Finelistings Technologies Limited IPO Review
Finelistings Technologies Limited, a company that has carved a niche for itself in the luxury pre-owned car market and software development services, is a name that resonates with innovation and quality. Established in 2018, the company has rapidly grown to become a significant player in its sector.
The company is the brainchild of Aneesh Mathur and Arjun Singh Rajput, who are not only the promoters but also the guiding force behind the company's strategic decisions. Their extensive industry knowledge and leadership have been pivotal in steering the company towards success.
Rooted in the capital city of India, Delhi, Finelistings Technologies Limited began its journey with a vision to revolutionize the pre-owned luxury car market and provide top-notch software development services.
The inception of Finelistings Technologies Limited dates back to March 23, 2018. The company was founded with the aim of addressing the untapped potential of the pre-owned luxury car market and fulfilling the growing need for comprehensive software development services.
Competitive Strengths
Finelistings Technologies has emerged as a notable player in the technology sector, distinguishing itself through a blend of innovative solutions and strategic business practices. This detailed analysis aims to shed light on the competitive strengths that position Finelistings Technologies as a formidable entity in its industry.
Revenue, Sales, and Profit
Finelistings Technologies, established in 2018, operates in the niche market of retailing used luxury cars and providing software development services. The company has shown a remarkable growth trajectory in its financial performance over the years. For the fiscal year ending March 2023, Finelistings Technologies reported a significant increase in sales, reaching ₹13.89 crores, up from ₹6.94 crores the previous year. This growth is reflected in the company's net profit, which stood at ₹1.79 crores for the same period, a substantial improvement considering the net loss of ₹0.08 crores reported in the previous fiscal year. The company's operating profit margin (OPM) also saw a positive shift, recording 18.07% compared to a negligible 0.29% in the prior year. These figures underscore the company's successful expansion and operational efficiency.
Distribution Network and Geographical Reach
Finelistings Technologies Limited, established in 2018, operates in two main business segments: retail of used luxury cars and software development services. The company has carved a niche in selling used premium and high-end luxury vehicles, with an average selling price of ₹40 lakhs. Their distribution network for the luxury car segment is tailored to cater to a niche market, focusing on quality over quantity, ensuring a premium experience for their customers. On the software development front, Finelistings Technologies offers a range of services, likely supported by a network of professionals and partnerships that enable them to reach a global clientele. While specific details about their geographical reach are not publicly available, the company's recent move to go public with an IPO suggests an expansion strategy that could enhance their distribution network and geographical footprint.
Unique Features
Finelistings Technologies, incorporated in 2018, operates in two primary business domains: retailing of used luxury cars and software development services. In the luxury car segment, the company provides a platform for buying and selling high-end vehicles such as sedans, SUVs, and convertibles, with an average selling price of around ₹40 lakhs. They also offer comprehensive after-sales services, repairs, and other allied services through affiliated service centers. Additionally, Finelistings Technologies facilitates finance and insurance for eligible buyers. The software development side of the business offers cloud-based IT consulting services, including big data analytics, cloud architecture, data engineering, and IoT solutions. These services cater to the evolving digital transformation needs of their customers, focusing on data analytics, security, technology consulting, and infrastructure.
Investment in Research and Development
Finelistings Technologies, a company engaged in the retail of pre-owned luxury cars and software development services, has recently made headlines with its strategic investment initiatives. The company's IPO documents reveal plans to allocate a significant portion of the raised funds towards enhancing their digital capabilities, particularly in software procurement. This move is aimed at bolstering their offerings in data analytics, digital transformation, technology consulting, infrastructure, and security solutions for their clients. With a successful IPO, Finelistings Technologies aims to strengthen its position in the market by investing in research and development, which is crucial for innovation and staying competitive in the fast-paced tech industry. The company's commitment to R&D investment reflects its dedication to growth and technological advancement, ensuring that it remains at the forefront of providing cutting-edge solutions to its customers. The detailed allocation of the IPO funds towards R&D endeavors showcases Finelistings Technologies' strategic approach to leveraging financial resources for long-term success and market leadership.
Finelisting Technologies 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: May 7, 2024 to May 9, 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: Tuesday, May 14, 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: ₹123 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: 1000 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: 1,100,000 shares (aggregating up to ₹13.53 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: 1,100,000 shares (aggregating up to ₹13.53 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: 521,000 (47.36%)).
Market Makers Shares Offered: Market Maker Shares in an IPO refer to the shares that are allocated to market makers, who are responsible for improving the liquidity and facilitating better price discovery of the stock post-IPO. Market makers are registered members of the stock exchange and provide two-way quotes, buying and selling shares at predetermined prices. This system is particularly important for SME (Small and Medium-sized Enterprises) IPOs, where market makers play a crucial role in ensuring that there is enough trading activity and stability in the stock's price. (Market Maker Shares Offered: 58,000 (5.27%)).
Other Shares Offered: 521,000 (47.36%).
Competitors of Finelistings Technologies Limited
Finelistings Technologies, a company engaged in the retail of pre-owned luxury cars and software development services, operates in a competitive market landscape. The company's recent move to open an SME IPO to raise funds highlights its growth trajectory and the competitive dynamics of the industry it operates in.
The competitors of Finelistings Technologies span across various sectors due to its diversified business model. Notably, companies like JSW Infra, Bharti Hexacom, and SignatureGlobal are some of the major players that share the market space with Finelistings Technologies. These companies have a significant market capitalization and sales turnover, indicating their strong presence in the industry.
Another competitor worth mentioning is CarTrade Tech Ltd, which operates with a P/E ratio of 98.83, suggesting a robust valuation in comparison to Finelistings Technologies, which has a P/E ratio of 14.04. Cambridge Technology Enterprises Ltd and Globalspace Technology Ltd are also listed peers, with P/E ratios of 22.06 and 47.13, respectively. These companies, along with others mentioned in the competitive analysis, reflect a diverse and challenging environment where Finelistings Technologies must strategize effectively to maintain and enhance its market position.
The competitive landscape is further characterized by the performance metrics of these companies, such as sales turnover, net profit, and total assets. For instance, Rattanindia Ent and PowerGrid InvIT have reported significant figures in these areas, showcasing their operational scale and financial health.
In the realm of technology and software development, Finelistings Technologies faces competition from entities that specialize in digital transformation, data analytics, technology consulting, infrastructure, and security. The competitive edge in this sector is often driven by innovation, quality of service, and the ability to cater to the evolving needs of customers.
The IPO details of Finelistings Technologies reveal that the company aims to raise nearly Rs 13.5 crore through the issuance of fresh equity. This strategic move is intended to fund the purchase of software, meet working capital requirements, and support other general corporate purposes. The success of this IPO could be a significant factor in determining the company's ability to compete and expand in its respective markets.
Conclusion
In conclusion, Finelistings Technologies Limited's IPO marks a significant milestone in the company's journey, reflecting its ambition to expand and solidify its presence in the luxury car sales and software development sectors. Despite the mixed reviews and concerns raised by some analysts regarding the company's past financial performance and market competition, the IPO was met with considerable interest on its opening day. Investors are encouraged to conduct thorough due diligence, considering the company's recent endeavors to turn around its financials and the strategic moves it has made towards diversification and digital transformation. As with any investment, potential risks should be weighed against the prospects of growth, especially in a market that is as competitive and rapidly evolving as technology and luxury car retail. Finelistings Technologies Limited's IPO serves as a testament to the dynamic nature of the market and the continuous need for innovation and adaptability.
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.