The Magenta Lifecare IPO is a fixed price issue amounting to ₹7.00 crores, entirely composed of a fresh issuance of 20 lakh shares. The subscription period for this IPO is from June 5, 2024, to June 7, 2024, with the allotment expected to be finalized on June 10, 2024. The shares are scheduled to list on the BSE SME on June 12, 2024.
Priced at ₹35 per share, the minimum lot size for an application is 4000 shares. Retail investors are required to make a minimum investment of ₹140,000, while High Net Worth Individuals (HNIs) need to invest a minimum of ₹280,000 for two lots (8,000 shares).
Fedex Securities Pvt Ltd is the book running lead manager for this IPO, and Cameo Corporate Services Limited is the registrar. The market maker for the IPO is Sunflower Broking.
**Key IPO Details:**
– **IPO Dates:** June 5, 2024 to June 7, 2024
– **Listing Date:** June 12, 2024
– **Face Value:** ₹10 per share
– **Price:** ₹35 per share
– **Lot Size:** 4000 shares
– **Total Issue Size:** 2,000,000 shares (₹7.00 Cr)
– **Fresh Issue:** 2,000,000 shares (₹7.00 Cr)
– **Issue Type:** Fixed Price Issue IPO
– **Listing At:** BSE SME
– **Pre-issue Shareholding:** 4,869,936 shares
– **Post-issue Shareholding:** 6,869,936 shares
– **Market Maker Portion:** 104,000 shares
**Reservation Details:**
– **Retail Shares Offered:** 50% of the net offer
– **Other Shares Offered:** 50% of the net offer
**IPO Timeline (Tentative Schedule):**
– **Open Date:** June 5, 2024
– **Close Date:** June 7, 2024
– **Basis of Allotment:** June 10, 2024
– **Initiation of Refunds:** June 11, 2024
– **Credit of Shares to Demat:** June 11, 2024
– **Listing Date:** June 12, 2024
– **UPI Mandate Confirmation Cut-off:** 5 PM on June 7, 2024
**Investment Details:**
– **Retail Minimum Investment:** 1 lot (4000 shares) = ₹140,000
– **Retail Maximum Investment:** 1 lot (4000 shares) = ₹140,000
– **HNI Minimum Investment:** 2 lots (8000 shares) = ₹280,000
**Promoter Information:**
– **Promoters:** Divyesh Modi and Khyati Modi
– **Pre-issue Shareholding:** 84.06%
– **Post-issue Shareholding:** 59.59%
**Company Profile:**
Magenta Lifecare Limited, established in 2015, manufactures mattresses and pillows. It offers foam-based products under the “Magenta” brand in India. The product portfolio includes memory foam, latex-based mattresses, bonded mattresses, pocketed springs, and various types of pillows.
The manufacturing facility is located in Gujarat, India, with a capacity to produce 60,000 mattresses and 70,000 pillows annually. The company’s staff strength is 41 employees, serving customers across retail, hotels, and institutions.
**Competitive Strengths:**
1. Diversified customer base and long-standing relationships.
2. Extensive pan-India sales and distribution network.
3. Diversified product portfolio.
4. Experienced promoters with extensive domain knowledge.
5. Quality assurance and accreditations.
**Financial Information (Restated):**
– **Assets (Dec 31, 2023):** ₹1,505.71 lakh
– **Revenue (Dec 31, 2023):** ₹630.74 lakh
– **Profit After Tax (Dec 31, 2023):** ₹24.36 lakh
– **Net Worth (Dec 31, 2023):** ₹634.18 lakh
– **Total Borrowing (Dec 31, 2023):** ₹447.83 lakh
**Performance Indicators:**
– **ROE:** 5.62%
– **ROCE:** 13.41%
– **RoNW:** 3.84%
– **P/BV:** 2.68
– **PAT Margin:** 4.05%
**Objectives of the IPO:**
1. Funding the company’s working capital requirements.
2. General corporate purposes.
