Aspire & Innovative Advertising
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Mar 2024 – 28 Mar 2024
- Listing date
- 03 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹54 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹21.97 Cr
- Market cap at offer price
- ₹81.96 Cr
- Promoter holding
- 98.84% → 72.35% pre-issue → post-issue
- ISIN
- INE0S7801010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- C-4 Baldev Park, Shahdara, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 11,56,000 | — | — |
| Market maker | 2,04,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹54
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,80,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.78 | 5.18 |
| P/E (×) | 11.30 | 10.42 |
| Price to book (×) | 3.09 | — |
| Market cap | — | ₹81.96 Cr |
Key performance indicators
- Return on net worth
- 20.22%
- ROCE
- 18.59%
- Debt / equity
- 0.60
- PAT margin
- 2.23%
- NAV per share
- ₹17.50
- Price to book
- 3.09
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Aspire & Innovative Advertising
Aspire & Innovative Advertising Limited, incorporated in July 2017 and converted to a public company in December 2023, operates as a trading company in the consumer durables sector. The company sources a wide range of products from third-party manufacturers and distributors—including kitchen appliances, home appliances, white goods, mobile phones, and solar products from brands such as Bajaj, Prestige, Vivo, Samsung, Crompton, Whirlpool, Hindaware, and Havells. Since 2022, it has diversified into owned-brand products, launching Stainless Steel Dinner Sets and expanding in 2023 with pressure cookers under the 'Aspire Classico' brand. The company operates 19 warehouses across multiple Indian states and sells to customers primarily in rural and semi-urban areas, with major revenue concentration in Uttar Pradesh, Bihar, Odisha, West Bengal, and Madhya Pradesh. For the period ended September 30, 2023, total income was ₹17,710.29 lakhs; for FY 2023, ₹34,620.10 lakhs.
Company Analysis
from RHPAspire & Innovative Advertising Limited is a consumer durables trading company that sources and distributes kitchen appliances, home appliances, white goods, mobile phones, solar products and owned-brand items across 25+ Indian states.
Aspire & Innovative Advertising Limited, incorporated in July 2017 and converted to a public company in December 2023, operates as a trading company in the consumer durables sector. The company sources a wide range of products from third-party manufacturers and distributors—including kitchen appliances, home appliances, white goods, mobile phones, and solar products from brands such as Bajaj, Prestige, Vivo, Samsung, Crompton, Whirlpool, Hindaware, and Havells. Since 2022, it has diversified into owned-brand products, launching Stainless Steel Dinner Sets and expanding in 2023 with pressure cookers under the 'Aspire Classico' brand. The company operates 19 warehouses across multiple Indian states and sells to customers primarily in rural and semi-urban areas, with major revenue concentration in Uttar Pradesh, Bihar, Odisha, West Bengal, and Madhya Pradesh. For the period ended September 30, 2023, total income was ₹17,710.29 lakhs; for FY 2023, ₹34,620.10 lakhs.
Objects of the Issue
- To meet Working Capital requirements ₹900.00 lakhs p.23
- To finance the cost of establishing new warehouses ₹495.04 lakhs p.23
- General Corporate Purpose [●] p.23
- To meet Working Capital requirements ₹900.00 Lakhs p.75
- To finance the cost of establishing new warehouses ₹495.04 Lakhs p.76
- General Corporate Purpose p.79
- Continue to expand Warehousing and Transportation facilities: creating new touch-points to other regions of the country along with existing ones for growth of business, to increase distribution network to meet increasing demand p.102
- Expand our domestic presence in existing and new markets through marketing and sales team enhancement and new geography entry p.102
- Enhancing branding, promotional and marketing activities to increase visibility and customer loyalty p.103
- Continue to strengthen product portfolio and diversify into new product lines including expanding owned brand portfolio p.104
Issue Structure
- Total Issue
- up to ₹[●] lakhs
- Fresh Issue
- up to 40,68,000 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] (Floor Price) to ₹[●] (Cap Price)
- Lot Size
- [●] equity shares and in multiples of [●] equity shares
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through trading and distribution of consumer durable products sourced from third-party suppliers and brands. It purchases inventory based on projected sales, maintains 19 warehouses for storage and regional distribution, and sells to customers through commercial arrangements with intermediaries including NBFCs and MFIs. The company also generates revenue from its own-brand products (Stainless Steel Dinner Sets and Aspire Classico pressure cookers) outsourced to third-party manufacturers.
