Blue Pebble Limited IPO Review
Blue Pebble Limited, a name that has been making waves in the business services sector, was incorporated on September 8, 2017. This unlisted public company, with its roots firmly planted in Mumbai, Maharashtra, has been a beacon of innovation and service in the bustling city known for its commercial vibrancy.
The company was brought to life by the entrepreneurial spirit of Nalin Gagrani, Karuna Nalin Gagrani, and Manoj Bhushan Tiwari. These individuals are not just the founders but the pillars who have upheld the values and vision of Blue Pebble Limited. Their collective dream was to transform spaces through unique spatial design and bespoke environmental branding solutions.
Mumbai, the city of dreams, was Blue Pebble Limited's birthplace. It's a city that mirrors the company's aspirations—dynamic, forward-thinking, and ever-evolving. From its headquarters in Mumbai, Blue Pebble Limited has expanded its presence across various Indian states, reflecting the company's growth trajectory and commitment to reaching a wider audience.
Why did Blue Pebble Limited come into existence? The answer lies in the market gap that the founders perceived—a need for innovative and custom-tailored design solutions that could transform corporate and public spaces. They aimed to craft environments that resonate with the client's brand identity and enhance the space's aesthetic and functional aspects.
Today, Blue Pebble Limited stands as a testament to the power of a clear vision, unwavering dedication, and the relentless pursuit of excellence. Its journey from a budding enterprise to a recognized name in the industry is a narrative of ambition, innovation, and the drive to create spaces that inspire.
Competitive Strengths
Blue Pebble Limited, a company that has recently offered its initial public offering (IPO), is a noteworthy player in the spatial design and bespoke environmental branding solutions sector. This detailed analysis aims to shed light on the competitive strengths that set Blue Pebble Limited apart in a highly competitive market.
Revenue, Sales, and Profit
Blue Pebble Limited, a company that recently went public, has shown a remarkable financial performance. For the financial year ending on March 31, 2023, the company's operating revenues ranged between INR 1 crore to 100 crore. The EBITDA increased by a significant 369.18% over the previous year, indicating a strong upward trend in earnings before interest, taxes, depreciation, and amortization. Furthermore, the net worth of Blue Pebble Limited saw an impressive increase of 166.24%, reflecting the company's growing assets and overall financial health. The profit after tax (PAT) also rose by an astounding 426.49% between the financial years ending March 31, 2022, and March 31, 2023. This substantial growth in PAT suggests that the company has not only increased its revenue but has also managed to control costs and improve operational efficiency.
Distribution Network and Geographical Reach
Blue Pebble Limited is a company that specializes in spatial design and bespoke environmental branding solutions. It has a significant presence in the Indian market, with a diverse clientele that includes banks, multinational corporations, and IT companies. The company's services range from conceptualization, design, printing, furnishing, and installation of various products like vinyl graphics, signage, and other furnishing products. Blue Pebble Limited has executed projects across various locations in India, indicating a robust distribution network and geographical reach within the country. Its client list boasts of names like Infosys, HDFC Bank, Bank of America, Nestle, and British Petroleum, showcasing its capability to serve large and reputed organizations. The company's operational revenues suggest a strong financial foundation, supporting its extensive service offerings across the nation.
Unique Features
Blue Pebble Limited is a company that specializes in spatial design and bespoke environmental branding solutions. It offers a comprehensive range of services that include conceptualization, design, printing, furnishing, and installation of various products such as vinyl graphics, signage, and furnishing items tailored to enhance corporate interiors and external workplace environments. The company's unique approach lies in its ability to provide custom-tailored solutions that meet the specific needs of each client, ensuring that the final product aligns with the client's corporate culture and aesthetic preferences. Blue Pebble Limited has a notable clientele, having served prestigious companies like Infosys, HDFC Bank, and Bank of America. Its expertise in theme-based designs, large format printing, and 3D art installations, along with the sourcing and installation of curios, sculptures, and artisanal hand paintings, sets it apart in the industry. The company's commitment to quality and its ability to manage the entire process from conceptualization to delivery are key factors contributing to its success.
Investment in Research and Development
Blue Pebble Limited, a company specializing in spatial design and bespoke environmental branding solutions, has recently made its initial public offering (IPO). While specific details on the company's investment in research and development (R&D) are not publicly disclosed, it is evident from their IPO filings that they are poised for growth and expansion. The company's financials show a positive trend, with revenue, gross profit, and net income all showing significant increases over three years, indicating a reinvestment of profits likely to include R&D. The IPO aims to widen the customer base geographically and retain a skilled team, which suggests an ongoing commitment to innovation and development. Furthermore, the company's established relationships with customers and suppliers, along with a qualified management team, provide a strong foundation for future R&D endeavors.
