Forcas Studio Ltd planning to raise up to Rs. 37.44 crore from public issue; IPO opens August 19 #3

New Delhi [India], August 16: Forcas Studios Limited, an established menswear company since 2010, is planning to raise up to Rs. 37.44 crore from its SME public issue. The company has received approval to launch its public issue on the NSE Emerge Platform of the National Stock Exchange. The public issue opens for subscription on August 19 and closes on August 21. The Proceeds of the public issue will be utilized to meet the company’s working capital requirement, upgrade the warehouse, prepay or repay certain secured loans availed and for general corporate purposes. Horizon Management Private Limited is the book-running lead manager of the issue.

The initial public offering of Rs. 37.44 crore comprises a fresh issue of 4,680,000 shares of face value of Rs. 10 each. Company has finalized a price band of Rs. 77-80 per equity share for the public issue. The minimum lot size for retail investors is 1600 shares, amounting to a minimum investment of Rs 128,000. The minimum lot size investment for HNI is 2 lots (3,200 shares) amounting to Rs 256,000.

Highlights:-

Fresh Public issue of 46.8 lakh equity shares opens for subscription from August 19 to August 21
The menswear company sells its products through online platform under the brand name of ‘FTX’, ‘Tribe’ and ‘Conteno
Minimum lot size for application is 1600 shares; Minimum IPO application amount Rs. 1.28 lakh
Funds raised through the issue will be used to meet the working capital requirements, upgradation of warehouse, repayment of secured loans and general corporate purposes.
For FY23-24 (till February 2024) company reported revenues of Rs. 96.48 crore and Net Profit of Rs. 5.53 crore
Horizon Management Private Limited is the book-running lead manager of the issue.

Incorporated in April 2010, Forcas Studio Limited sells men’s clothing, including shirts, jeans, t-shirts, trousers, cotton pants, sportswear, party wear, fashion wear, and boxers. The company provides these products online and in bulk to customers all over India. It also offers white-labelling services for other brands, such as Landmark Group, V-Mart Retail, V2 Retail, and more.

The company offers a wide range of products, including shirts, denims, t-shirts, trousers, cotton pants, sportswear, party wear, fashion wear, and boxers for the Indian menswear segment. The company sells its products through online platform under the brand name of ‘FTX’, ‘Tribe’ and ‘Conteno.

The company has established a presence on all major online platforms, including Flipkart, Myntra, Meesho, Amazon, Ajio, Jio Mart, Glowroad, Limeroad, Solvd, and Shopsy. Additionally, the company has also sold products through various large-format stores, including V-Mart Retail, V2 Retail, Sarvana Retail and many more. The company has served more than 15000 pin codes in India.

The company has a strong offline presence, with a presence on major online marketplaces and in over 500 large-format stores. They offer a wide range of products with a catalogue of over 1200 SKUs.

The company has four warehouses in Kolkata for the purpose of supply chain management.

Business Highlights:-

Company has reported excellent operational and financial performance over years. The Company has witnessed a multi-fold growth in revenue and profitability over the years. For FY23-24 (till February, 2024), company has reported net profit of Rs. 5.53 crore and revenue of Rs. 96.48 crore as compared to profitability and revenue of Rs. 1.17 crore and Rs. 71.62 crore in FY22-23.

As on February 2024, the Net Worth of the company was reported at Rs. 19.01 crore, Reserves & Surplus at Rs. 6.11 crore and Asset base of Rs. 123.79 crore. As on March 2024, the ROE of the company was 27.06%, ROCE at 18.54%, and RONW at 27.06%. Shares of the company will be listed on NSE’s Emerge platform.

IPO Highlights – Forcas Studio Limited

IPO Opens on
August 19, 2024

IPO Closes on
August 21, 2024

Issue Price
Rs. 77-80 Per Share

Issue Size
46.8 lakh shares – up to Rs. 37.44 crore

Lot Size
1600 Shares

Listing on
NSE Emerge Platform of National Stock Exchange

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