Magenta Lifecare Limited is coming up with an IPO consisting of a fresh issue of 20,00,000 shares worth INR 7 crores. The company aims to fund its working capital requirements and meet general corporate purposes.
Magenta Lifecare Ltd IPO – Important Dates
| Magenta Lifecare Limited IPO Date | June 5, 2024 to June 7, 2024 |
| Magenta Lifecare Limited IPO Listing Date | June 12, 2024 |
| Magenta Lifecare Limited IPO Price | INR 35 per share |
| Magenta Lifecare Limited IPO Lot Size | 4000 shares |
| Magenta Lifecare Limited IPO Total Issue Size | INR 7 crores |
| Magenta Lifecare Limited IPO Basis of Allotment | June 10, 2024 |
| Magenta Lifecare Limited IPO Initiation of Refunds | June 11, 2024 |
| Magenta Lifecare Limited IPO Credit of Shares to Demat | June 11, 2024 |
| Magenta Lifecare Limited IPO Issue Type | Fixed PriceIssue IPO |
| Magenta Lifecare Limited IPO Listing At | BSE SME |
Magenta Lifecare Limited IPO – Company Profile
Magenta Lifecare Limited offers high-quality foam-based products, including mattresses and pillows, to retail, hotel, and institutional customers in India. Driven by innovation, their range includes memory foam, latex, and herbal mattresses.
They offer ergonomic, durable, customizable mattresses and pillows for all market segments. Their products are sold through a vast network of distributors, dealers, and online platforms across multiple states in India.
They manufacture standardized and customized foam products, leveraging the expertise of experienced promoters and management. With 41 employees, they source vital raw materials domestically, focusing on affordable offerings and a significant market presence in India.
Magenta Lifecare Ltd IPO Fundamental Analysis
Magenta Lifecare Limited Technologies’ financial analysis reveals a mixed performance. Revenue decreased while equity grew and debt reliance lessened. Profitability and EPS improved, but RoNW and liquidity weakened. The inventory turnover ratio indicates slower sales or inefficiencies.
- Revenue Trend: The revenue decreased from ₹924.40 lakhs in March 2022 to ₹906.61 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 601.83 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹18.89 lakhs in March 2022 to ₹24.36 lakhs by December 2023. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹0.44 in March 2022 to ₹0.50 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 5.22% to 3.84%, indicating a decrease 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.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Magenta Lifecare IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 924.40 | 906.61 | 601.83 |
| Equity (₹ in lakhs) | 361.73 | 520.81 | 634.18 |
| Expenses (₹ in lakhs) | 915.83 | 923.74 | 564.40 |
| Profit and Loss After Tax (₹ in lakhs) | 18.89 | 24.55 | 24.36 |
| Diluted EPS only (₹) | 0.44 | 0.53 | 0.50 |
| Return on Net Worth (%) | 5.22 | 4.71 | 3.84 |
| NAV per Equity Share (₹) | 8.49 | 11.26 | 13.07 |
| Total Assets (in lakhs) | 1,415.60 | 1,250.93 | 1,505.71 |
| Total Liabilities (in lakhs) | 1,053.88 | 730.12 | 634.18 |
| Debt Equity Ratio | 2.09 | 0.87 | 0.71 |
| Current Ratio (in times) | 1.33 | 1.31 | 1.32 |
| Inventory Turnover Ratio | 1.46 | 1.36 | 0.64 |
Magenta Lifecare Limited IPO Peer Comparison
Magenta Lifecare Limited’s revenue, equity, and profitability are modest compared to Sheela Foam Limited and Tirupati Foam Limited. Sheela Foam leads significantly in all financial metrics, followed by Tirupati Foam, indicating market hierarchy.
| 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) | Net Worth (₹ in lakhs) |
| Magenta Lifecare Limited | – | 906.61 | 10 | 65.97 | 0.53 | 4.71 | 11.26 | 520.81 |
| Sheela Foam Limited | Consolidated | 287,332.09 | 5 | 44.65 | 20.81 | 12.96 | 164.03 | 1,60,039.18 |
| Tirupati Foam Limited | Standalone | 10,164.89 | 10 | 17.85 | 4.31 | 6.53 | 66.04 | 2,910.34 |
Magenta Lifecare Ltd IPO Objective
The main objective of Magenta Lifecare Limited is to fund the working capital requirements.
