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Naman In-Store (India) Limited IPO Review



Naman In-Store (India) Limited IPO Detailed Review


Naman In-Store India Limited is a name that stands out in the retail furniture and fittings industry. Established in 2010, the company has carved a niche for itself by providing tailored solutions to a variety of industries and retail establishments. The company's product range is diverse, including modular furniture for offices, beauty salons, and kitchens, as well as shelving solutions for supermarkets.


The company's growth and vision can be attributed to its strong leadership and the promoter family behind it. The promoters of Naman In-Store India Limited are Mr. Raju Paleja, Ms. Bhavika Paleja, Mr. Jay Shah, Mr. Mehul Naik, and Mr. Abdul Shahid Shaikh. Each of these individuals brings a wealth of experience and a shared commitment to the company's success.


Naman In-Store India Limited has its roots in Mumbai, Maharashtra. The city, known for its dynamic business environment, has been the perfect backdrop for the company's innovative approach to retail solutions.


The founding reason for Naman In-Store India Limited was to offer a wide range of solutions to various industries and retail stores. The company aimed to specialize in the design and execution of turnkey projects, bringing together all necessary resources under one roof to meet the requirements of any fit-out project. Their manufacturing capabilities cover in-store customized furniture and fixtures in wood, metal, and plastic, catering to a diverse clientele.


The company's commitment to innovation and quality has been the driving force behind its success. With a dedicated team of 491 employees as of the same date, Naman In-Store India Limited continues to push the boundaries of retail furniture and fittings, providing exceptional value to its customers and stakeholders.


Competitive Strengths


Naman In-Store India Limited, a company that has carved a niche for itself in the retail furniture and fixture industry, stands out for its robust competitive strengths that have propelled it to prominence since its inception in 2010. This detailed analysis delves into the core competencies that give Naman In-Store India Limited a competitive edge in the market.


Revenue, Sales, and Profit


Naman In-Store India Limited, established in 2010, is a retail furniture and fittings company that has shown significant financial growth. For the first half of the financial year 2024, ending on September 30, 2023, the company reported a net profit of Rs. 6.19 crore on a total revenue of Rs. 79.30 crore. In comparison to the previous financial year, the company's revenue saw an increase of 193.48%, and the profit after tax (PAT) rose by a remarkable 1696.28%. Naman In-Store (India) Limited's total assets increased significantly, from ₹3,074.09 lakhs to ₹5,598.94 lakhs by September 30, 2023, thanks to a significant rise in income and profit. These figures reflect the company's strong market presence and operational efficiency.


Distribution Network and Geographical Reach


Naman In-Store India Limited, established in 2010, has developed a robust distribution network and geographical reach within India. The company specializes in manufacturing modular furniture for a variety of sectors, including offices, beauty stores, educational institutions, and supermarkets. With a manufacturing facility located in Vasai, Maharashtra, and additional warehouses in Kaman, Maharashtra, and Bengaluru, the company is well-positioned to serve its customer base effectively. As of September 30, 2023, Naman In-Store India Limited has catered to approximately 32 retail customers and their franchises, along with 4 industrial customers, showcasing its capacity to handle a diverse clientele. The company's expansion plans include acquiring land on a leasehold basis at Butibori, MIDC, for relocating its manufacturing facilities, which indicates a strategic move to enhance its production capabilities and distribution efficiency. The geographical reach of Naman In-Store India Limited is further supported by its headquarters in Mumbai, which is equipped to design, produce, and ship products to clients globally, reflecting its ambition to extend its market presence beyond national boundaries.


Unique Features


They specialize in creating high-quality, custom displays and complex projects. This caters to brands with unique needs and allows for the use of various materials like wood, metal, and plastic within a single project. Naman In-Store offers a one-stop shop experience, handling everything from design and manufacturing to installation. This simplifies the process for clients and ensures a cohesive final product. Their in-house design team combines creativity with a deep understanding of various store environments and precision engineering. This translates to functional and visually appealing displays that enhance product presentation and customer experience.


