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: 

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 – Fundamental Analysis

Revenue Growth: 

Onest Limited has displayed consistent revenue growth over the years, increasing from ₹641.13 million in 2021 to ₹1,843.06 million in 2023, indicating a robust sales trajectory.

Profitability: 

The company’s profitability has also improved significantly, with a profit after tax of ₹109.82 million in 2023 compared to ₹20.64 million in 2021. This suggests improved operational efficiency.

Return on Net Worth (RoNW): 

RoNW has fluctuated, but it saw a notable increase from 13.08% in 2022 to 26.92% in 2023, indicating enhanced profitability in relation to shareholders’ equity.

Earnings Per Share (EPS): 

Diluted EPS has risen from ₹1.84 in 2021 to ₹3.20 in 2023, reflecting increased earnings per share for investors.

Net Asset Value (NAV) per Equity Share: 

NAV per equity share has grown steadily from ₹2.77 in 2021 to ₹11.70 in 2023, indicating improved asset value per share.

Asset and Liability Management: 

The company’s total assets have shown significant growth, reaching ₹737.33 million in 2023, while total liabilities have also increased, indicating expansion and higher financial obligations.

Summary: 

Onest Limited’s financials demonstrate strong revenue growth, improving profitability, and enhanced returns for shareholders. However, investors should carefully consider the increasing liabilities and assess the sustainability of this growth before investing in the IPO.

Onest Limited IPO Financial Information:

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 Objective

Onest Limited’s IPO aims to raise capital for working capital needs, future growth, and general corporate purposes. This includes technological advancement, branch expansion, debt repayment, and strategic initiatives.

• 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

Onest Limited faces risks such as heavy reliance on third-party manufacturers, currency fluctuations in its export-oriented revenue, and overreliance on the home and personal care segment for a significant portion of its earnings.

• 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 – 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 Limited’s IPO comprises a fresh issue of INR 77 Crore to raise capital for future working capital needs. Additionally, existing shareholders, including promoters and early investors, plan to sell 32.5 lakh shares through an Offer for Sale (OFS), with pricing details yet to be disclosed by the company.

• 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

Onest Limited’s IPO allotment structure allocates  75% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to Retail Individual Investors (RIIs) with investments below Rs. 2 lakhs.

• 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 lahks.

How to apply for a Onest Limited IPO through Alice Blue?

To apply for the Onest Limited IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Onest Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.

You can apply for Onest Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: Post 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 to Check Onest Limited IPO Allotment Status on Alice Blue?

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 Onest 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 Onest Limited IPO.
5. 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 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

Email: [email protected]

Website: www.linkintime.co.in

Onest Limited IPO FAQs