Forcas Studio Limited IPO

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Forcas Studio Limited, initially founded as a partnership firm named ‘Forcas Apparels’ in 2010 by Sailesh Agarwal, has evolved significantly over the years. In 2024, it transitioned into Forcas Studio Private Limited and later that year became a public limited company, now known as Forcas Studio Limited. The company operates under the brand names ‘FTX’, ‘TRIBE’, and ‘Conteno’, offering stylish, value-for-money menswear.

Product Offering and Market Reach

Forcas Studio Limited specializes in a wide range of men’s garments, including shirts, denims, t-shirts, trousers, sportswear, and more. The company serves the Indian market through both online platforms and wholesale channels, selling under its own brands and white-labeling for other notable brands like Landmark Group and V-Mart Retail. Their products are available on major e-commerce platforms such as Flipkart, Myntra, and Amazon, and are also distributed through over 500 large format stores across the country.

Digital Transition and Market Penetration

In 2021, the company expanded its reach by transitioning to online sales, serving over 15,000 pin codes across India. This move allowed Forcas Studio to connect directly with consumers, gaining insights into their buying patterns. With more than 1,200 SKUs, the company’s product catalog is diverse, catering to a broad audience with a focus on Tier-2, Tier-3, and Tier-4 cities.

Logistics and Supply Chain

Forcas Studio operates four warehouses in Kolkata, supporting its supply chain management. These warehouses manage inventory and dispatch products directly to consumers and retailers. The company’s centralized inventory management system ensures efficient order fulfillment across its sales channels.

Forcas Studio Limited is committed to delivering value to its customers through fashionable, affordable menswear, with a strategic focus on expanding its presence in India’s rapidly growing fashion market.

Objects of the Forcas Studio Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Funding for upgradation of the warehouse; ii. Prepayment or repayment of certain secured loans availed by the company; iii. Funding of working capital requirements of the company; iv. General Corporate Purposes.
DRHP of Forcas Studio Limited IPO
RHP of Forcas Studio Limited IPO

Forcas Studio Limited IPO Details:

Open Date: Aug 19 2024
Close Date: Aug 21 2024
Total Shares: 4,680,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 37.44 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 77 - 80 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 26 2024

Promoters And Management:

Sailesh Agarwal, aged 40 years, one of the Promoters and Managing Director of the Company. He attended University of Calcutta to pursue a bachelor’s degree in commerce. He is having more than a decade of experience in the field of garment manufacturing and trading and in fashion industry. He is the main driving force behind the Company and responsible for overall management of the Company. He has played a key role in growth and development of the Company to the present level. Presently, he oversees overall operation of the Company and has been associated with the Company since incorporation. Sourav Agarwal, aged 39 years, is one of the Promoters, Whole-time Director and Chief Financial Officer of the Company. He attended University of Calcutta to pursue bachelor’s degree in commerce. He is having more than a decade of experience in the field of garments manufacturing and trading. Presently, he heads purchase and finance divisions of the Company and has been associated with the Company since incorporation. Altab Uddin Kazi, 33, is the Independent Director of the Company. He holds a bachelor's degree in commerce from the University of Calcutta and has pursued a law degree from North Orissa University. An associate member of the Institute of Company Secretaries of India, he has also cleared the integrated professional competence examination by the Institute of Chartered Accountants of India. With over 8 years of experience in corporate law, accounting, taxation, GST, and legal matters, he has previously worked with Supreme & Co Pvt. Ltd., Megasec Capital Advisors Pvt. Ltd., and others. He joined the Company on February 20, 2024.

Financials of Forcas Studio Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
11M-FY24
Revenue from Operations 5,051 5,320 6,960 9,607
Other Income 62 60 202 42
Total Revenue 5,113 5,380 7,162 9,649
Cost of Material Consumed 3,312 4,542 3,817 6,003
Other Direct Expenses 648 795 1,012 1,097
Change in Work-In-Progress 397 -781 424 -68
Employees Benefit Expenses 126 143 147 151
Other Expenses 289 327 1,312 1,538
EBITDA 342 355 450 928
OPM (%) 6.69% 6.59% 6.28% 9.61%
Depreciation & Amortisation 28 27 37 33
EBIT 314 328 413 895
Finance Cost 259 250 299 341
PBT 56 78 115 553
Tax/Deferred tax 3 2 3 39
PAT 58 81 117 515
NPM (%) 1.14% 1.50% 1.64% 5.33%
No.of Shares 175.80 175.80 175.80 175.80
EPS 0.33 0.45 0.66 2.92

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Forcas Studio Limited 70 1 0.66 120.0 80 141
Aditya Birla Fashion and Retail Ltd 12,418 -59 -0.38 N/A 319.0 32,429
* All the data is as per FY23.

Recommendation on Forcas Studio Limited IPO:

1. Forcas Studio Limited specializes in menswear, offering a broad range of garments including shirts, denims, t-shirts, trousers, cotton pants, sportswear, party wear, fashion wear, and boxers. 2. The company caters to the Indian market through both online platforms and wholesale channels. Their products are marketed under their own brands—FTX, Tribe, and Conteno—and also through white-labeling for other well-known brands such as Landmark Group, V-Mart Retail, V2 Retail, Highlander, Cobb, and Kontail. 3. The company’s products are available on India's top e-commerce platforms, including Flipkart, Myntra, Meesho, Amazon, Ajio, Jio Mart, Glowroad, Limeroad, Solvd, and Shopsy. Additionally, Forcas Studio’s brands are sold through over 500 large format stores such as V-Mart Retail, V2 Retail, City Kart, Metro Bazar, Kothari Retail, and Sarvana Retails, ensuring a strong offline presence as well. 4. Competition Forcas Studio entered a largely unorganized market at the time of its inception. The competition in the readymade garment industry is intense, with players ranging from local retailers and non-branded products to established economy brands. 5. The Revenue has Increased from Rs.50 Crore in FY21 to Rs.69 Crores in FY23. 6. The EBITDA has Increased from 3.4 Crores in FY21 to 4.5 Crores in FY23. 7. The PAT has Increased from 58 Lakhs in FY21 to 1 Crore in FY23. 8. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 3.19, 9. Market Capitalization is 141 Crores & P/E is 25.04x based on FY24.

Lead Manager of Forcas Studio Limited IPO:

  1. Horizon Financial Pvt Ltd

Registrar of Forcas Studio Limited IPO:

  1. MAS Services limted

Company Address:

Forcas Studio Limited Tara Maa Tower, B3-71C/161 B B T Road Vivekanandapur, South 24 Parganas Thakurpukur Mahestola - 700141, Phone: +91 3329501056 Email: info@focasstudio.in Website: http://www.focasstudio.in/

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