Navoday Enterprises SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Jun 2021 – 17 Jun 2021
- Listing date
- 25 Jun 2021
- Face value
- ₹10 per share
- Issue price
- ₹20 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹4.61 Cr
- Market cap at offer price
- ₹7.71 Cr
- Promoter holding
- 99.98% → 40.21% pre-issue → post-issue
- ISIN
- INE0DB001013
- Registrar
- Satellite Corporate Services Pvt.Ltd.
- Lead managers
- Inventure Merchant Banker Services Pvt.Ltd.
- Registered office
- D-107, Crystal Plaza, Opposite Infinity Mall, 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 | 1,20,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹20
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 54,000 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹7.71 Cr |
About Navoday Enterprises SME
Incorporated on September 5, 2007 as 'Tarana Advertising & Marketing Private Limited' under the Companies Act, 1956, the company was renamed 'Navoday Enterprises Private Limited' on July 18, 2019 and converted into a public limited company as 'Navoday Enterprises Limited' on August 20, 2020 (CIN U74300MH2007PLC173780), with its registered office at Andheri West, Mumbai. Current promoter Anand V. Mode took management control in February/April 2018; the company ventured into business and financial consultancy during FY 2019 and into component supply for packaging machinery in FY 2020. Its business spans three verticals: (1) marketing support and advertising — chiefly outdoor/out-of-home (OOH) media across Mumbai & Thane, where it buys/blocks media space (hoardings, billboards, kiosks etc.) from vendors for clients without owning any media inventory, alongside events management, print & digital media and in-house design services; (2) management and financial consultancy — market research, strategy, operations and process consulting, corporate/working capital/project finance and restructuring, focused on small and mid-size enterprises, supplemented by interest income from short-term loans and advances to clients; and (3) supply of critical components (sealers, barring, gears, timing belts, cutters, sensors, pistons, etc.) to manufacturers of packaging and allied machines, along with packaging machine consultancy. The company had 15 employees as of August 31, 2020, operates debt-free, and reported restated total revenue of ₹4,827.24 lakhs and profit after tax of ₹112.77 lakhs for FY2020 (9 months to December 31, 2020: revenue ₹1,484.15 lakhs, PAT ₹39.39 lakhs), with heavy client concentration (top five clients ≈ 94.02% of 9M-FY21 revenues).
Company Analysis
from RHPNavoday Enterprises Limited is a diversified services company providing marketing support and advertising services (primarily outdoor/out-of-home media), management and financial consultancy services, and supplying critical components to manufacturers of packaging and allied machines.
Incorporated on September 5, 2007 as 'Tarana Advertising & Marketing Private Limited' under the Companies Act, 1956, the company was renamed 'Navoday Enterprises Private Limited' on July 18, 2019 and converted into a public limited company as 'Navoday Enterprises Limited' on August 20, 2020 (CIN U74300MH2007PLC173780), with its registered office at Andheri West, Mumbai. Current promoter Anand V. Mode took management control in February/April 2018; the company ventured into business and financial consultancy during FY 2019 and into component supply for packaging machinery in FY 2020. Its business spans three verticals: (1) marketing support and advertising — chiefly outdoor/out-of-home (OOH) media across Mumbai & Thane, where it buys/blocks media space (hoardings, billboards, kiosks etc.) from vendors for clients without owning any media inventory, alongside events management, print & digital media and in-house design services; (2) management and financial consultancy — market research, strategy, operations and process consulting, corporate/working capital/project finance and restructuring, focused on small and mid-size enterprises, supplemented by interest income from short-term loans and advances to clients; and (3) supply of critical components (sealers, barring, gears, timing belts, cutters, sensors, pistons, etc.) to manufacturers of packaging and allied machines, along with packaging machine consultancy. The company had 15 employees as of August 31, 2020, operates debt-free, and reported restated total revenue of ₹4,827.24 lakhs and profit after tax of ₹112.77 lakhs for FY2020 (9 months to December 31, 2020: revenue ₹1,484.15 lakhs, PAT ₹39.39 lakhs), with heavy client concentration (top five clients ≈ 94.02% of 9M-FY21 revenues).
Objects of the Issue
- Meeting Additional Working Capital Requirements ₹359.79 lakhs p.52
- General Corporate Purpose ₹61.01 lakhs p.51
- To meet Issue Expenses ₹40.00 lakhs p.53
Issue Structure
- Total Issue
- Public issue of 23,04,000 Equity Shares at ₹20 per Equity Share (including share premium of ₹10 per Equity Share), aggregating ₹460.80 lakhs
- Fresh Issue
- 23,04,000 Equity Shares aggregating up to ₹460.80 lakhs (entire issue is fresh)
- Lot Size
- 6,000 Equity Shares (minimum application size and trading lot)
- Face Value
- ₹10.00 each
Business Model
The company earns revenue from three streams: (i) marketing support and advertising services — providing outdoor/OOH campaigns, events management, print & digital media and design services, procuring media space from third-party vendors on behalf of clients (it owns no media inventory); (ii) management and financial consultancy fees (corporate finance, working capital finance, project finance, financial/business restructuring) plus interest income from short-term loans and advances extended to clients and business associates ('We also fund the requirements of our clients and business associates by providing short term loans and advances to them and earning interest income from the same.'); and (iii) revenue from supplying/trading critical components to manufacturers of packaging and allied machines.
Business Segments
SWOT Analysis
- • Core expertise in outdoor/OOH advertising built over several years(p.65)
- • Repeat business from existing clients due to brand-focused service delivery(p.65)
- • Multiple media product offerings deepen client engagement and aid client acquisition(p.65)
- • Presence across diverse business lines reduces service/client concentration risk(p.65)
- • Knowledge of multiple financing options cited as a competitive advantage(p.65)
- • Commitment to quality of services(p.66)
- • Debt-free balance sheet with zero borrowing costs(p.117)
- • Heavy customer concentration - top 5 clients contribute ~81-94% of revenue(p.21)
- • No long-term contracts with any clients(p.18)
- • Geographic concentration of operations in the Mumbai region(p.18)
- • Limited operating history in the management/financial consultancy and component supply verticals(p.20)
- • Negative cash flows in recent fiscals (operating outflow of ₹15.25 lakhs in 9MFY21)(p.20)
- • GST registration was suspended due to delayed/non-filing of returns(p.18)
- • Dependence on few suppliers for trading business purchases (top 5 = 43-65%)(p.21)
- • Does not own any outdoor media; fully reliant on third-party media vendors(p.19)
- • Strategy to increase the number of client relationships and relationship managers(p.66)
- • Geographical expansion beyond Mumbai and Thane to other cities(p.66)
- • Growing Indian M&E/advertising industry provides demand tailwind(p.62)
- • Expanding financial services sector offers growth runway for the consultancy arm(p.61)
- • IPO proceeds earmarked for scaling up the component supply/support services segment(p.52)
- • Highly competitive, fragmented media/advertising industry with low entry barriers(p.19)
- • Decline in client ad-spend or effective advertising rates would hit core OOH revenue(p.19)
- • Cyclicality of financial markets directly affects the consultancy business volumes(p.20)
- • Further COVID-19 lockdowns could significantly impair revenue and operations(p.18)
- • Macroeconomic downturn in India would adversely affect the entire business(p.24)
- • Evolving laws, regulations and adverse tax-law applications in operating jurisdictions(p.24)
- • Political, economic and global factors beyond company control(p.26)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anand V. Mode | Individual Promoter | 77.00% | 30.97% |
| Synematic Media and Consulting Private Limited | Corporate Promoter | 22.98% | 9.24% |
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.