Net Avenue Technologies Limited IPO (Net Avenue Technologies IPO)

Net Avenue Technologies IPO, a book built issue of Rs. 10.25 crores, unveils an exciting prospect for investors seeking to delve into the tech market. This IPO introduces a fresh issue of 56.96 lakh shares, with a subscription window opening on November 30, 2023, and closing on December 4, 2023. Anticipated allotment finalization is set for Thursday, December 7, 2023, followed by listing on NSE SME, slated for Tuesday, December 12, 2023.

Priced between Rs. 16 to Rs. 18 per share, the IPO invites investors to participate with a minimum lot size of 8000 shares, equating to a retail investor’s entry requirement of Rs. 144,000. High Net Worth Individuals (HNIs) are expected to invest a minimum of 2 lots (16,000 shares) totaling Rs. 288,000.

The Net Avenue Technologies IPO is spearheaded by Shreni Shares Limited as the book running lead manager, with Bigshare Services Pvt Ltd serving as the registrar for the issue. Notably, Shreni Shares assumes the role of the market maker for this IPO, facilitating a robust market entry.

Net Avenue Technologies IPO Details

IPO Date: November 30, 2023, to December 4, 2023

Face Value: Rs. 1 per share

Price Band: Rs. 16 to Rs. 18 per share

Lot Size: 8000 Shares

Total Issue Size: 5,696,000 shares (aggregating up to Rs. 10.25 Cr)

Fresh Issue: 5,696,000 shares (aggregating up to Rs. 10.25 Cr)

Issue Type: Book Built Issue IPO

Listing At: NSE SME

Shareholding Pre-Issue: 15,758,078 shares

Shareholding Post-Issue: 21,454,078 shares

Market Maker Portion: 288,000 shares

Please note that the listing date is currently undisclosed. This IPO offers 5,696,000 fresh shares in the price range of Rs. 16 to Rs. 18 per share, constituting a book built issue type and scheduled for listing on NSE SME. The face value is Rs. 1 per share. The total issue size amounts to Rs. 10.25 Crores, resulting in an increase in post-issue shareholding to 21,454,078 shares. The portion for the market maker stands at 288,000 shares.

Net Avenue Technologies IPO: Comprehensive Timeline and Key Dates

The Net Avenue Technologies IPO unfolds with a meticulous timeline, offering investors a clear schedule to partake in this lucrative opportunity within the tech sector. The IPO commences on November 30, 2023, and concludes on December 4, 2023, presenting a concise window for subscription.

The basis of allotment for the Net Avenue Technologies IPO is slated for December 7, 2023, ensuring a transparent allocation process. Subsequently, the initiation of refunds is scheduled for December 8, 2023, streamlining the return process for unallocated shares.

A pivotal date in this timeline is December 11, 2023, marking the credit of shares to the Demat accounts of successful applicants. This step ensures efficient and secure ownership transfer of allotted shares.

The eagerly awaited listing date for Net Avenue Technologies IPO is set for December 12, 2023, offering investors the opportunity to witness the market debut and potential early trading activities.

It’s crucial to note the cut-off time for UPI mandate confirmation, scheduled for 5 PM on December 4, 2023. Investors are urged to adhere to this deadline for a seamless subscription process.

Net Avenue Technologies IPO  Key Performance Indicator

Net Avenue Technologies IPO presents compelling Key Performance Indicators (KPIs) that shed light on its financial standing and potential for investors. The market cap, valuing at Rs 38.62 Cr, and a P/E (Price-to-Earnings) ratio of 8.57 highlight the company’s relative value and earnings in relation to its IPO price.

Moreover, the post P/E ratio of 10.23 indicates an adjusted valuation after the IPO, potentially reflecting increased market sentiment or future growth prospects. Notably, the Return on Equity (ROE) stands at an impressive 127.77%, showcasing the company’s ability to generate profits from shareholders’ investments.

