Shashwat Furnishing Solutions SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Apr 2022 – 25 Apr 2022
- Listing date
- 04 May 2022
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹2.51 Cr
- Market cap at offer price
- ₹9.40 Cr
- Promoter holding
- 100.00% → 73.28% pre-issue → post-issue
- ISIN
- INE0JMN01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Beeline Broking Ltd.
- Registered office
- 121, Mahaveer Nagar, Jain Colony, Rajasthan
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 | 30,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹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 |
|---|---|---|
| EPS (₹) | 10.00 | — |
| P/E (×) | 4.50 | — |
| Market cap | — | ₹9.40 Cr |
Key performance indicators
- Return on net worth
- 0.00%
- NAV per share
- ₹0
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shashwat Furnishing Solutions SME
Shashwat Furnishing Solutions Limited is engaged in processing of semi-finished furniture products into finished products and manufacturing through job work of furniture and handicraft items. The company specializes in developing a qualitative range of industrial furniture, restaurant and cafe furniture, garden and outdoor furniture, vintage furniture, mirror frames, wall clocks and various other decoration and handicrafts objects. The company presents an exclusively designed product range with a focus on remarkable finish, unique designs, trendy colour combinations, flawless detailing, unbreakable quality and higher durability. Originally incorporated on March 8, 2021 as a private limited company, it acquired the entire running business with assets and liabilities of M/s Handicrafts Village (a sole proprietorship concern of promoter Mr. Hitesh Karnawat) on June 1, 2021 via Business Transfer Agreement, then converted to public limited company on August 27, 2021.
Company Analysis
from RHPShashwat Furnishing Solutions processes semi-finished furniture and handicraft items into finished products through in-house manufacturing and job work, specializing in industrial furniture, restaurant/cafe furniture, garden furniture, and decorative objects.
Shashwat Furnishing Solutions Limited is engaged in processing of semi-finished furniture products into finished products and manufacturing through job work of furniture and handicraft items. The company specializes in developing a qualitative range of industrial furniture, restaurant and cafe furniture, garden and outdoor furniture, vintage furniture, mirror frames, wall clocks and various other decoration and handicrafts objects. The company presents an exclusively designed product range with a focus on remarkable finish, unique designs, trendy colour combinations, flawless detailing, unbreakable quality and higher durability. Originally incorporated on March 8, 2021 as a private limited company, it acquired the entire running business with assets and liabilities of M/s Handicrafts Village (a sole proprietorship concern of promoter Mr. Hitesh Karnawat) on June 1, 2021 via Business Transfer Agreement, then converted to public limited company on August 27, 2021.
Objects of the Issue
- Working Capital Requirement ₹160.00 lakhs p.19
- General Corporate Expenses ₹51.10 lakhs p.19
- Public Issue Expenses ₹40.00 lakhs p.19
- Working Capital Requirement ₹160.00 Lakhs p.65
- General Corporate Expenses ₹51.10 Lakhs p.65
- Public Issue Expenses ₹40.00 Lakhs p.65
- Working capital requirement p.167
- General corporate purposes p.167
- Issue expenses p.167
Issue Structure
- Total Issue
- ₹251.10 lakhs
- Fresh Issue
- ₹251.10 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹45.00 per equity share
- Lot Size
- 3000 equity shares (minimum allotment of 3000 equity shares to successful applicants; market lot and trading lot in multiples of 3000 thereafter)
- Face Value
- ₹10.00 per equity share
Business Model
The company processes semi-finished furniture products into finished products and manufactures furniture and handicraft items through job work. It develops and sells industrial furniture, restaurant furniture, cafe furniture, metal furniture, garden and outdoor furniture, vintage furniture, mirror frames, wall clocks and decoration objects. Products are sold through online portals (Indiamart, Trade India, Exporter India) and on purchase order basis depending on client requirements and demand. The company does not have long-term contracts with customers.
