Faalcon Concepts Limited IPO Review
Faalcon Concepts Limited, a name that has been resonating in the industry of façade engineering and construction, stands as a testament to innovation and quality in the architectural landscape. Incorporated on May 24, 2018, this unlisted public company has carved a niche for itself in the realm of designing, engineering, fabrication, and installation of façade systems.
At the helm of Faalcon Concepts Limited are the visionaries who saw the potential in façade engineering – Mrs. Ekta Seth, Mr. Tribhuvan Seth, and Mr. Prithvi Seth. These promoters have not only provided strategic direction but have also infused the company with their entrepreneurial spirit, guiding it towards a path of sustainable growth and industry leadership.
Rooted in the bustling city of Gurgaon, Haryana, Faalcon Concepts Limited has established its headquarters in a place synonymous with rapid urban development and architectural marvels. The city's dynamic environment has served as a fertile ground for the company to thrive and expand its horizons.
The journey of Faalcon Concepts Limited began in 2018 with a clear vision – to excel in the field of civil structure by specializing in structural glazing, curtain wall glazing, and various other facets of residential and commercial building aesthetics. The company was born out of the need to provide innovative solutions in the construction process, ensuring high-end quality fabrication and timely execution of projects.
The core purpose driving Faalcon Concepts Limited is to offer unmatched solutions in façade installation for complex projects. The company prides itself on its ability to handle technically demanding facades, delivering products that are not only durable but also align with the latest market trends. Their commitment to service excellence ensures that clients receive the best possible collaboration and support throughout the construction process.
Over the years, Faalcon Concepts Limited has achieved several milestones, including the expansion of its services across multiple states in India. The company's dedication to quality and customer satisfaction has earned it a reputation as a leading firm in the industry. With a team of well-nurtured professionals and a commitment to ethical business practices, Faalcon Concepts Limited continues to grow and set new benchmarks in the façade engineering sector.
As Faalcon Concepts Limited moves forward, it remains focused on its mission to provide innovative and competitive solutions in the façade engineering domain. With a robust foundation laid by its promoters and a clear vision for the future, the company is poised to reach new heights and contribute significantly to the architectural excellence of urban landscapes.
Competitive Strengths
Faalcon Concepts Limited, established in 2018, has swiftly carved a niche for itself in the facade industry. The company's competitive strengths lie in its robust design, engineering, manufacturing, and installation capabilities, particularly in the realm of technically demanding facade systems.
Revenue, Sales, and Profit
The company's financial performance has shown variability over the years. In FY23, Faalcon Concepts reported a net profit of ₹1.79 crore, a significant increase from ₹97.79 lakh in FY22. However, the revenue for FY23 showed a decline, falling to ₹13.24 crore from ₹18.52 crore in FY22. As of October 2023, the company's net profit stood at ₹1.31 crore, with revenue amounting to ₹12.49 crore. This performance reflects a mixed financial picture, with profitability improving but revenue not maintaining the previous year's levels. The company's equity has consistently increased, indicating potential for growth and expansion. Despite the decrease in revenue, the rise in net profit and consistent growth in equity suggest a strategic shift that may favor long-term profitability.
Distribution Network and Geographical Reach
Faalcon Concepts Limited, established in 2018, has developed a robust distribution network and extensive geographical reach, particularly in the facade construction sector. The company's distribution network is designed to efficiently manage the planning, designing, and construction process for various types of clients and facilities. This network is supported by a team of professionals linked across different fields, ensuring high-end quality fabrication and timely execution of projects. Faalcon Concepts Limited's expertise in structural glazing, curtain wall glazing, and aluminum composite panel cladding has been applied to residential and commercial buildings, including shopping malls, hotels, and hospitals. Geographically, Faalcon Concepts Limited has expanded its reach to serve customers in communities across different states in India, such as Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Gujarat, Punjab, and Delhi. This expansion is part of the company's strategy to capitalize on the growing demand in the construction industry and to continue improving quality standards. The company's geographical reach extends beyond India, as it is accredited as a merchant exporter, supplying various facade materials globally.
