Aspire & Innovative Advertising Limited IPO

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The company’s business overview provides a comprehensive insight into its strategic positioning within the consumer durables market, emphasizing its focus on serving the rural and semi-urban segments of India. By trading a wide array of products from multiple renowned brands alongside launching their own branded items, their company is effectively catering to a broad spectrum of consumer needs and preferences.

The decision to offer products from well-established brands like Bajaj, Prestige, Vivo, Samsung, and Whirlpool, among others, enables their company to capitalize on the existing market reputation and trust these brands command. This strategy, coupled with their asset-light business model, positions their company for scalability and flexibility, allowing it to adapt quickly to changing market dynamics and consumer preferences.

Their targeted approach towards India’s rural and semi-urban populations, addressing the un-banked and under-banked segments, is particularly noteworthy. This focus not only taps into a vast and often underserved market but also aligns with broader national objectives of financial inclusion and digital accessibility. By leveraging a network of intermediaries like NBFCs and MFIs, along with robust warehousing and transportation facilities spread across 28 states, their company ensures wide-reaching product distribution and accessibility, right up to the customers’ doorsteps.

The substantial expenditure on facilitation fees and commissions underscores the importance of these intermediaries in their business model. Their roles in marketing their products, facilitating interactions between their staff and potential customers, and aiding in financial transactions are pivotal for penetrating the targeted market segments.

The diversification of their product portfolio, including more than 50 products ranging from kitchen appliances to mobile phones and solar products, illustrates their commitment to meeting diverse customer needs. Moreover, the introduction of their own brand, “Aspire Classico”, for stainless steel dinner sets and pressure cookers, marks a strategic shift towards building proprietary products. This move not only enhances their brand visibility but also allows for potentially higher margins compared to trading third-party products. The revenue figures from the sale of their branded products indicate a positive reception in the market, contributing a significant portion to the total revenue from their trading business.

In summary, their company is strategically positioned to serve a crucial segment of the Indian market, with a strong emphasis on rural and semi-urban areas. Their asset-light business model, combined with a network of strategic partnerships and a diversified product portfolio, including their own branded offerings, sets a solid foundation for growth. The focus on market segments that are traditionally under-served presents a unique opportunity for expansion and social impact, aligning business success with broader developmental goals.

Objects of the Aspire & Innovative Advertising Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objects: i. To meet Working Capital requirements; and ii. To finance the cost of establishing new warehouses iii. General Corporate Purpose.

Aspire & Innovative Advertising Limited IPO Details:

Open Date: Mar 26 2024
Close Date: Mar 28 2024
Total Shares: 4,068,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 21.97 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 - 54 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 03 2024

Promoters And Management:

Nitesh Agarwalla, is Promoter and Chairman & Managing Director of the Company. He has been on the Board of Directors of the Company since 2019. He has completed his Post Graduate Diploma in Business Administration from Icfaian Business School in 2002. He has an overall work experience of approx. 21 years in the field of sales and marketing. He looks after the overall business operations of the Company under his guidance, the Company has witnessed continuous growth. Rinku Agarwalla, is Promoter and Whole Time Director & Chief Financial Officer of the Company. She has been on the Board of Directors of the Company since 2021. She has completed her Bachelor of Commerce from Vinoba Bhave University, Hazaribag in 2003. She has a work experience of more than 9 years in the field of finance. She is responsible for the finance and accounting functions of the Company. Ajit Kumar, is Non-Executive Director of the Company. He was appointed on the Board of Director of the Company w.e.f. October 20, 2023. He has completed his Bachelor of Commerce (Honours) from University of Delhi in 2000. He has a work experience of 19 years in the field of marketing. He looks after marketing activities of the company since incorporation of the company.

Financials of Aspire & Innovative Advertising Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 10,812 25,538 34,572 17,658
Other Income 21 21 48 52
Total Revenue 10,833 25,558 34,620 17,710
Purchases of Stock in Trade 8,235 18,356 23,222 10,825
Changes in inventory -858 -1,541 48 683
Employees Benefit Expenses 168 359 363 458
Other Expenses 2,947 7,719 10,209 5,157
EBITDA 341 665 778 588
Depreciation & Amortisation 18 38 29 11
Finance Cost 2 14 29 40
EBIT 323 627 749 577
OPM (%) 3.14% 2.60% 2.25% 3.32%
PBT 321 613 720 538
Tax 93 176 189 145
PAT 228 437 531 393
NPM (%) 2.10% 1.71% 1.53% 2.22%
No.of Shares 151.78 151.78 151.78 151.78
EPS 1.50 2.88 3.49 2.59

Comparison With Peers:

Notes : - There are no listed companies in India that are engaged in the business line similar to this company.

Recommendation on Aspire & Innovative Advertising Limited IPO:

Review and Recommendation of Aspire & Innovative Advertising by team IZ is 4/10 1. The provided business overview outlines a strategic approach of a trading company specializing in a wide array of consumer durables. This section is structured into key headings to elaborate on the company's business model, strategic partnerships, operational strategies, product diversification, leadership, and competitive landscape. 2. The company is dedicated to improving the lives of India's rural and semi-urban communities by offering a broad range of consumer durables from leading brands like Bajaj, Prestige, Vivo, and Samsung. Targeting unbanked and underbanked segments, the strategy involves direct doorstep delivery across diverse market needs. Utilizing an asset-light model, the business strategically collaborates with intermediaries such as NBFCs and MFIs, leveraging their customer bases for enhanced product accessibility and financial services facilitation. A significant investment in facilitation fees and commissions underscores the pivotal role of these partnerships in the company's operational framework, aiming to bridge the gap in consumer durable accessibility. 3. Product Portfolio The product portfolio exceeds 50 items, including electronics, kitchen appliances, and in 2022, the company expanded to selling products under its own brand, "Aspire Classico", indicating a move towards brand development and control over product quality. 4. Competitive Landscape The company operates in a competitive environment with both organized and unorganized players. Success factors include price, product quality, durability, user experience, and technological advancement. Despite the intense competition, the company's integrated offerings, customer-centric approach, and operational efficiency provide a competitive edge. 5. The Revenue has Increased from Rs.108 Crore in FY21 to Rs.346 Crore in FY23. 6. The EBITDA has Increased from 3 Crore in FY21 to 7 Crore in FY23. 7. The PAT has Increased from 2 Crore in FY21 to 5 Crore in FY23. 8. As per FY23, CFO/EBITDA is 0.64, As per FY24, EPS is 5.18, 9. Market Capitalization is 82 Crore & P/E is 10.42x based on FY24.

Lead Manager of Aspire & Innovative Advertising Limited IPO:

  1. Hem Securities Limited

Registrar of Aspire & Innovative Advertising Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Aspire & Innovative Advertising Limited C-4 Baldev Park Shahdara East Delhi -110051, Phone: +91-124-2213055 Email: Website:

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