Forcas Studio Limited is coming up with an IPO with a fresh issue of 46,80,000 shares worth INR 37.44 crores. The company aims to upgrade the warehouse, repay secured loans, fund working capital, and cover general corporate purposes.
Forcas Studio IPO – Important Dates
| Forcas Studio Limited IPO Date | August 19, 2024 to August 21, 2024 |
| Forcas Studio Limited IPO Listing Date | August 26, 2024 |
| Forcas Studio Limited IPO Price | INR 77-80 per share |
| Forcas Studio Limited IPO Lot Size | 1600 Shares |
| Forcas Studio Limited IPO Total Issue Size | INR 37.44 crore |
| Forcas Studio Limited IPO Basis of Allotment | August 22, 2024 |
| Forcas Studio Limited IPO Initiation of Refunds | August 23, 2024 |
| Forcas Studio Limited IPO Credit of Shares to Demat | August 23, 2024 |
| Forcas Studio Limited IPO Issue Type | Book Built Issue IPO |
| Forcas Studio Limited IPO Listing At | NSE SME |
Forcas Studio Limited IPO – Company Profile
Forcas Studio Limited, established in 2010 as Forcas Apparels and converted to a public company in 2024, offers men’s clothing under the brands FTX, TRIBE, and Conteno through e-commerce, wholesale, and large-format stores.
Transitioning to online business in 2021, they’ve served 15,000+ pin codes, gained direct consumer insights, and expanded to top marketplaces and 500+ large stores. Their diverse catalogue of 1200+ SKUs receives positive customer feedback.
Fabric is sourced locally, and job work is outsourced for design and quality control. Finished products are branded, quality-checked, and dispatched from four Kolkata warehouses. Their flexible, asset-light model supports e-commerce and large-format store sales.
Forcas Studio Ltd IPO Fundamental Analysis
Forcas Studio Limited’s financial analysis reveals a mixed performance. Revenue increased year-over-year but fell short in the current period. Profitability, equity, EPS, and RoNW improved, but liquidity weakened despite asset growth.
- Revenue Trend: The revenue increased from ₹5,320.02 lakhs in March 2022 to ₹6,960.46 lakhs in March 2023. The revenue for the current year’s 11-month period ending February 2024 is INR 2,418.50 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹80.71 lakhs in March 2022 to ₹116.97 lakhs by February 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.97 in March 2022 to ₹1.98 by February 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 9.71% to 27.06%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Forcas Studio IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 29 February 2024 |
| Revenue (₹ in lakhs) | 5,320.02 | 6,960.46 | 2,418.50 |
| Equity (₹ in lakhs) | 830.84 | 860.26 | 1,901.97 |
| Expenses (₹ in lakhs) | 5,302.00 | 7,047.87 | 2,266.35 |
| Profit and Loss After Tax (₹ in lakhs) | 80.71 | 117.19 | 116.97 |
| Diluted EPS only (₹) | 0.97 | 1.36 | 1.98 |
| Return on Net Worth (%) | 9.71 | 13.62 | 27.06 |
| NAV per Equity Share (₹) | 10 | 10 | 14.74 |
| Total Assets (in lakhs) | 4,333.27 | 3,923.85 | 5,885.13 |
| Total Liabilities (in lakhs) | 3,502.43 | 3,063.59 | 3,983.16 |
| Current Ratio (in times) | 1.38 | 1.29 | 1.35 |
Forcas Studio Limited IPO Peer Comparison
Forcas Studio Limited shows solid performance with a positive return on net worth and profitability. At the same time, despite the larger scale, Aditya Birla Fashion and Retail Ltd faced negative returns and profitability, highlighting contrasting financial health and performance.
| Company | Type of financial | Revenue from Operations(₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Forcas Studio Limited | Standalone | 6,960.46 | 10 | NA | 1.36 | 9.71 | 10.00 |
| Aditya Birla Fashion and Retail Ltd | Consolidated | 12,41,790 | 10 | NA | (0.38) | (1.70) | 35.20 |
Forcas Studio Ltd IPO Objective
The main objective of Forcas Studio Limited is to upgrade its warehouse, repay secured loans, and fund working capital requirements.
- Funding of warehouse upgrade: The company intends to utilize INR 1.65 crores to upgrade its existing warehouse, increasing storage capacity from 8 lakh units to 20 lakh units, ensuring smooth operations and supporting future business growth.
- Prepayment or repayment of all or a portion of secured loans availed by their company: The company plans to utilize INR 13 crores to prepay or repay secured loans, aiming to reduce borrowings, maintain a favorable debt-equity ratio, and free up internal accruals for business growth and expansion.
