Net Avenue Technologies
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Nov 2023 – 04 Dec 2023
- Listing date
- 08 Dec 2023
- Face value
- ₹1 per share
- Issue price
- ₹18 per share
- Lot size
- 8,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹10.25 Cr
- Market cap at offer price
- ₹38.62 Cr
- Promoter holding
- 45.31% → 33.28% pre-issue → post-issue
- ISIN
- INE518X01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- New No.16, Old No.13, 1st Floor Prithvi Avenue, Alwarpet, Tamil Nadu
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 | 16,16,000 | — | — |
| Market maker | 2,88,000 | — | — |
Application size
Minimum 8,000 shares per lot, in multiples, at ₹18
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 8,000 | ₹1,44,000 |
| S-HNI (min) | 2 | 16,000 | ₹2,88,000 |
| S-HNI (max) | 6 | 48,000 | ₹8,64,000 |
| B-HNI (min) | 7 | 56,000 | ₹10,08,000 |
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 (₹) | 2.10 | — |
| P/E (×) | 8.57 | — |
| Market cap | — | ₹38.62 Cr |
Key performance indicators
- Return on net worth
- 75.53%
- ROCE
- 5.28%
- Debt / equity
- 1.18
- PAT margin
- 5.55%
- EBITDA margin
- 6.30%
- NAV per share
- ₹19.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Net Avenue Technologies
Net Avenue Technologies Limited, incorporated on June 7, 2001 and converted to a Public Limited Company on September 22, 2023, operates as an online digital direct-to-consumer business for Indian ethnic wear and accessories. The company sells products primarily through its website and mobile applications under brands Cbazaar and Ethnovog, with product ranges including Indian ethnic wear and accessories for women, men, teens, and kids. The company also sells through other e-commerce websites such as Myntra, Nykaa, and Ajio. It has a subsidiary, CBazaar.Com Inc., incorporated in the United States of America for international cross-border e-commerce operations. Revenue from operations grew from ₹1,380.02 Lakhs in FY 2021 to ₹3,451.26 Lakhs in FY 2023, with ₹783.89 Lakhs for the period ended June 30, 2023.
Company Analysis
from RHPNet Avenue Technologies Limited is an online direct-to-consumer e-commerce platform specializing in Indian ethnic wear and accessories for South Asian Diaspora, with presence in international cross-border e-commerce.
Net Avenue Technologies Limited, incorporated on June 7, 2001 and converted to a Public Limited Company on September 22, 2023, operates as an online digital direct-to-consumer business for Indian ethnic wear and accessories. The company sells products primarily through its website and mobile applications under brands Cbazaar and Ethnovog, with product ranges including Indian ethnic wear and accessories for women, men, teens, and kids. The company also sells through other e-commerce websites such as Myntra, Nykaa, and Ajio. It has a subsidiary, CBazaar.Com Inc., incorporated in the United States of America for international cross-border e-commerce operations. Revenue from operations grew from ₹1,380.02 Lakhs in FY 2021 to ₹3,451.26 Lakhs in FY 2023, with ₹783.89 Lakhs for the period ended June 30, 2023.
Objects of the Issue
- Customer Acquisition - Marketing & Awareness ₹698.64 Lakhs p.27
- Funding Working Capital Requirement ₹120.00 Lakhs p.27
- General Corporate Expenses p.27
- Public Issue Expenses p.27
- Customer Acquisition - Marketing & Awareness ₹698.64 Lakhs p.112
- Funding Working Capital Requirement ₹120.00 Lakhs p.114
- General Corporate Purpose [●] p.59
- Public Issue Expenses p.55
- Working Capital Requirements p.117
- General Corporate Purposes p.117
- Not specified in the document provided (objects of the offer section not present in Part 5)
- working capital requirement, general corporate purpose and issue expenses p.311
Issue Structure
- Total Issue
- Up to 56,96,000 Equity Shares aggregating up to ₹[●] Lakhs
- Fresh Issue
- Up to 56,96,000 Equity Shares of Face Value of ₹1/- each aggregating up to ₹[●] Lakhs
- Offer for Sale
- N.A.
- Price Band
- [●] (to be determined)
- Lot Size
- [●]
- Face Value
- ₹1/- per Equity Share
Business Model
The company operates a direct-to-consumer online e-commerce model, generating revenue from the sale of Indian ethnic wear and accessories through its owned digital platforms (Cbazaar and Ethnovog websites and mobile applications), as well as through marketplace partnerships with other e-commerce platforms like Myntra, Nykaa, and Ajio.
