Arham Technologies Limited IPO

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i. Arham Technologies Limited is engaged in manufacturing of LED Smart Televisions, with different screen sizes under our brand ‘STARSHINE’. They also manufacture Fans, Air Coolers, and Mixer Grinders through third-party manufacturers under our brand ‘STARSHINE’. The company has a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh, and parts of Uttar Pradesh.

ii.  Arham Technologies also serve under Original Equipment Manufacturer (“OEM”) business models for LED Televisions. Under the OEM model, they manufacture and supply products as per the requirements of our customers, who then further distribute these products under their own brands. With a primary focus on quality, Arham Technologies Limited has been catering to a number of regional brands in Central India. With serving Original Equipment Manufacturers (OEM), they have adopted a cost-effective pricing strategy that gives the clients an upper hand over other brands.

iii.  Arham Technologies plans to add other products to its portfolio by way of white labeling, to be a part of a bigger portfolio of products. However, the company plans to keep its focus on sales of Smart Televisions by making schemes and offers centric on Televisions. The company is also setting up a manufacturing facility for Fans at its existing locations which shall give better margins and control in the supply chain as they do not have to depend on other manufacturers for procurement.

iv.  Arham Technologies also do white labeling for various regional brands. Raipur enjoys a geographical advantage, as no big city is nearby of Raipur, and the Raipur market feeds the entire Chhattisgarh, Odisha, some parts of Madhya Pradesh, Vidarbha Region, and Jharkhand.

v. Arham Technologies has also launched its “D2C” website www.starshine.co.in for its products which will increase its sales, profits, and brand value and also provide direct benefit to the end users. The company is also listing its products on e-commerce platforms i.e. Amazon and Flipkart etc.

vi. The Company Operates in the following segments:
1. Manufacturing of LED Television (at our own manufacturing facility)
2. Manufacturing of Fan, Air Cooler, Mixer Grinder, and Washing Machine (through third parties)

Competitive Strengths

i. Strong team with experience and expertise
ii. Organizational stability
iii. Smooth flow of operations & Strong customer relationship

Objects of the Arham Technologies Limited IPO:

The Objects of the Issue are: a. To meet the working capital requirements b. To meet the Issue Expenses c. General Corporate Purposes
RHP of Arham Technologies Limited IPO

Arham Technologies Limited IPO Details:

Open Date: Dec 05 2022
Close Date: Dec 07 2022
Total Shares: 2,280,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 9.58 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 42 Per Equity Share
Retail Discount: Fixed Price Issue
Listing At: NSE Emerge
Listing Date: Dec 15 2022

Promoters And Management:

i. Mr. Roshan Jain, aged about 56 years, is the Promoter and Managing Director of our company and have experience of 34 years as an entrepreneur. Started his entrepreneurial journey back in 1988, with small shop of Radio, Tape Recorders, Television in a village in Odisha. Growing from there, he saw opportunity in wholesale trading in similar products and started trading business in Raipur (Madhya Pradesh back then). He shifted to Raipur in 1992, developed a network of dealers and distributors and kept growing business. His key skills are accounting, quick decision making, and developing relations with potential business vendors and customers. He has vast experience in working with various vendors and customers and has faced all lows and highs of business which is necessary to run a business successfully. ii. Mr. Ankit Jain, aged about 33 years, is the Promoter and Executive Director cum Chief Financial Officer our Company and have experience of 11 years as an entrepreneur. He holds a degree of BE in Electrical and Electronics and then completed Diploma in Entrepreneurship from Indian Institute of Technology, Delhi. After completion of his Bachelor’s degree, he then joined his father’s trading business. Having Technical and Management education, it brought tremendous clarity on both areas of business, and focused in quality improvement and managing business in modern style using advanced tools and technology. Key skill sets being, New Product development, choosing right kind of parts to achieve the desired quality output, negotiations, using Innovative solutions to solve problem. iii. Mr. Anekant Jain, aged about 29 years, is the Promoter and Executive Director cum Chief Executive Officer of our Company and have experience of 7 years as an entrepreneur. He holds a degree of BE in Computer Science and then completed an Entrepreneurship certificate course from XLRI. With a strong family business environment and with a desire to expand the venture to pan India, he joined the family business, after completing his Engineering in Computer Science. Having a key expertise in Operations Management, family business improved their efficiency by automating many manual processes that were initially being followed. Key skills being, implementing new technology to increase market penetration, increasing customer base. Having experience in increasing production efficiency using lean management tools and techniques.

Financials of Arham Technologies Limited IPO:

Particulars (in crores) 31.03.2022 31.03.2021 31.03.2020
Revenue from operations 36 22 13
Cost of Materials Consumed 31 22 11
Changes in Inventories of Finished Goods -1 -5 0.2
Employee Benifit Expense 0.7 0.4 0.3
Other Expense 0.8 0.9 0.2
Operating Profit 4.5 3.7 1.3
OPM% 12.50% 16.82% 10.00%
Finance Cost 1 0.6 0.5
Depreciation 0.2 0.4 0.5
Other Income 0.8 0.04 0
Profit (Loss) before tax 4 2 0.5
Profit (Loss) for the period 3 2 0.5

Comparison With Peers:

There is no listed peers related to such a business.

Recommendation on Arham Technologies Limited IPO:

Review and Recommendation of Arham Technologies Limited IPO is 5/10

1. The company is engaged in the manufacturing of LED Smart Televisions, with different screen sizes under the brand ‘STARSHINE. Under the OEM model, they manufacture and supply products as per the requirements of the customers, who then further distribute these products under their own brands. 2. They also manufacture Fans, Air Coolers and Mixer Grinders through third party manufacturers under the brand ‘STARSHINE. 3. They have a network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh and parts of Uttar Pradesh. 4. Revenue in Fy20 was 14 Crores which has increased to 36 Crores in Fy22. 72% sales comes from selling LED TV manufactured by company. Operating margins in the business are 12.50% in Fy22. 5. PAT has increased from 56 Lacs in Fy20 to 3 Crores in Fy22. 6. Asking P/E is 11.86 per share, which looks reasonable. 7. M.cap = ~36 Crores on sales of 36 Crores. So, M.cap/Sales is 1 (reasonably priced)

Lead Manager of Arham Technologies Limited IPO:

  1. Finshore Management Services Limited

Registrar of Arham Technologies Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Arham Technologies Limited Plot No. 15 Electronic Manufacturing Cluster, Sector 22, Village Tuta, Atal Nagarnava, Raipur - 492015, Phone: +91 70697 66778 Email: cs@arhamtechnologies.co.in Website: http://www.arhamtechnologies.co.in/

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