- Funding the company’s working capital requirements: The company aims to utilize INR 12 crores to fund its working capital needs for Fiscal 2025, supporting future growth and supplementing existing financing from banks, financial institutions, and internal accruals.
- General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including strategic initiatives, general procurement, brand building, strengthening marketing activities, and addressing ongoing general corporate exigencies or other purposes.
Forcas Studio IPO Risks And Challenges
Forcas Studio Limited’s risks include failing to adapt to changing fashion trends, potential instability from lack of long-term customer agreements, and dependence on third-party manufacturers, which may impact sales, quality, and financial stability.
- The company’s success relies on anticipating and responding to changing customer preferences and fashion trends. Failure to adapt could lead to lower sales, excess inventory, and pricing pressure, negatively impacting operations and financial health.
- The absence of long-term customer agreements may lead to instability in sales and operations if key clients are lost or market conditions change. This reliance on customer relationships affects overall business stability and financial performance.
- Dependence on third-party contract manufacturers introduces risks such as equipment failures, legal claims, and quality issues. The inability to manage these risks may affect product quality, brand reputation, and overall financial stability.
Forcas Studio Ltd IPO – Industry & Market Potential
The online fashion market, worth $11 billion and growing at 30% annually, includes national brands, private labels, digital disruptors, and unbranded sellers. Digital disruptors, projected to reach $10 billion by FY28, are driven by young consumers and increased brand awareness.
Digital disruptors will see growth driven by Gen Z and millennials, who make up 70-80% of their traffic. By FY28, these groups will account for 75% of spending, up from 70% today, through targeted merchandising and collaborations.
The Indian apparel market, valued at $11 billion with exports and domestic consumption, benefits from rising incomes and urbanization. Government initiatives include a $31 billion export boost and a ₹80,000 crore investment target. The sector’s growth aligns with GDP and consumer spending trends.
Forcas Studio Limited IPO – Type of Offer
Forcas Studio Limited is coming up with an IPO with a fresh issue of 46,80,000 shares worth INR 37.44 crores. The company aims to upgrade the warehouse, repay secured loans, fund working capital, and cover general corporate purposes.
Forcas Studio IPO Offer Size
The offer size of Forcas Studio Limited is INR 37.44 crores, consisting of a fresh issue of 46,80,000 shares. The company seeks funds to upgrade the warehouse, repay secured loans, fund working capital, and cover general corporate purposes.
Forcas Studio Limited IPO Allotment Structure
Forcas Studio Limited’s allocation will be as follows: 49.96% for Qualified Institutional Buyers (QIB), 15.01% for Non-Institutional Investors (NII), and 35.03% for Retail Individual Investors (RII) according to SEBI regulations. 235,200 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 49.96% 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): 15.01% 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 35.03% 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: A portion of shares, i.e. 235,200 shares, are reserved for market makers.
How to apply for Forcas Studio IPO?
To apply for the Forcas Studio Limited IPO through Alice Blue, 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 Forcas Studio Limited 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 the Forcas Studio Limited 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 Forcas Studio IPO Allotment Status?
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 the 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 Forcas Studio Limited 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 Forcas Studio Limited 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Forcas Studio Limited IPO:
● Registrar’s Website: Visit the website of MAS Services Limited, the registrar of the Forcas Studio Limited 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 (NSE) Small Medium Exchange (SME). 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.
Forcas Studio Ltd IPO Offer Registrar
The registrar for the Forcas Studio Limited IPO is MAS Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
MAS Services Limited
T-34, 2nd Floor, Okhla Industrial Area,
Phase-II New Delhi- 110 020,
Delhi, India.
Telephone: +91 112 638 7281/83, 114 132 0335
Facsimile: +91 112 638 7384
E-mail: [email protected]
Forcas Studio IPO – FAQs
1. What is the allotment date of the Forcas Studio IPO?
The allotment date of the Forcas Studio Limited IPO is August 22, 2024.
2. What is the price band of the Forcas Studio IPO?
The price band of the issue is INR 77-80 per share.
3. What is the size of the Forcas Studio IPO?
The offer size of Forcas Studio Limited is INR 37.44 crores, consisting of a fresh issue of 46,80,000 shares. The company seeks funds to upgrade the warehouse, repay secured loans, fund working capital, and cover general corporate purposes.
4. What is the listing date of the Forcas Studio IPO?
The listing date of Forcas Studio Limited’s IPO is August 26, 2024.
