Pramara Promotions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 01 Sep 2023 – 05 Sep 2023
- Listing date
- 13 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹63 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹15.27 Cr
- Market cap at offer price
- ₹56.92 Cr
- Promoter holding
- 95.41% → 69.81% pre-issue → post-issue
- ISIN
- INE0O7A01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- A-208, Boomerang Equity Bussi Park, CTS No.4 ETC Chandivali Farm Road, Sakinaka, Andheri East, 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 | 1,24,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹63
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 14,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 16,000 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.37 | — |
| P/E (×) | 18.69 | — |
| Market cap | — | ₹56.92 Cr |
Key performance indicators
- Return on net worth
- 13.87%
- ROCE
- 15.20%
- Debt / equity
- 2.07
- PAT margin
- 4.45%
- NAV per share
- ₹24.28
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pramara Promotions
Incorporated in Mumbai on September 1, 2006 as Essel Marketing & Promotions Private Limited, renamed Pramara Promotions Private Limited in February 2019 and converted into a public limited company (Pramara Promotions Limited) in January 2023, the company is engaged in ideation, conceptualization, designing, manufacturing and marketing of promotional products and gift items for clients across FMCG, QSR, pharma, alcoholic and non-alcoholic beverage, cosmetic, telecom and media sectors. Its offerings span plastic promotional products and toys made at its ~24,000 sq. ft. Daman facility, non-plastic items designed and sourced from approved vendors, OEM merchandise (e.g., water bottles, pens) branded with client logos, loyalty & rewards program management, and own brands 'Toyworks' (toy retail) and 'Tribeyoung' (private label for e-commerce offering toys, sporting goods and accessories); it has designed and manufactured around 5,000 products since inception, undertaking part of manufacturing through third-party moulders supplied with its designs and moulds. Revenue is derived from manufacturing activities, with designing, development and ideation charges embedded in the selling price rather than invoiced separately; FY2023 revenue from operations was ₹5,006.28 lakhs (100% domestic) with profit after tax of ₹222.59 lakhs. The company is promoted by Rohit Lamba (Chairman & Managing Director) and Sheetal Lamba (Whole-Time Director), who together held 94.45% pre-issue, employs 83 people (as of July 31, 2023), and has two foreign subsidiaries in trading of gifts and premiums — Pramara Promotions Private Limited (Hong Kong) and step-down subsidiary Essel Marketing Promotions (Shenzhen) Co. Limited, which is in the process of being wound up.
Company Analysis
from RHPPramara Promotions Limited ideates, designs, manufactures and markets promotional products, corporate gifts and toys for clients across FMCG, QSR, pharma, beverage, cosmetic, telecom and media sectors.
Incorporated in Mumbai on September 1, 2006 as Essel Marketing & Promotions Private Limited, renamed Pramara Promotions Private Limited in February 2019 and converted into a public limited company (Pramara Promotions Limited) in January 2023, the company is engaged in ideation, conceptualization, designing, manufacturing and marketing of promotional products and gift items for clients across FMCG, QSR, pharma, alcoholic and non-alcoholic beverage, cosmetic, telecom and media sectors. Its offerings span plastic promotional products and toys made at its ~24,000 sq. ft. Daman facility, non-plastic items designed and sourced from approved vendors, OEM merchandise (e.g., water bottles, pens) branded with client logos, loyalty & rewards program management, and own brands 'Toyworks' (toy retail) and 'Tribeyoung' (private label for e-commerce offering toys, sporting goods and accessories); it has designed and manufactured around 5,000 products since inception, undertaking part of manufacturing through third-party moulders supplied with its designs and moulds. Revenue is derived from manufacturing activities, with designing, development and ideation charges embedded in the selling price rather than invoiced separately; FY2023 revenue from operations was ₹5,006.28 lakhs (100% domestic) with profit after tax of ₹222.59 lakhs. The company is promoted by Rohit Lamba (Chairman & Managing Director) and Sheetal Lamba (Whole-Time Director), who together held 94.45% pre-issue, employs 83 people (as of July 31, 2023), and has two foreign subsidiaries in trading of gifts and premiums — Pramara Promotions Private Limited (Hong Kong) and step-down subsidiary Essel Marketing Promotions (Shenzhen) Co. Limited, which is in the process of being wound up.
