Foce India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Dec 2021 – 17 Dec 2021
- Listing date
- 28 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹225 per share
- Lot size
- 600 shares
- Total issue size
- ₹29.03 Cr
- Market cap at offer price
- ₹110 Cr
- Promoter holding
- 99.99% → 73.63% pre-issue → post-issue
- ISIN
- INE0I7D01019
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Mark Corporate Advisors Pvt.Ltd.
- Registered office
- 4 Kingston, Shastri Nagar, Lokhandwala Complex, Andheri (west), Maharashtra
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 | 0 | — | — |
| Market maker | 64,800 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹225
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,35,000 |
| S-HNI (min) | 2 | 1,200 | ₹2,70,000 |
| S-HNI (max) | 7 | 4,200 | ₹9,45,000 |
| B-HNI (min) | 8 | 4,800 | ₹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 |
|---|---|---|
| Market cap | — | ₹110 Cr |
About Foce India SME
Foce India Limited, originally incorporated as Heighten Trading Company Private Limited on January 10, 2001, was renamed to Foce India Limited in 2021 following conversion to public status. The company is engaged in the supply, distribution, and retailing of various types of wrist watches including Analog, Digital, Chronograph, and Designer watches, both custom-built and general in nature. The company generates revenue primarily through institutional customers for wrist watches (both under other brands at 90.67% and own 'FOCE' brand at 4.21% of top 10 customer revenue) and corporate gifting items (4.41% of top 10 customer revenue). The company maintains a strong customer profile across India and provides after-sales service. As of June 30, 2021, the company reported net worth of ₹1,218.21 Lakhs and net profit after tax of ₹152.25 Lakhs.
Company Analysis
from RHPFoce India Limited is a distributor and retailer of wrist watches and corporate gifting items, operating primarily in the domestic Indian market across the consumer goods and retail sectors.
Foce India Limited, originally incorporated as Heighten Trading Company Private Limited on January 10, 2001, was renamed to Foce India Limited in 2021 following conversion to public status. The company is engaged in the supply, distribution, and retailing of various types of wrist watches including Analog, Digital, Chronograph, and Designer watches, both custom-built and general in nature. The company generates revenue primarily through institutional customers for wrist watches (both under other brands at 90.67% and own 'FOCE' brand at 4.21% of top 10 customer revenue) and corporate gifting items (4.41% of top 10 customer revenue). The company maintains a strong customer profile across India and provides after-sales service. As of June 30, 2021, the company reported net worth of ₹1,218.21 Lakhs and net profit after tax of ₹152.25 Lakhs.
Objects of the Issue
- Working Capital Requirement ₹1550.00 Lakhs p.27
- General Corporate Purpose ₹400.00 Lakhs p.27
- To meet Working Capital Requirement ₹1550.00 lakhs p.76
- General Corporate Purpose ₹400.00 lakhs p.76
- Meeting the Issue Expense ₹75.00 lakhs p.76
- Fresh Issue capital ₹2,025.00 Lakhs p.199
Issue Structure
- Total Issue
- ₹2902.50 Lakhs (12,90,000 Equity Shares of face value ₹10 each at ₹225.00 per share)
- Fresh Issue
- ₹2025.00 Lakhs (9,00,000 Equity Shares)
- Offer for Sale
- ₹877.50 Lakhs (3,90,000 Equity Shares by Mrs. Parmeshwari Sitaram Agarwal)
- Price Band
- ₹225.00 per Equity Share (Fixed Price Issue)
- Lot Size
- 600 Equity Shares
- Face Value
- ₹10 each
Business Model
The company earns revenue through supply, distribution, and retailing of wrist watches (both institutional customers and own brand) and corporate gifting items (time pieces, wall clocks, belts, ties, wallets, pens, goggles, etc.). Top 10 customers constitute 99.29% of revenue, with a single largest customer representing almost 91% of total revenue.
