk factors please refer to the Red Herring Prospectus

IPO NoteMETRO BRANDS LIMITEDCOMPARISON WITH LISTED INDUSTRY PEERS (AS OF 31ST MARCH 2021)Name of the Company EPS (Basic) NAV P/E Total Income (Mn) RoNW (%)Metro Brands Limited 2.43 31.17 205 8,785.38 8.24Peer GroupBata India Limited (6.95) 136.79 - 18,025.65 (5.08)Relaxo Footwears Limited 11.74 63.29 118 23,819.20 18.54FINANCIALS (RESTATED CONSOLIDATED)Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 1,327.67 1,327.67 1,327.67Other Equity 6,948.03 6,745.22 5,170.99Net Worth 8,275.70 8,072.89 6,498.66Total Borrowings 14.06 115.23 98.56Revenue from Operations 8,000.57 12,851.62 12,170.65EBITDA 1709.3 3535.1 3373.3Profit Before Tax 845.05 2,184.17 2,281.28Net Profit for the year 646.19 1,605.75 1,527.30

The period of November saw a series of IPOs delivering, leaving the financial investors happy. India's greatest IPO to date, PAYTM, worth Rs 18,300 Crores opened up to the world in November 2021.

Sigachi Industries, which opened up to the world on the fifteenth November 2021, returned over 250% on opening, making it one of the top-performing SME-IPOs of the Month.

The COVID-19 pandemic has been unpleasant for the worldwide economy, yet India's market has recuperated rapidly. Right now, the securities exchange is enjoying some real success, and firms are attempting to receive its rewards by opening up to the world in this time frame.

Checking out this, here we bring to you the following IPOs that are lined up to open up to the world in December 2021.

Let’s take a detailed insight into the companies that are going live in December 2021:

Company Name IPO Size Date of Launching Go Airlines Rs 3,600 Crores To Be Announced RateGain Rs 375 Crore7 Dec-9 Dec 2021Anand Rathi WealthRs 660 Crore2 December - 6 DecemberEmcure PharmaceuticalsRs 4,500 CroresTo Be AnnouncedStar Health & Allied InsuranceRs 3000 CroreTo Be AnnouncedJana Small Finance BankRs 2000 CroreTo Be AnnouncedCMS InfosystemsRs 2000 CroreTo Be AnnouncedMobiKwikRs 1,990 CroreTo Be AnnouncedArohan FinancialsRs 1800 CroreTo Be AnnouncedNorthern Arc CapitalRs 1,800 CroreTo Be AnnouncedIxigoRs 1,600 CroreTo Be AnnouncedPenna CementRs 1,500 CroreTo Be AnnouncedEuro PanelINR 7014-16 DecemberSterlite Power Transmission--To Be AnnouncedRategain TRavel Technologies--To Be AnnouncedESAF Small Finance Bank--To Be AnnouncedShriram Properties--To Be AnnouncedShri Bajrang Power & Ispat--To Be AnnouncedStudds Accessories Limited--To Be Announced

Euro Panel

Also known as Archer trading house Pvt limited, Euro Panel is known for manufacturing several Aluminium composite panels in different designs, colors and textures.

ACPs are majorly used for the exterior covering of commercial buildings.

The subscription date of Euro panel is 14 -16 December. The OFS for the company is 8,28,000 shares whereas the fresh issue of shares is 56,72,000 shares. The lot size of the company is of total 2000 shares.

RateGain Travel Technologies

The company is a prominent name in distribution technology globally and also, it is the SAAS provider company in the travel and hospitality industry in India. It offers services like travel and hospitality services across different vertices like hotels, airlines, package providers, car rentals, cruises, hotels and ferries.

Anand Rathi Wealth

Anand Rathi wealth is a leading non-wealth solution company in India and has been ranked amongst the top three non-bank mutual fund distributors in India by gross commission earned in Fiscal 2020.

It serves a wide spectrum of clients via wealth solutions, financial product distribution and technology solutions.

