Arham Technology SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Dec 2022 – 07 Dec 2022
- Listing date
- 15 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹42 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹9.58 Cr
- Market cap at offer price
- ₹35.53 Cr
- Promoter holding
- 100.00% → 73.05% pre-issue → post-issue
- ISIN
- INE0L2Y01011
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- Plot No.15 Electronic Manufacturing Cluster, Sector 22, Village Tuta, Atal Nagarnava, Chhattisgarh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,14,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹42
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 21,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.89 | — |
| P/E (×) | 8.59 | — |
| Market cap | — | ₹35.53 Cr |
Key performance indicators
- Return on net worth
- 42.33%
- ROCE
- 48.00%
- Debt / equity
- 2.24
- PAT margin
- 8.00%
- NAV per share
- ₹34.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Arham Technology SME
Arham Technologies Limited, incorporated on December 27, 2013, is engaged in manufacturing LED Smart Televisions under its STARSHINE brand in various screen sizes. The company also manufactures Fans, Air Coolers, and Mixer Grinders through third-party manufacturers under the same brand. The company operates through a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh, and parts of Uttar Pradesh. It also serves as an Original Equipment Manufacturer (OEM) for LED Televisions and engages in white-labelling for regional brands. The company is strategically located in the Electronic Manufacturing Cluster in Raipur, Chhattisgarh, benefiting from its central location and access to neighboring states. Recently, the company launched a D2C website (www.starshine.co.in) and listed products on e-commerce platforms including Amazon and Flipkart.
Company Analysis
from RHPArham Technologies Limited manufactures LED Smart Televisions under the STARSHINE brand and also produces Fans, Air Coolers, and Mixer Grinders through third-party manufacturers, serving markets across central India and operating as an OEM partner.
Arham Technologies Limited, incorporated on December 27, 2013, is engaged in manufacturing LED Smart Televisions under its STARSHINE brand in various screen sizes. The company also manufactures Fans, Air Coolers, and Mixer Grinders through third-party manufacturers under the same brand. The company operates through a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh, and parts of Uttar Pradesh. It also serves as an Original Equipment Manufacturer (OEM) for LED Televisions and engages in white-labelling for regional brands. The company is strategically located in the Electronic Manufacturing Cluster in Raipur, Chhattisgarh, benefiting from its central location and access to neighboring states. Recently, the company launched a D2C website (www.starshine.co.in) and listed products on e-commerce platforms including Amazon and Flipkart.
Objects of the Issue
- Working capital requirements ₹834.00 Lakhs p.20
- Issue related expenses ₹48.60 Lakhs p.20
- General corporate expenses ₹75.00 Lakhs p.20
- To meet the working capital requirements ₹834.00 lakhs p.60
- To meet the Issue Expenses ₹48.60 lakhs p.60
- General Corporate Purposes ₹75.00 lakhs p.60
- —
Issue Structure
- Total Issue
- ₹957.60 Lakhs
- Fresh Issue
- ₹957.60 Lakhs (22,80,000 Equity Shares of ₹10/- each at ₹42/- per share)
- Offer for Sale
- Nil
- Price Band
- ₹42/- per Equity Share (Fixed Price)
- Lot Size
- 3,000 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company generates revenue primarily through manufacturing and selling LED Smart Televisions under the STARSHINE brand, which contributed 73.94%, 69.14%, 91.23%, and 93.79% of revenue from operations in September 30, 2022, Fiscal 2022, Fiscal 2021, and Fiscal 2020 respectively. Additionally, it earns revenue through third-party manufactured products (Fans, Air Coolers, Mixer Grinders, and Washing Machines), which contributed 24.65%, 2.92%, and 0.17% of revenue for Fiscals 2022, 2021, and 2020 respectively. The company also generates revenue from OEM business models for LED Televisions, contributing 6.21%, 5.85%, and 6.04% of total revenue for Fiscals 2022, 2021, and 2020 respectively.
