Onest Limited aims to raise funds, through fresh issue of INR 77 Crore and an offer for sale (OFS) by selling 32.5 lakh shares. The IPO’s main objective is to increase the working capital requirement of the company.
Onest Limited IPO – Important Details:
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|Onest Limited IPO Issue Type||Book Built Issue IPO|
|Onest Limited IPO Listing At||BSE, NSE|
Onest Limited IPO – Company Profile
Incorporated in 2018, the company is primarily engaged in Fast Moving Consumer Goods (FMCG) with a range of health and personal care, food and household products catering to B2C and B2B customers.
The company is also into Non-Fast Moving Consumer Goods (Non-FMCG) with a range of industrial products catering to B2B customers.
Since inception, the company has placed reliance on quality control of their products, and have remained cost effective as compared to their competitors. The cost efficiency of the products has contributed to the growth of our business by enabling the company to penetrate the international market and expand our geographical footprint.
The company has been recognised as ‘The iconic emerging FMCG Brand of 2023’ at Mid-day Maharashtra Gaurav Awards.
Onest Limited IPO Objective
- Working Capital requirement: The main aim of the company is to fund their incremental working capital requirement. The company requires additional working capital for executing its future orders that may be received, for funding their future growth requirements and for other strategic, business and corporate purposes.
Currently the company is funding the working capital requirements through internal accruals and a working capital facility sanction for Rs.400 million.
- General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion, repayment of indebtedness from time to time, etc.
Onest Limited IPO Risks And Challenges
Investing in IPOs comes with its own set of risks and challenges. For Onest Limited, these are some of the major risks and challenges:
- Dependency on third-party manufacturers: The company has outsourced manufacturing of all of their products to third-party manufacturers.The top three manufacturers contributed 57% of the company’s purchases in the financial year 2023. The business of the company will be adversely impacted if the company fails to maintain good relations with their manufacturers.
- Risk of foreign currency transactions: In 2023, almost 95% of the total revenue of the company is export-oriented. Although the company closely follows their exposure to foreign currencies and selectively enters into hedging transactions in an attempt to reduce the risks of currency fluctuations, these activities are not always sufficient to protect us against incurring potential losses if currencies fluctuate significantly.
- Significant portion of revenue from few segments: Significant portion of the revenue of the company is from only the home and personal care segment. In 2023, these two segments contributed almost 46% of the company’s revenue. Any loss or significant reduction in the volume in the home and personal care segment could materially impact the well being of the company.
Onest Limited IPO Peer Comparison
There are no listed entities whose business portfolio is comparable with that of the company’s business and comparable to their scale of operations.
Onest Limited IPO Financial Information:
|Particular||As at 31 March 2021||As at 31 March 2022||As at 31 March 2023|
|Revenue (₹ in Million)||641.13||1078.22||1843.06|
|Equity (₹ in Million)||62.21||186.89||296.99|
|Expenses (₹ in Million)||633.62||1055.70||1755.44|
|Profit and Loss After Tax (₹ in Million)||20.64||34.19||109.82|
|Diluted EPS only (₹)||1.84||1.06||3.20|
|NAV per Equity Share (₹)||2.77||7.47||11.70|
|Total Assets (in million)||263.74||343.48||737.33|
|Total Liabilities (in million)||201.53||156.59||440.34|
Onest Limited IPO – Industry & Market Potential
Onest Limited is an FMCG company along with a segment in the industrial Non-FMCG sector.
The household and personal care market is forecasted to grow at CAGR of 5.6% over the period 2024 -2028.Rising disposable incomes, increasing standard of living, growing urbanization, transforming lifestyles, increasing awareness towards hygiene and expansion in working class professionals are some of the vital drivers for the growing demand for household and personal care products.
The company has a vast international presence with customers across geographies The company has been exporting its products in more than 57 countries including USA,UK, UAE, Africa,etc.
Onest Limited IPO – Type of Offer
Onest’s IPO combines a fresh issue and an offer for sale (OFS).
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 77 Crore. This fund will fuel future working capital requirements.
- Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake aggregating to 32.5 lakh shares in the company, intending to raise funds. The pricing details of the OFS is not yet disclosed by the company.
Onest Limited IPO Offer Size
Onest Limited aims to raise funds, through fresh issue of INR 77 Crore and an offer for sale (OFS) by selling 32.5 lakh shares. The pricing details of the OFS is not yet disclosed by the company.
The IPO’s main objective is to increase the working capital requirement of the company.
Onest Limited IPO Allotment Structure
The IPO allotment structure for Onest Limited’s is planned as follows:
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% 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 10% 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.
How to apply for a Onest Limited IPO through Alice Blue?
- Click the link to log in to the IPO console.
- Select the IPO you wish to apply for from the list of open issues.
- Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
- Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
- When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
- After completing all the steps, read the declaration and click ‘Submit’.
Additional Steps to Follow:
- After submitting the request, you will receive a mandate request on your UPI application. Accept the mandate request. Sometimes, it may take a few hours to receive the request. This action will reserve the required amount for the application until the allotment date. If the quantity is allotted, the funds will be debited from your bank account, and the shares will be credited to your demat account at Alice Blue.
- Upon submitting the IPO bid request, you will receive an SMS from the exchange to confirm your application.
- To check the status of your application, you can select the applied IPO, and you will be able to see the most recent bids updated in your application.
- If you do not receive an allotment, the blocked funds will be released on the allotment date. The list of IPOs can also be viewed on the NSE website.
How to Check Onest Limited IPO Allotment Status on Alice Blue?
To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.
Visit the Link Intime page to determine the status of the allotted IPO.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Onest Limited IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Onest Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Onest Limited IPO Offer Registrar
The registrar for the Onest Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Onest Limited IPO FAQs
What is the allotment date of the Onest Limited IPO?
The allotment date is not yet announced by the company.
What is the price band of Onest Limited IPO?
The price band is not yet announced by the company.
What is the size of the Onest Limited IPO?
Onest Limited aims to raise funds, through fresh issue of INR 77 Crore and an offer for sale (OFS) by selling 32.5 lakh shares. The pricing details of the OFS is not yet disclosed by the company. The IPO’s main objective is to increase the working capital requirement of the company.
What is the listing date of the Onest Limited IPO?
The listing date is not yet announced by the company.