Pace E-Commerce Ventures SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2022 – 13 Oct 2022
- Listing date
- 20 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹103 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹66.53 Cr
- Market cap at offer price
- ₹232 Cr
- Promoter holding
- 91.12% → 65.00% pre-issue → post-issue
- ISIN
- INE0N1L01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- Anugrah Bunglow, Street4, Pallod Farms II, Shambhu Vihar Society, Nankude Vasti, Aundh, 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 | 3,32,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹103
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,23,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,47,200 |
| S-HNI (max) | 8 | 9,600 | ₹9,88,800 |
| B-HNI (min) | 9 | 10,800 | ₹11,12,400 |
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 (₹) | 0.30 | — |
| P/E (×) | 343.33 | — |
| Market cap | — | ₹232 Cr |
Key performance indicators
- Return on net worth
- 2.04%
- ROCE
- 2.04%
- Debt / equity
- 0.14
- PAT margin
- 5.13%
- NAV per share
- ₹14.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pace E-Commerce Ventures SME
Pace E-Commerce Ventures Limited was originally incorporated in August 2015 as 'Pace Sports and Entertainment Private Limited'. The company started by providing kids, young consumers, and sports enthusiasts access to international football club merchandise and international sports brands apparel and goods. It later extended to various branded merchandise and accessories, acquiring manufacturing and distribution licenses from popular kids entertainment brands. This diversification helped the company reach a wider distribution area and customer base, providing valuable insights into customer preferences across kids, teenagers, young adults, and young parents. The company identified a clear market demand shift toward customized and personalized products. The company operates primarily through e-commerce channels and is now converting to a public limited company for its IPO.
Company Analysis
from RHPPace E-Commerce Ventures Limited is an e-commerce company engaged in the trading and distribution of branded international sports apparel, kids entertainment merchandise, and customized/personalized home furnishings products.
Pace E-Commerce Ventures Limited was originally incorporated in August 2015 as 'Pace Sports and Entertainment Private Limited'. The company started by providing kids, young consumers, and sports enthusiasts access to international football club merchandise and international sports brands apparel and goods. It later extended to various branded merchandise and accessories, acquiring manufacturing and distribution licenses from popular kids entertainment brands. This diversification helped the company reach a wider distribution area and customer base, providing valuable insights into customer preferences across kids, teenagers, young adults, and young parents. The company identified a clear market demand shift toward customized and personalized products. The company operates primarily through e-commerce channels and is now converting to a public limited company for its IPO.
Objects of the Issue
- Acquisition of Plant and Machinery ₹973.80 Lakhs p.18
- Long term Working Capital Requirement ₹2086.00 Lakhs p.18
- General Corporate Purposes ₹1000.20 Lakhs p.18
- Acquisition of Plant and Machineries ₹973.80 lakhs p.62
- Working Capital Requirement ₹2086.00 lakhs p.62
- General Corporate Purpose ₹1000.20 lakhs p.62
- Meeting Public Issue Expenses ₹60.00 lakhs p.62
Issue Structure
- Total Issue
- ₹6653.39 Lakhs
- Fresh Issue
- ₹4120.00 Lakhs (40,00,000 equity shares at ₹103 per share)
- Offer for Sale
- ₹2533.39 Lakhs (24,59,600 equity shares at ₹103 per share)
- Price Band
- ₹103 per equity share
- Lot Size
- 1,200 Equity Shares (Application Lot)
- Face Value
- ₹10 per equity share
Business Model
The company operates an e-commerce platform offering trading and distribution of branded international sports apparel, international brands merchandise, and customized/personalized home furnishing products. Revenue is generated through online sales of these products to consumers, with payment terms including full advance payment for personalized items, or full advance or cash against delivery for other items.