Unique Features
Faalcon Concepts Limited distinguishes itself in the market with a blend of innovative solutions and ethical business practices. The company is renowned for its high-end quality fabrication and advanced facilities, which enable it to deliver projects on time, maintaining a reputation for reliability and efficiency. Their commitment to ethical business practices is a cornerstone of their operations, ensuring fair dealings in all aspects of their work. Faalcon Concepts Limited offers competitive pricing for their best and most innovative solutions, making them a cost-effective choice for their clients. They also prioritize total confidentiality, safeguarding client information and project details with utmost integrity. The team at Faalcon Concepts Limited comprises well-nurtured professionals who are experts in their respective fields, contributing to the company's strong foundation in quality control and project execution. These unique features have contributed to the company's growth and its ability to serve a diverse range of clients with tailored solutions for complex projects.
Investment in Research and Development
Faalcon Concepts Limited, established in 2018, has made significant strides in the façade industry, specializing in the design, engineering, fabrication, and installation of façade systems. Their commitment to innovation is evident in their investment in research and development (R&D), which is crucial for their technically demanding projects. The company's R&D efforts are focused on creating façade solutions that are resistant to environmental factors like UV rays, acidic rain, dust, and noise, ensuring the durability and longevity of their products. This dedication to R&D has enabled Faalcon Concepts to offer tailored solutions that meet the complex requirements of their diverse clientele, which includes schools, financial institutions, hospitality establishments, corporate buildings, and luxury residences across India and internationally. With their recent IPO, Faalcon Concepts Limited aims to further bolster their R&D by purchasing advanced façade structural equipment and supporting their working capital needs, which will likely enhance their ability to innovate and maintain their competitive edge in the industry.
Faalcon Concepts Limited IPO Details
Issue Date: The Issue Date in an Initial Public Offering (IPO) refers to the specific day when a company's shares are first made available for public purchase on the stock market. This date is a critical milestone in the IPO process, marking the transition of a company from private to public status and allowing investors to buy shares directly from the company for the first time. (Issue Date: April 19, 2024 to April 23, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Friday, April 26, 2024).
Face Value of Shares: The face value of shares in an Initial Public Offering (IPO) refers to the original cost of the shares as determined by the company going public. It represents the nominal value and is often set at a lower figure, such as Rs. 10 or Rs. 100, which remains constant irrespective of the market price of the share after the company is listed on the stock exchange. When a company launches an IPO, the shares are typically offered at a price that includes this face value plus an additional premium, which reflects the current market valuation of the company. The premium over the face value is determined by the company's financial performance and future growth prospects as assessed by the investment bankers managing the IPO. (Face Value: ₹10 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹62 per share).
Lot Size: In the context of an Initial Public Offering (IPO), the term "lot size" refers to a fixed number of shares that the issuing company sets as the minimum quantity that investors can apply for. This lot size is predetermined before the IPO and is mentioned in the application forms. The lot size varies from one company to another and is an important factor for investors to consider when applying for an IPO. (Lot Size: 2000 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: 1,950,000 shares (aggregating up to ₹12.09 Cr)).
Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment. (Fresh Issue: 1,950,000 shares (aggregating up to ₹12.09 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: An integral part of the IPO process is the listing. This refers to the day the company's shares officially begin trading on a stock exchange, such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) in India. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE SME).
Retail Shares Offered: Retail shares offered in an IPO refer to the portion of shares that are specifically allocated for individual investors, as opposed to institutional investors. These shares are part of the public offering where companies going public aim to raise capital by selling shares. Retail investors are typically allocated a certain percentage of the total shares available for the IPO. The allotment process for retail investors is designed to be fair and transparent, ensuring that all investors have an equal chance of receiving shares based on their application and market conditions. (Retail Shares Offered: 926,000 (47.49%)).
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: 98,000 (5.03%)).
Other Shares Offered: 926,000 (47.49%).
Competitors of Faalcon Concepts Limited
In the competitive landscape, Faalcon Concepts Limited faces stiff competition from various companies in the infrastructure sector. Some of its notable competitors include JSW Infra, Bharti Hexacom, SignatureGlobal, Juniper Hotels, and Rattanindia Ent, among others. These companies are significant players in their respective fields and compete with Faalcon Concepts Limited in terms of market capitalization, sales turnover, net profit, and total assets.
JSW Infra, with a market cap of over ₹49,000 crores, is a major competitor with substantial sales turnover and net profit, indicating its strong market presence and financial stability. Bharti Hexacom, although not listed with sales and net profit figures, still holds a significant market cap, suggesting a solid position in the market. SignatureGlobal, another competitor, shows a robust market cap and sales turnover, despite a negative net profit, which could indicate aggressive expansion or investment strategies.
