Radiowalla Network Limited IPO

Radiowalla Network Limited IPO

Radiowalla Network Limited is coming up with an IPO worth INR 14.25 crores, consisting of a fresh issue of 18.75 lakh shares. The company plans to use the funds raised to invest in technology, to incur capital expenditure, to meet the working capital requirements and general corporate purposes.

Radiowalla Network IPO – Important Dates

Radiowalla Network IPO DateMarch 27, 2024 to April 2, 2024
Radiowalla Network IPO Listing DateApril 5, 2024
Radiowalla Network IPO PriceINR 72 to 76 per share
Radiowalla Network IPO Lot Size1600 Shares
Radiowalla Network IPO Total Issue SizeINR 14.25 crores
Radiowalla Network IPO Basis of AllotmentApril 3, 2024
Radiowalla Network IPO Initiation of RefundsApril 4, 2024
Radiowalla Network IPO Credit of Shares to DematApril 4, 2024
Radiowalla Network IPO Issue TypeBook Built Issue IPO
Radiowalla Network IPO Listing AtNSE SME

Radiowalla IPO – Company Profile

The company is in the business of customer engagement services, which includes in-store radio services (exclusive radio channel for a brand) on a subscription model basis, corporate radio (private radio channels for employee engagement in the organization), and advertisement services which include digital signage solution, content management services and point of purchase advertising to the clients. The company exclusively caters to the business-to-business (B2B) sector. 

Mr. Anil Srivatsa and Mr. Harvinderjit Singh Bhatia started Radiowalla in 2010 with a vision to bring innovative solutions for customer engagement via audio and digital formats. They both had been in the corporate world for over two decades and had experience of Indian and USA markets. Radiowalla acquired Decibel Media in 2013 and thereby expanded the business across India. 

The company has expanded the business under two (2) verticals, which are as follows: 

1. Radio Engagement Solutions and Subscription Services 

2. Advertisement Solutions

Radiowalla Network Limited IPO Review

ParticularAs of 31 March 2022As of 31 March 2023As of 31 October 2023
Revenue (₹ in lakhs)1049.911399.47871.86
Equity (₹ in lakhs)36.37335.08552.75
Expenses (₹ in lakhs)1005.541294.67762.72
Profit and Loss After Tax (₹ in lakhs)47.01102.18113.99
Diluted EPS only (₹)11.1624.2524.24
Return on Net Worth (%)129.28%30.49%20.62%
NAV per Equity Share (₹)23.8395.93132.52
Total Assets (in lakhs)527.53813.53883.29
Total Liabilities (in lakhs) 491.17478.46330.50
Debt Equity Ratio (in times) 1.920.230.09
Current Ratio (in times) 0.861.462.74

Radiowalla Network Ltd IPO Fundamental Analysis

Radiowalla Network Ltd, gearing up for an IPO, reveals a dynamic performance. While revenue surged initially, a recent downturn raises caution. Improvements in equity structure and profitability metrics offer optimism amid evolving market conditions.

  • Revenue Growth: There was a substantial increase in revenue from ₹1049.91 lakhs in March 2022 to ₹1399.47 lakhs in March 2023, but a significant decline to ₹871.86 lakhs by October 2023. This sharp decrease in revenue raises concerns about the company’s revenue stability.
  • Equity and Debt: The equity has increased significantly, indicating potential growth and investor confidence. The debt equity ratio has also improved drastically, from 1.92 in March 2022 to 0.09 by October 2023, reflecting a stronger financial position and reduced reliance on debt.
  • Profitability: While the company’s profit after tax increased from ₹47.01 lakhs in March 2022 to ₹102.18 lakhs in March 2023, it slightly decreased to ₹113.99 lakhs by October 2023. This indicates reasonable profitability, although the recent decline warrants attention.
  • Earnings per Share (EPS): The diluted EPS has shown significant growth from ₹11.16 in March 2022 to ₹24.25 in March 2023, remaining relatively stable at ₹24.24 by October 2023. This suggests an improving earnings performance per share.
  • Return on Net Worth (RoNW): The RoNW has experienced fluctuations, with a high of 129.28% in March 2022, dropping to 20.62% by October 2023. This indicates a decline in profitability relative to net worth.
  • Financial Position: The NAV per equity share has shown substantial growth, indicating a stronger underlying asset value per share.
  • Liquidity and Efficiency: The current ratio has improved significantly, indicating better liquidity and ability to meet short-term obligations. The company’s efficiency in managing inventory has also improved.

Radiowalla IPO Peer Comparison

No Listed peers are available as of the date of Red Herring Prospectus.

