Aspire & Innovative Advertising Limited IPO

Aspire & Innovative IPO

Aspire & Innovative Advertising Limited is coming up with an IPO worth INR 21.97 crores, consisting of a fresh issue of 40.68 lakh shares. The company plans to use the funds raised to meet the working capital requirements, establish a new warehouse and general corporate purposes.

Aspire & Innovative IPO – Important Dates

Aspire & Innovative Advertising IPO DateMarch 26, 2024 to March 28, 2024
Aspire & Innovative Advertising IPO Listing DateApril 3, 2024
Aspire & Innovative Advertising IPO PriceINR 51to 54 per share
Aspire & Innovative Advertising IPO Lot Size2000 Shares
Aspire & Innovative Advertising IPO Total Issue SizeINR 21.97 crores
Aspire & Innovative Advertising IPO Basis of AllotmentApril 1, 2024
Aspire & Innovative Advertising IPO Initiation of RefundsApril 2, 2024
Aspire & Innovative Advertising IPO Credit of Shares to DematApril 2, 2024
Aspire & Innovative Advertising IPO Issue TypeBook Built Issue IPO
Aspire & Innovative Advertising IPO Listing AtNSE SME

Aspire & Innovative IPO – Company Profile

The company is engaged in the business of trading a wide range of consumer durables like kitchen appliances, home appliances, white goods, mobile phones and their accessories, solar products, etc. of multiple renowned brands such as Bajaj, Prestige, Vivo, Samsung, Crompton, Whirlpool, Hindware, Havells, and many more. 

The company’s range of products is offered at different price points to meet diverse customer requirements across India along with delivery of products mainly in rural and semi-urban areas. The company provides one platform that brings multiple brands under one umbrella to fulfill the requirements of the customer thus improving their lifestyles.

The company was incorporated in 2017 to provide basic but advanced products to India’s rural and semi-urban population along with product delivery up to customers’ doorstops, in rural and semi-urban areas of the country with a focus on unbanked and underbanked customer segments through partners working in this space.

Aspire & Innovative Advertising Limited IPO Review

ParticularAs of 31 March 2022As of 31 March 2023As of 30 September 2023
Revenue (₹ in lakhs)25,537.6634,571.7817,657.84
Equity (₹ in lakhs)1,020.391,551.251,944.53
Expenses (₹ in lakhs)24,944.9733,900.0617,172.49
Profit and Loss After Tax (₹ in lakhs)437.36530.85393.28
Diluted EPS only (₹)3.954.783.54
Return on Net Worth (%)42.86%34.22%20.22%
NAV per Equity Share (₹)9.2213.9617.50
Total Assets (in lakhs)5,328.016,256.998,135.72
Total Liabilities (in lakhs) 4,307.624,705.756,191.19
Debt Equity Ratio (in times) 0.110.570.60
Current Ratio (in times) 1.201.371.38
Inventory Turnover Ratio (in days) 454439

Aspire & Innovative Advertising IPO Fundamental Analysis

Aspire & Innovative Advertising’s financial data reveals a mixed performance, with notable revenue growth but concerning fluctuations in profitability and increasing debt levels, prompting careful consideration for potential investors.

  • Revenue Growth: The company has shown significant revenue growth from ₹25,537.66 lakhs in March 2022 to ₹34,571.78 lakhs in March 2023, but there was a decrease to ₹17,657.84 lakhs by September 2023. This fluctuation may require further investigation into the reasons behind the decrease.
  • Equity and Debt: The equity has increased steadily over the years, indicating potential growth and stability. However, the debt-equity ratio has increased from 0.11 in March 2022 to 0.60 by September 2023. This suggests a higher reliance on debt financing, which could increase financial risk.
  • Profitability: The company’s profit after tax has also shown fluctuations, with an increase from ₹437.36 lakhs in March 2022 to ₹530.85 lakhs in March 2023, but a decrease to ₹393.28 lakhs by September 2023. This indicates some volatility in profitability.
  • Earnings per Share (EPS): The diluted EPS has shown growth from ₹3.95 in March 2022 to ₹4.78 in March 2023, but then decreased to ₹3.54 by September 2023. Investors typically look for consistent or increasing EPS over time.
  • Return on Net Worth (RoNW): The RoNW has declined from 42.86% in March 2022 to 20.22% by September 2023. This suggests a decrease in profitability relative to the net worth of the company.
  • Financial Position: The NAV per equity share has shown an increasing trend, indicating a stronger financial position per share.
  • Liquidity and Efficiency: The current ratio and inventory turnover ratio have remained relatively stable, indicating satisfactory liquidity and efficiency in managing inventory.

