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21 November 2023

Kontor Space IPO: Revolutionizing Workspaces with Innovative Solutions

Introduction:

Kontor Space IPO, a fixed-price issuance amounting to Rs 15.62 crores, represents a fresh offering of 16.8 lakh shares. The bidding window, active from September 27, 2023, to October 3, 2023, concluded with the allotment finalized on October 5, 2023. Subsequently, the shares made their debut on NSE SME on October 10, 2023.

Pricing Dynamics:

Priced at ₹93 per share, the IPO stipulated a minimum lot size of 1200 shares. Retail investors were required to invest a minimum of ₹111,600, while High Net Worth Individuals (HNIs) were expected to commit a minimum of ₹223,200 for 2 lots (2,400 shares).

Market Performance Snapshot:

As of November 17, 2023, Kontor Space Ltd (KONTOR) stock was valued at ₹82.85, reflecting a 3.56% increase. The stock opened at ₹81.60, fluctuating between ₹83.00 and ₹80.00. The previous close was ₹80.00, with a total traded value of 14,400. The 52-week high and low were ₹83.00 and ₹80.00, respectively.

IPO Structure:

The IPO constituted a total issue size of 1,680,000 shares, aggregating up to ₹15.62 crores. The face value per share was ₹10, and the listing transpired on NSE SME.

Ownership Landscape:

Pre-IPO, Kontor Space Ltd had a shareholding of 4,500,000, which escalated to 6,180,000 post-issue. The market maker, Rikhav Securities, held a portion of 86,400 shares.

IPO Glance:

As of March 31, 2023, Kontor Space Ltd exhibited total assets of ₹1,295.31 lakhs, revenue of ₹917.84 lakhs, and a net profit of ₹187.88 lakhs. The net worth stood at ₹464.67 lakhs, inclusive of reserves and surplus amounting to ₹64.67 lakhs.

Key Financial Metrics:

The market cap for Kontor Space IPO was ₹57.47 crores, featuring a P/E (x) of 22.27. The Return on Equity (ROE) was 40.82%, and the Return on Capital Employed (ROCE) was 31.19%. The company demonstrated an Earnings per Share (EPS) of ₹9.46 and a Return on Net Worth (RoNW) of 40.82%.

IPO's Objectives:

The net proceeds from the IPO are earmarked for making payments of rental deposits for new co-working centers, conducting capital expenditures for fit-outs of new co-working centers, and general corporate purposes.

Expert Evaluation:

Kontor Space Ltd is in the novel business of "space-as-a-service" and has showcased growth in its top lines. FY23 performance indicates promising prospects, and the management's confidence in proposed expansion suggests a positive trajectory. Investors may consider parking funds for medium to long-term rewards.

Conclusion:

Kontor Space IPO's significant subscription numbers underscore its appeal in the market. The company's unique approach to the co-working concept, coupled with positive financial indicators, positions it as an attractive investment opportunity. However, prospective investors are advised to conduct thorough due diligence, considering risk factors, and aligning investments with individual financial goals. Seeking guidance from financial experts can provide tailored insights and aid in making informed investment decisions.

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