Diversified IPOs in India refer to initial public offerings by companies with a broad range of business operations across various sectors. These IPOs provide investors exposure to multiple industries, offering growth potential and risk diversification in their investment portfolios.
Content:
- Overview of the Diversified IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Diversified Sector IPOs
- Disadvantages of Investing in Diversified Sector IPOs
- Role of Diversified Industry in the Economy
- How to invest in Diversified IPOs?
- Future outlook of Diversified IPOs in India
- Diversified IPOs in India – FAQ
Overview of the Diversified IPOs in India
Diversified IPOs in India refer to companies that offer shares in sectors with a wide range of business activities, including retail, manufacturing, technology, and services. These companies operate across multiple industries, making them less dependent on any single market segment.
Investors find Diversified IPOs appealing as they provide exposure to various growth opportunities. By spreading their operations across different sectors, these companies can mitigate risks associated with market fluctuations, offering the potential for steady returns while navigating diverse industry dynamics.
IPO Fundamental Analysis
Billwin Industries Ltd
Billwin Industries Ltd’s financial results for FY24 show a slight increase in sales to ₹4.91 crore, up from ₹4.39 crore in FY22. Net profit grew to ₹0.78 crore in FY24, up from ₹0.22 crore in FY22.
Revenue Trend: Sales increased to ₹4.91 crore in FY24 from ₹4.39 crore in FY22, reflecting growth, though the rise was modest compared to ₹4.82 crore in FY23, indicating slight fluctuation in performance.
Equity and Liabilities: Equity capital remained stable at ₹2.13 crore in FY24, as in FY23 and FY22. Reserves increased to ₹4.35 crore in FY24, up from ₹2.83 crore in FY22, while total liabilities rose to ₹12.99 crore in FY24 from ₹10.3 crore in FY22.
Profitability: Operating profit remained steady at ₹1.36 crore in FY24, compared to ₹1.4 crore in FY23, but significantly improved from ₹0.65 crore in FY22. OPM stood at 27.7% in FY24.
Earnings Per Share (EPS): EPS increased to ₹1.81 in FY24, up from ₹0.51 in FY22, showing positive growth. It was ₹1.72 in FY23, reflecting a steady increase over the three years.
Return on Net Worth (RoNW): RoNW stood at 12.8% in FY24, reflecting healthy returns compared to previous years, marking an improvement in the company’s ability to generate profits from equity.
Financial Position: Total assets grew to ₹12.99 crore in FY24 from ₹10.3 crore in FY22, with a stable share in fixed assets and other assets, indicating a solid financial base for the company.
Janus Corporation Ltd
Janus Corporation Ltd’s financial results for FY24 show a rise in sales to ₹38.9 crore, up from ₹24.07 crore in FY22. Net profit increased to ₹0.37 crore in FY24, compared to ₹0.19 crore in FY22.
Revenue Trend: Sales grew to ₹38.9 crore in FY24, compared to ₹24.07 crore in FY22, showing consistent growth. The increase was smaller than the rise from ₹35.98 crore in FY23, indicating a slight slowdown.
Equity and Liabilities: Equity capital remained stable at ₹13.39 crore in both FY24 and FY23, a significant increase from ₹5.74 crore in FY22. Total liabilities increased to ₹20.66 crore in FY24 from ₹18.77 crore in FY22.
Profitability: Operating profit remained relatively steady at ₹0.68 crore in FY24, compared to ₹0.71 crore in FY22, while OPM dropped to 1.75% in FY24 from 2.95% in FY22, reflecting a decline in efficiency.
Earnings Per Share (EPS): EPS rose slightly to ₹0.28 in FY24 from ₹0.14 in FY22, showing an improvement in profitability. It was ₹0.27 in FY23, indicating modest growth over the years.
Return on Net Worth (RoNW): RoNW stood at 2.46% in FY24, a modest return on equity, reflecting a stable but limited ability to generate returns compared to previous years.
Financial Position: Total assets increased to ₹20.66 crore in FY24 from ₹18.77 crore in FY22. Fixed assets rose to ₹1.14 crore in FY24, supporting growth, while other assets grew to ₹19.44 crore in FY24.
Galactico Corporate Services Ltd
Galactico Corporate Services Ltd’s financial results for FY24 show a decline in sales to ₹24.27 crore from ₹35.86 crore in FY23. Net profit dropped to ₹2.06 crore in FY24, compared to ₹4.53 crore in FY22.
Revenue Trend: Sales decreased to ₹24.27 crore in FY24 from ₹35.86 crore in FY23, marking a significant drop. However, sales grew from ₹21.56 crore in FY22, indicating overall growth over the past two years.
Equity and Liabilities: Equity capital remained constant at ₹14.9 crore in FY24 and FY23, up from ₹11.46 crore in FY22. Total liabilities increased to ₹73.17 crore in FY24 from ₹52.88 crore in FY22, reflecting a rising debt level.