Aspire & Innovative IPO Peer Comparison

There are no listed companies in India that are engaged in a business line similar to that of the company, thus, it is not possible to provide an industry comparison.

Aspire & Innovative IPO Objective

The main objective of Aspire & Innovative IPO  is to allocate INR 9 crores for additional working capital needs and INR 4.95 crores for establishing new warehouses to expand its geographical presence. The remaining funds will support general corporate goals.

  1. To meet working capital requirements: For the expansion of the business, the company will need additional working capital requirements. The company plans to invest INR 9 crores for the said purpose. 
  1. To finance the cost of establishing new warehouses: In line with the strategic objectives to expand the geographical presence, the company is undertaking an expansion initiative to open new warehouses to connect rural and semi-urban populations. As a part of the strategy, the company plans to expand operations by establishing more warehouses in the next few years. The company plans to invest INR 4.95 crores for the said purpose. 
  1. General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.

Aspire & Innovative Advertising Limited IPO Risks And Challenges

Aspire & Innovative Advertising IPO’s risks include dependence on third-party vendors without long-term contracts, and risking business and reputation from delivery delays or failures. Uncertainty in warehouse locations from IPO proceeds. Revenue is heavily reliant on key intermediaries and top 5 products, risking profitability and operations.

  1. The company is dependent upon third parties for trading and supply of all of the products, with whom it does not have long-term contracts or exclusive supply arrangements. Any delay or failure on the part of such vendors to deliver products may adversely affect the business, profitability, and reputation.
  2. The company has yet to identify the exact locations for setting up warehouses, which it intends to utilize from net proceeds.
  1. Almost 91% of the revenue of the company is dependent on certain key intermediaries like NBFCs, NBFC-MFIs, etc. Loss of relationship with any of these intermediaries may have a material adverse effect on the profitability and results of operations.
  1. Almost 75% of the revenue is derived from the top 5 products of the company. loss of customers who purchase these products, or a significant reduction in the production and sales of, or demand for said products may adversely affect the business, financial condition, results of operations and prospects.

Aspire & Innovative IPO – Industry & Market Potential

The Indian consumer durables market is broadly segregated into urban and rural markets and is attracting marketers from across the world. The sector comprises a huge middle class, a relatively large affluent class, and a small economically disadvantaged class. The sector includes consumer electricals such as fans, kitchen, and cooking appliances, lighting devices, as well as white goods such as washing machines, televisions, refrigerators, and air conditioners. 

Market share in the consumer durables industry is moving from the unorganized to the organized sector. According to estimates, 30% of the total market is still unorganized, which provides listed Indian players with a significant opportunity to increase their market

share further going forward. Artificial intelligence and manufacturing automation will be important future trends as consumer awareness increases regarding technology advancements and their applications across multiple sectors. To increase the production efficiency of various consumer durables, Industry 4.0 will stimulate investments in R&D, technology infrastructure, and manufacturing processes.

Global corporations view India as one of the key markets from where future growth is likely to emerge. The growth in India’s consumer market would be primarily driven by a favorable population composition and increasing disposable income. In FY23 (April- November), electronics exports grew by 13.8%, the highest in the last 6 years. With robust growth, India aims to achieve electronics manufacturing worth US$ 300 billion in electronics exports of US$ 120 billion by FY26.

Aspire & Innovative Advertising Limited IPO – Type of Offer

Aspire & Innovative Advertising Limited is launching an IPO valued at INR 21.97 crores, comprising 40.68 lakh new shares. The company intends to allocate the proceeds towards meeting working capital needs, establishing a new warehouse, and general corporate purposes.

Aspire & Innovative IPO Offer Size

The offer size of Aspire & Innovative Advertising Limited’s IPO is INR 21.79 crores.  The net proceeds will be used to meet the working capital requirement, establish a new warehouse, and, general corporate purposes.

Aspire & Innovative Advertising IPO Allotment Structure.

Aspire & Innovative Advertising’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

Market Makers Reservations: A portion of the issue, i.e., 2,04,000 shares are reserved for market makers.

How to apply for an Aspire & Innovative Advertising IPO?

To apply for the Aspire & Innovative Advertising IPO through Alice Blue, you would typically follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

  1. Check for IPO Details: Once your account is active, you can check for the Aspire & Innovative Advertising IPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.

You can apply for the Aspire & Innovative Advertising IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Aspire & Innovative Advertising’s IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

  1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
  2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  4. Select the Aspire & Innovative Advertising IPO: If you have applied for multi