Royal Sense
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Mar 2024 – 14 Mar 2024
- Listing date
- 19 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹68 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹9.86 Cr
- Market cap at offer price
- ₹33.32 Cr
- Promoter holding
- 99.99% → 67.15% pre-issue → post-issue
- ISIN
- INE0QQG01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- First Floor, Plot No 57, Phase-II, Badli Industrial Area Badli, New Delhi
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 | 1,60,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹68
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,36,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,72,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,52,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,88,000 |
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 (₹) | 2.04 | 0.59 |
| P/E (×) | 33.33 | 115.25 |
| Price to book (×) | 5.65 | — |
| Market cap | — | ₹33.32 Cr |
Key performance indicators
- Return on net worth
- 17.00%
- ROCE
- 23.00%
- PAT margin
- 11.00%
- NAV per share
- ₹12.04
- Price to book
- 5.65
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Royal Sense
Royal Sense Limited is a medical device and healthcare supplies trading company incorporated on April 6, 2023, that acquired the running business of its promoter's proprietorship firms (M/s Royal Traders, PHT, and Anaya) on April 28, 2023. The company supplies a wide range of surgical accessories, tools, equipment, medical consumables, laboratory equipment, diagnostic equipment, pharmaceuticals, and related healthcare products. It serves government institutions and private hospitals across India, supplying to multiple state health ministries including Uttar Pradesh, Himachal Pradesh, Rajasthan, Jammu & Kashmir, and Delhi NCT through both direct sales and government e-procurement systems (tender systems and GeM portal). The company positions itself as a one-stop solution provider for complete healthcare requirements.
Company Analysis
from RHPRoyal Sense Limited supplies high-quality medical devices, surgical instruments, laboratory equipment, and healthcare consumables to hospitals, laboratories, institutions, and clinics across India.
Royal Sense Limited is a medical device and healthcare supplies trading company incorporated on April 6, 2023, that acquired the running business of its promoter's proprietorship firms (M/s Royal Traders, PHT, and Anaya) on April 28, 2023. The company supplies a wide range of surgical accessories, tools, equipment, medical consumables, laboratory equipment, diagnostic equipment, pharmaceuticals, and related healthcare products. It serves government institutions and private hospitals across India, supplying to multiple state health ministries including Uttar Pradesh, Himachal Pradesh, Rajasthan, Jammu & Kashmir, and Delhi NCT through both direct sales and government e-procurement systems (tender systems and GeM portal). The company positions itself as a one-stop solution provider for complete healthcare requirements.
Objects of the Issue
- Working capital requirement ₹600.00 Lakhs p.18
- Issue Expenses ₹146.00 Lakhs p.18
- General corporate purposes ₹240.00 Lakhs p.18
- Working capital requirement ₹600.00 Lakhs (60.85% of gross proceeds) p.57
- General corporate purposes ₹240.00 Lakhs (24.34% of gross proceeds) p.57
- Issue Expenses ₹146.00 Lakhs (14.81% of gross proceeds) p.57
- Repayment of borrowings ₹250.00 Lakhs
- Working capital requirements ₹350.00 Lakhs
- General corporate purposes ₹150.00 Lakhs
Issue Structure
- Total Issue
- ₹986.00 Lakhs
- Fresh Issue
- Upto 14,50,000 Equity shares of ₹10/- each at ₹68/- per share aggregating to ₹986.00 Lakhs
- Offer for Sale
- NIL
- Price Band
- ₹68/- per Equity Share (Fixed Price)
- Lot Size
- 2000 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company operates as a trader and supplier of medical devices and healthcare consumables. It sources products from suppliers and sells them to government institutions, private hospitals, and healthcare facilities across India through direct sales, distributors, and sub-distributors. Revenue is generated through the sale of medical equipment, surgical instruments, surgical consumables, laboratory equipment, laboratory reagents, medical disposables, diagnostic equipment, sanitary napkins, pharmaceuticals, and cosmetics.