Business Segments
SWOT Analysis
- • Established business transferred from proprietorship with operating history(p.2)
- • Diverse product portfolio across furniture and handicrafts segments(p.16)
- • Experienced promoter with significant industry tenure(p.33)
- • Experienced management team with industry knowledge(p.85)
- • Established supplier relationships protecting business terms and pricing(p.85)
- • Scalable business model requiring optimum resource utilization(p.85)
- • Quality assurance capabilities generating competitive advantage(p.85)
- • Experienced management team with industry expertise(p.149)
- • Established supplier relationships providing competitive advantage(p.149)
- • Scalable business model requiring optimum resource utilization(p.149)
- • Quality assurance focus generating competitive edge(p.149)
- • Very limited operating history as incorporated company(p.24)
- • Heavy dependence on promoter for business success(p.27)
- • Concentration of revenue among few customers(p.31)
- • Concentration of purchases among few suppliers(p.31)
- • Unsecured loans from director that can be recalled(p.31)
- • No insurance coverage for assets and key risks(p.28)
- • Promoter and promoter group control >73% post-IPO(p.37)
- • No long-term supply agreements for semi-finished products(p.27)
- • No long-term contracts with customers(p.30)
- • Negative operating cash flows(p.30)
- • Recently incorporated company unfamiliar with Companies Act compliance(p.29)
- • Logo not registered as trademark(p.27)
- • Domain name not owned by company(p.28)
- • Properties on lease, not owned(p.26)
- • Significant promoter concentration with single major shareholder(p.57)
- • Dependence on personal relationships with limited formal supplier agreements(p.85)
- • Limited operational history with company incorporated recently(p.84)
- • Small workforce of 5 employees at registered office with contract labor dependency(p.92)
- • Reliance on unsecured loans from related parties(p.117)
- • New company with limited operating history(p.131)
- • Very high promoter concentration with limited ownership diversification(p.119)
- • Negative operating cash flow despite profitability(p.155)
- • Large and fragmented handicrafts industry with export potential(p.16)
- • Expand geographical reach to new markets and regions(p.86)
- • Enhance customer base through improved distribution and regional penetration(p.86)
- • India furniture market growing at CAGR of 11.97% during forecast period(p.82)
- • Capitalize on handicraft industry growth with top 10 export destinations(p.82)
- • Leverage e-commerce platforms for product sales expansion(p.84)
- • Expand geographical reach into new regions(p.150)
- • Leverage market relationships to grow customer base(p.150)
- • Improve operational efficiency to achieve cost leadership(p.150)
- • Develop professional organization to support scaling(p.150)
- • Dependence on external suppliers for semi-finished goods(p.25)
- • Economic slowdown adversely affects discretionary spending(p.34)
- • COVID-19 pandemic impact on business and operations(p.27)
- • Intense competition from organized and unorganized players(p.29)
- • Price and supply fluctuations in raw materials(p.27)
- • Changes in tax laws and regulatory environment(p.37)
- • GST implementation and regulatory changes(p.37)
- • Labour disputes and unionization risk(p.30)
- • Natural calamities and external shocks(p.39)
- • Terrorist attacks and civil unrest impact on markets(p.40)
- • Highly competitive unorganized and fragmented market with many small players(p.92)
- • Competitors with substantially larger capital base and broader product offerings(p.92)
- • Furniture market exposed to economic cycles and consumer spending volatility(p.82)
- • Global economic headwinds and divergent post-pandemic recovery patterns(p.76)
- • Supply chain disruptions and container freight volatility affecting import-export(p.77)
- • Intense competition from larger well-capitalized competitors(p.153)
- • Dependence on raw material price fluctuations(p.155)
- • Inflation eroding profit margins(p.155)
- • Customer credit risk and liquidity constraints(p.155)
- • Ongoing COVID-19 pandemic impact uncertainty(p.153)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hitesh Karnawat | Promoter | 89.70% | 65.73% |
| Mr. Hitesh Karnawat | Promoter | 89.70% | 65.73% |
| Mr. Lalit Ghewarchand Karnawat | Promoter Group | 4.72% | 3.46% |
| Mrs. Mayuri Karnawat | Promoter Group | 5.56% | 4.07% |
| Mr. Hitesh Karnawat | Promoter | 89.70% | — |
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.