Fonebox Retail Limited IPO

Fonebox Retail Limited IPO

Fonebox Retail Limited’s IPO consists of 29.10 lakh fresh equity shares. The shares are issued at a price band of INR 66-70. The company plans to utilize the funds to meet its working capital requirement towards general and issue expenses. 

Fonebox IPO  – Important Details

Fonebox Retail IPO DateJanuary 25, 2024, to January 30, 2024
Fonebox Retail IPO Listing DateFebruary 2, 2024
Fonebox Retail IPO PriceINR 66-70
Fonebox Retail IPO Lot Size2000 shares
Fonebox Retail IPO Total Issue SizeINR 20.37 crores.
Fonebox Retail IPO Basis of AllotmentJanuary 31, 2024
Fonebox Retail IPO Initiation of RefundsFebruary 1, 2024
Fonebox Retail IPO Credit of Shares to DematFebruary 1, 2024
Fonebox Retail IPO Issue TypeBook Built Issue IPO 
Fonebox Retail IPO Listing AtNSE SME

Fonebox IPO  – Company Profile

The Company is engaged in multi-brand retail, selling SmartPhones and allied accessories from Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG, and Micromax. 

The company is also engaged in multi-brand retail selling of consumer durable electronics goods like Laptop, Washing Machines, Smart TVs, Air Conditioners, Fridges, etc., from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, and OnePlus.

The company operates its retail business with multiple brands. They have a portfolio of retail stores with different brands. It started the business operations with the brand “Fonebox” for our company-owned and franchise stores. Further, the company acquired famous mobile phone retail store brands such as “FonFacebook “My Mobile” video Business Purchase

agreements from their respective owners in 2021. 

Fonebox Retail Ltd IPO – Fundamental Analysis

Fonebox Retail Ltd’s IPO reveals strong revenue growth and improved profitability. However, increasing expenses, debt, and inventory concerns raise questions for potential investors. Careful analysis is essential.

Revenue Growth:

Fonebox Retail Ltd has experienced substantial revenue growth, increasing from ₹9.92 lakhs in 2021 to ₹19,582.60 lakhs in 2023, which suggests positive market demand and business expansion.

Expense Management:

While revenues have grown significantly, expenses have also surged from ₹12.22 lakhs in 2021 to ₹19,406.10 lakhs in 2023. The increasing gap between revenue and expenses raises concerns about cost control and profitability.

Profitability Improvement:

The company has shown a remarkable improvement in profitability, shifting from a loss of ₹2.30 lakhs in 2021 to a profit of ₹219.74 lakhs in 2023. This positive trend is a favorable sign for potential investors.

Return on Net Worth (RoNW):

Fonebox Retail Ltd has experienced a significant turnaround in RoNW, going from negative (19.10%) in 2021 to a positive 76.15% in 2023. This indicates improved efficiency in utilizing equity for generating returns.

Net Asset Value (NAV) and Equity:

The NAV per Equity Share has seen substantial growth, increasing from ₹8.25 in 2021 to ₹42.05 in 2023, which suggests an increase in the company’s intrinsic value per share.

Earnings per Share (EPS):

The Diluted EPS has also improved, moving from negative (0.04) in 2021 to a positive 2.35 in 2023, indicating better earnings available to each share.

Debt-Equity Ratio:

The company’s debt-equity ratio has increased, raising concerns as it climbed from 0.00 in 2021 to 5.03 in 2023. This suggests higher financial leverage and potential risks associated with debt.

Inventory Turnover Ratio:

The inventory turnover ratio has decreased from 15.49 in 2022 to 10.57 in 2023, which might indicate potential issues with inventory management.

Current Ratio:

The current ratio has improved from 0.97 in 2022 to 1.34 in 2023, signaling an enhancement in short-term liquidity.

Fonebox Retail Ltd IPO Financial Information

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue(₹in lakhs)9.929,090.7419,582.60
Equity(₹ in lakhs)12.6460.43220.29
Expenses (₹in lakhs)12.229,073.1219,406.10
Profit and Loss After Tax (₹ in lakhs)-2.319.21219.74
RoNW (%)-19.10%21.24%76.15%
Diluted EPS only (₹)-0.040.192.35
NAV per Equity Share (₹)8.2512.0542.05
Total Assets (in lakhs)71.082,110.703,861.05
Total Liabilities (in lakhs)58.442,050.273,640.76
Debt-Equity Ratio09.75.03
Inventory Turnover Ratio1.215.4910.57
Current Ratio1.770.971.34

Fonebox IPO Peer Comparison

Fonebox Retail Limited stands out with strong revenue of ₹19,582.60 lakhs, a high RoNW of 76.15%, and a NAV per Equity Share of ₹42.05. Jay Jalaram Technologies Limited has a higher P/E ratio but lower RoNW, while Bhatia Communications & Retail (India) Limited has lower revenue and RoNW.