Emcure Pharmaceuticals

Emcure Pharmaceuticals is a leading organization in the pharmaceutical industry that has plans to open up to the world about an IPO of about Rs. 4,500 crores.

This IPO will involve both new equity shares and an OFS.

Around 18 million shares will be accessible under an offer for sale by the organization advertisers and existing shareholders.

While the new issue value will incorporate an offer of about Rs. 1,100 crores.

The primary goal of this public offering is to reimburse the current debts of the organization.

Go Airlines

GO Airlines is one of India's leading aircraft organizations and is all set to launch its IPO of Rs. 3,600 crores on 8 December 2021. This public issue holds the only fresh issue of equity shares at a face value of Rs. 10 per share.

Furthermore, the organization also plans an anchor investment of Rs. 1,500 crores.

The primary goal of this public offering is to assist the organization with paying off its present debts and meet general corporate purposes.

Star Health and Allied Insurance Co. Ltd.

Star Health and Allied Insurance Co. Ltd. is one of India's leading insurance providers. They are driving the rundown of India's private insurance cover provider with a market share of 15.8%.

The organization has submitted its DRHP to the Securities and Exchange Board of India. This public issue has a company valuation of about Rs. 3,000 crores.

The IPO consists of a fresh issue of equity trading shares of Rs 2000 Crore and 6 Crore equity shares under OFS.

In the last monetary year, Star Health has acquired a gross return premium of Rs. 9,438.95 crores.

According to its DRHP, this IPO will help the organization keep its solvency levels and develop its present capital base.

Jana Small Finance Bank

Jana Small Finance Bank is one of the leading finance banks of this country.

According to its DRHP, Jana Small Finance Bank's IPO will have a valuation of Rs. 2,000 crores, involving OFS and new fresh equity issue. The proposal available to be purchased should assemble Rs. 1,300 crores, and the fresh issue equity shares offers will produce the leftover Rs. 700 crores.

CMS Info Systems

CMS Info System is a notable name in the business vertical of cash management services. Its customers are spread across the financial sector.

CMS Info System has submitted its DRHP for an IPO of Rs. 2,000 crores with the Securities and Exchange Board of India. Also, this IPO will just involve a proposal available to be purchased and no new fresh issue of equity shares.

Ruchi Soya

Among this IPO fest, Ruchi Soya is an exemption with its subsequent public proposition. The organization is starting an FPO with a valuation of about Rs. 4,300 crores.

Among this IPO fest, Ruchi Soya is starting an FPO with a valuation of about Rs. 4,300 crores.

Arohan Financial Services

Arohan Financial Services has filed its DRHP record with SEBI, the organization's first sale of stock will be worth Rs. 1,800 crores. It will have a new issue of equity shares adding up to Rs. 850 crores, and an OFS of 27,055,893 value shares by current stakeholders

Penna Cement

The IPO of Penna Cement according to its DRHP will be worth Rs. 1,550 crores. It will involve a fresh issue of equity shares adding up to Rs. 1,300 crores and make available for the purchase of Rs. 250 crores.

Utkarsh Small Finance Bank

This IPO will have a valuation of Rs. 1,350 crores. This incorporates an OFS of Rs. 600 crores and a fresh issue of equity shares of Rs. 750 crores.

Fincare Small Finance Bank

According to their DRHP, this IPO will have a valuation of about Rs. 1,330 crores, including a new fresh issue of equity shares of Rs. 330 crores and OFS of Rs. 1,000 crores by the company promoters.

ESAF Small Finance Bank Ltd

ESAF Small Finance Bank is one more SFB that is going public in FY2022. At first, the monetary organization had plans to go public in mid-2021, yet the pandemic halted that progress.

The DRHP of this IPO will have a valuation of Rs. 998 crores. This will incorporate fresh issue equity shares of Rs. 800 crores, and the leftover Rs. 198 crores are through and OFS.

Takeaway

Since many IPOs are knocking at your doors in the last of the Year 2021, it would be imperative for you to make yourself prepared and get the chance to put resources into new age technology-empowered companies. However, before investing, you must have a Demat Account with a SEBI enrolled stock broker!