Sat Kartar Shopping Limited, a prominent Ayurveda healthcare company, is launching its Initial Public Offering (IPO) on the NSE Emerge platform. The IPO is scheduled to open on January 10, 2025, and close on January 14, 2025. Below are the key details and highlights of this IPO:
IPO Details
Price Band: ₹77 – ₹81 per equity share
Face Value: ₹10 per share
Issue Size: Approximately ₹33.80 crores
Shares Offered: 41.73 lakh equity shares (fresh issue)
Key Dates
IPO Opening Date: January 10, 2025
IPO Closing Date: January 14, 2025
Allotment Date: January 15, 2025
Refund Initiation: January 16, 2025
Listing Date: January 17, 2025
Lot and Investment Details
- Minimum Lot Size: 1,600 shares
- Minimum Investment Amount: ₹1,29,600
- Maximum Investment for Retail Investors: 1 lot (1,600 shares)
- Minimum Investment for HNI Investors: 2 lots (3,200 shares)
Company Overview
Established in June 2012, Sat Kartar Shopping Limited specializes in Ayurveda-based wellness solutions, combining traditional practices with modern technology. The company operates in the Direct-to-Consumer (D2C) space, leveraging multiple sales channels, including its website, third-party e-commerce platforms, television marketing, and digital applications.
Financial Highlights
- Total Revenue (FY 2023-24): ₹127.91 crores
- Profit After Tax (FY 2023-24): ₹6.31 crores
Objectives of the IPO
The funds raised through this IPO will be utilized for:
- Funding potential acquisitions (domestic or international)
- Marketing and advertising expenses
- Capital expenditure
- Investment in technology
- General corporate purposes
- Covering issue expenses
Promoters and Management
Promoters:
Mr. Manprit Singh Chadha
Mr. Pranav Singh Chadha
Ms. Simrati Kaur
M/s Ajooni Wellness Private Limited
Pre-Issue Promoter Shareholding: 86.06%
Post-Issue Promoter Shareholding: 63.25%
Strengths of Sat Kartar Shopping Limited
- Nationwide Brand Presence: The company has a well-recognized brand in the Ayurveda healthcare segment.
- Asset-Light Business Model: Minimal capital investment in infrastructure allows for greater scalability.
- Strong Digital Media Presence: Effective online marketing strategies and e-commerce penetration.
- In-House R&D: A dedicated research team ensures high-quality product innovation.
- Well-Structured Logistics: Efficient supply chain management supports timely product delivery.
Risks to Consider
- Limited Experience of Promoters: As first-generation entrepreneurs, the promoters face challenges in scaling the business.
- Dependence on Brand Recognition: The company’s success is highly dependent on its brand image.
- Leased Operations: Dependence on leased premises may lead to operational uncertainties.
- Regulatory Risks: The healthcare and wellness industry is heavily regulated.
- External Events: The business could be adversely affected by macroeconomic conditions or global crises.
Valuation
Based on the FY 2023-24 earnings per share (EPS) of ₹22.52, the price-to-earnings (P/E) ratio at the upper price band is approximately 3.6x. This valuation is significantly lower than the industry average P/E of 64.90x, suggesting a potential undervaluation and an attractive entry point for investors.
How to Apply for the IPO
Investors can apply for the Sat Kartar Shopping Limited IPO through:
- ASBA (Application Supported by Blocked Amount): Available via net banking services.
- UPI-Based Applications: Offered by brokers and stock trading platforms.
Conclusion
The Sat Kartar Shopping Limited IPO presents an opportunity to invest in a growing Ayurveda healthcare company with strong fundamentals and robust growth potential. However, investors should carefully evaluate the associated risks and consult with financial advisors before making investment decisions.
Disclaimer: Investing in IPOs involves risks. Please perform due diligence and seek professional advice before investing.