Business Segments
SWOT Analysis
- • One-stop solution provider for medical devices and healthcare products(p.17)
- • Extended supply chain through government procurement systems(p.17)
- • Diverse customer base including government institutions and private hospitals across India(p.17)
- • Profitable operations with positive earnings(p.18)
- • Experienced promoter with 18+ years in pharmaceuticals and medical devices(p.75)
- • Diversified product portfolio across medical segments(p.76)
- • Established brand reputation and customer relationships(p.76)
- • Strong financial performance in early operating period(p.71)
- • Quality assurance and compliance focused operations(p.76)
- • Experienced promoter with established business operations in medical supplies(p.106)
- • Successful acquisition of running business with three-year operational track record(p.119)
- • Diversified customer base across government and private sectors(p.133)
- • Strong liquidity position with healthy current ratio(p.130)
- • One-stop solution positioning in medical supplies sector(p.133)
- • Recently incorporated with limited operating history as a company(p.22)
- • Heavy dependence on a small number of customers(p.24)
- • Heavy dependence on a small number of suppliers(p.24)
- • Significant related party transactions affecting business independence(p.23)
- • Heavy dependence on promoter for business success(p.24)
- • Geographically concentrated operations in Delhi NCR(p.25)
- • Negative cash flows from operating and investing activities(p.25)
- • No ownership of registered office and warehouse premises(p.25)
- • Extreme customer concentration risk(p.79)
- • Severe supplier concentration dependency(p.79)
- • Very limited operating history(p.87)
- • Small workforce capacity(p.78)
- • Limited geographic footprint(p.76)
- • Extreme concentration of ownership in single promoter(p.119)
- • Very young company incorporated only in April 2023(p.133)
- • High inventory levels relative to short operational period(p.124)
- • Dependence on related party transactions for significant business(p.130)
- • Short operational history lacks long-term performance validation(p.146)
- • India's medical devices industry positioned as high-growth sunrise sector(p.17)
- • Government support through PLI scheme for medical device manufacturing(p.23)
- • Growing healthcare expenditure in India(p.17)
- • Market consolidation opportunity in fragmented surgical equipment sector(p.17)
- • Rapid growth in Indian medical devices market with government support(p.67)
- • High import dependency creates market gap(p.65)
- • Demographic tailwind from aging population(p.67)
- • Government e-procurement expansion providing distribution channels(p.71)
- • Strong FDI inflows and manufacturing infrastructure development(p.67)
- • Strategy to expand geographic reach and strengthen branding(p.76)
- • Expanding government e-procurement channels(p.133)
- • Growing healthcare infrastructure demand across multiple states(p.133)
- • Diversified product portfolio addressing multiple healthcare segments(p.133)
- • Potential for business expansion through public market access(p.133)
- • Dependence on government healthcare spending which may be subject to budget cuts(p.23)
- • Disruption risks in supply chain from multiple suppliers(p.23)
- • Risk of order cancellation or modification by customers(p.23)
- • Regulatory licensing and approval risks(p.24)
- • Product liability and quality risks inherent in medical devices trading(p.24)
- • Intense competition from organized and unorganized players(p.26)
- • Rapid technological change requiring continuous adaptation(p.26)
- • Economic slowdown adversely affecting healthcare spending(p.29)
- • Risk from natural disasters, pandemics and acts beyond company control(p.29)
- • Changes in regulatory framework and tax policies(p.30)
- • Intense competition from organized and unorganized players(p.75)
- • Regulatory changes in medical device classification and pricing(p.80)
- • Price controls on scheduled formulations affecting margins(p.81)
- • Complex regulatory and compliance requirements for medical devices(p.80)
- • Global supply chain disruptions affecting procurement(p.64)
- • High dependence on related party vendors for product sourcing(p.130)
- • Vulnerability to changes in healthcare industry regulations and compliance requirements(p.134)
- • Significant competitive pressures in medical supplies distribution(p.134)
- • Exposure to general economic conditions affecting healthcare spending(p.134)
- • Risk of changes in government policies affecting tax obligations and procurement(p.134)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rishabh Arora | Promoter | 95.36% | 67.14% |
| Mr. Gaurav Arora | Promoter Group | 0.001% | — |
| Mr. Charan Dev Arora | Promoter Group | 0.001% | — |
| Ms. Sushma Arora | Promoter Group | 0.001% | — |
| Ms. Meenakshi Arora | Promoter Group | 0.001% | — |
| Mr. Rishabh Arora | Promoter | 95.36% | 67.14% |
| Rishabh Arora | Promoter | 100% | — |
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.