An in-depth analysis of Forcas Studio’s IPO, exploring the company’s growth potential and investment opportunities in India
Forcas Studio has published that its IPO is going to be open on 19th August and will end on 21st August. It is a premier men’s clothing retailer in India. The company aims to gather INR 37.44 crore through an IPO with an equity share of 46,80,000 equity shares with a face value of INR 10 each and a market lot of a minimum of 1,600 shares.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Forcas Studio IPO
- Allotment Dates for Solve Forcas Studio IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Promoters And Management
- Registrar for Forcas Studio
- Offer Lead Manager
- Company Address
Company Overview
Forcas Studio is a retailer of men’s clothing that offers products such as shirts, jeans, t-shirts, pants, and athletic wear. Serving the entire spectrum of the Indian retail market, it sells through internet retailing as well as through a broad range of wholesale ‘point of sale’ brands: ‘FTX,’ ‘Tribe,’ and ‘Conteno,’ while it also works as a third-party to provide under the brand names of Landmark Group and V-Mart Retail. A majority of consumers shop through e-commerce platforms; thus, Forcas Studio products are available on Flipkart, Myntra, Amazon, and in large format stores such as City Kart and Metro Bazar. This segment caters to the large quantity requirements of retailers in all the different states and increases their accessibility and visibility.
Company Strategy
Forcas Studio aims to increase its sales by targeting the market through online and wholesale segments. In addition to using established websites such as Flipkart and Myntra, Forcas Studio also has formal ties with retailers such as V-Mart and Metro Bazar, so that Forcas Studio can be as accessible as possible in India. The company fosters product differentiation by selling a diverse line of menswear including casual, sports, and party wear under the company’s brands FTX, Tribe, and Content. Further, Forcas Studio focuses on development by entering into white-labeling agreements, which improves its market visibility and ensures steady business expansion.
Details on IPO Date and Price Band
| IPO Open: | August 19, 2024 |
| IPO Close: | August 21, 2024 |
| IPO Size: | Approx INR37.44 Crore (46,80,000 Equity Shares) |
| Fresh Issue: | Approx INR37.44 Crores (46,80,000 Equity Shares) |
| Face Value: | INR10 Per Equity Share |
| IPO Price Band: | INR77 to INR80 Per Equity Share |
| IPO Listing on: | NSE SME |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
IPO Objective:
The IPO objectives for Forcas Studio Limited are to raise funds for several key areas: to increase the efficiency of the warehouse, to discharge or prepay certain secured loans and interests, and to satisfy working capital needs for everyday operations. Moreover, the company plans to allocate a part of it for the general corporate purpose which may entail investments, development projects, or any other requirements that the firm requires to achieve its goals and policies.
Market Lot Information on Forcas Studio IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1,600 shares) for INR 1,28,000
- Retail Maximum: 1 lot (1,600 shares) for INR 1,28,000
- S-HNI Minimum: 2 lots (3,200 shares) for INR 2,56,000
Allotment Dates for Forcas Studio IPO
Forcas Studio IPO open date is August 19 and the IPO close date is August 21. The IPO allotment date is August 22 and the listing date is August 26.
| IPO Open Date: | August 19, 2024 |
| IPO Close Date: | August 21, 2024 |
| Basis of Allotment: | August 22, 2024 |
| Refunds: | August 23, 2024 |
| Credit to Demat Account: | August 23, 2024 |
| IPO Listing Date: | August 26, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Forcas Studio. On the other hand, the IPO forms are also available for download on the NSE and BSE websites which the candidates can fill and submit.
Financial Analysis of the Company
| Year | Revenue | Expense | PAT |
| 2021 | INR 51.13 | INR 50.58 | INR 0.58 |
| 2022 | INR 53.80 | INR 53.02 | INR 0.81 |
| 2023 | INR 71.62 | INR 70.48 | INR 1.17 |
| Feb 2024 | INR 96.49 | INR 90.95 | INR 5.15 |
Forcas Studio’s financial performance from 2021 to February 2024 shows consistent growth. In 2021, revenue was INR 51.13 crore with expenses of INR 50.58 crore, resulting in a PAT of INR 0.58 crore. By 2022, revenue increased to INR 53.80 crore, expenses rose to INR 53.02 crore, and PAT improved to INR 0.81 crore. In 2023, revenue reached INR 71.62 crore, expenses INR 70.48 crore, and PAT INR 1.17 crore. As of February 2024, revenue surged to INR 96.49 crore, expenses to INR 90.95 crore, and PAT to INR 5.15 crore. This growth indicates effective cost management and a robust business strategy.
IPO Valuation (FY 2023)
The company’s EPS stands at a value of INR 1.36 with a Return on Net Worth (RoNW) of 13.62% and a Net Asset Value (NAV) per share of INR 10.00 in the financial year 2023. The IPO price band range of INR77-80, with an issue of 46,80,000 equity shares to raise INR37.44 crore and a face value of INR 10 per share to offer to enhance operational efficiency and storage capacity to ensure smooth and uninterrupted business operations to drive long-term success.
| Earning Per Share (EPS): | INR 1.36 per Equity Share |
| Price/Earning P/E Ratio: | NA |
| Return on Net Worth (RoNW): | 13.62% |
| Net Asset Value (NAV): | INR 10.00 per Equity Share |
Competitor Analysis
Aditya Birla Fashion and Retail Ltd
Aditya Birla Fashion and Retail Ltd. (ABFRL) is India’s biggest fashion and lifestyle organization and is well-known for its wide-ranging brands. Currently, ABFRL has a presence in over 25000 multi-product stores and over 3000 special brand stores selling apparel, footwear, and accessories. It boasts a portfolio of elite apparel franchises, such as Louis Philippe, Van Heusen, Allen Solly, and Pantaloons ranging from the luxury to the economy segment. ABFRL’s clear vision of innovation, persistence, and sustainability makes it the leader in the fashion and retail industry by offering good-quality apparel and accessories with an excellent customer experience.
Promoters And Management
- Sailesh Agarwal
- Sourav Agarwal
Offer Lead Manager
Horizon Financial Pvt Ltd
Horizon Financial Pvt. Ltd. is a leading financial services provider engaged in wealth management, investment solutions, and planning for its clients. As a financial solutions provider that aims to provide personalized and sustainable solutions to its clients. Boasting professional and highly qualified staff, they provide various services to the clients and propose personal approaches and solutions including portfolio management and retirement planning, tax consultations, and risk management. By adopting advanced technology and market knowledge, the company assists its clients in achieving their desired monetary objectives and planning their respective financial futures.
Conclusion
The upcoming IPO of Forcas Studio offers a notable opportunity for investors aiming to engage with India’s growing retail market. With a proven history of financial progress, strategic alliances, and a robust presence across both digital and physical sales channels, Forcas Studio is poised for continued growth. The capital raised from this IPO will be utilized to improve operational efficiency and support further expansion, making it a compelling option for investors seeking to invest in a promising retail company. As the IPO begins on August 19th, prospective investors should view this offering as a potential asset to their portfolios.