Radiowalla IPO Objective

The main objective of Radiowalla’s IPO is to invest in technology, allocating INR 3.10 crores to advance the “Platform” used for in-store radio services. Additionally, INR 1.90 crores will fund capital expenditure for Visual advertising solutions, and INR 4.5 crores will address working capital needs.

  1. Investment in Technology: The company specializes in delivering in-store radio services through a dedicated “Platform,” utilizing a set of cloud-based servers and proprietary software. The company aims to allocate net proceeds of INR 3.10 crores towards advancing the development of this platform.
  1. To fund capital expenditure: The company intends to deploy Net Proceeds aggregating to INR 1.90 crores for capital expenditure for providing Visual advertising solutions, which constitutes Digital Out-of-Home (DOOH) advertising and Android Media Players.
  2. To meet the working capital requirement: The company proposes to utilize INR 4.5 crores towards funding its working capital requirements in the ordinary course of business. With the increase in revenue, the company expects its working capital requirements to increase.

Radiowalla Network IPO Risks And Challenges

Radiowalla’s risks include reliance on content creators and RJs; their retention impacts business operations. Pending litigation against Promoters worth INR 37.98 crores could adversely affect business and financial health. Dependency on group company Sochcast Media Private Limited for voice-over artists poses operational risks.

  1. The business significantly depends on content creators and RJs to create audio or radio content. If they are unable to retain them, the company’s business operations will be affected.
  2. There is outstanding litigation amounting to INR 37.98 crores pending against the Promoters which, if determined adversely, could affect the business, results of operations, and financial condition.
  3. Radiowalla is dependent to a certain extent on the group company, i.e., Sochcast Media Private Limited for the voice-over artists required for the corporate radio and Audio Advertising segment.

Radiowalla Network Ltd IPO – Industry & Market Potential

Audio and video have experienced exponential growth in recent years, with no signs of slowing down: between 2022 and 2023, global podcast listeners swelled by over 40 million, while the global video market is forecast to grow at a CAGR of 18.45% until 2030. 

India is expected to see a whopping 12% growth in ad revenue in 2023, as per the recent GroupM: This Year, Next Year report. As per the report, India is the only country among the top 10 nations that is poised to see a double-digit growth in ad revenue again this year. The country has also seen a massive boost in digital advertising, and with the economy going strong, that growth is here to stay. Spending is set to take sharper growth, and Indian brands are expected to invest more in advertising this year.

Radiowalla IPO – Type of Offer

Radiowalla Network Limited is launching an IPO valued at INR 14.25 crores, comprising 18.75 lakh new shares. The company intends to allocate the proceeds towards technology investment, capital expenditure, working capital needs, and general corporate purposes.

Radiowalla Network Ltd IPO Offer Size

The offer size of Radiowalla Network Limited’s IPO is INR 4.76 crores.  The net proceeds will be used to meet the working capital requirement.

Radiowalla Network IPO Allotment Structure

Radiowalla Network’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% 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 35% 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 Makers Reservations: A portion of the issue, i.e., 1,12,000, is reserved for market makers.

How to apply for a Radiowalla Network IPO?

To apply for the Radiowalla Network 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.

  1. Check for IPO Details: Once your account is active, you can check for the Radiowalla Network 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 Radiowalla Network 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 Radiowalla Network’s 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 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 Radiowalla Network 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 Radiowalla Network 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 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 Radiowalla Network IPO:

 ● Registrar’s Website: Visit the website of Maashitla Securities Private Limited, the registrar of the Radiowalla Network 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 (BSE) SME (Small Medium Enterprise) Platform. 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.

Radiowalla Network  Ltd IPO Offer Registrar

The registrar for the Radiowalla Network Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Maashitla Securities Private Limited

451, Krishna Apra Business Square, 

Netaji Subhash Place, Pitampura, 

Delhi – 110034, India

Email: [email protected] 

Website: www.maashitla.com

Radiowalla Limited IPO –  FAQs 

1. What is the allotment date of Radiowalla Limited? 

The allotment date of the Radiowalla Limited IPO is April 3, 2024.

2. What is the price band of the Radiowalla IPO? 

The price band of the issue is INR 72-76 per share.

3. What is the size of the Radiowalla IPO? 

Radiowalla Network Limited is launching an IPO valued at INR 14.25 crores, comprising 18.75 lakh new shares. The company intends to allocate the proceeds towards technology investments, capital expenditure, meeting working capital needs, and general corporate purposes.

4. What is the listing date of the Radiowalla IPO? 

The listing date of Radiowalla’s IPO is April 5, 2024.

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