QVC Exports Limited is launching an IPO with a fresh issue of 27,98,400 shares worth INR 17.63 crores and an offer for sale of 7,48,800 shares worth INR 6.44 crores. The company aims to repay unsecured loans, meet the working capital requirement, and for general corporate purposes. 

QVC Exports Limited IPO – Important Dates

QVC Exports Limited IPO – Company Profile 

The company is engaged in the business of dealing in ferroalloys, including but not limited to high-carbon silico manganese, low-carbon silico manganese, high-carbon ferromanganese, high-carbon ferrochrome, and ferrosilicon. The company also engaged in dealing in raw materials for the manufacturing of steel. The company has devised a unique business model, wherein it procures raw materials required for manufacturers of ferroalloys, such as manganese ore, and chrome ore. 

As of March 31, 2024, 82.95% of the revenue from operations was earned from the export operations. A majority of the revenue from operations is earned from exporting the products to reputed steel manufacturers in various countries.

The Company has received a certificate of registration dated April 8, 2023, from Bureau Veritas (India) Private Limited certifying that the management system of the Company is compliant with management system standards prescribed under ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.

QVC Exports Ltd IPO Fundamental Analysis 

QVC Exports has demonstrated impressive revenue and profit growth, but concerns include declining RoNW, falling NAV per share, increased debt, and a lower current ratio. Investors should weigh strong growth against rising financial risks before deciding.

1. Revenue: Increased significantly from ₹12,310.14 lakhs in FY 2022 to ₹44,598.65 lakhs in FY 2024, showing strong growth.

2. Equity: Grew from ₹2,668.09 lakhs to ₹3,407.90 lakhs, indicating increased shareholder value.

3. Expenses: Rose in line with revenue from ₹12,548.48 lakhs to ₹44,391.26 lakhs.

4. Profit After Tax: Improved from ₹90.54 lakhs to ₹392.76 lakhs, reflecting positive profitability trends.

5. Diluted EPS: Increased from ₹1.34 to ₹7.20, highlighting substantial earnings growth per share.

6. Return on Net Worth (RoNW): Declined from 17.75% to 4.62%, suggesting reduced efficiency in generating profits from equity.

7. NAV per Equity Share: Decreased from ₹58.09 to ₹40.56, indicating a drop in net asset value per share.

8. Total Assets: Expanded from ₹5,461.44 lakhs to ₹9,386.23 lakhs, showing growth in asset base.

9. Total Liabilities: Increased from ₹2,793.35 lakhs to ₹5,978.33 lakhs, leading to a higher debt burden.

10. Debt Equity Ratio: Rose from 0.81 to 1.46, indicating increased leverage and potential financial risk.

11. Current Ratio: Declined from 1.20 to 1.00, which may signal potential liquidity issues.

QVC Exports Limited IPO Financial Analysis

QVC Exports Limited IPO Peer Comparison

There are no comparable listed companies in India that are engaged in all aspects of the business that QVC Exports operate. So, it is not possible to provide an industry comparison to the Company. 

QVC Exports Ltd IPO Objective

The main objectives of the funds are to repay up to ₹1.09 crores in unsecured loans, use ₹9 crores for working capital needs, and allocate remaining funds to general corporate purposes, including strategic initiatives and brand building.

1. Repayment of unsecured loans: The financing arrangements availed by the company include, inter alia, unsecured loans, term loans, and working capital facilities. The Company proposes to utilise an estimated amount of up to INR 1.09 crores from the net proceeds towards repayment of certain unsecured loans availed by our Company.

2. To meet working capital requirements:  The company proposes to utilise INR 9 crores from the Net Proceeds to fund the working capital requirements. 

3. General Corporate Purpose: The company will allocate the balance funds to general corporate goals, including strategic initiatives, brand building, addressing unforeseen contingencies, and other purposes to support overall business growth and operations.

QVC Exports Limited IPO Risks And Challenges

QVC Export’s risks include potential adverse outcomes from a GST department search, dependence on key customers for revenue, and unpredictable financial results, which may lead to market price volatility of its shares.

1. The GST department, Kolkata had undertaken a search at the Registered Office of the company. In the event any adverse orders are passed against the company or the Directors, it would have a significant impact on the business

2. The company depends on a few customers for a significant portion of its revenue, and any decrease in revenues or sales from any one of its key customers may adversely affect the business and results of operations.

3. The results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.

QVC Exports Ltd IPO – Industry & Market Potential

Ferroalloys are one of the important inputs in the manufacture of alloys and special steel. They impart special properties to steel. The alloys provide increased resistance to corrosion, improves hardness and tensile strength at high temperatures, gives wear and abrasion resistance and increases creep strength, etc.

India ranks 1st in the world for the export of Sillico Manganese & ranks 4th in the world for the export of Ferro Manganese.

India’s export potential is indeed bright with very high growth prospects. As per the Steelworld report, the ferroalloys Industry is estimated to grow at a CAGR of 5.9% between 2017 to 2025 and is expected to reach a valuation of US$ 188.7 Bn by 2025. India is expected to show strong growth in the usage of steel in the coming years because of its robust economy, massive infrastructure needs, and expansion of industrial production.

QVC Exports Limited IPO – Type of Offer

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 17.63 crores. The company intends to repay unsecured loans, meet working capital needs, and for general corporate purposes.
2. Offer for sale: QVC ExportsLimited is offering to sell 7,48,800 existing shares for INR 6.44 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:

QVC Exports Limited IPO Offer Size

The offer size for QVC Exports Limited’s IPO includes a fresh issue of 27,98,400 shares valued at INR 17.63 crores and an offer for sale of 7,48,800 shares worth INR 6.44 crores. The company plans to use the funds to repay unsecured loans, meet working capital needs, and for general corporate purposes.

QVC Exports Limited IPO Allotment Structure

QVC Exports 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 1,40,800 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 1,40,800 shares for this purpose. 

How to apply for the QVC Exports Limited IPO?

To apply for the QVC Exports 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.

1. Check for IPO Details: Once your account is active, you can check for the QVC Exports IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the QVC Exports 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 QVC Exports Limited IPO Allotment Status?

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 the 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 QVC Exports 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 QVC Exports 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, 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 QVC Exports IPO:

● Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the QVC Exports 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. 

QVC Exports Ltd IPO Offer Registrar

The registrar for the QVC Exports 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

“Subramanian Building”, No. 1, Club House Road,

Chennai – 600 002, Tamil Nadu, India.

Telephone: +91 444 002 0700, 442 846 0390

Email: [email protected]

Website: www.cameoindia.com

QVC Exports Limited IPO  – FAQs

1. What is the allotment date of the QVC Exports IPO? 

The allotment date of the QVC Exports IPO is August 26, 2024. 

2. What is the price band of the QVC Exports IPO? 

The price band of the issue is INR 86  per share. 

3. What is the size of the QVC Exports IPO? 

The offer size for QVC Exports Limited’s IPO includes a fresh issue of 27,98,400 shares valued at INR 17.63 crores and an offer for sale of 7,48,800 shares worth INR 6.44 crores. The company plans to use the funds to repay unsecured loans, meet working capital needs, and for general corporate purposes.

4. What is the listing date of the QVC Exports IPO? 

The listing date of QVC Exports IPO is August 28, 2024.