Net Avenue IPO: Net Avenue Technologies Limited IPO Details

The Net Avenue Technologies IPO is generating significant buzz in the investment world, as it presents an opportunity for investors to participate in the growth story of a company deeply rooted in the online digital direct-to-consumer business for Indian Ethnic wear and accessories. In this blog post, we will delve into the key details and insights surrounding this IPO.

Also See: Net Avenue Technologies Limited IPO GMP Today

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Net Avenue IPO Details

Net Avenue Technologies is set to launch its initial public offering (IPO) with a book-built issue of Rs 10.25 crores. The entire issue consists of a fresh offering of 56.96 lakh shares. The IPO subscription window opens on November 30, 2023, and closes on December 4, 2023. The basis of allotment is expected to be finalized on December 7, 2023, with the listing date tentatively scheduled for December 12, 2023. The IPO price band has been set at ₹16 to ₹18 per share, with a minimum lot size of 8000 shares. Retail investors are required to invest a minimum of ₹144,000, while HNIs must invest in 2 lots, totaling ₹288,000.

Here’s a summary of the key IPO details in an Excel table:

IPO NameNet Avenue Technologies IPO
IPO DateNovember 30, 2023 – December 4, 2023
Basis of AllotmentDecember 7, 2023
Listing DateDecember 12, 2023
Face Value₹1 per share
Price Band₹16 to ₹18 per share
Lot Size8000 Shares
Total Issue Size5,696,000 shares (₹10.25 Cr)
Fresh Issue5,696,000 shares (₹10.25 Cr)
Issue TypeBook Built Issue IPO
Listing AtNSE SME
Share Holding Pre Issue15,758,078
Share Holding Post Issue21,454,078
Market Maker portion288,000 shares

Also See: Upcoming IPO in India

Net Avenue IPO Reservation Details

The IPO offers reservations for different investor categories:

  • QIB Shares Offered: Not more than 50.00% of the Net offer
  • Retail Shares Offered: Not less than 35.00% of the Offer
  • NII (HNI) Shares Offered: Not less than 15.00% of the Offer

Investors can bid for a minimum of 8000 shares and in multiples thereof.

Also Read: Benefits and Risks of Investing in IPOs

Net Avenue Technologies IPO Lot Size

Investors can bid for a minimum of 8000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

ApplicationLotsSharesAmount
Retail (Min)18000₹144,000
Retail (Max)18000₹144,000
HNI (Min)216,000₹288,000

Also Read: How to Open a Demat Account on Groww

Net Avenue IPO Promoter Holding

The promoters of Net Avenue Technologies are Mr. Rajesh Nahar and Mr. Ritesh Katariya. Before the IPO, their combined shareholding in the company was 45.31%, which is expected to reduce to 33.28% post the IPO.

Net Avenue IPO Objectives

Net Avenue Technologies intends to utilize the net proceeds from the IPO for the following purposes:

  1. Customer Acquisition – Marketing and Awareness.
  2. Funding Working Capital Requirement.
  3. General Corporate Purpose.
  4. Meeting the Issue Expenses.

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Net Avenue IPO Financial Performance

Net Avenue Technologies Limited’s financial performance indicates a revenue increase of 5.34% and a profit after tax (PAT) decline of -32.55% between the financial years ending on March 31, 2023, and March 31, 2022.

Period Ended30 Jun 202331 Mar 202331 Mar 202231 Mar 2021
Assets1,317.921,419.901,295.26769.85
Revenue783.893,451.263,276.161,447.54
Profit After Tax94.39176.40261.5123.11
Net Worth328.70233.5442.57-228.37
Reserves and Surplus306.57211.4120.44-250.50
Total Borrowing292.69276.0684.24191.07
Amount in ₹ Lakhs
Financial Performance

Financial Performance

About Net Avenue Technologies Limited

Founded in 1998, Net Avenue Technologies Limited, formerly known as Net Avenue Inc., is deeply involved in the online digital direct-to-consumer business for Indian Ethnic wear and accessories. The company started as a gifting portal, chennaibazaar.com, offering gifting solutions to Indians living abroad. It later expanded its offerings to include cbazaar.com and ethnovog.com, focusing on Indian ethnic clothes and jewelry.

Net Avenue IPO Key Brands:

  • Cbazaar: A global Indian Ethnic Fashion brand specializing in Direct-to-Consumer Online Retail, primarily targeting the United States, the UK, and Canada.
  • Ethnovog: An online apparel store offering size-inclusive and budget-friendly fashion choices for women, teens, and kids.

Net Avenue Technologies serves customers in South Asian countries and beyond, including the United States, United Kingdom, Australia, and Canada. The company’s distribution partners include Myntra, Nykaa, Ajio, among others. Their product portfolio includes a wide range of Indian ethnic wear and accessories, and in 2008, they launched their luxury brand, RaiR.

Net Avenue IPO Key Performance Indicators

Here are some key performance indicators (KPIs) related to the Net Avenue Technologies IPO:

  • P/E (x): 8.57
  • Post P/E (x): 10.23
  • Market Cap (₹ Cr.): 38.62
  • ROE: 127.77%
  • ROCE: 5.28%
  • Debt/Equity: 1.18
  • EPS (Rs): 2.1
  • RoNW: 75.53%

Net Avenue IPO Registrar & Lead Managers

  • The registrar for the Net Avenue Technologies IPO is Bigshare Services Pvt Ltd, with contact details as follows:
  • The lead manager for the IPO is Shreni Shares Limited.

Net Avenue Technologies IPO Timeline

Net Avenue Technologies IPO opens on November 30, 2023, and closes on December 4, 2023.

IPO Open DateThursday, November 30, 2023
IPO Close DateMonday, December 4, 2023
Basis of AllotmentThursday, December 7, 2023
Initiation of RefundsFriday, December 8, 2023
Credit of Shares to DematMonday, December 11, 2023
Listing DateTuesday, December 12, 2023
Cut-off time for UPI mandate confirmation5 PM on December 4, 2023
(Net Avenue Technologies IPO Tentative Schedule)
Net Avenue IPO

Conclusion

The Net Avenue Technologies IPO presents an opportunity for investors to participate in the growth of a company that has established a strong presence in the online Indian Ethnic wear and accessories market. As with any investment, it is essential to conduct thorough research, assess the company’s financials, and carefully consider your investment objectives before participating in the IPO.

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