Innovatus Entertainment Networks
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Jul 2023 – 27 Jul 2023
- Listing date
- 04 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹50 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹7.74 Cr
- Market cap at offer price
- ₹19.79 Cr
- Promoter holding
- 99.97% → 60.87% pre-issue → post-issue
- ISIN
- INE0LYO01018
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Inventure Merchant Banker Services Pvt.Ltd.
- Registered office
- 407, Crescent Royale, Off New Link Road, 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 |
|---|---|---|---|
| Market maker | 78,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹50
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,50,000 |
| S-HNI (min) | 2 | 6,000 | ₹3,00,000 |
| S-HNI (max) | 6 | 18,000 | ₹9,00,000 |
| B-HNI (min) | 7 | 21,000 | ₹10,50,000 |
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 (₹) | 2.00 | — |
| P/E (×) | 25.00 | — |
| Market cap | — | ₹19.79 Cr |
Key performance indicators
- Return on net worth
- 9.98%
- ROCE
- 11.32%
- Debt / equity
- 0.32
- PAT margin
- 4.41%
- NAV per share
- ₹20.06
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Innovatus Entertainment Networks
Innovatus Entertainment Networks Limited, incorporated in 2012 and converted to a public company in 2022, operates in the exhibition, media, and entertainment sectors. The company provides comprehensive direct marketing solutions including exhibition management, customer relationship management (CRM), business-to-business (B2B) and business-to-consumer (B2C) services, activations, ground events, and integrated media and printing services. It functions as a creative platform offering 360-degree infotainment solutions from concept development and creative execution to complete turnkey presentation and on-ground execution. The company primarily operates in Mumbai, Maharashtra, and generates revenue through events, exhibitions, advertising services, and digital marketing. For Fiscal 2023, the company reported revenue from operations of ₹1,093.93 lakhs with a profit after tax of ₹48.26 lakhs.
Company Analysis
from RHPInnovatus Entertainment Networks Limited is a direct marketing and infotainment solutions company offering exhibition management, CRM, B2B/B2C services, and integrated media and printing solutions across India.
Innovatus Entertainment Networks Limited, incorporated in 2012 and converted to a public company in 2022, operates in the exhibition, media, and entertainment sectors. The company provides comprehensive direct marketing solutions including exhibition management, customer relationship management (CRM), business-to-business (B2B) and business-to-consumer (B2C) services, activations, ground events, and integrated media and printing services. It functions as a creative platform offering 360-degree infotainment solutions from concept development and creative execution to complete turnkey presentation and on-ground execution. The company primarily operates in Mumbai, Maharashtra, and generates revenue through events, exhibitions, advertising services, and digital marketing. For Fiscal 2023, the company reported revenue from operations of ₹1,093.93 lakhs with a profit after tax of ₹48.26 lakhs.
Objects of the Issue
- Augmenting additional working capital requirements ₹288.26 lakhs p.17
- Purchase of Exhibition Related Material ₹263.67 lakhs p.17
- General Corporate Purposes ₹152.07 lakhs p.17
- Issue Related Expenses ₹70.00 lakhs p.17
- Augmenting additional working capital requirements ₹288.26 lakhs p.56
- Purchase of Exhibition Related Material ₹263.67 lakhs p.57
- General Corporate Purposes ₹152.07 lakhs p.59
Issue Structure
- Total Issue
- ₹774.00 lakhs (15,48,000 Equity Shares at ₹50 per share)
- Fresh Issue
- 15,48,000 Equity Shares at ₹50 per share aggregating ₹774.00 lakhs
- Price Band
- ₹50 per Equity Share (Fixed Price Issue)
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue through direct marketing solutions including exhibition management, CRM services, B2B and B2C activations, digital marketing, ground events/activations, outdoor media (OOH), and print media services. It operates on a campaign-by-campaign basis with clients, does not own media inventory, and purchases media from vendors as per client requirements. Operating expenses, which constituted 96.51% of total expenses in Fiscal 2023, include third-party services and media purchases from local suppliers.