Profitability: Operating profit fell to ₹4.26 crore in FY24 from ₹14.49 crore in FY23, resulting in a decrease in OPM to 17.55%. However, it was still better than the 24.77% in FY22.
Earnings Per Share (EPS): EPS decreased to ₹0.11 in FY24 from ₹0.64 in FY23, reflecting the drop in profitability. It was ₹0.28 in FY22, showing a steady decline in earnings per share.
Return on Net Worth (RoNW): RoNW stood at 5.44% in FY24, which represents a modest return on equity compared to previous years. This is a decline from FY23, where it was significantly higher.
Financial Position: Total assets increased to ₹73.17 crore in FY24 from ₹52.88 crore in FY22. Fixed assets grew to ₹18.36 crore in FY24, supporting the company’s growth, while other assets rose to ₹44.32 crore.
IPO Financial Analysis
Billwin Industries Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 4.91 | 4.82 | 4.39 |
| Expenses | 3.55 | 3.42 | 3.74 |
| Operating Profit | 1.36 | 1.4 | 0.65 |
| OPM % | 27.70% | 29.05% | 14.81% |
| Other Income | 0.05 | 0 | 0 |
| Interest | 0.36 | 0.39 | 0.34 |
| Depreciation | 0 | 0.01 | 0.01 |
| Profit before tax | 1.05 | 1 | 0.3 |
| Tax % | 24.76% | 26.00% | 26.67% |
| Net Profit | 0.78 | 0.74 | 0.22 |
| EPS in Rs | 1.81 | 1.72 | 0.51 |
*All values in ₹ Cr.
Janus Corporation Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 38.9 | 35.98 | 24.07 |
| Expenses | 38.22 | 35.25 | 23.36 |
| Operating Profit | 0.68 | 0.73 | 0.71 |
| OPM % | 1.75% | 2.03% | 2.95% |
| Other Income | 0 | 0 | 0 |
| Interest | 0 | 0 | 0 |
| Depreciation | 0.16 | 0.24 | 0.4 |
| Profit before tax | 0.52 | 0.49 | 0.31 |
| Tax % | 28.85% | 24.49% | 38.71% |
| Net Profit | 0.37 | 0.36 | 0.19 |
| EPS in Rs | 0.28 | 0.27 | 0.14 |
*All values in ₹ Cr.
Galactico Corporate Services Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 24.27 | 35.86 | 21.56 |
| Expenses | 20.01 | 21.37 | 16.22 |
| Operating Profit | 4.26 | 14.49 | 5.34 |
| OPM % | 17.55% | 40.41% | 24.77% |
| Other Income | 0.37 | -0.44 | 0.05 |
| Interest | 0.75 | 0.71 | 0.56 |
| Depreciation | 0.95 | 0.98 | 1.06 |
| Profit before tax | 2.93 | 12.36 | 3.77 |
| Tax % | 29.35% | 21.12% | 28.65% |
| Net Profit | 2.06 | 9.75 | 4.53 |
| EPS in Rs | 0.11 | 0.64 | 0.28 |
*All values in ₹ Cr.
About the Company
Billwin Industries Ltd
Billwin Industries Ltd, based in Mumbai, manufactures protective gear such as life jackets, inflatable boats, and rainwear. The company sources coated fabric from domestic and international markets and sells it through tenders, distributors, and e-commerce platforms.
The company operates a 5,190 sq. ft manufacturing facility in Bhandup West, Mumbai. Equipped with semi-automatic and automated machines, it distributes products across various states in India, including Maharashtra, Kerala, Gujarat, Tamil Nadu, and Assam, while also leveraging online platforms like Amazon and Flipkart.
Janus Corporation Ltd
Janus Corporation Ltd, founded in 1998 and based in Mumbai, has a diversified business model. It operates in land development, civil construction, fencing, landfilling, and hoarding erection, while also trading construction materials such as steel, cement, and sand.
In addition to construction services, the company provides consultancy in construction management, including safety audits, site management, and safety documentation. Janus Corporation also offers outdoor media advertising and marketing support services, catering to a range of sectors with its comprehensive expertise.
Galactico Corporate Services Ltd
Galactico Corporate Services Ltd, established in 2015, offers diverse financial services, including investment advisory, fundraising, and underwriting. As a SEBI-authorized category-I merchant banker, it provides services such as IPO advisory, debt syndication, and mergers to SMEs.
Headquartered in Nasik, with branches in Mumbai, Jalgaon, and Jaipur, Galactico has two subsidiaries: Instant Finserve Private Limited, specializing in debt finance and consultancy, and Seven Hills Beverages Limited, which manufactures drinking water, supporting the company’s varied financial service offerings.
Advantages of Investing in Diversified Sector IPOs
The main advantage of investing in diversified sector IPOs is the opportunity to gain exposure to a broad range of industries, reducing risk while benefiting from growth potential across various sectors. It allows investors to diversify their portfolios for greater stability and returns.