Business Segments
SWOT Analysis
- • Established distribution network through brand partnerships(p.17)
- • Strong founder-led vision and established business model(p.26)
- • Diversified product portfolio and market reach(p.17)
- • Revenue growth trajectory(p.20)
- • Exclusive manufacturing and distribution rights for internationally renowned kids brands(p.83)
- • Founder-led management team with significant industry experience and international background(p.83)
- • Deep consumer insights into Indian market preferences and merchant operations(p.84)
- • Established e-commerce platform and omnichannel distribution network(p.81)
- • Portfolio of licensed and proprietary brands across multiple categories(p.80)
- • Rapid revenue growth and market expansion(p.142)
- • Diversified product portfolio across kids apparel, furniture, and home textiles(p.142)
- • Exclusive manufacturing and distribution rights for popular brands(p.142)
- • Positive net worth and improving financial position(p.156)
- • Improved profitability and margins(p.143)
- • Unregistered office premises on rental basis with termination risk(p.23)
- • Peer Review Auditor (not Statutory Auditor) prepared Restated Financial Statements(p.25)
- • Promoter Director previously disqualified under Companies Act(p.25)
- • High dependence on promoter for business growth(p.26)
- • No brand IP or trademark protection(p.29)
- • Outstanding litigations against promoter(p.25)
- • Negative operating cash flows in prior years(p.29)
- • Brand agreements not yet executed and expiring quotations(p.25)
- • Heavy dependence on single promoter with 91.12% shareholding pre-issue(p.105)
- • Significant loss of licensing agreements during COVID-19 pandemic(p.83)
- • Limited permanent workforce with only 16 employees(p.86)
- • No prior appraised or verified fund requirements(p.62)
- • Significant accumulated losses in prior periods and weak profitability(p.121)
- • High dependence on third-party manufacturers for product fulfillment(p.85)
- • High debt burden from multiple lenders(p.145)
- • Significant litigation involving promoter(p.147)
- • Promoter previously disqualified as director under Companies Act(p.148)
- • Significant dependence on related party transactions(p.134)
- • High material cost as percentage of revenue(p.142)
- • Expansion into manufacturing with acquisition of plant & machinery(p.25)
- • India's strong economic recovery and growth momentum(p.17)
- • Strategic focus on customized and personalized products(p.17)
- • Increased e-commerce adoption and online shopping growth(p.27)
- • Long-term working capital investment for business expansion(p.29)
- • Massive growth potential in India's e-commerce market projected to reach US$350 billion by 2030(p.75)
- • Expanding online shopper base from 150 million in FY21 to 350 million in FY26(p.75)
- • High growth potential in tier-2 and tier-3 cities contributing 60% of transactions(p.76)
- • Rising demand for customized and personalized products in kids and home categories(p.80)
- • Potential to expand marketplace platform to connect designers, stores and consumers(p.84)
- • Government support through Digital India and e-commerce policy initiatives(p.76)
- • Growing demand for customized and personalized products(p.141)
- • Expansion of e-commerce distribution and market penetration(p.142)
- • Access to broader customer base through larger distribution network(p.141)
- • Post-COVID business recovery and growth momentum(p.142)
- • Dependence on brand licensing agreements with international companies(p.25)
- • Fixed royalty payments regardless of business volume(p.25)
- • Foreign exchange fluctuation risk on imported machinery(p.25)
- • Intense e-commerce competition and market saturation(p.28)
- • Dependence on third-party service providers for logistics and delivery(p.28)
- • Technology disruption and rapid changes in e-commerce landscape(p.26)
- • Cyber security and data breach risks(p.26)
- • High customer acquisition costs and no guaranteed long-term customer base(p.28)
- • Inflation in machinery prices and cost overruns(p.25)
- • Regulatory and compliance changes in e-commerce and data protection(p.27)
- • Intense competition from established e-commerce platforms and international players(p.79)
- • Risk of license non-renewal by international brand partners(p.83)
- • Evolving and complex e-commerce regulations including new disclosure and liability requirements(p.91)
- • Dependency on third-party fulfillment partners introduces supply chain and quality risks(p.83)
- • Operational challenge of managing customer acquisition costs in competitive online retail(p.77)
- • Risk of data protection compliance violations under emerging Personal Data Protection framework(p.90)
- • Changes in laws and regulations affecting the industry(p.141)
- • Economic and political fluctuations impacting consumer spending(p.141)
- • Intense competition from existing and new market entrants(p.141)
- • Risk of losing major customers and concentration dependence(p.141)
- • Technology adaptation challenges in evolving retail landscape(p.141)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Shaival Dharmendra Gandhi | Promoter | 91.12% | 65.00% |
| Shaival Dharmendra Gandhi | Promoter | 97.36% | — |
| Shaival Dharmendra Gandhi | Promoter/Selling Shareholder | — | — |
| Dharmendra Ratilal Doshi | Selling Shareholder | — | — |
| Dixit Pramukhlal Mehta | Selling Shareholder | — | — |
| Kaushal Jitendra Doshi | Selling Shareholder (Karta of HUF) | — | — |
| Pravina Jitendra Maniyar | 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.