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Forcas Studio IPO Overview
Forcas Studio Ltd, a men’s clothing company, is preparing to launch its initial public offering (IPO) next week, aiming to raise over ₹37 crore from the primary markets. The company, which operates under the brand names ‘FTX,’ ‘Tribe,’ and ‘Conteno,’ sells its products primarily through online platforms.
IPO Schedule
- Opening Date: Monday, August 19, 2024
- Closing Date: Wednesday, August 21, 2024
- Anchor Portion Bidding Starts: August 16, 2024
- Allotment Date: August 22, 2024
- Listing Date: August 26, 2024
The IPO will be listed on the NSE SME platform.
- Price Band: ₹77 to ₹80 per share
- Total Amount to be Raised: ₹37.44 crore (at the upper end of the price band)
- Number of Shares Offered: 46.80 lakh equity shares
- IPO Lot Size: 1,600 shares
- Minimum Investment Amount: ₹128,000
Utilization of Proceeds
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The net proceeds from the IPO will be used for:
- Warehouse Upgradation: Funding improvements to the company’s warehouse facilities.
- Loan Repayment: Prepayment or repayment of certain secured loans.
- Working Capital: Meeting the company’s working capital needs.
- General Corporate Purposes: Supporting overall business operations.
Company Strategy
Sailesh Agarwal, Managing Director of Forcas Studio, emphasized the company’s focus on expanding its reach and enhancing brand presence both online and offline. With over 1,200 SKUs and a strong presence on major e-commerce platforms, Forcas Studio aims to deliver value particularly in Tier-2, Tier-3, and Tier-4 cities and towns.
Key Financials
For the 11 months ended February 2024, Forcas Studio reported:
- Revenue: ₹96.07 crore
- EBITDA: ₹9.27 crore
- Net Profit: ₹5.14 crore
IPO GMP (Grey Market Premium)
As of today, the grey market premium (GMP) for Forcas Studio shares is ₹70 per share, reflecting a premium of 87.5% over the issue price. This indicates that shares are trading at ₹150 per share in the grey market compared to the IPO price of ₹80 per share.
About Forcas Studio
Forcas Studio specializes in men’s garments, including shirts, denims, T-shirts, trousers, and sportswear. The company also offers white-label products for major brands such as Landmark Group and V-Mart. Forcas Studio serves over 15,000 pin codes, focusing on Tier-2, Tier-3, and Tier-4 cities and towns, with 95% of its products priced below ₹499.
1. What is the Forcas Studio IPO?
The Forcas Studio IPO is the initial public offering of shares by Forcas Studio Ltd, a men’s clothing company. The IPO aims to raise over ₹37 crore from the primary markets.
2. When will the Forcas Studio IPO open and close?
The IPO will open for public subscription on Monday, August 19, 2024, and will close on Wednesday, August 21, 2024. The bidding for the Anchor portion starts on August 16, 2024.
3. What is the price band for the Forcas Studio IPO?
The price band for the IPO is set at ₹77 to ₹80 per share.
4. How many shares are being offered in the Forcas Studio IPO?
The IPO will offer 46.80 lakh equity shares.
5. What is the minimum investment required for retail investors?
The minimum investment amount required by retail investors is ₹128,000, which corresponds to 1,600 shares.
6. How will the proceeds from the IPO be used?
The proceeds will be used for:
- Upgrading the warehouse
- Prepayment or repayment of secured loans
- Funding working capital requirements
- General corporate purposes
7. When will the allotment of shares be finalized?
The allotment of shares is expected to be finalized on August 22, 2024.
8. When will Forcas Studio shares be listed?
The shares are expected to be listed on the NSE SME platform on August 26, 2024.
9. What is the grey market premium (GMP) for Forcas Studio IPO shares?
As of today, the grey market premium is ₹70 per share, indicating a premium of 87.5% over the issue price. This suggests that shares are trading at ₹150 per share in the grey market compared to the IPO price of ₹80 per share.
10. Who are the key managers and registrar for the Forcas Studio IPO?
- Book Running Lead Manager: Horizon Management Private Limited
- IPO Registrar: Mas Services Limited