Investment in Research and Development


Naman In-Store seems to prioritize manufacturing and customization capabilities. Their expertise lies in working with various materials and delivering intricate, client-specific solutions rather than developing entirely new product lines through R&D. As a company established in 2010 and going public for the first time (IPO), Naman In-Store might be more focused on establishing itself in the market and scaling its current operations. Significant R&D investments are often seen in more mature companies. The IPO prospectus typically outlines how the raised capital will be used. While the document mentions funding for land acquisition and building a new factory, there's no specific allocation towards R&D activities.


Naman In-Store (India) Limited IPO Details


  • Issue Date: The issue date, also known as the offer date, signifies the day when the company officially starts offering its shares to the public for purchase. This marks the beginning of the subscription period during which investors can submit their bids to buy the shares at the offered price. (March 22, 2024 to March 27, 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, April 2, 2024)

  • Face Value of Shares: The face value of shares is the nominal value of a stock that is determined by the issuer at the time of issuing the shares. It is usually a small amount, that does not reflect the actual market value of the shares. The face value of shares is used to calculate the accounting value of a company's equity, as well as the dividend payments and the par value of bonds. ( IPO Face Value: INR 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: INR 84 to INR 89 per share).

  • Lot Size: The lot size refers to the minimum number of shares an individual investor can apply for. This is set by the issuing company and aims to streamline the application process and manage the distribution of shares. Investors can then apply for multiples of the lot size, but not for quantities below it. (Lot Size: 1600 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: 2,848,000 shares (aggregating up to ₹25.35 Cr)).

  • Fresh Issue: Fresh issue in an IPO refers to the new shares a company creates and sells to the public for the first time during the offering. This is the primary way a company raises capital through an IPO. The money raised from the fresh issue is used for various purposes as outlined in the company's prospectus, such as funding expansion plans, repaying debt, or investing in research and development. (Fresh Issue: 2,848,000 shares (aggregating up to ₹25.35 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: Book Building 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: 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: 947,200 (33.26%)).

  • QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: 540,800 (18.99%)).

  • 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: 406,400 (14.27%)).


Competitors of Naman In-Store (India) Limited


The retail landscape in India is highly competitive and dynamic, with numerous players vying for market share. Naman In-Store India Limited, a company known for providing retail solutions to various industries and retail outlets, faces competition from several fronts.

 

One of the notable competitors is Bajel Projects, which has a market capitalization of ₹2,181.18 crores. Although specific financial details such as net profit and total assets are not publicly available, the company's market presence is significant. Another competitor, GRASIMPP, with a market cap of ₹2,130.37 crores, also stands as a formidable player in the market.

 

SJKHCCS, with a lower market cap of ₹617.07 crores, reported a net profit of ₹184.31 crores and total assets amounting to ₹1,599.84 crores, indicating a strong financial position. Other competitors include Abesc, HIGHWAY-RE, Gateway Dist-RE, Hybrid Fin Ser, and several others with varying market caps and financial metrics.

 

For local competition, Naman In-Store India Limited also contends with businesses like Need Nutrition Supplements Shop, a vitamin and supplement store in Bhopal, which emphasizes the authenticity of its products and customer satisfaction.

 

It's important to note that the competitive environment is not static and can change with new entrants, mergers, acquisitions, and shifts in consumer preferences. Companies like Naman In-Store India Limited must continuously innovate and adapt to maintain their market position and grow their customer base.


The retail sector in India is a testament to the country's growing economy and presents both challenges and opportunities for companies like Naman In-Store India Limited. Understanding the competitive landscape is crucial for any business looking to succeed in this vibrant market.


Conclusion


Naman In-Store India Limited's IPO presents an opportunity to invest in a growing company with a strong track record in customized retail furniture and fixtures. Their ability to cater to diverse clients and deliver complex projects positions them well within the market. However, the recent revenue decline and low profit margins raise concerns. The lack of emphasis on formal R&D might also be a consideration for long-term growth potential. Carefully weigh these factors against your investment goals and risk tolerance before making a decision on the Naman In-Store India Limited IPO.


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.



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