The competition also extends to companies like PowerGrid InvIT, Syrma SGS, and eMudhra, which have diverse portfolios and contribute to the competitive dynamics Faalcon Concepts Limited must navigate. These companies vary in their market cap and financial metrics, reflecting the diverse nature of the competition Faalcon Concepts Limited faces.
The competitive analysis of Faalcon Concepts Limited reveals a mixed performance in the market. While the company has seen a decrease in revenue from ₹1,840.80 lakhs in March 2022 to ₹1,315.17 lakhs in March 2023, its profit after tax (PAT) has significantly increased from ₹97.79 lakhs in March 2022 to ₹131.82 lakhs by October 2023. This improvement in profitability, coupled with a consistent increase in equity, suggests that Faalcon Concepts Limited is focusing on optimizing its operations and financial management to maintain a competitive edge.
The company's IPO review also sheds light on its financial journey and strategic moves. With the IPO price set at INR 62 per share and a total issue size of INR 1,209 lakhs, Faalcon Concepts Limited aims to bolster its working capital, invest in façade structural equipment, and address general corporate purposes. The IPO dates from April 19, 2024, to April 23, 2024, mark a significant milestone for the company, reflecting its growth aspirations and commitment to scaling its operations.
Faalcon Concepts Limited operates in a highly competitive environment with several established players. Its focus on quality, innovation, and customer satisfaction has helped it to create a distinct identity in the façade construction industry. Despite the challenges posed by competitors, Faalcon Concepts Limited's strategic financial management and growth initiatives, such as the recent IPO, position it well to continue its trajectory of growth and success in the industry. For a more comprehensive understanding of Faalcon Concepts Limited and its market position, interested parties can refer to detailed financial reports and market analyses available in the public domain.
Conclusion
In conclusion, the IPO of Faalcon Concepts Limited presents a compelling narrative of a company with a strong foothold in the façade systems industry. With a fresh issue aimed at bolstering their working capital and purchasing new equipment, the company is poised for potential growth. Despite a mixed financial performance with fluctuating revenues and a decrease in return on net worth, the significant improvement in profitability and consistent growth in equity cannot be overlooked. The IPO, set at a price of INR 62 per share, offers investors an opportunity to be part of Faalcon Concepts' journey as they continue to innovate and expand their reach in the façade solutions sector. As the company gears up for its listing on the BSE SME platform, prospective investors should consider the varied performance indicators and the company's strategic initiatives to make informed decisions. The IPO period from April 19 to April 23, 2024, marks a crucial phase for Faalcon Concepts Limited, setting the stage for its next chapter in the dynamic market landscape.
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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 a process through which a privately held company offers its shares to the public for the first time and becomes a publicly traded company.
Q: How can I apply for an IPO?
You can apply for an IPO through various methods:
ASBA (Application Supported by Blocked Amount): In this method, your application money remains in your bank account until the basis of allotment is finalized.
UPI (Unified Payment Interface): You can authorize the blocking of funds in your bank account using UPI while applying for an IPO.
Q: What is ASBA?
ASBA stands for Application Supported by Blocked Amount. It allows your application money to be blocked in your bank account during the IPO bidding process. You continue to receive interest on the blocked amount.
Q: What is the difference between book building and a normal public issue?
Book building is a process where demand for securities is elicited and the price is assessed based on investor bids. In a normal public issue, the price is fixed by the issuer.
Q: Can I make payments through UPI for IPOs?
Yes, you can use UPI as a payment method for IPOs. The UPI platform blocks the funds for IPO applications after you approve the fund block mandate request.
Q: What is the minimum order quantity for an IPO?
The minimum number of shares you can apply for in an IPO is known as the minimum order quantity. It varies for each IPO.
Q: What is the cut-off price in an IPO?
The cut-off price is the price at which you bid for shares without specifying a particular price. It allows you to participate in the IPO without specifying a specific bid price.
Q: Can I revise my bids during the IPO process?
Yes, you can revise your bids multiple times before the IPO bidding period ends.
Q: Which banks offer the ASBA facility for IPOs?
Several banks, known as Self Certified Syndicate Banks (SCSBs), offer the ASBA facility. Some examples include HDFC Bank, ICICI Bank, Axis Bank, and SBI.
Q: How do I find IPO mandates on UPI apps?
You can check the list of UPI handles supported for IPO payments on the National Payments Corporation of India (NPCI) website. These handles allow you to apply for IPOs using UPI.