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03 June 2024

Magenta Lifecare Limited IPO

Magenta Lifecare is a manufacturer of foam-based products such as mattresses and pillows which are marketed under their brand “Magenta” in India. Their product offerings include a wide range of mattresses such as memory foam, latex-based, bonded mattresses, pocketed springs, etc. and pillows such as memory foam pillows, molded memory foam pillows, molded contour foam pillows, etc. Driven by innovation, they strive to introduce new and innovative products continuously with the help of their team. For instance, they have introduced green tea and bamboo charcoal-based herbal mattresses and pet bed mattresses in their range of products. Further, they also supply processed raw foam and adjustable bed frames (hydraulic beds) which they import under their brand Magenta.

Magenta Lifecare IPO is a fixed price issue of Rs 7.00 crores. The issue is entirely a fresh issue of 20 lakh shares. Magenta Lifecare IPO opens for subscription on June 5, 2024 and closes on June 7, 2024. The allotment for the Magenta Lifecare IPO is expected to be finalized on Monday, June 10, 2024. Magenta Lifecare's IPO price is ₹35 per share. The minimum lot size for an application is 4000 Shares. Fedex Securities Pvt Ltd is the book-running lead manager of the Magenta Lifecare IPO, while Cameo Corporate Services Limited is the registrar for the issue. The market maker for Magenta Lifecare IPO is Sunflower Broking.

Magenta Lifecare IPO Overview

Detail	Description
IPO Date	June 5, 2024 to June 7, 2024
Listing Date	[.]
Face Value	₹10 per share
Price Band	₹35 per share
Lot Size	4000 Shares
Total Issue Size	2,000,000 shares (aggregating up to ₹7.00 Cr)
Fresh Issue	2,000,000 shares (aggregating up to ₹7.00 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	BSE SME
Share holding pre issue	4,869,936
Share holding post issue	6,869,936
Market Maker portion	104,000 shares Sunflower Broking

Magenta Lifecare IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Wednesday, June 5, 2024
IPO Close Date	Friday, June 7, 2024
Basis of Allotment	Monday, June 10, 2024
Initiation of Refunds	Tuesday, June 11, 2024
Credit of Shares to Demat	Tuesday, June 11, 2024
Listing Date	Wednesday, June 12, 2024
Cut-off time for UPI mandate confirmation	5 PM on June 7, 2024

Magenta Lifecare IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	4000	₹140,000
Retail (Max)	1	4000	₹140,000
HNI (Min)	2	8,000	₹280,000

Magenta Lifecare IPO Reservation

Investor Category	Shares Offered
Retail Shares Offered	50% of the net offer
Other Shares Offered	50% of the net offer

Magenta Lifecare IPO Promoter Holding

Share Holding Pre Issue	84.06%
Share Holding Post Issue	59.59%

Company & Financials

Incorporated in 2015, Magenta Lifecare Limited manufactures mattresses and pillows. The company offers foam-based products under the brand "Magenta" in India. Magenta Lifecare's product portfolio includes memory foam, latex-based, bonded mattresses, pocketed springs etc. and pillows such as memory foam pillows, molded memory foam pillows, molded contour foam pillows etc. Magenta Lifecare Limited's manufacturing facility is located in Gujarat, India. The installed capacity for manufacturing mattresses is currently at 60,000 Nos. and 70,000 nos. of pillows. As of the date of Prospectus, The company's overall staff strength is 41 employees. The products the company offers to the customers are spread across retail, hotels and institutions.
Competitive Strengths:

● Diversified customer base and long-standing relationship with the customers.
● Extensive and well-developed pan-India sales and distribution network.
● Diversified Product portfolio.
● Experienced Promoter Directors with extensive domain knowledge.
● Quality assurance and accreditations.

Magenta Lifecare Limited Financial Information

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,505.71	1,250.93	1,415.60	1,459.78
Revenue	630.74	955.29	938.47	966.14
Profit After Tax	24.36	24.55	18.89	19.44
Net Worth	634.18	520.81	361.73	142.85
Reserves and Surplus	147.19	366.57	219.72	20.84
Total Borrowing	447.83	453.01	757.53	982.73
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	5.62%
ROCE	13.41%
RoNW	3.84%
P/BV	2.68
PAT Margin (%)	4.05

	Pre IPO	Post IPO
EPS (Rs)	0.5	0.47
P/E (x)	69.43	74.03

Objectives of Magenta Lifecare IPO

The company proposes to utilize the Net Proceeds from the Issue towards the following objectives:

1. Funding our working capital requirements
2. General corporate purposes

Magenta Lifecare IPO Review

The company is operating in a highly competitive and fragmented segment. With its asset-light model and cost management, the company is confident of maintaining and improving its performance as indicated by the last 21 months of working. Based on FY24 annualized earnings, the issue appears aggressively priced. Small equity post-IPO indicates longer gestation for migration. Well-informed/cash surplus investors may park funds for long-term rewards.

FAQs for Magenta Lifecare Limited IPO

What is Magenta Lifecare IPO?

Magenta Lifecare IPO is a BSE SME IPO. They are going to raise ₹7 Crores via IPO. The issue is priced at ₹35 per equity share. The IPO is to be listed on BSE.
When Magenta Lifecare IPO will open?

The IPO is to open on June 5, 2024 for NII, and Retail Investors.
What is Magenta Lifecare IPO Investors Portion?

The investors’ portion for NII is 50%, and Retail is 50%.
What is Magenta Lifecare's IPO Size?

Magenta Lifecare's IPO size is ₹7 crores.
What is Magenta Lifecare IPO Price Band?

Magenta Lifecare's IPO Price Band is ₹35 per equity share.
What is Magenta Lifecare IPO Minimum and Maximum Lot Size?

The IPO bid is 4000 shares with ₹140,000.
What is the Magenta Lifecare IPO Allotment Date?

Magenta Lifecare IPO allotment date is June 10, 2024.
What is the Magenta Lifecare IPO Listing Date?

Magenta Lifecare's IPO listing date is June 12, 2024. The IPO to list on BSE SME.