Business Segments
SWOT Analysis
- • Established supplier relationships with major brands(p.28)
- • Strong revenue growth trajectory(p.29)
- • Geographic presence across India(p.32)
- • Own brand products portfolio(p.23)
- • Diverse product portfolio across consumer preferences(p.82)
- • Revenue diversification across multiple geographies including rural and semi-urban areas(p.82)
- • Quality assurance with standardized product quality(p.82)
- • Established warehousing and transportation network across geographies(p.82)
- • Diverse product portfolio across multiple consumer durable categories(p.101)
- • Strong geographical diversification across rural and semi-urban areas(p.101)
- • Quality products from established brands with trusted reputation(p.101)
- • Extensive warehousing and transportation network across 16 states(p.102)
- • Promoter with 15+ years experience in rural and semi-urban NBFC/MFI operations(p.100)
- • Growing own-brand portfolio (Aspire Classico) contributing 10.82% of trading revenue(p.100)
- • Asset-light business model with low capital expenditure requirements(p.99)
- • Strong revenue growth track record with 63.3% CAGR over 4 years(p.100)
- • Established network with 15+ NBFC/MFI intermediaries across 16 states(p.195)
- • Asset-light business model with manageable capital requirements(p.195)
- • Promoter's deep sector experience in rural/semi-urban NBFC operations(p.196)
- • Strong revenue growth trajectory (136% growth FY21 to FY22)(p.200)
- • Own brand products (Aspire Classico) with growing revenue contribution(p.196)
- • Positive net worth and profitability across reporting periods(p.219)
- • High dependence on top suppliers(p.29)
- • Negative operating cash flows in recent periods(p.34)
- • High inventory levels relative to current assets(p.33)
- • Significant trade receivables concentration(p.33)
- • Rented premises without long-term security(p.30)
- • High debt dependence on promoters and unsecured loans(p.39)
- • Trademark registration challenges(p.33)
- • Regulatory compliance issues with RoC(p.32)
- • High dependence on trade receivables causing working capital strain(p.76)
- • Significant increase in debt obligations with short-term borrowings(p.48)
- • Inventory concentration risk with substantial working capital locked in finished goods(p.48)
- • High customer concentration in rural and semi-urban dependence on NBFC/MFI intermediaries(p.99)
- • Significant debt levels with borrowings at Rs. 1,160.89 lakhs as of Sept 30, 2023(p.149)
- • Low EBITDA margin of 3.03% and PAT margin of 2.23% indicating thin profitability(p.100)
- • High dependence on top 10 geographical regions accounting for 87.8% of revenue(p.101)
- • Trading company without manufacturing capability; fully dependent on third-party suppliers(p.107)
- • Small team of 49 permanent employees with limited scale(p.109)
- • Heavy dependence on facilitation fees to intermediaries (51% of turnover)(p.195)
- • High debt-to-equity ratio of 0.60 as of September 30, 2023(p.204)
- • Rising finance costs amid increasing borrowings(p.200)
- • Unfunded gratuity and leave encashment liabilities growing(p.157)
- • Outstanding dues to MSMEs and material creditors(p.207)
- • Expansion of warehousing network(p.35)
- • Growing Indian consumer durables market(p.23)
- • Geographic expansion potential(p.32)
- • Growth in working capital and operational efficiency(p.23)
- • Expansion into unbanked and under-banked rural and semi-urban markets(p.76)
- • Planned geographic expansion with 34 new warehouses across 6 states(p.76)
- • Growth of own brand products to increase margins and turnover(p.76)
- • India's rapid growth in consumer electronics and appliances market projected to reach US$ 17.93 billion by 2025(p.93)
- • Government policy support through Production-Linked Incentive (PLI) scheme boosting manufacturing(p.97)
- • Expansion of warehousing and transportation facilities to new regions(p.102)
- • Expansion into new geographical markets and customer segments(p.102)
- • Enhancement of branding, promotional and marketing activities(p.103)
- • Expansion of owned brand portfolio (Aspire Classico) with new product lines(p.104)
- • Growing rural consumer durables market driven by government electrification initiatives(p.98)
- • Projected strong growth in Indian consumer durables market across multiple categories(p.98)
- • 100% FDI permitted under automatic route in electronics and single-brand retail sectors(p.98)
- • Expansion into rural and semi-urban consumer durables market through unbanked/underbanked segments(p.195)
- • Diversification of product portfolio (50+ products across categories)(p.196)
- • Geographic expansion into new states and regions(p.200)
- • Growing own-brand product line (Aspire Classico pressure cookers and dinner sets)(p.196)
- • Supply chain disruption risks(p.28)
- • Intense competition from organized and unorganized players(p.37)
- • Dependence on third-party logistics and warehousing(p.30)
- • Economic slowdown in India(p.42)
- • Regulatory and tax law changes(p.43)
- • Global economic and geopolitical disruptions(p.43)
- • Product warranty and liability risks(p.32)
- • Concentration of revenue in top five states(p.32)
- • Economic slowdown in India could adversely affect business and customer demand(p.44)
- • Ongoing uncertainty from COVID-19 pandemic on operations and revenue(p.44)
- • Political instability and changes in government policies affecting business(p.44)
- • Natural disasters and unforeseen external shocks affecting operations(p.45)
- • Global financial instability impacting Indian economy and business(p.44)
- • Rising concerns of slowdown in Chinese economy and strained India-China trade relations(p.45)
- • Stringent labour laws restricting operational flexibility and increasing costs(p.44)
- • Intense competition from organized and unorganized players across multiple regions(p.108)
- • Dependency on performance of NBFC/MFI partners and credit availability(p.99)
- • Exposure to price volatility in raw materials and input costs(p.101)
- • Regulatory changes affecting rural lending, consumer protection and e-commerce(p.119)
- • Supply chain disruptions affecting product procurement and delivery(p.99)
- • Seasonality and cyclicality in consumer durables demand(p.101)
- • Economic slowdown reducing purchasing power in rural and semi-urban segments(p.98)
- • Dependence on few large intermediaries (15 NBFCs/MFIs for majority of sales)(p.195)
- • General economic and business condition volatility(p.197)
- • Changes in government policies affecting rural credit and consumer durables(p.197)
- • Competitive pressures in consumer durables trading(p.202)
- • Risks from global disturbances affecting domestic markets(p.197)
- • Interest rate sensitivity affecting intermediary lending rates(p.197)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nitesh Agarwalla | Promoter | 83.26% | 60.94% |
| Rinku Agarwalla | Promoter | 15.59% | 11.41% |
| Nitesh Agarwalla | Promoter & Director | 83.26% | 60.94% |
| Rinku Agarwalla | Promoter & Director | 15.59% | 11.41% |
| Nitesh Agarwalla | Promoter | 83.26% | — |
| Rinku Agarwalla | Promoter | 15.59% | — |
| Nitesh Agarwalla | Promoter | 83.26% | — |
| Rinku Agarwalla | Promoter | 16.74% | — |
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.