Blue Pebble Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: March 26, 2024 to March 28, 2024).
Listing Date: The listing date in an IPO refers to the specific day when a company's shares are first made available for trading on a stock exchange following an Initial Public Offering (IPO). This is a significant event in the IPO process because it marks the transition of a company from private to public, allowing the general public to buy and sell the company's shares on the open market. The listing date is set after the IPO has closed, the shares have been allotted, and the company has met all regulatory requirements. (Listing Date: Wednesday, April 3, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹10 per share).
Price Band: A price band in the context of an Initial Public Offering (IPO) is a predefined range within which the shares are offered to investors. It consists of a lower and an upper price limit, allowing investors to place their bids within this spectrum. This mechanism is part of the book-building process, where potential investors submit bids for the number of shares they are willing to buy and the price they are willing to pay within the set price band. (IPO Price: ₹159 to ₹168 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 800 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 1,080,000 shares (aggregating up to ₹18.14 Cr)).
Fresh Issue: A fresh issue of shares in an IPO refers to the creation and sale of new shares by a company to the public for the first time to raise capital. Unlike an Offer for Sale, where existing shareholders sell their shares, a fresh issue results in new funds going directly to the company, which can be used for various purposes such as expansion, debt repayment, or investment in new projects. This process dilutes the existing shareholding but does not provide an exit route for current investors. (Fresh Issue: 1,080,000 shares (aggregating up to ₹18.14 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Fixed Price Issue IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: NSE SME).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: 359,200 (33.26%)).
Anchor Investors Shares Offered: Anchor investor shares in an IPO refer to a portion of shares reserved for Qualified Institutional Buyers (QIBs) who agree to purchase the shares at a set price before the IPO is open to the public. This is done to boost confidence in the IPO among other investors by demonstrating that informed institutional investors have committed to the issue. Typically, anchor investors include large institutional investors like mutual funds, commercial banks, and insurance companies. They are subject to a lock-in period, where they cannot sell their shares for a certain amount of time after the IPO, ensuring their investment aligns with the long-term success of the company. (Anchor Investor Shares Offered: 305,600 (28.30%)).
Market Maker Shares Offered: Market Maker Shares in an IPO refer to the shares that a market maker commits to buy and sell to ensure liquidity for the stock once it starts trading on the exchange. Market makers are typically brokerage firms that agree to hold a certain number of shares of the new issue to facilitate trading and provide stability to the stock price. They play a crucial role in the SME (Small and Medium Enterprises) segment, where they help in price discovery and improve the liquidity of stocks by providing two-way quotes. (Market Maker Shares Offered: 56,000 (5.19%)).
QIB Shares Offered: These shares are offered to institutions like mutual funds, insurance companies, foreign institutional investors (FIIs), banks, and other financial institutions registered with SEBI (Securities and Exchange Board of India). QIBs typically invest large sums of money, and SEBI regulations mandate a minimum investment amount for this category. Due to their significant investment power, QIBs are often allocated a minimum percentage (usually 50%) of the total IPO shares.(QIB Shares Offered: 204,800 (18.96%)).
NII (HNI) Shares Offered: NIIs are investors who are not QIBs or retail investors. They include high net-worth individuals (HNIs), corporate bodies, trusts, societies, etc., who bid for more than Rs 2 lakhs worth of shares in an IPO. NIIs can bid for up to 15% of the total shares offered in an IPO. NIIs have to pay 100% of the bid amount at the time of application. NIIs cannot bid at the cut-off price, which is the highest price at which the shares are allotted. HNIs are a sub-category of NIIs who bid for more than Rs 10 lakhs worth of shares in an IPO. (NII Shares Offered: 154,400 (14.30%)).
Competitors of Blue Pebble Limited
Blue Pebble Limited, a design firm known for its bespoke environmental branding solutions, operates in a competitive market that includes a variety of players offering similar services. The company's competitors range from large-scale enterprises to specialized boutique firms, each with its own unique approach to design and client engagement.
One of the notable competitors is Golkonda Engineering Enterprises Limited, which has established itself as a significant player in the engineering and design sector. Another competitor, Almond Corporation Limited, offers a broad range of services that may overlap with those of Blue Pebble Limited, potentially vying for the same client base.
In the consulting domain, Bodhtree Consulting Limited and Athena Global Technologies Limited are known for their technological and strategic consulting services, which could cater to clients seeking comprehensive solutions that include both design and technology.
