IPO Latest News : Forcas Studio Ltd, a men’s clothing company, is set to launch its initial public offering (IPO) next week, aiming to raise over ₹37 crore from the primary market. The company, known for its brands ‘FTX,’ ‘Tribe,’ and ‘Conteno,’ sells products primarily through its online platform.
The Forcas Studio IPO will be open for public subscription from Monday, August 19, to Wednesday, August 21. Bidding for the Anchor portion will start on August 16. The IPO allotment is scheduled for August 22, with the shares expected to be listed on the NSE SME on August 26.
The IPO price band has been set between ₹77 and ₹80 per share, with the company planning to raise ₹37.44 crore at the upper end of this range. The issue involves a fresh sale of 46.80 lakh equity shares. Investors can apply for a minimum lot size of 1,600 shares, requiring an investment of at least ₹128,000.
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The funds raised from the IPO will be used to upgrade the company’s warehouse, repay certain secured loans, support working capital needs, and for general corporate purposes.
Sailesh Agarwal, Managing Director of Forcas Studio, expressed confidence in the company’s growth prospects, particularly in Tier-2, Tier-3, and Tier-4 cities and towns. He emphasized their commitment to expanding their brand presence both online and offline, with over 1,200 SKUs already available on major e-commerce platforms.
Horizon Management Private Limited is the book running lead manager for the IPO, and Mas Services Limited is acting as the IPO registrar.
In the grey market, Forcas Studio IPO’s GMP (grey market premium) today stands at ₹70 per share, indicating that the shares are trading at a premium of 87.5% over the issue price. This suggests a grey market price of ₹150 per share compared to the IPO price of ₹80.
About the company: Forcas Studio specializes in men’s apparel, including shirts, denims, T-shirts, trousers, and sportswear. The company also provides white-label products for well-known brands like Landmark Group and V-Mart. With a reach across over 15,000 pin codes, Forcas Studio focuses on affordability, with 95% of its products priced below ₹499. For the 11 months ending February 2024, the company reported revenue of ₹96.07 crore, EBITDA of ₹9.27 crore, and a net profit of ₹5.14 crore.
1. What is the Forcas Studio IPO?
The Forcas Studio IPO is an initial public offering by Forcas Studio Ltd, a men’s clothing company. The IPO aims to raise over ₹37 crore by issuing fresh equity shares.
2. When will the Forcas Studio IPO open and close for subscription?
The IPO will open for public subscription on Monday, August 19, 2024, and will close on Wednesday, August 21, 2024.
3. What is the price band for the Forcas Studio IPO?
The price band for the Forcas Studio IPO has been set between ₹77 and ₹80 per share.
4. How much is Forcas Studio planning to raise through this IPO?
Forcas Studio is planning to raise ₹37.44 crore at the upper end of the price band through the IPO.
5. What is the minimum investment required for retail investors?
The minimum investment required for retail investors is ₹128,000, with a lot size of 1,600 shares.
6. What will the funds raised from the IPO be used for?
The funds will be used for upgrading the company’s warehouse, repaying certain secured loans, funding working capital requirements, and general corporate purposes.
7. When will the shares be allotted, and when will they be listed?
The share allotment date is August 22, 2024, and the shares are expected to be listed on the NSE SME on August 26, 2024.
8. What is the GMP (Grey Market Premium) of the Forcas Studio IPO?
The GMP today is ₹70 per share, indicating a grey market price of ₹150 per share, which is a premium of 87.5% over the issue price.
9. Who are the key managers for the Forcas Studio IPO?
Horizon Management Private Limited is the book running lead manager for the IPO, and Mas Services Limited is the IPO registrar.
10. What are the key financials of Forcas Studio Ltd?
For the 11 months ending February 2024, Forcas Studio reported a revenue of ₹96.07 crore, an EBITDA of ₹9.27 crore, and a net profit of ₹5.14 crore.