Business Segments
SWOT Analysis
- • Established brand recognition in Indian ethnic wear segment(p.38)
- • Revenue growth trajectory from FY2021 to FY2023(p.39)
- • Dual-channel distribution through owned platforms and third-party e-commerce marketplaces(p.28)
- • International market presence through subsidiary(p.28)
- • Diverse premium product range for South Asian diaspora(p.148)
- • In-house technology platform with proprietary custom-built systems(p.148)
- • Just-in-time manufacturing model reducing waste(p.148)
- • Machine learning-driven body sizing for custom fit(p.148)
- • Experienced promoters with 22+ years in the industry(p.148)
- • Strong international brand recognition and ratings(p.145)
- • Established track record with 20+ years of operations in online Indian ethnic wear(p.283)
- • Multiple revenue streams across direct-to-consumer and wholesale e-commerce channels(p.283)
- • Strong profitability recovery with PAT of ₹185.70 lakhs in FY 2023 vs ₹25.93 lakhs in FY 2021(p.285)
- • International presence with subsidiaries in US and UK serving diaspora markets(p.284)
- • Brand recognition in international markets with awards and accolades(p.283)
- • Positive net worth recovered from negative position (₹298.03 lakhs as of June 30, 2023)(p.310)
- • Historical going concern uncertainty resolved only recently(p.41)
- • Outstanding settlement issues with subsidiaries(p.41)
- • Unresolved historical record-keeping gaps(p.47)
- • High concentration of purchases among top 10 suppliers(p.49)
- • Significant unsecured borrowings from related parties subject to recall(p.50)
- • Documentation gaps for director qualifications(p.47)
- • Seasonal business with Q3 concentration of sales(p.46)
- • High proportion of related party transactions(p.50)
- • High dependence on few geographic markets(p.159)
- • Revenue concentration in marketplace vendor products(p.147)
- • Limited profitability during pandemic with negative working capital(p.116)
- • Revenue concentration in women's wear category(p.158)
- • Material uncertainty regarding going concern in FY 2021(p.206)
- • Delay in remittances/collections with wholly owned subsidiaries(p.206)
- • High dependence on related party borrowings(p.240)
- • Significant inventory provision indicating obsolescence risk(p.227)
- • Outstanding income tax demands(p.238)
- • Material uncertainty regarding going concern in FY 2021(p.242)
- • Significant delays in remittances/collections with wholly owned subsidiaries(p.242)
- • High dependence on subsidiary receivables representing ₹1,050.49 lakhs in current assets(p.263)
- • Significant concentration of debt with related parties (₹137.37 lakhs unsecured borrowings)(p.261)
- • High freight and handling charges impacting profitability (₹490.81 lakhs in FY 2023)(p.265)
- • Negative cash flows from operations (₹239.99 lakhs negative in FY 2023)(p.289)
- • Expansion of India's digital infrastructure and internet penetration(p.28)
- • Growth of digital sector and India's projected economy size(p.28)
- • Expanding customer acquisition and new market penetration(p.39)
- • Development of owned brand product offerings(p.39)
- • International expansion into new markets(p.44)
- • Expansion into premium wedding categories(p.149)
- • Category expansion in underserved kids and teens market(p.149)
- • Growth in men's ethnic wear for youth segment(p.149)
- • Global marketplace presence expansion(p.149)
- • Personalization through curated 'Looks' by customer segment(p.148)
- • Fast-growing Indian e-commerce market and premium segment(p.140)
- • Expansion of domestic market reach leveraging South Asian diaspora growth(p.283)
- • International expansion across multiple geographies (US, UK, Australia, Canada are primary markets)(p.284)
- • Enhanced personalization and customer engagement through technology(p.283)
- • Growing e-commerce penetration and online shopping adoption in India(p.283)
- • Expansion through additional e-commerce platform partnerships beyond Myntra, Nykaa, Ajio(p.283)
- • High competitive intensity from organized and unorganized players(p.40)
- • Competitor advantages in scale, resources and brand recognition(p.40)
- • Rapid changes in consumer preferences and fashion trends(p.38)
- • Dependence on third-party couriers for delivery(p.47)
- • E-commerce infrastructure and consumer adoption risks(p.38)
- • Foreign currency exchange rate fluctuations(p.45)
- • Regulatory and compliance risks related to licenses and permits(p.50)
- • COVID-19 and broader economic downturn risks(p.54)
- • Dependence on third-party transportation and logistics(p.54)
- • Raw material price fluctuations without long-term contracts(p.52)
- • Intense competition from established online retailers and designers(p.164)
- • Emergence of agile startups with innovative business models(p.164)
- • Global economic slowdown affecting consumer spending(p.130)
- • Depreciation of Indian rupee affecting international competitiveness(p.136)
- • Regulatory changes in e-commerce and data protection(p.171)
- • Supply chain and logistics disruptions from geopolitical tensions(p.135)
- • Significant slowdown in US market due to inflation in latter half of FY 2023(p.288)
- • Volatile freight and logistics costs directly impacting profitability(p.289)
- • Foreign exchange volatility affecting international operations(p.284)
- • Highly competitive e-commerce market for ethnic wear with strong players(p.295)
- • Dependence on US and international markets vulnerable to economic downturns(p.284)
- • Regulatory compliance risks across multiple jurisdictions (India, US, UK, Australia, Canada)(p.284)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajesh Nahar | Promoter | 19.32% | 14.19% |
| Mr. Ritesh Katariya | Promoter | 22.66% | 16.64% |
| Ms. Sarala Nahar | Promoter Group | 3.33% | 2.45% |
| Mr. Rajesh Nahar | Promoter | 19.32% | 14.19% |
| Mr. Ritesh Katariya | Promoter | 22.66% | 16.64% |
| Ms. Sarala Nahar | Promoter Group | 3.33% | 2.45% |
| Rajesh Nahar | Promoter | — | — |
| Ritesh Katariya | Promoter | — | — |
| Mr. Rajesh Nahar | Promoter | 30,45,000 Equity Shares; 19.32% of Pre-Issue Paid up capital | — |
| Mr. Ritesh Katariya | Promoter | 35,70,000 Equity Shares; 22.66% of Pre-Issue Paid up capital | — |
| Rajesh Nahar | Promoter | 35.13% | — |
| Ritesh Katariya | Promoter | 41.18% | — |
| Net Avenue Technologies Private Limited Employees Welfare Trust | Promoter Group | 6.90% | — |
| Sarala Nahar | Promoter Group | 6.06% | — |
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.