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25 December 2023

On Door Concepts IPO: A Gateway to Grocery E-commerce Growth

Introduction:

On Door Concepts IPO has entered the financial landscape as a fixed-price issue, raising Rs 31.18 crores entirely through a fresh issue of 14.99 lakh shares. The bidding phase unfolded from October 23, 2023, to October 27, 2023, with the allotment finalized on Tuesday, October 31, 2023. The shares made their debut on NSE SME on November 1, 2023.

Pricing and Investment Dynamics:

Priced at ₹208 per share, the IPO had a minimum lot size of 600 shares. Retail investors were required to invest a minimum of ₹124,800, while the minimum lot size investment for HNI was set at 2 lots (1,200 shares), amounting to ₹249,600.

Market Performance Snapshot:

As of December 20, 2023, On Door Concepts Limited (ONDOOR) was trading at ₹196.50, reflecting a marginal increase of 0.26%. The stock opened at ₹199.80, with a high and low of ₹209.00 and ₹195.00, respectively. The previous close stood at ₹196.00, with a total traded value of 69,600 shares.

Key IPO Highlights:

- IPO duration: October 23, 2023, to October 27, 2023
- Listing Date: November 1, 2023
- Face Value: ₹10 per share
- Price Band: ₹208 per share
- Lot Size: 600 Shares
- Total Issue Size: 1,498,800 shares, aggregating up to ₹31.18 Cr
- Fresh Issue: 1,498,800 shares, aggregating up to ₹31.18 Cr
- Issue Type: Fixed Price Issue IPO
- Listing At: SME, NSE

Equity Transition:

Prior to the IPO, ONDOOR had 4,149,812 shares in circulation. Post the IPO, this figure increased to 5,648,612 shares.

IPO Reservation Dynamics:

The IPO comprised a reservation of 706,200 shares (47.12%) for NII and an equal proportion for RII. Additionally, the market maker portion stood at 86,400 shares (5.76%).

IPO Timeline Highlights:

- IPO Open Date: Monday, October 23, 2023
- IPO Close Date: Friday, October 27, 2023
- Basis of Allotment: Tuesday, October 31, 2023
- Initiation of Refunds: Wednesday, November 1, 2023
- Credit of Shares to Demat: Wednesday, November 1, 2023
- Listing Date: Wednesday, November 1, 2023
- Cut-off time for UPI mandate confirmation: 5 PM on October 27, 2023

Lot Size Landscape:

Investors could bid for a minimum of 600 shares and in multiples thereof. The table below outlines the investment parameters for retail investors and HNIs:

Application	Lots	Shares	Amount
Retail (Min)	1	600	₹124,800
Retail (Max)	1	600	₹124,800
HNI (Min)	2	1,200	₹249,600

Promoter Holdings:

The promoters of ONDOOR are NSB BPO Solutions Private Limited, Mr. Narendra Singh Bapna, Mr. Pramod Ramdas Ingle, Mrs. Swati Bapna, and Mrs. Vaishali Ingle. Pre-issue, they held 51.92% of shares, which decreased to 38.14% post the issue.

Company Profile:

Incorporated in December 2014, On Door Concepts operates as an e-commerce website specializing in groceries and home essentials. With its first store in Bhopal, Madhya Pradesh, the company expanded to 55 stores as of March 31, 2023, covering various cities in Madhya Pradesh. Out of these, 17 stores are owned and operated by the company, while the remaining 38 operate under the franchisee model.

The company deals in the following product categories:

1. Food Category: Groceries, fruits & vegetables, beverages, dairy products, and confectionery.
2. FMCG: Fast-moving consumer goods, including personal care, toiletries, and over-the-counter products.
3. General Merchandise: Crockery, plastic items, daily necessities, etc.

Competitive Strengths:

- E-tailing business via Android and iOS applications, web portal, and telephonic orders supported by robust logistics.
- "Everyday Low Price" policy for a convenient shopping experience.
- Reasonable pricing across all product categories.

Financial Performance Overview:

As of March 31, 2023, ONDOOR reported the following financials:

- Assets: ₹9,009.46 Lakhs
- Revenue: ₹18,015.02 Lakhs
- Profit After Tax: ₹1,306.18 Lakhs
- Net Worth: ₹5,120.78 Lakhs
- Reserves and Surplus: ₹4,734.32 Lakhs

Key Performance Indicators:

- P/E (x): 4.56
- Post P/E (x): 87.76
- Market Cap: ₹117.49 Crores
- ROE: 25.51%
- ROCE: 50.90%
- EPS (Rs): 56.77
- RoNW: 25.51%

Objects of the Issue:

The Issue Proceeds from the Fresh Issue will be utilized towards:
1. Augmenting additional working capital requirements.
2. General Corporate Purpose.

Expert Analysis:

The management, now debt-free, expresses confidence in improving numbers in the coming years.

IPO Subscription Status:

As of October 27, 2023, the ONDOOR IPO is subscribed 5.59 times. The subscription details include 7.87 times in the retail category and 3.16 times in the NII category.

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of December 20, 2023.

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