Business Segments
SWOT Analysis
- • Strategic location in Electronic Manufacturing Cluster with geographical advantages for market access(p.18)
- • Established distributor network across multiple states with long-standing customer relationships(p.18)
- • Diversified revenue streams through OEM, white-labelling, and direct-to-consumer channels(p.18)
- • Manufacturing of LED TVs with latest technology and integrated production facility(p.24)
- • Experienced management team with deep industry expertise(p.93)
- • Strong organizational track record demonstrating resilience(p.93)
- • Quality assurance and ISO certification(p.94)
- • Integrated manufacturing facility with quality control(p.94)
- • Strategic geographic location near major markets(p.94)
- • Government incentives available for manufacturing operations(p.94)
- • Established dealer and distributor network(p.93)
- • Experienced management with 34 years entrepreneurial track record(p.113)
- • Strategic location in Electronic Manufacturing Cluster with multi-state market access(p.170)
- • Advantage from government import restrictions on assembled TVs(p.170)
- • Established brand and trademark portfolio(p.182)
- • Growing profitability trend across financial periods(p.172)
- • 100% underwritten issue with lead manager commitment of minimum 15%(p.187)
- • Positive net-worth and strong operating profitability over multiple years(p.187)
- • Consistent operating profit for past three financial years(p.188)
- • Clean compliance record with no material regulatory or disciplinary action(p.188)
- • Compulsory market making support for minimum three years post-listing(p.187)
- • No litigations, criminal charges, or defaults against promoters and directors(p.188)
- • High dependence on LED TV sales, which contributed 73.94% to 93.79% of revenue across periods(p.22)
- • No long-term contracts with customers; business operates on order-by-order basis(p.23)
- • Negative cash flow from operations in recent fiscal years(p.25)
- • All manufacturing facilities concentrated in Raipur, creating geographic concentration risk(p.26)
- • Dependence on small number of suppliers for raw materials(p.26)
- • Heavy reliance on third-party manufacturers for significant product lines(p.23)
- • Trademarks have expired and renewals are pending(p.31)
- • Limited access to capital for scaling business growth(p.95)
- • High working capital requirement(p.95)
- • Concentrated customer base in top customers(p.93)
- • Dependence on imported raw materials(p.86)
- • Highly concentrated promoter shareholding with limited public float post-IPO(p.123)
- • Significant dependence on limited number of customers and suppliers(p.171)
- • High financial indebtedness with debt-to-equity ratio of 1.44(p.162)
- • Dependence on imported raw materials from China and Hong Kong(p.170)
- • Pending litigation with material financial implications(p.176)
- • No previous public or rights issue experience; first-time IPO company(p.193)
- • No investor complaints history available due to limited track record as public company(p.195)
- • Government import restrictions on assembled LED televisions creating market opportunity(p.24)
- • Indian consumer appliances market expected to grow at 9% CAGR(p.18)
- • Government target for electronics manufacturing sector to reach US$ 300 billion by 2024-25(p.18)
- • Growing demand driven by rising disposable income and rural electrification(p.18)
- • D2C website and e-commerce platform expansion to increase brand value and direct sales(p.18)
- • Growth in e-commerce and direct-to-consumer channels(p.95)
- • Government restriction on imported televisions benefits domestic manufacturers(p.86)
- • Expanding geographic presence across India(p.94)
- • Brand void in Indian consumer electronics market(p.95)
- • Growing demand for smart TVs and consumer electronics(p.75)
- • Production-Linked Incentive scheme for white goods and electronics(p.76)
- • Expansion into manufacturing of fans with higher margins(p.170)
- • Direct-to-consumer channel through D2C website and e-commerce platforms(p.171)
- • OEM business model expansion with cost-competitive advantage(p.170)
- • Planned diversification into white-label products(p.170)
- • Inland port advantage reducing import and export costs(p.170)
- • Listing on NSE EMERGE platform provides access to capital markets(p.186)
- • Potential for migration to NSE main board subject to capital growth and shareholder approval(p.201)
- • Post-issue paid-up capital of ₹8.46 crores provides room for growth before regulatory thresholds(p.187)
- • Intense competition from both organized and unorganized sector players with lower pricing(p.23)
- • Rapid technological changes and short product life cycles in consumer electronics(p.25)
- • Foreign exchange risk on imported raw materials(p.34)
- • Customer demand fluctuations and market price sensitivity affecting sales volume(p.22)
- • Risk of delays, modifications or cancellations of customer orders(p.30)
- • Global economic downturn and reduced consumer spending affecting demand(p.35)
- • COVID-19 pandemic impacts on business, supply chains and consumer demand(p.29)
- • Interest rate increases impacting borrowing costs and financial condition(p.35)
- • Regulatory and policy changes affecting manufacturing and operations(p.35)
- • Unpredictable government policy changes affecting business(p.95)
- • Intense competition from large multinational corporations(p.95)
- • Competition from multinational corporations versus MSME manufacturers(p.95)
- • Highly competitive consumer electronics industry dominated by major players(p.95)
- • No entry barriers creating threat of new competitors(p.95)
- • Continued impact of COVID-19 pandemic on operations(p.171)
- • Rapid technological advancement and inability to keep pace(p.171)
- • Increased competition in the sector(p.171)
- • Seasonal nature of some product lines(p.174)
- • Failure to comply with financial covenants under financing arrangements(p.171)
- • General economic and business condition volatility(p.171)
- • Small market capitalization limits investor base and liquidity(p.187)
- • Minimum 50 allottees requirement could result in issue failure and full refund(p.199)
- • Fixed price mechanism limits price discovery and may affect valuation accuracy(p.206)
- • Limited scale compared to lead manager's portfolio with mixed historical performance(p.196)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Roshan Jain | Promoter | 31.75% | — |
| Ankit Jain | Promoter | 28.30% | — |
| Anekant Jain | Promoter | 18.35% | — |
| Roshan Jain | Promoter | 31.75% | 23.19% |
| Ankit Jain | Promoter | 28.30% | 20.67% |
| Anekant Jain | Promoter | 18.35% | 13.40% |
| Rukmani Jain | Promoter Group | 13.59% | 9.93% |
| Roshan Jain HUF | Promoter Group | 7.77% | 5.67% |
| Kanika Jain | Promoter Group | 0.22% | 0.16% |
| Pranav Agrawal | Promoter Group | 0.02% | 0.02% |
| Mr. Roshan Jain | Promoter | 31.75% | 23.19% |
| Mr. Ankit Jain | Promoter | 28.30% | 20.67% |
| Mr. Anekant Jain | Promoter | 18.35% | 13.40% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.