- Reduced Risk Exposure: Diversified IPOs offer a mix of industries, reducing risk associated with market fluctuations in a specific sector. This broadens investment opportunities, safeguarding against economic downturns in individual sectors while providing stability through balanced investments.
- Growth Potential: Investing in a diversified sector IPO opens the door to multiple industries showing growth potential. As companies in different sectors perform well, the overall investment grows, benefiting from rising market trends across various industries.
- Portfolio Diversification: A diversified IPO allows investors to avoid over-concentration in a single sector. With exposure to various industries, investors can balance their portfolios, which helps mitigate risk by ensuring not all investments are tied to one economic trend.
- Increased Market Stability: The variety of sectors represented in diversified IPOs leads to better market stability. Even if one industry faces challenges, others may continue to thrive, providing a more resilient investment opportunity and reducing exposure to sector-specific volatility.
Disadvantages of Investing in Diversified Sector IPOs
The main disadvantage of investing in diversified sector IPOs is that the broad range of industries may dilute potential returns. It can also be challenging to assess the true value of companies in varying sectors, leading to less targeted investments.
- Diluted Returns: The wide array of industries in a diversified IPO may result in diluted returns. While the mix offers stability, the performance of individual sectors may not align, reducing the overall impact of any single high-performing company on the portfolio.
- Lack of Focused Expertise: A diversified IPO can be difficult to analyze due to the involvement of different sectors. Investors may struggle to evaluate the potential of each sector, leading to a lack of focused expertise, which can hinder decision-making.
- Higher Complexity: Investing in a diversified sector IPO involves a complex assessment of multiple industries. This complexity may increase the time and effort required for investors to research each sector’s potential, making it harder to manage investments effectively.
- Market Overlap: In some cases, sectors within a diversified IPO may overlap in terms of market influence, leading to an increase in exposure to similar market risks. This overlap can reduce the intended diversification effect, especially if sectors are correlated.
Role of Diversified Industry in the Economy
The diversified industry plays a vital role in the economy by fostering resilience and stability. By involving multiple sectors, it spreads risks and reduces the impact of downturns in any single industry, allowing for steady economic growth and job creation.
It also drives innovation and productivity by encouraging companies to explore various sectors and markets. Diversified industries contribute to improved supply chains, increased competition, and more efficient resource utilization, which ultimately leads to better economic performance and higher living standards.
How to invest in Diversified IPOs?
To invest in Diversified IPOs, follow these steps:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
- Research IPO Details: Review the company’s prospectus, pricing, and performance.
- Place Your Bid: Log in to the brokerage account, select the IPO, and bid as per your preferences.
- Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
Future outlook of Diversified IPOs in India
The future outlook of diversified IPOs in India appears promising, as the country’s growing economy and rising consumer demand provide opportunities for companies across various sectors. Investors are likely to find diverse offerings appealing, with companies seeking capital to expand.
As more companies explore IPOs, the market for diversified sectors is expected to gain momentum. With favorable policies and a robust regulatory environment, India is becoming an attractive destination for diversified businesses to raise capital, ensuring continued growth and the development of a competitive and resilient market.
Diversified IPOs in India – FAQ
A diversified IPO refers to an initial public offering by a company that operates in multiple sectors or industries. These companies typically offer products or services across various markets, spreading their risk and allowing investors to gain exposure to diverse sectors.
The major diversified companies in India that have launched IPOs include Billwin Industries Ltd, Janus Corporation Ltd, and Galactico Corporate Services Ltd. These companies operate across multiple sectors, providing a broad range of services and products to attract investors.
Diversified IPOs provide investors with exposure to multiple sectors and industries, reducing risk and increasing opportunities for growth. They help create a balanced portfolio, attract a wider range of investors, and contribute to market depth and liquidity.
The largest diversified IPO in India is by Billwin Industries Ltd, which raised significant capital by offering shares in various sectors such as manufacturing and distribution, attracting widespread investor interest due to its broad business presence.
To invest in diversified IPOs, open a demat and trading account with a brokerage platform like Alice Blue. Apply for IPO shares through the platform, following the bidding process and required documentation. Wait for allotment before trading.
Diversified IPOs can be suitable for long-term investments due to their exposure to multiple sectors. However, investors should assess the company’s performance, market conditions, and industry trends to determine its growth potential and stability over time.
Diversified IPOs can be profitable if the company performs well across its multiple sectors. However, profitability depends on factors such as market conditions, sector growth, and the company’s strategic decisions. Investors should carefully assess the potential risks and rewards.
Currently, several diversified companies are preparing for IPO launches in India. Keep an eye on financial news, company announcements, and stock exchanges for updates. Brokerage platforms like Alice Blue can offer timely information on upcoming IPOs.
Detailed reviews and analysis of diversified IPOs can be found on financial news websites, brokerage platforms like Alice Blue, and investment forums. They offer insights into the company’s financial health, market potential, and investor sentiment, helping make informed decisions.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
