Introduction
In this article, we will discuss the upcoming initial public offering (IPO) of Bizotic Commercial. The IPO has garnered significant attention from investors and market enthusiasts. We will delve into the details of Bizotic Commercial’s business, IPO dates, price, allotment, financial performance, valuations, and growth prospects.
Overview of Bizotic Commercial
Bizotic Commercial, established in 2016, is a prominent player in the manufacturing, designing, and marketing of readymade garments. The company operates under the brand name URBAN UNITED and offers a diverse range of men’s formal wear, casual wear, party wear, fit wear, sports wear, comfort wear, ethnic wear, and winter wear. Its products are available through both retail stores and e-commerce channels.
Garment Manufacturing Process
Bizotic Commercial follows a comprehensive garment manufacturing process, which includes cutting, stitching, sewing, finishing, inspection, and packing. The company outsources the entire manufacturing process to third-party contractors on a job work basis. Bizotic Commercial provides detailed technical specifications such as designs, patterns, quality, and fabric to ensure consistent production standards.
Bizotic Commercial’s Retail Presence
As of March 2023, Bizotic Commercial operates 20 stores across different cities in Rajasthan and 1 store in Bihar. Out of these, 17 stores operate on a franchisee basis, while the company owns 4 stores located in Jaipur, Jodhpur, Bhilwara, and Chittorgarh. The retail presence allows Bizotic Commercial to establish a direct connection with customers and showcase its wide range of garment offerings.
Bizotic Commercial IPO Details
The IPO of Bizotic Commercial is scheduled to take place from 12th to 15th June 2023. The issue price per share is set at INR 175, and the IPO comprises a fresh issue of 24,12,000 shares, amounting to INR 42.21 crore. There is no offer for sale in this IPO. The total IPO size remains at 24,12,000 shares, with a minimum bid (lot size) of 800 shares, equivalent to INR 140,000. The face value of each share is INR 10. The retail allocation percentage for this IPO is 50%. Upon listing, Bizotic Commercial shares will be traded on the BSE SME platform.
Bizotic Commercial IPO Dates | 12 – 15 Jun 2023 |
Bizotic Commercial IPO Price | INR 175 per share |
Fresh issue | 24,12,000 shares (INR 42.21 crore) |
Offer For Sale | NIL |
Total IPO size | 24,12,000 shares (INR 42.21 crore) |
Minimum bid (lot size) | 800 shares (INR 140,000) |
Face Value | INR 10 per share |
Retail Allocation | 50% |
Listing On | BSE SME |
Financial Performance of Bizotic Commercial
Let’s examine the financial performance of Bizotic Commercial over the years:
FY 2020 | FY 2021 | FY 2022 | 9M FY 2023 | |
Revenue | 1,113.64 | 1,679.95 | 5,341.39 | 3,748.26 |
Expenses | 1,091.37 | 1,632.38 | 5,261.35 | 3,344.78 |
Net income | 16.34 | 34.08 | 59.57 | 290.28 |
Figures in INR Lakhs unless specified otherwise
- FY 2020: Revenue – INR 1,113.64 Lakhs, Expenses – INR 1,091.37 Lakhs, Net Income – INR 16.34 Lakhs
- FY 2021: Revenue – INR 1,679.95 Lakhs, Expenses – INR 1,632.38 Lakhs, Net Income – INR 34.08 Lakhs
- FY 2022: Revenue – INR 5,341.39 Lakhs, Expenses – INR 5,261.35 Lakhs, Net Income – INR 59.57 Lakhs
- 9M FY 2023: Revenue – INR 3,748.26 Lakhs, Expenses – INR 3,344.78 Lakhs, Net Income – INR 290.28 Lakhs
Valuations and Margins
Let’s analyze the valuations and margins of Bizotic Commercial:
FYÂ 2020 | FY 2021 | FY 2022 | |
EPS | 0.30 | 0.63 | 1.11 |
PE ratio | – | – | 157.66 |
RONW (%) | 55.34 | 53.59 | 48.36 |
NAV | 0.55 | 1.18 | 2.29 |
ROCE (%) | 24.0 | 38.0 | 22.0 |
EBITDA (%) | 2.80 | 4.08 | 1.72 |
Debt/Equity | 2.59 | 1.33 | 2.08 |
*Compiled by IPO Central from Prospectus
- FY 2020: EPS – INR 0.30, RONW – 55.34%, NAV – INR 0.55, ROCE – 24.0%, EBITDA – 2.80%, Debt/Equity – 2.59
- FY 2021: EPS – INR 0.63, RONW – 53.59%, NAV – INR 1.18, ROCE – 38.0%, EBITDA – 4.08%, Debt/Equity – 1.33
- FY 2022: EPS – INR 1.11, RONW – 48.36%, NAV – INR 2.29, ROCE – 22.0%, EBITDA – 1.72%, Debt/Equity – 2.08
Bizotic Commercial IPO Review
The Bizotic Commercial IPO has generated considerable interest among investors due to the company’s strong growth trajectory and established presence in the garment manufacturing industry. The company’s focus on quality, design, and diverse product offerings positions it well for future expansion.
Price and Allotment Details
The issue price for the Bizotic Commercial IPO is fixed at INR 175 per share. The minimum bid size (lot size) is 800 shares, amounting to INR 140,000. Retail investors have been allocated 50% of the total IPO size, providing an opportunity for individual investors to participate in the IPO.
Growth Prospects
Bizotic Commercial has demonstrated consistent revenue growth over the years, showcasing the market’s acceptance of its product offerings. With an expanding retail presence and increasing customer base, the company is well-positioned to capitalize on the growing demand for readymade garments. The IPO funds will be utilized to enhance manufacturing capabilities, strengthen the brand, and expand the retail network.
Risks and Challenges
While Bizotic Commercial has shown positive growth, there are certain risks and challenges that investors should consider. Fluctuations in raw material prices, intense competition in the garment industry, and evolving fashion trends can impact the company’s performance. Additionally, economic factors, regulatory changes, and supply chain disruptions pose potential risks.
Conclusion
The Bizotic Commercial IPO presents an exciting investment opportunity in the readymade garment industry. With its strong brand, diversified product range, and robust financial performance, Bizotic Commercial has the potential to deliver value to its shareholders. Investors should carefully evaluate the company’s prospects, growth plans, and associated risks before making investment decisions.
Frequently Asked Questions (FAQs)
How often does the IPO Grey Market Premium change?
The Grey Market Premium is dynamic and can change frequently, influenced by market conditions and investor sentiment. It is advisable to stay updated with the latest figures through reliable sources.
Can investors participate in the Grey Market trading?
Grey Market trading is conducted through a network of dealers, and participation is limited to select individuals or entities. It is an unofficial market and not regulated like the stock exchange.
Should investors rely solely on the IPO Grey Market Premium for investment decisions?
No, investors should consider the Grey Market Premium as one of several factors when making investment decisions. Thorough research, analysis of company fundamentals, and expert advice are equally important.
What is the significance of Kostak rates in IPO investments?
Kostak rates represent the price at which investors can sell their IPO application before listing. It provides an opportunity for early exits. Investors should evaluate both GMP and Kostak rates to make informed decisions.
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct their own research and consult with financial professionals before making any investment decisions.