Business Segments
SWOT Analysis
- • Established market presence with strong customer profile across India(p.25)
- • Long operational history with consistent profitability track record(p.25)
- • Diversified revenue streams across watch sales and corporate gifting(p.25)
- • Over two decades of experience in watch industry(p.95)
- • Pan-India presence through 128 strategically located retail stores(p.96)
- • Experienced promoter and strong management team(p.96)
- • Strong customer loyalty and relationships(p.94)
- • E-commerce platform for pan-India reach(p.96)
- • Extreme customer concentration with single largest customer representing ~91% of total revenue(p.31)
- • High dependency on watch industry with 94.88% of top-10 customer revenue from watches(p.33)
- • Significant contingent liabilities of ₹1,469.33 Lakhs outstanding(p.34)
- • Negative operating cash flows reported in recent periods(p.35)
- • Non-ownership of core brand 'FOCE' with no formal brand usage agreement(p.34)
- • Working capital requirements based on internal estimates without external bank appraisal(p.34)
- • Outstanding litigation involving company and promoters/directors across multiple jurisdictions(p.31)
- • Heavy dependence on single largest customer(p.94)
- • Significant dependence on group concern for supply(p.94)
- • Subsidiary facility not yet operational(p.94)
- • No dividend paid and limited retained earnings history(p.136)
- • Minimal own fixed assets and owned property(p.100)
- • High dependence on few customers(p.172)
- • Significant inventory volatility and build-up(p.157)
- • High related-party trade payables(p.154)
- • Promoter tax demands and litigation exposure(p.178)
- • Growth in organized watch market segment which currently represents only 40% of total demand(p.26)
- • Expansion of FOCE branded products distribution across India(p.25)
- • Geographic expansion potential with biggest market in North India followed by West, South and East(p.25)
- • Expansion of retail footprint and upgrade of stores(p.96)
- • Growth in luxury watch segment and higher value-chain movement(p.96)
- • Backward integration through wholly-owned subsidiary(p.96)
- • Development and expansion of e-commerce platform(p.96)
- • India's expected emergence as third largest consumer economy(p.93)
- • Business in wrist watch marketing with brand presence(p.166)
- • COVID-19 pandemic disruption of supply chains, manufacturing facilities and operations(p.35)
- • High competition from domestic and international watch brands(p.38)
- • Rapid technological advancement in watch industry requiring continuous capital investment(p.38)
- • Dependence on single supplier creating supply chain vulnerability(p.24)
- • Foreign exchange rate fluctuations affecting business operations(p.24)
- • Changes in government regulations and policies affecting business operations(p.41)
- • Economic slowdown and macroeconomic uncertainties impacting consumer spending(p.41)
- • General tax law changes potentially affecting profitability(p.44)
- • High dependence on single customer creates revenue concentration risk(p.94)
- • Highly competitive and fragmented watch industry(p.100)
- • COVID-19 pandemic impact on business operations(p.95)
- • Global watch market volatility and external economic factors(p.89)
- • Unorganized sector competition affecting margins(p.95)
- • Contingent tax liabilities from indirect taxes(p.163)
- • COVID-19 pandemic impact on operations(p.166)
- • Sub-optimal capacity utilization post-pandemic(p.166)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Manoj Sitaram Agarwal | Promoter | 69.94% | 57.07% |
| Mrs. Anita Manoj Agarwal | Promoter | 17.53% | 14.31% |
| Mrs. Parmeshwari Sitaram Agarwal | Promoter/Selling Shareholder | 12.52% | 2.25% |
| Manoj Sitaram Agarwal | Promoter | 69.94% | 57.07% |
| Anita Manoj Agarwal | Promoter | 2.25% | — |
| Parmeshwari Sitaram Agarwal | Promoter | 12.53% | 2.25% |
| Utkarsh Agarwal | Promoter Group | Negligible | Negligible |
| Manoj Sitaram Agarwal | Promoter | — | — |
| Parmeshwari Sitaram Agarwal | Selling Shareholder/Promoter Group | — | — |
| Parmeshwari Sitaram Agarwal | Selling Shareholder | — | — |
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.