Finelistings Technologies Limited IPO

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The company operates in two primary business sectors:

Retail of Pre-Owned Luxury Cars: Under the brand “Finecars,” their business focuses on the retail of used premium and high-end luxury cars with an average sale price of ₹40.00 lakhs. Operations began in August 2022 at Ambience Mall, Vasant Kunj, in the National Capital Region (NCR). Their business model incorporates a buy-n-sell approach, where cars are purchased, refurbished, and sold through both online platforms and a physical showroom.

Software Development Services: This division addresses the digital transformation, data analytics, technology consulting, and infrastructure security needs of their customers. Services span across cloud-based solutions, IT consulting, big data analytics, cloud architecture, data engineering, IoT solutions, and more. The software development is conducted under a lien model, leveraging a mix of in-house talent and third-party service providers to cater to a diverse client base.

Key Highlights and Strategic Approaches

  • Pre-Owned Luxury Car Retail:
    • Sales Strategy: Since starting the retail business in 2020, over 100 cars have been sold to 100 customers. The business model transitioned from commission-based to buy-n-sell to improve margins. Sales through offline channels account for 30%, with 70% via online platforms.
    • Value-Added Services: In addition to car sales, you provide financing, warranties, and maintenance services, enhancing customer value and satisfaction.
    • Online-to-Offline (O2O) Ecosystem: Aiming to integrate online and offline sales channels to streamline the buying process and expand market reach.
  • Software Development Services:
    • Service Spectrum: Includes digital transformation, cloud solutions, data management, and IoT development, among others.
    • Flexible Engagement Model: Utilizes staffing companies and freelance developers for a flexible, project-based approach, allowing scalability and diversity in service offerings.

Market Context and Demographics

The young population of India, which constitutes 66% of the nation’s total population, is a significant driver for their business growth. This demographic trend supports both sectors of their business, from technology adoption in software solutions to increasing demand for luxury automobiles.

Leadership and Vision

The company is led by Aneesh Mathur and Arjun Rajput, who bring extensive experience to the management and strategic direction of the business. Their leadership aims to sustain growth through continuous improvement in service offerings and operational efficiencies.

Future Outlook

Their company’s future strategies involve enhancing the O2O ecosystem, expanding the online presence, and continuously evolving the software service offerings to meet emerging market needs. The ongoing development of a mobile application is expected to further connect with and expand their customer base, supporting both core business areas.

This business overview encapsulates the dynamic and innovative operations of their company, highlighting their strategic approaches to capturing and sustaining market leadership in both pre-owned luxury car retail and software development services.

Objects of the Finelistings Technologies Limited IPO:

The Net Proceeds from the Issue are proposed to be utilized by the company for the following objects: i. Purchase of Software; ii. To meet working capital requirements; and iii. General Corporate Purpose.
DRHP of Finelistings Technologies Limited IPO
RHP of Finelistings Technologies Limited IPO

Finelistings Technologies Limited IPO Details:

Open Date: May 07 2024
Close Date: May 09 2024
Total Shares: 1,100,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 13.53 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 123 Per Equity Share
Listing At: BSE SME
Listing Date: May 14 2024

Promoters And Management:

Aneesh Mathur, aged 32 years is the Executive Director & Chief Executive Officer of the Company. He holds bachelor’s degree in technology (electronics and communication engineering) from Amity University, Uttar Pradesh received in the year 2013. He has previously worked with One 97 Communications Ltd as Team Lead till January 02, 2018. He has been associated with the Company since incorporation and holds more than 5 years of work experience in their field. Arjun Kumar Rajput, aged 32 years is the Managing Director of the Company. He holds bachelor’s of arts degree in English (English Hons) from University of Delhi received in the year 2012. He has been associated with the Company since incorporation and holds more than 5 years of work experience in their field. Mahavir Bothra, aged 37 years is the Chairman cum Non-Executive Director of the Company. He holds bachelor’s degree in technology (computer science and engineering) from Guru Gobind Singh Indraprastha University, Delhi received in the year 2009. He has limited years of experience in their field of work experience. He has been associated with their Company since September 05, 2023.