Business Segments
SWOT Analysis
- • Creative activations and flawless execution(p.75)
- • Long-term customer relationships and comprehensive service offerings(p.75)
- • Revenue growth recovery post-COVID(p.125)
- • Improved profitability and EBITDA margins(p.126)
- • Clean financial position with no material litigation or regulatory issues(p.131)
- • Positive net worth and three-year operating history meeting listing eligibility(p.138)
- • Consistent positive cash generation from operations over multiple years(p.138)
- • Solid net tangible asset base supporting the business(p.138)
- • 100% underwriting commitment reducing subscription risk(p.138)
- • No material fraud or statutory compliance issues in recent history(p.132)
- • No existing shareholders grievances demonstrating investor confidence(p.148)
- • Outstanding legal proceedings against company and promoters(p.20)
- • Dependence on few large customers(p.25)
- • Dependence on few suppliers(p.25)
- • Reliance on third-party contractors for operations(p.21)
- • Geographic concentration in Mumbai(p.23)
- • Negative cash flows in recent periods(p.27)
- • Unsecured recallable loans(p.28)
- • No long-term customer contracts(p.22)
- • High dependence on few major customers(p.129)
- • High dependence on few major suppliers(p.129)
- • Negative operating cash flow(p.128)
- • Limited scale with only 11 employees(p.77)
- • Significant outstanding tax proceedings against promoters and group companies(p.131)
- • Multiple direct and indirect tax cases involving the Company itself(p.131)
- • Unsecured borrowing from related party creating dependency(p.130)
- • Material creditor dues outstanding indicating potential working capital stress(p.133)
- • Penalty imposed on group company by stock exchange(p.132)
- • Growing Indian economy and M&E sector expansion(p.16)
- • Rising advertising to GDP ratio(p.17)
- • Growing digital adoption and VFX opportunities(p.17)
- • Rising consumer demand and improving advertising revenue(p.17)
- • Purchase of exhibition-related material to reduce supplier dependence(p.24)
- • Expansion into exhibition material ownership to reduce third-party dependence(p.56)
- • Growing exhibition and B2B event market in India(p.69)
- • Increasing client relationships and media product diversification strategy(p.76)
- • Strong media and entertainment industry growth trajectory(p.71)
- • Mandatory three-year market-making arrangement supporting trading liquidity(p.152)
- • Path to migration to main board after minimum 2-year SME platform listing(p.152)
- • SME platform listing enabling capital access for growth initiatives(p.154)
- • Natural disasters and pandemics disrupt event operations(p.21)
- • COVID-19 pandemic impact on business(p.21)
- • Intense competition in exhibition and advertising industries(p.22)
- • Fluctuation in customer marketing budgets(p.22)
- • Economic downturn in India(p.29)
- • Regulatory and policy changes(p.29)
- • Global economic and financial instability(p.31)
- • COVID-19 pandemic recurrence risk(p.122)
- • Highly competitive exhibition and events market(p.77)
- • Dependence on macroeconomic conditions and discretionary spending(p.123)
- • Vulnerability to regulatory and policy changes(p.123)
- • Uncertain tax resolution outcomes from pending proceedings with quantifiable exposure(p.131)
- • Post-IPO lead manager dependencies on track record of underperformance(p.145)
- • SME platform liquidity constraints with minimum 3,000 share trading lot requirement(p.152)
- • Mandatory 2-year lock-in on SME platform limiting exit options for early investors(p.152)
- • Dependence on single related-party borrower creating refinancing risk(p.130)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Miniboss Consultancy Private Limited | Promoter | 66.64% | 40.58% |
| Rich Pockets Online Services Limited | Promoter | 11.98% | 7.29% |
| Azharuddin R. Mulla | Promoter | 4.67% | 2.84% |
| Sanjay Dattaram Khanvilkar | Promoter Group | 16.68% | 10.16% |
| Azharuddin R. Mulla | Individual Promoter | 2.84% | — |
| Miniboss Consultancy Private Limited | Corporate Promoter | 66.64% | — |
| Rich Pockets Online Services Limited | Corporate Promoter | 11.98% | — |
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.