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20 March 2024

Omfurn India FPO

Omfurn India Ltd, specializing in manufacturing pre-finished wooden doors and modular furniture, launched its Follow-on Public Offer (FPO) to raise Rs 27.00 crores. The FPO consisted entirely of a fresh issue of 36 lakh shares, with a price band set between ₹71 and ₹75 per share. This move signifies Omfurn India's ambition to expand and solidify its presence in the modular furniture market. Below is a detailed overview of the FPO, presented in a structured table format for clarity.

General Details

Detai	Description
FPO Period	March 20, 2024, to March 22,2024
Listing Date	March 28, 2024 (Tentative)
IssueType	Book Built Issue FPO
Price Band	₹71 to ₹75 per share
Lot Size	2400 Shares
Issue Size	3,600,000 shares (aggregatingupto₹27.00Cr)
Listing At	NSE SME
Book Running Lead Manager	Gretex Corporate Services Limited
Registrar	Big share Services PvtLtd
Market Maker	Spread X Securities

Subscription Details

Investor Category	Shares Offered	Subscription (times)
QIB	1,173,600	1.00
NII (HNI)	513,600	3.02
Retail	1,197,600	6.33
Total	3,600,000	3.57

Company and Financials

Omfurn India Ltd, with its inception in 1997, has grown to become a key player in the furniture industry, specializing in a variety of wooden doors and furniture pieces designed for modern living spaces and offices. The company's manufacturing facility is located in Umbergaon and encompasses a total area of 161,460 sq. ft., staffed by 221 employees as of November 30, 2023.

Financial Performance (Restated)

Period Ending	Assets (₹ Lakhs)	Revenue (₹ Lakhs)	Profit After Tax (₹ Lakhs)
Sep 30, 2023	6,825.97	4,474.78	289.16
Mar 31, 2023	5,716.59	7,108.10	414.87
Mar 31, 2022	4,766.30	3,229.79	59.81
Mar 31, 2021	4,665.35	2,184.54	99.41

Objectives of the FPO

The net proceeds from the FPO are earmarked for several strategic initiatives, including

1. Funding capital expenditure for installation of plant & machinery.
2. Repayment/prepayment of certain borrowings.
3. Meeting working capital requirements.
4. General corporate purposes.

Omfurn India FPO Review

Analysts suggest that while Omfurn India's financial performance has seen a notable boost, potential investors should consider the competitive and fragmented nature of the segment. The FPO, based on FY24 annualized earnings, appears fully priced, yet it offers a moderate investment opportunity for well-informed investors with a medium-term outlook. Omfurn India's FPO marks a significant step in its growth trajectory, aiming to leverage the funds raised for expanding its manufacturing capabilities and reducing debt, thereby potentially enhancing its market competitiveness and financial stability.

FAQs for Omfurn India FPO

What is the Omfurn India FPO?

Omfurn India FPO is a Follow-on Public Offer by Omfurn India Ltd, aiming to raise Rs 27.00 crores through the issuance of 36 lakh fresh shares.
When was the Omfurn India FPO launched?

The FPO bidding process was open from March 20, 2024, to March 22, 2024.
What is the listing date for the Omfurn India FPO?

The tentative listing date on the NSE SME is March 28, 2024.
What was the price band for the Omfurn India FPO?

The price band for the FPO was set at ₹71 to ₹75 per share.
What was the minimum lot size for the FPO?

The minimum lot size for the FPO was 2400 shares.
How much was the minimum investment required?

The minimum investment required for retail investors was ₹180,000. For HNI investors, the minimum investment was for 2 lots (4,800 shares), amounting to ₹360,000
Who managed the Omfurn India FPO?

Gretex Corporate Services Limited acted as the book running lead manager, and Bigshare Services Pvt Ltd was the registrar to the FPO.
Who was the market maker for the FPO?

Gretex Share Broking served as the market maker for the FPO.
How was the Omfurn India FPO subscribed?

The FPO was subscribed 3.57 times, with retail subscriptions at 6.33 times, QIB subscriptions at 1.00 times, and NII subscriptions at 3.02 times.
What are the main products of Omfurn India Ltd?

Omfurn India specializes in manufacturing pre-finished wooden doors and modular furniture, including products for modular kitchens, wardrobes, vanities, and modern office furniture.
What will the proceeds from the FPO be used for?

The net proceeds from the FPO are intended to fund capital expenditure for installation of plant & machinery, repay/prepay certain borrowings, meet working capital requirements, and for general corporate purposes.
Where is Omfurn India Ltd located?

Omfurn India Ltd's manufacturing factory is located in Umbergaon, and it has a total area of 1,61,460 sq. ft.
What is the financial performance of Omfurn India Ltd?

For the period ending September 30, 2023, Omfurn India reported a significant increase in revenue and profit after tax (PAT) compared to previous fiscal years