However, the Return on Capital Employed (ROCE) stands at 5.28%, suggesting a lower efficiency in capital utilization. The Debt/Equity ratio at 1.18 indicates a moderate reliance on debt in the company’s capital structure.

Earnings per Share (EPS) at Rs 2.1 and Return on Net Worth (RoNW) at 75.53% provide further insights into the company’s profitability and the return generated from shareholders’ equity.

Overall, these KPIs illustrate a mixed picture of Net Avenue Technologies’ financial health, with strengths in ROE and RoNW signaling strong profitability, while ROCE suggests potential room for improvement in capital efficiency. Investors should consider these indicators alongside other market factors before making investment decisions.

Key Performance Indicator	Values
P/E (x)	8.57
Post P/E (x)	10.23
Market Cap (₹ Cr.)	38.62
ROE	127.77%
ROCE	5.28%
Debt/Equity	1.18
EPS (Rs)	2.1
RoNW	75.53%

Grey Market Premium (GMP) Net Avenue Technologies IPO

Net Avenue Technologies SME IPO has been experiencing notable fluctuations in its Grey Market Premium (GMP), which provides insights into market sentiment and expectations. As of the latest update on November 29th, 2023, the last observed GMP stood at Rs. 3, indicating an upward trend in market enthusiasm for the IPO.

Considering the price band set at Rs. 18.00, the estimated listing price for Net Avenue Technologies SME IPO is projected to be around Rs. 21 (comprising the cap price plus the current GMP). This estimation suggests a potential gain of approximately 16.67% per share for investors at the expected listing price.

The Retail Subject to Sauda for Net Avenue Technologies SME IPO stands at Rs. 21300, demonstrating significant interest and participation from retail investors.

Based on the trends observed in the last seven sessions of Grey Market activities, today’s GMP shows a positive trajectory, hinting at expectations for a robust and promising listing of the IPO. The fluctuations in the GMP, ranging from Rs. 0 to Rs. 3, signify varying market sentiments and perceptions regarding the IPO.

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
29-11-2023	18.00	₹3 Todays Movement – GMP No Change	21300	₹21 (16.67%)	29-Nov-2023 19:23
28-11-2023	18.00	₹3 Todays Movement – GMP No Change	21300	₹21 (16.67%)	28-Nov-2023 23:31
27-11-2023	18.00	₹3 Todays Movement – GMP No Change	21300	₹21 (16.67%)	27-Nov-2023 23:26
26-11-2023	18.00	₹3 Todays Movement – GMP Up	21300	₹21 (16.67%)	26-Nov-2023 23:32
25-11-2023	18.00	₹0 Todays Movement – GMP No Change	—	₹18 (0%)	25-Nov-2023 23:27
24-11-2023	18.00	₹0 Todays Movement – GMP No Change	—	₹18 (0%)	24-Nov-2023 23:28
23-11-2023	18.00	₹0 Todays Movement – GMP No Change	—	₹18 (0%)	23-Nov-2023 23:24

This table illustrates the Day-wise IPO GMP Trend for Net Avenue Technologies, displaying various details such as GMP Date, IPO Price, GMP (Grey Market Premium), Sub2 Sauda Rate, Estimated Listing Price, and Last Updated information.

Net Avenue Technologies Limited Company Profile

Established in 1998, Net Avenue Technologies Limited, formerly recognized as Net Avenue Inc., has forged its identity as an online digital direct-to-consumer enterprise specializing in Indian Ethnic wear and accessories.

Originating as a pioneering gifting portal, chennaibazaar.com, the company swiftly diversified its offerings to introduce cbazaar.com and ethnovog.com. Cbazaar stands as a global Indian Ethnic Fashion brand, specializing in Direct-to-Consumer Online Retail, with a strong presence in key markets like the United States, the UK, and Canada.

