Net Avenue Technologies Limited is set to launch its Initial Public Offering (IPO) from November 30, 2023, to December 4, 2023. Specializing in Indian ethnic wear and accessories through a digital direct-to-consumer business model, the company aims to raise ₹10.25 Crores with an IPO price range of ₹16 to ₹18 per share. The lot size is set at 8000 shares.
Net Avenue Technologies IPO Details:
- Open Date: November 30, 2023
- Close Date: December 4, 2023
- Lot Size: 8000
- IPO Size: ₹10.25 Crores
- Price Range: ₹16 to ₹18
- Minimum Investment: ₹128,000
- Listing Exchange: NSE SME
- Basis of Allotment: December 7, 2023
- Refunds: December 8, 2023
- Credit to Demat Account: December 11, 2023
- Listing Date: December 12, 2023
Net Avenue Technologies Subscription Status:
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 30-Nov-23 | 0.00 | 10.65 | 22.95 | 13.76 |
About Net Avenue Technologies:
Established in 2001, Net Avenue Technologies Limited operates in the digital direct-to-consumer space, specializing in Indian ethnic wear and accessories for men, women, teens, and kids. Additionally, it has a presence in the D2C International cross-border e-commerce, serving countries such as the US, the UK, Canada, and Australia.
Product Portfolio:
Net Avenue’s diverse product range includes Lehenga Choli, Salwar Kameez, Gowns, Kurtas, Sherwani, Kurta Sets, Kids wear, and Accessories.
Recognition:
Among its websites, Cbazaar.com has been recognized as the best online shop in the United States for 2020 and acknowledged as one of the fastest-growing brands in the United States in 2022.
Peer Comparison:
- Nandani Creation Limited
Financial Status (in Rs. Crores):
| Particulars | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 33.44 | 31.23 | 13.80 |
| EBITDA | 2.11 | 3.06 | 0.12 |
| PAT | 1.86 | 2.79 | 0.26 |
| Total Assets | 14.19 | 12.95 | 7.69 |
| Share Capital | 0.22 | 0.22 | 0.22 |
| Total Borrowings | 11.86 | 12.53 | 9.98 |
| Net cash generated from operating activities | -2.77 | 3.17 | -0.70 |
| Net cash from investing activities | -0.28 | -0.16 | 0.031 |
| Net cash flow from financing activities | 1.85 | -1.11 | 1.33 |
| Net increase (decrease) in cash and cash equivalents | -1.20 | 1.90 | 0.66 |
Key Points:
Strengths:
- The company boasts a diverse product portfolio.
- A customer-centric approach is a focal point of its business model.
- The tech-driven business model enhances efficiency.
- The company positions itself as a Sustainable Fashion Advocate.
- Offering Data-Driven Body Sizing for Optimal Fit adds a unique value proposition.
Risks:
- The business’s success relies on the growth of the online commerce industry in India and abroad.
- Operating in a highly competitive industry poses challenges.
- Exposure to foreign currency exchange rate fluctuations.
- Payment-related risks, including those associated with cash on delivery and payment processing.
- Historical negative cash flow raises financial concerns.
Investors and stakeholders will be keenly observing Net Avenue Technologies’ IPO, considering both its strengths and potential risks in the dynamic market landscape.