Objects of the Issue
- Funding our working capital requirements ₹ 975.00 Lakhs p.72
- General corporate purposes ₹ 302.12 Lakhs p.72
Issue Structure
- Total Issue
- ₹ 1,527.12 Lakhs (24,24,000 Equity Shares)
- Fresh Issue
- 24,24,000 Equity Shares aggregating ₹ 1,527.12 Lakhs
- Offer for Sale
- NA
- Price Band
- Not applicable – Fixed Price Issue at ₹ 63/- per Equity Share (including premium of ₹ 53/-)
- Lot Size
- 2000 Equity Shares and in multiples thereof
- Face Value
- ₹ 10/- each
Business Model
Earns revenue by designing, manufacturing and selling promotional products, corporate gifts and toys to corporate clients (FMCG, QSR, pharma, beverage, cosmetic, telecom, media) largely on a purchase-order basis; the selling price is inclusive of designing charges, development charges and ideation expenses, so revenue is generated from manufacturing activities only and is not bifurcated between manufacturing and services; part of production is outsourced to third-party manufacturers using Pramara's designs and moulds; sales are essentially domestic (100% of FY2023 revenue from operations).
Business Segments
SWOT Analysis
- • Established track record in promotional merchandise(p.108)
- • Strong in-house product designing and development capabilities(p.108)
- • Cost-efficient, integrated operating structure managing the full value chain(p.108)
- • Experienced Promoter and Management team(p.108)
- • Established strong relationships with customers, including long term supply contracts(p.108)
- • Entry barriers protecting the business(p.108)
- • Focus on high quality control and production standards(p.108)
- • High customer concentration - top 10 customers contribute ~73-88% of revenue(p.24)
- • Dependence on top-10 suppliers (~72% of purchases) with no long-term supply agreements(p.23)
- • Substantial indebtedness with restrictive financing covenants(p.28)
- • Outstanding legal proceedings involving the Company, its Promoters and Directors(p.24)
- • Business dependent on a single manufacturing facility located at Daman(p.27)
- • History of negative cash flows in previous years(p.26)
- • Past instances of regulatory non-compliance, delays and errors in filings(p.30)
- • Indian toys market projected to grow at 12.2% CAGR to US$ 3.0 Billion by 2028(p.90)
- • Government initiatives (National Toy Action Plan) expected to drive toy exports(p.92)
- • Corporate gifting segment growing at ~23%(p.94)
- • Import substitution - starting India manufacturing of imported paper sticks in Class 8 clean room(p.109)
- • Become OEM suppliers to large toy brands sourcing from India as an alternative to China(p.109)
- • Geographical expansion into Europe, South America and other markets(p.109)
- • Volatility in raw material prices affecting margins and profitability(p.29)
- • Pricing pressure from competitors on product prices and margins(p.29)
- • Emergence of competition from other manufacturing countries(p.38)
- • Dependence on Indian economic growth; slowdown or inflation could hurt demand and input costs(p.36)
- • Outbreak of infectious/virulent diseases could disrupt operations(p.37)
- • Changes in laws, regulations and policies could adversely affect operations(p.38)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rohit Lamba | Promoter | 86.63% | 63.39% |
| Sheetal Lamba | Promoter | 7.82% | 5.72% |
| Sanket Lamba | Promoter Group | 0.01% | 0.01% |
| Veena Multani | Promoter Group | 0.57% | 0.42% |
| Sapna Makhija | Promoter Group | 0.38% | 0.28% |
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.