Forcas Studio Ltd, a company specializing in men’s clothing, is gearing up to launch its IPO next week, aiming to raise more than ₹37 crore. Their products, sold online under the brand names ‘FTX,’ ‘Tribe,’ and ‘Conteno,’ will be available for investment starting Monday, August 19, with the subscription window closing on Wednesday, August 21. The bidding for anchor investors kicks off earlier, on August 16. Investors can expect the IPO allotment results on August 22, and the shares will start trading on the NSE SME on August 26.
IPO Price Band
The IPO price band is set between ₹77 and ₹80 per share. At the upper price point, the company plans to raise ₹37.44 crore through the sale of 46.80 lakh equity shares. Investors need to buy a minimum lot size of 1,600 shares, which translates to a minimum investment of ₹128,000.
Utilization of IPO Proceeds
The funds from this IPO will go towards upgrading Forcas Studio’s warehouse, paying off or reducing certain secured loans, fulfilling working capital needs, and other general corporate purposes.
Company’s Growth and Expansion Plans
Sailesh Agarwal, Managing Director of Forcas Studio, emphasized their commitment to broadening their market reach and strengthening their brand presence, particularly in smaller cities and towns. With over 1,200 different products and a solid foothold on major e-commerce platforms, Forcas Studio sees great potential for growth in these areas.
Management and IPO Registrar
Horizon Management Private Limited is the lead manager of this IPO, with Mas Services Limited acting as the registrar.
Grey Market Premium and Investor Interest
On the grey market, Forcas Studio’s shares are currently trading at a premium of ₹70, or 87.5% above the issue price, indicating strong investor interest.
Product Range and Market Reach
Forcas Studio specializes in various men’s clothing items such as shirts, jeans, T-shirts, trousers, and sportswear. Besides their brands, they also produce white-label products for big names like Landmark Group and V-Mart.
The company has an extensive reach, covering over 15,000 pin codes, with 95% of their products priced below ₹499. For the 11 months ending in 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.
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