- Funding their working capital requirements: The company intends to utilize INR 3.71 crores of secured short-term borrowings to expand operations. It expects this investment in working capital to enhance profitability by leveraging internal accruals and bank loans.
- General Corporate Purpose: The company will allocate funds to general corporate goals, including part or full prepayment of borrowings, strategic initiatives, acquisitions, investments, offices, R&D, fixed assets, and meeting various expenses.
Magenta Lifecare IPO Risks And Challenges
Magenta Lifecare Limited’s risks include adapting to changing consumer preferences, integrating emerging technologies, and securing permits efficiently, as delays or non-compliance could impact its competitiveness and financial stability.
- The success of their business relies on anticipating and adapting to changing consumer preferences and industry trends. While they strive to introduce new products, failure to do so effectively may impact their competitiveness and financial stability.
- Their ability to integrate emerging technologies is paramount in navigating the dynamic PU Foam industry. Investment in innovation is core to their strategy, but challenges in timely adoption could significantly impact their competitiveness and financial health.
- Securing necessary permits, licenses, and approvals is vital for their operations. Delays or non-compliance with regulations could interrupt operations and adversely affect their business, finances, and results.
Magenta Lifecare Ltd IPO – Industry & Market Potential
India’s GDP reached US$3.31 trillion in FY22, with a 10.4% growth in Q3 2022-23. The country aims for 40% renewable energy by 2030 and Net Zero Emissions by 2070, targeting job creation and export growth.
The Indian mattress market, predominantly unorganized, is witnessing growth in the organized sector due to increasing demand for quality products. Technological innovations, driven by consumer awareness post-COVID-19, are shaping industry dynamics.
Product innovation, effective marketing, and stakeholder training shape the Indian mattress market. Rising income levels, health consciousness, and infrastructural developments drive demand, leading to a shift from unorganized to organized sectors.
Magenta Lifecare Limited IPO – Type of Offer
Magenta Lifecare Limited is coming up with an IPO consisting of a fresh issue of 20,00,000 shares worth INR 7 crores. The company aims to fund its working capital requirements and meet general corporate purposes.
Magenta Lifecare IPO Offer Size
The offer size of Magenta Lifecare Limited is INR 7 crores, consisting of a fresh issue of 20,00,000 shares. The company seeks funds for its working capital requirements and meets general corporate purposes.
Magenta Lifecare Limited IPO Allotment Structure
Magenta Lifecare Limited’s Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 104,000 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 104,000 shares for this purpose.
How to apply for a Magenta Lifecare Limited IPO?
To apply for the Magenta Lifecare Limited 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 Magenta Lifecare 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 Magenta Lifecare 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 Magenta Lifecare Limited’s 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 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 Magenta Lifecare 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 Magenta Lifecare 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, 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 Magenta Lifecare Limited IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Magenta Lifecare 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.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) 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.
Magenta Lifecare Limited Ltd IPO Offer Registrar
The registrar for the Magenta Lifecare Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
CAMEO CORPORATE SERVICES LIMITED
No. 01, Club House Road, Mount Road,
Chennai- 600002, India.
Tel No: 044 4002 0700
E-mail: [email protected]
Website: www.cameoindia.com
Magenta Lifecare Limited Limited IPO – FAQs
The allotment date of the Magenta Lifecare Limited IPO is June 10, 2024.
The price band of the issue is INR 35 per share.
Magenta Lifecare Limited is coming up with an IPO consisting of a fresh issue of 20,00,000 shares worth INR 7 crores. The company aims to fund its working capital requirements and meet general corporate purposes.
The listing date of Magenta Lifecare Limited’s IPO is June 12, 2024.