Financials of Finelistings Technologies Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
11M-FY24
Revenue from Operations 146 694 1,389 1,359
Other Income 0.1 0.2 2 0.6
Total Revenue 146 694 1,391 1,360
Purchase of Stock in Trade 147 654 765 694
Cost of Sale of Serivces 0 0 300 327
Change in Inventories -23 -11 -72 -254
Employees Benefit Expenses 23 27 66 62
Other Expenses 22 23 78 142
EBITDA -23 2 253 389
Depreciation & Amortisation 0.6 1 3 5
Finance Cost 0.1 4 15 13
EBIT -23 0.3 250 384
OPM (%) -15.55% 0.23% 18.22% 28.58%
PBT -23 -3 235 371
Tax -6 5 56 94
PAT -17 -8 179 277
NPM (%) -11.79% -1.20% 12.87% 20.37%
No.of Shares 36.36 36.36 36.36 36.36
EPS -0.47 -0.23 4.92 7.61

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Finelistings Technologies Limited 14 2 4.92 25.0 123 45
CarTrade Tech Limited 364 40 7.26 59.6 811 3,802
Cambridge Technology Enterprises Limited 182 8 4.15 142.0 98.4 193
Globalspace Technologies Limited 19 0.5 0.15 108.0 18.8 65
* All the data is as per FY23.

Recommendation on Finelistings Technologies Limited IPO:

Review and Recommendation of Finelistings Technologies by team IZ is 3/10. 1. The company, operating under the brand "Finecars," specializes in the retail of pre-owned premium and high-end luxury cars. Key points include: i. Average sale price of ₹40.00 lakhs. ii. Limited presence across the pre-owned value chain, focusing on after-sales services, repairs, and financial assistance. iii.  Initial operations began in August 2022 at Ambience Mall, Vasant Kunj, NCR. iv. Shifted from a commission-based to a buy-and-sell retail model to enhance margins. v.  Hybrid sales model, with 30% of sales through offline showrooms and 70% via online platforms. vi.  Vision to create an online-to-offline (O2O) ecosystem for automobiles. 2. Software Development Services: The company offers a wide range of software development services, leveraging the expertise of their promoters. Key points include: i. Services encompass digital transformation, data analytics, technology consulting, and infrastructure and security solutions. ii. Offerings span various digital technologies such as cloud-based services, big data analytics, IoT solutions, and web development. iii. Outsourcing model utilizing third-party vendors, staffing companies, and freelancer developers. iv.  Customized services tailored to client needs and continuous evolution of offerings. v.  Promoters with relevant experience and educational qualifications manage this division. 3. Competitive Landscape: Operating in a competitive environment with both organized and unorganized players. Emphasis on product quality, brand value, distribution network, reliability, and competitive pricing. Leveraging experience, reliability, and customer relationships to overcome competition. Recognizing client relationships, reputation, and service quality as principal factors influencing competition. 4. The company's business model combines retailing luxury cars with software development services, aiming to meet the evolving needs of customers in India's dynamic market landscape. The focus on quality, reliability, and customer satisfaction appears to be central to your competitive strategy. 5. The Revenue has Increased from Rs.1 Crores in FY21 to Rs.13 Crores in FY23. 6. The EBITDA has Increased from (-23) Lakhs in FY21 to 2 Crores in FY23. 7. The PAT has Increased from (-17) Lakhs in FY21 to 1.7 Crores in FY23. 8. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 8.31, 9. Market Capitalization is 45 Crore & P/E is 14.80x based on FY24.

Lead Manager of Finelistings Technologies Limited IPO:

  1. Fedex Securities Limited

Registrar of Finelistings Technologies Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Finelistings Technologies Limited G-07, Ground Floor, Ambience Mall, Nelson Mandela Road, Vasant Kunj, South West Delhi, New Delhi - 110070 Phone: +91 93551 11911 Email: cs@finelistings.com Website: https://www.finecars.co.in/

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