Magenta Lifecare IPO is a fixed price issue of Rs 7.00 crores. The issue is entirely a fresh issue of 20 lakh shares.
Magenta Lifecare IPO opens for subscription on June 5, 2024 and closes on June 7, 2024. The allotment for the Magenta Lifecare IPO is expected to be finalized on Monday, June 10, 2024. Magenta Lifecare IPO will list on BSE SME with tentative listing date fixed as Wednesday, June 12, 2024.
Magenta Lifecare IPO price is ₹35 per share. The minimum lot size for an application is 4000 Shares. The minimum amount of investment required by retail investors is ₹140,000. The minimum lot size investment for HNI is 2 lots (8,000 shares) amounting to ₹280,000.
Fedex Securities Pvt Ltd is the book running lead manager of the Magenta Lifecare IPO, while Cameo Corporate Services Limited is the registrar for the issue. The market maker for Magenta Lifecare IPO is Sunflower Broking.
Refer to Magenta Lifecare IPO RHP for detailed information.
Magenta Lifecare IPO Details
| IPO Date | June 5, 2024 to June 7, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹35 per share |
| Lot Size | 4000 Shares |
| Total Issue Size | 2,000,000 shares (aggregating up to ₹7.00 Cr) |
| Fresh Issue | 2,000,000 shares (aggregating up to ₹7.00 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 4,869,936 |
| Share holding post issue | 6,869,936 |
| Market Maker portion | 104,000 shares Sunflower Broking |
Magenta Lifecare IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Retail Shares Offered | 50% of the net offer |
| Other Shares Offered | 50% of the net offer |
Magenta Lifecare IPO Timeline (Tentative Schedule)
Magenta Lifecare IPO opens on June 5, 2024, and closes on June 7, 2024.
| IPO Open Date | Wednesday, June 5, 2024 |
| IPO Close Date | Friday, June 7, 2024 |
| Basis of Allotment | Monday, June 10, 2024 |
| Initiation of Refunds | Tuesday, June 11, 2024 |
| Credit of Shares to Demat | Tuesday, June 11, 2024 |
| Listing Date | Wednesday, June 12, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on June 7, 2024 |
Magenta Lifecare IPO Lot Size
Investors can bid for a minimum of 4000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 4000 | ₹140,000 |
| Retail (Max) | 1 | 4000 | ₹140,000 |
| HNI (Min) | 2 | 8,000 | ₹280,000 |
| Lot Size Calculator | |||
Magenta Lifecare IPO Promoter Holding
Divyesh Modi and Khyati Modi are the company promoters.
| Share Holding Pre Issue | 84.06% |
| Share Holding Post Issue | 59.59% |
About Magenta Lifecare Limited
Incorporated in 2015, Magenta Lifecare Limited manufactures mattresses and pillows. The company offers foam-based products under the brand “Magenta” in India.
Magenta Lifecare’s product portfolio includes memory foam, latex-based, bonded mattresses, pocketed springs etc. and pillows such as memory foam pillows, moulded memory foam pillows, moulded contour foam pillows etc.
Magenta Lifecare Limited’s manufacturing facility is located in Gujarat, India. The installed capacity for manufacturing mattresses is currently at 60,000 Nos. and 70,000 nos. of pillows.
As of date of Prospectus, The company’s overall staff strength is 41 employees. The products the company offers to the customers are spread across retail, hotels and institutions.
Competitive Strengths:
- Diversified customer base and long-standing relationship with the customers.
- Extensive and well-developed pan-India sales and distribution network.
- Diversified Product portfolio.
- Experienced Promoter Directors with extensive domain knowledge.
- Quality assurance and accreditations.
Magenta Lifecare Limited Financial Information (Restated)
Magenta Lifecare Limited’s revenue increased by 1.79% and profit after tax (PAT) rose by 29.96% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,505.71 | 1,250.93 | 1,415.60 | 1,459.78 |
| Revenue | 630.74 | 955.29 | 938.47 | 966.14 |
| Profit After Tax | 24.36 | 24.55 | 18.89 | 19.44 |
| Net Worth | 634.18 | 520.81 | 361.73 | 142.85 |
| Reserves and Surplus | 147.19 | 366.57 | 219.72 | 20.84 |
| Total Borrowing | 447.83 | 453.01 | 757.53 | 982.73 |
| Amount in ₹ Lakhs | ||||
Key Performance Indicator
The market capitalization of Magenta Lifecare IPO is Rs 24.04 Cr.
KPI as of December 31, 2023.
| KPI | Values |
|---|---|
| ROE | 5.62% |
| ROCE | 13.41% |
| RoNW | 3.84% |
| P/BV | 2.68 |
| PAT Margin (%) | 4.05 |
Check Magenta Lifecare IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 0.5 | 0.47 |
| P/E (x) | 69.43 | 74.03 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2023 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of December 31, 2023 that is available in RHP.
Objects of the Issue (Magenta Lifecare IPO Objectives)
The company proposes to utilize the Net Proceeds from the Issue towards the following objects:
1. Funding our working capital requirements; and
2. General corporate purposes
Magenta Lifecare IPO Review (May apply)
[Dilip Davda] The company is operating in a highly competitive and fragmented segment. With its asset light model and cost management, the company is confident of maintaining and improving its performance as indicated by last 21 months working. Based on FY24 annualized earnings, the issue appears aggressively priced. Small equity post-IPO indicates longer gestation for migration. Well-informed/cash surplus investors may park funds for the long term rewards. Read detail review…
Magenta Lifecare IPO Prospectus
Magenta Lifecare Limited Contact Details
Magenta Lifecare Limited
N P Patel Estate,
A & T Padamla,
Vadodara – 391350, Gujarat, India
Phone: +91 7573022234
Email: info@magentalifecare.com
Website: https://www.magentamattresses.com/
Magenta Lifecare IPO Registrar
Cameo Corporate Services Limited
Phone: +91-44-28460390
Email: ipo@cameoindia.com
Website: https://ipo.cameoindia.com/