Bizotic Commercial
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Jun 2023 – 15 Jun 2023
- Listing date
- 23 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹175 per share
- Lot size
- 800 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹42.21 Cr
- Market cap at offer price
- ₹141 Cr
- Promoter holding
- 99.99% → 69.99% pre-issue → post-issue
- ISIN
- INE0OJ401014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 8, Samet Business Park, Nr.Khokra Circle, Khokra, Gujarat
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 | 1,20,800 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹175
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,40,000 |
| S-HNI (min) | 2 | 1,600 | ₹2,80,000 |
| S-HNI (max) | 7 | 5,600 | ₹9,80,000 |
| B-HNI (min) | 8 | 6,400 | ₹11,20,000 |
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 (₹) | 0.82 | — |
| P/E (×) | 213.41 | — |
| Market cap | — | ₹141 Cr |
Key performance indicators
- Return on net worth
- 51.27%
- PAT margin
- 1.00%
- NAV per share
- ₹1,231.66
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Bizotic Commercial
Bizotic Commercial Limited (formerly Bizotic Commercial Private Limited) was incorporated on December 29, 2016, and converted to a public limited company on December 26, 2022. The company is engaged in the business of manufacturing, designing, and marketing of readymade garments offering diverse ranges including men's Formal Wear, Casual Wear, Party Wear, Fit Wear, Sports Wear, Comfort Wear, Ethnic Wear, and Winter Wear. It serves customers through retail stores and e-commerce channels. The company's garment manufacturing process includes cutting, stitching, sewing, finishing, inspection, and packing. The company outsources 80% of garment manufacturing on a job work basis from third-party contractors, providing them with technical specifications such as designs, patterns, quality, and fabric. The company operates 4 own showrooms and 17 franchisee stores across Bihar and Rajasthan under the 'Urban United' brand.
Company Analysis
from RHPBizotic Commercial Limited manufactures, designs, and markets readymade garments across men's formal wear, casual wear, party wear, and other categories, operating through retail stores and e-commerce channels primarily in Bihar and Rajasthan.
Bizotic Commercial Limited (formerly Bizotic Commercial Private Limited) was incorporated on December 29, 2016, and converted to a public limited company on December 26, 2022. The company is engaged in the business of manufacturing, designing, and marketing of readymade garments offering diverse ranges including men's Formal Wear, Casual Wear, Party Wear, Fit Wear, Sports Wear, Comfort Wear, Ethnic Wear, and Winter Wear. It serves customers through retail stores and e-commerce channels. The company's garment manufacturing process includes cutting, stitching, sewing, finishing, inspection, and packing. The company outsources 80% of garment manufacturing on a job work basis from third-party contractors, providing them with technical specifications such as designs, patterns, quality, and fabric. The company operates 4 own showrooms and 17 franchisee stores across Bihar and Rajasthan under the 'Urban United' brand.
Objects of the Issue
- Setting up Retail network by establishing company owned and company operated stores ₹450.00 Lakhs p.55
- Repayment of Loan ₹180.00 Lakhs p.55
- Long-term Working capital requirement ₹2,270.00 Lakhs p.55
- General corporate purposes ₹961.00 Lakhs p.55
- Setting up Retail network by establishing company owned stores ₹460.00 lakhs p.59
- Repayment of Loan ₹170.00 lakhs p.60
- Working capital requirement ₹2,270.00 lakhs p.60
- General corporate purposes ₹961.00 lakhs p.61
Issue Structure
- Total Issue
- ₹4,221.00 Lakhs
- Fresh Issue
- 24,12,000 Equity Shares of face value of ₹10 each at a price of ₹175 per equity share aggregating to ₹4,221.00 Lakhs
- Price Band
- Fixed price of ₹175 per equity share
- Lot Size
- 800 Equity Shares (Application Lot)
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through the trading of readymade garments via retail stores and e-commerce channels. It outsources garment manufacturing to third-party contractors on a job work basis, providing them with technical specifications while contractors procure raw materials at their own cost. Products are delivered as finished and packaged items to the company's warehouse and stores. Revenue is generated from direct sales through company-owned showrooms and franchisee stores.
Business Segments
SWOT Analysis
- • Diverse product portfolio across apparel categories(p.17)
- • Multi-channel distribution via retail and e-commerce(p.17)
- • Growing Indian textile and apparel industry tailwind(p.17)
- • India's dominant global cotton production position(p.17)
- • Experienced management team with deep textile/garment industry expertise(p.79)
- • In-house design capabilities using CAD/CAM systems(p.82)
- • Established marketing setup and diversified customer base(p.82)
- • Omnichannel distribution via retail stores and e-commerce(p.82)
- • Strict quality control and product standards(p.82)
- • Successful franchising model enabling rapid expansion(p.82)
- • Unregistered office premises on short-term lease(p.21)
- • High customer concentration (top 10 customers = 80% revenue)(p.22)
- • Significant aged receivables (₹62.27 lakhs overdue >3 years)(p.22)
- • No written agreements with 17 of 21 franchisees(p.22)
- • No job work agreements with garment suppliers(p.22)
- • Outstanding criminal litigations (₹49.50 lakhs at risk)(p.22)
- • Unsecured loans repayable on demand (₹146.86 lakhs)(p.23)
- • Corporate logo registered in third party name(p.28)
- • High debt-to-equity ratio indicating significant financial leverage(p.67)
- • Dependence on outsourced job work manufacturing without formal agreements(p.78)
- • Concentration of retail operations in Rajasthan and limited geographic presence(p.83)
- • Limited company-owned store base with heavy reliance on franchisees(p.78)
- • Significant franchise store closures during COVID-19 indicating business vulnerability(p.78)
- • Non-compliance with Gratuity Act requirements and actuarial valuation(p.110)
- • Geographic expansion into north India(p.23)
- • Establishing retail network with IPO proceeds(p.18)
- • India's projected cotton production growth to 2030(p.17)
- • Indian textile/apparel industry projected to grow at 10% CAGR until 2026(p.73)
- • Expansion into Gujarat through company-operated stores(p.83)
- • Geographic expansion across pan-India via e-commerce platforms(p.83)
- • Product line extension into women's and kids wear(p.83)
- • Government incentives and subsidy schemes for textile sector in Gujarat(p.75)
- • Rising consumer demand for sustainable and innovative textile products(p.76)
- • Business concentration in Bihar and Rajasthan only(p.25)
- • Dependence on third-party transportation providers(p.25)
- • Negative operating cash flows in prior years(p.28)
- • Intense competition from domestic and international players(p.26)
- • Fashion trend obsolescence risk(p.24)
- • Susceptibility to natural calamities in operational states(p.25)
- • Regulatory changes in tax and compliance requirements(p.33)
- • Uncertain economic growth affecting consumer demand(p.32)
- • Significant competition from organized and unorganized players in apparel retail(p.86)
- • High dependence on franchisee partners and their ability to sustain operations(p.78)
- • Exposure to supply chain disruptions and input cost volatility(p.73)
- • Retail sector cyclicality and economic downturns impacting consumer spending(p.72)
- • Rising operational costs including rent, labor, and financing charges(p.59)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sangita Aggarwala | Promoter | 99.96% | 69.97% |
| Sanjay Gupta | Promoter | 0.03% | 0.02% |
| Sangita Aggarwala | Promoter | 99.96% | — |
| Sanjay Gupta | Managing Director/Promoter | 0.03% | — |
| Sangita Aggarawala | Promoter | 99.96% | — |
| Sanjay Gupta | Promoter/Managing Director | 0.03% | — |
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.