Innovative Tech Pack Ltd stands out for its packaging solutions, which could be an essential aspect for clients interested in branding and design. Similarly, Seymour Technologies Limited provides technology solutions that could complement or compete with the services offered by Blue Pebble Limited.
The construction and infrastructure sector also presents competitors like Power Mech Projects Limited and Incon Engineers Ltd, which could be involved in large-scale projects where design and branding are crucial elements.
In the realm of financial and management consulting, companies like Saaketa Consultants Limited and Vasavi Securities Limited may not directly compete with Blue Pebble Limited's core services but could be indirect competitors in terms of client acquisition for corporate services.
Furthermore, the IT and software development sector includes competitors such as Alphageo (India) Limited and Infor (India) Private Limited, which could offer digital solutions that intersect with the design services provided by Blue Pebble Limited.
Lastly, companies like Teamlease Services Limited and Quess Corp Limited, which specialize in staffing and human resources, could compete for clients looking to outsource their design needs as part of a larger human capital management strategy.
The competitive landscape for Blue Pebble Limited is diverse, with each competitor bringing different strengths and offerings to the table. This variety ensures that clients have multiple options to choose from, based on their specific needs and preferences, and it pushes companies like Blue Pebble Limited to continually innovate and differentiate their services to maintain a competitive edge.
Conclusion
In conclusion, the Blue Pebble Limited IPO presents a compelling opportunity for investors seeking to diversify their portfolios. With a strong financial performance and a debt-free status, the company stands out in a competitive market. The IPO, priced at ₹159 to ₹168 per share, aims to raise ₹18.14 crores, reflecting the company's confidence in its growth trajectory. While the market segment is fragmented, Blue Pebble's recent surge in earnings indicates a robust business model. Investors should consider the company's promising prospects, keeping in mind the inherent risks associated with the volatile IPO market. As always, it is advisable to consult with financial advisors and thoroughly review the company's fundamentals before making investment decisions. Blue Pebble Limited's IPO could be the stepping stone to significant returns for informed and strategic investors.
Please Read the Detailed Review of the Blog Here.
Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.
FAQs
Q: What is an IPO?
An Initial Public Offering (IPO) is the process by which a privately held company offers its shares to the public for the first time. It allows the company to raise capital by selling shares to investors and get listed on a stock exchange.
Q: How can I apply for an IPO?
To apply for an IPO, follow these steps:
Open a Demat account with a registered Depository Participant (DP).
Choose the IPO you want to apply for.
Fill out the IPO application form through your broker or online platform.
Specify the number of shares you wish to apply for and the price range (if it’s a book-building issue).
Q: What is ASBA (Application Supported by Blocked Amount)?
ASBA is a payment method for IPOs where the bid amount is blocked in your bank account until the allotment process is complete. It ensures that you have sufficient funds to cover the shares you applied for.
Q: Can I make payments through UPI for an IPO?
Yes, you can use the Unified Payments Interface (UPI) to apply for an IPO. Many banks and brokers allow UPI-based payments during the IPO application process. Make sure your UPI ID is linked to your bank account.
Q: What is the difference between a fixed price issue and a book-building issue?
Fixed Price Method: The company determines a fixed price for issuing shares, and investors know the exact price before the IPO.
Book Building Method: The company offers a price range, and investors bid within that range. The final price is determined after the bidding process.
Q: What is the difference between the floor price and cut-off price in a book-building issue?
Floor Price: The lowest price at which an investor can bid within the price range.
Cut-off Price: An option where investors bid at the highest price (or cap price) without specifying a bid amount. They receive the allotment at the final determined price.
Q: What does ‘DP name’ mean in an IPO online form?
DP Name: It refers to the name of your Depository Participant (DP) with whom you hold your Demat account. You need to provide this information while applying for an IPO.
Q: What are the different investor categories in an IPO?
RII (Retail Individual Investor): Individual investors who apply for a small number of shares.
NII (Non-Institutional Investor): High-net-worth individuals, corporate bodies, and trusts.
QIB (Qualified Institutional Buyer): Institutional investors like mutual funds, banks, and foreign institutional investors.
Anchor Investors: Institutional investors who invest before the IPO opens for subscription.
Q: How is the allotment process done in an IPO?
The allotment process considers various factors, including investor categories, oversubscription, and the price at which bids are placed. The final allotment is based on demand and availability of shares.
Q: What happens if I don’t get the full allotment of shares in an IPO?
If the number of allotted shares is less than what you applied for, the excess funds are refunded to your bank account. You’ll receive the allotted shares, and any remaining funds will be returned.