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18 January 2024

Net Avenue Technologies IPO: Painting a Colorful Future in the Market

Introduction:

Net Avenue Technologies Limited, a key player in the digital marketing platform for Indian ethnic wear and accessories, recently accomplished a significant milestone with the conclusion of its Initial Public Offering (IPO). With a total issue size of Rs 10.25 crores, comprising an exclusive fresh issue of 56.96 lakh shares, the IPO stirred substantial interest among investors. This blog delves into the pivotal details and performance metrics that define Net Avenue Technologies' recent debut in the market.

Key Dates:

Bidding Period	November 30 to December 4, 2023
Allotment Date	December 7, 2023
Listing Date	December 8, 2023

IPO Highlights:

Price Band	Lot Size	Minimum Investment
₹16 to ₹18 per share	8000 Shares	₹144,000 for retail investors

Financial Overview:

Total Issue Size	Fresh Issue
5,696,000 shares, aggregating up to ₹10.25 Cr	5,696,000 shares

Shareholding Structure:

Pre-Issue Shares	Post-Issue Shares
15,758,078	21,454,078

Market Maker Segment:

Shreni Shares	288,000 shares

IPO Management:

Lead Manager	Registrar	Market Maker
Shreni Shares Limited	Bigshare Services Pvt Ltd	Shreni Shares

Subscription Highlights:

The Net Avenue Technologies IPO witnessed robust subscription, reaching an overall subscription of 511.21 times. Exceptional enthusiasm was observed across categories, with Non-Institutional Investors (NII) subscribing 616.25 times, Retail investors at an impressive 721.89 times, and Qualified Institutional Buyers (QIBs) at 61.99 times.

IPO Journey Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Refunds Initiation	Shares Credited to Demat	Listing Date
November 30, 2023	December 4, 2023	December 7, 2023	December 8, 2023	December 11, 2023	December 8, 2023

Lot Size Details:

Investors had the opportunity to bid for a minimum of 8000 shares, with the following investment parameters for retail investors and High Net Worth Individuals (HNIs):

Application	Lots	Shares	Amount
Retail (Min)	1	8000	₹144,000
Retail (Max)	1	8000	₹144,000
HNI (Min)	2	₹16,000	₹288,000

Net Avenue Technologies IPO Reservation:

The IPO featured a reservation of 5,696,000 shares, allocating portions to Anchor Investors, Market Maker, QIBs, NIIs, and retail investors.

About Net Avenue Technologies Limited:

Established in 1998, Net Avenue Technologies Limited, previously known as Net Avenue Inc, operates as a direct-to-consumer (D2C) digital marketing platform specializing in Indian ethnic clothing and accessories. The company showcases its offerings through online platforms, including cbazaar.com and ethnovog.com.
Net Avenue Technologies provides a diverse range of products, including Lehenga, Saree, Salwar Kameez, Indo-Western Wear, Kurta Sets, Kurtis, Jewellery, Sherwani, Kurta Pyjama, and various accessories for women, men, teens, and kids.

Key Financials:

As of June 30, 2023, Net Avenue Technologies displayed notable financials, with total assets reaching ₹1,317.92 Lakhs. Although revenue increased by 5.34%, there was a -32.55% decrease in profit after tax (PAT) between the financial years ending March 31, 2023, and March 31, 2022.

Metric	Values
Assets	₹1,317.92 Lakhs
Revenue	₹783.89 Lakhs
Profit After Tax	₹94.39 Lakhs
Net Worth	₹328.70 Lakhs
Reserves and Surplus	₹306.57 Lakhs
Total Borrowing	₹292.69 Lakhs

Key Performance Indicators:

- Market Capitalization: ₹38.62 Crores
- Return on Equity (ROE): 127.77%
- Return on Capital Employed (ROCE): 5.28%
- Debt/Equity: 1.18
- Return on Net Worth (RoNW): 75.53%

Objects of the Issue:

The net proceeds from the IPO will be utilized for customer acquisition through marketing and awareness initiatives, funding working capital requirements, general corporate purposes, and meeting the issue expenses.

Conclusion:

Net Avenue Technologies' IPO, with its remarkable subscription figures, underscores the growing interest in digital platforms for ethnic wear. Despite reported inconsistencies in bottom-line figures, industry experts suggest that well-informed investors with a medium to long-term perspective may find potential in the company's future growth. As Net Avenue Technologies takes center stage in the NSE SME market, it continues to weave success in the vibrant landscape of digital ethnic fashion.

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