CompanyRevenue (₹ in lakhs)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Fonebox Retail Limited19,582.6010NA2.3576.15%42.05
Jay Jalaram Technologies Limited24,920.481071.732.5510.62%21.22
Bhatia Communications & Retail (India)Limited31,348.18125.100.6815.55%4.36

Fonebox IPO Objective

The main objective of Fonebox Retail Limited is to meet the incremental working capital to support expansion. Net proceeds will fund general corporate purposes, such as organic/inorganic growth, marketing, capital expenditure, subsidiary investment, and corporate contingencies.

  1. To meet the working capital requirement: The company requires incremental working capital to fulfill its increasing expansion strategies. The company plans to utilize INR 13.50 crores from the issue for the said purpose.
  2. General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including funding organic and inorganic growth, strengthening marketing and brand building, capital expenditure for operational maintenance, investing in subsidiaries, and addressing ongoing corporate contingencies.

Fonebox Retail SME IPO Risks And Challenges

Fone Box Retail’s risks and challenges include incomplete or expired Franchise Agreements, which pose a risk to operations. The high volume-low margin nature of the business, coupled with difficulties in turnover growth and process execution, may lead to reduced profitability. Recent negative cash flow could impact overall business, financial condition, and results.

  1. The Company has entered into Franchise Agreements; some agreements need to be renewed/inadequately executed stamped, because of which operations may be adversely affected.
  2. The company’s business is a high-volume, low-margin business. The inability to regularly grow the turnover and effectively execute the critical business processes could lead to lower profitability from the said business vertical, adversely affecting the operating results. 
  3. The Company had negative cash flow from operating activity in recent fiscals. Sustained negative cash flow could adversely impact our business, financial condition, and results of operations.

Fonebox IPO – Industry & Market Potential

India is the second-largest smartphone market in the world. India’s mobile subscriber base is expected to reach 1,420 million by 2024 from 1,200 million in 2018. In 2022, the 4G user base is anticipated to be 820 million. 

Tele-density of rural subscribers reached 57.46% in March 2022. Internet penetration is expected to grow steadily and is likely bolstered by Government policy.

Number of broadband subscribers reached 846.57 million in March 2023. • To encourage a cash economy, the Indian government announced that it would provide more than 1,000 gram panchayats free Wi-Fi. TRAI has made several recommendations for developing telecom infrastructure, including tax benefits and recognizing telecom infrastructure as essential infrastructure.

Indian Mobile Value-Added Services (MVAS) industry is expected to row at a CAGR of 18.3% during the forecast period of 2015-2020 and reach US$ 23.8 billion by the end of 2020

According to a Zenith Media survey, India is expected to become the fastest-growing telecom advertisement market, with an annual growth rate of 11% between 2020 and 2023.

Fonebox IPO – Type of Offer

Fonebox Retail plans to issue fresh shares, seeking INR 20.37 crores to augment the company’s working capital needs. 

Fonebox Retail Ltd IPO Offer Size

The offer size of Fonebox Retail’s IPO is INR 20.37 crores.This includes an issue of 29.10 lakh fresh equity shares at a price band of INR 66-70. 

Fonebox Retail Ltd IPO Allotment Structure

Fonebox Retail’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) by SEBI regulations. A portion of the issue is also set aside for the 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 Maker Reservation Portion: A portion of the issue- 5.02% is reserved for the market makers.

How do you apply for a Fonebox Retail IPO through Alice Blue?

To apply for the Fonebox Retail 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.

Check for IPO Details: Once your account is active, you can check for the Fonebox Retail IPO details in the IPO section of the Alice Blue platform.

Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

Submit the Application: Confirm all your details and submit your application.

You can apply for Fonebox Retail’s 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 the Fonebox Retail IPO Allotment Status on Alice Blue?

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

Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

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.

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.

Select the Fonebox Retail IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Fonebox Retail IPO.

 Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Fonebox Retail IPO:

●   Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Fonebox Retail IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

●     NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Fonebox IPO Offer Registrar

The registrar for the Fonebox Retail Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

 Contact information for the registrar:

KFin Technologies Limited

Selenium Tower-B, Plot 31 & 32, Gachibowli,

Financial District, Nanakramguda, Serilingampally,

Hyderabad 500032,

Telangana, India

Telephone: +91 40 6716 2222

E-mail: [email protected]

Website: www.kfintech.com

Fonebox Retail IPO FAQs

1. What is the allotment date of the Fonebox Retail IPO? 

The allotment date of Fonebox Retail IPO is January 31, 2024.

2. What is the price band of the Fonebox Retail IPO? 

The Fonebox Retail IPO company will issue shares at INR 66-70 per share.

3. What is the size of the Fonebox RetailIPO?

Fonebox Retail plans to issue fresh shares, seeking INR 20.37 crores to augment the company’s working capital needs. 

4. What is the listing date of the Fonebox Retail IPO?

The listing date of Fonebox Retail IPO is February 2, 2024.

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