Ethnovog, an online apparel store, focuses on providing size-inclusive and cost-effective fashion choices catering to women, teens, and kids. While Net Avenue Technologies predominantly serves South Asian countries, its clientele extends globally, encompassing patrons from the US, UK, Australia, and Canada. Collaborations with renowned distributing partners like Myntra, Nykaa, and Ajio further amplify its market reach.

The diverse product portfolio comprises Lehenga Choli, Salwar Kameez, Gowns, Kurtas, Sherwani, Kurta Sets, Kids wear, and Accessories. Notably, in 2008, the company launched RaiR, its luxury brand, offering high-end designer Indian clothing.

Cbazaar.com received accolades, being recognized as one of the best online shops in the United States in 2020 and acknowledged as one of the fastest-growing brands in the country in 2022. These achievements underline Net Avenue Technologies’ commitment to quality, innovation, and consumer satisfaction, solidifying its position as a leader in the Indian Ethnic wear segment and a thriving player in the global e-commerce landscape.

Net Avenue Technologies IPO lot size and investment details

Retail Investors:

Minimum Lot: 1 lot

Shares per Lot: 8000 shares

Amount for Minimum Investment: Rs. 144,000

High Net Worth Individuals (HNI):

Minimum Lot: 2 lots

Shares per Lot: 16,000 shares

Amount for Minimum Investment: Rs. 288,000

Investors can bid for a minimum of 8000 shares and then in multiples thereof for both retail and HNI categories. The minimum investment for retail investors is Rs. 144,000, while HNIs need to apply for a minimum of 2 lots, totaling Rs. 288,000.

Promoter holding details for Net Avenue Technologies IPO

Shareholding Pre-Issue: 45.31%

Shareholding Post-Issue: 33.28%

Mr. Rajesh Nahar and Mr. Ritesh Katariya serve as the promoters of the company. Before the IPO, their collective shareholding amounted to 45.31% of the company’s total shares. Post the issue, their combined ownership will stand at 33.28% of the total shares of the company.

Net Avenue Technologies Limited Financial Information (Restated Consolidated)

Period Ended	30 Jun 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,317.92	1,419.90	1,295.26	769.85
Revenue	783.89	3,451.26	3,276.16	1,447.54
Profit After Tax	94.39	176.40	261.51	23.11
Net Worth	328.70	233.54	42.57	-228.37
Reserves and Surplus	306.57	211.41	20.44	-250.50
Total Borrowing	292.69	276.06	84.24	191.07
Amount in ₹ Lakhs

Additionally, it’s worth noting the key changes between the financial years ending March 31, 2023, and March 31, 2022:

Revenue increased by 5.34%.

Profit After Tax (PAT) dropped by -32.55%.

This table outlines Net Avenue Technologies Limited’s Financial Information, displaying figures for various parameters such as Assets, Revenue, Profit After Tax, Net Worth, Reserves and Surplus, and Total Borrowings across different periods ending on specified dates.

Objects of the Issue (Net Avenue Technologies IPO Objectives)

Customer Acquisition – Marketing and Awareness: A significant portion of the funds will be directed towards marketing endeavors aimed at enhancing brand visibility, reaching a wider audience, and bolstering customer acquisition initiatives. This investment intends to strengthen market presence and expand the customer base across targeted demographics.

Funding Working Capital Requirement: Another focus area involves utilizing funds to support the company’s ongoing operations by fulfilling working capital needs. This allocation is crucial for sustaining day-to-day business activities, including inventory management, operational expenses, and other essential requirements.

General Corporate Purpose: The IPO proceeds will also contribute to fulfilling general corporate obligations, which may encompass various strategic initiatives, business expansions, technology advancements, and operational enhancements aligned with the company’s long-term growth objectives.

Meeting the Issue Expenses: Lastly, a portion of the proceeds will be allocated to cover the expenses incurred in the process of executing the IPO, which includes expenses related to underwriting, legal, advisory, and other regulatory compliance costs.