Fone4 Communications (India) Limited IPO

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i. Fone4 Communications (India) Limited – An online E-commerce Electronics outfit that commenced its business in the year 2014 promoted by its visionary promoter Mr. Sayyed Hamid and headquartered in Cochin, Kerala. Inspired by the growth in the Online E-Commerce segment, particularly for electronics and electricals gadgets, the Company developed a robust Technological Platform, wherein customers could buy their desired products through online E-Commerce with attractive offers and more particularly during festive and other seasons.

ii. The company has a wide range of offerings through both online as well as an offline platforms for electronic gadgets and accessories for Smart Phones, Laptops, Smart Television etc on the likes of Apple, Samsung, Oppo, Vivo, Xiaomi, Nokia, Redmi, Techno, Karbonn, One Plus, Dell, Lenovo, Asus, HP, Acer, Avita, TCL, LG, Sansui etc.

iii. The Company to boost the online E-commerce sales in the State of Kerala, gradually started opening up retail stores at strategic locations and presently the company has 25 showrooms spread in: (Calicut (02), Cochin (06), Kollam (02), Kottayam (02), Malappuram (01), Palakkad (07), Thrissur (02), Trivandrum (03)).

iv. The Company plans to expand the base through strategic acquisitions in a similar field and in the logistics arena. The Company also has plans to strengthen our Technological platform so that more and more innovative tools can be made available to customers at large at the most competitive pricing.

Competitive Strengths:

  1. Strategic location and facilities.
  2. Wide distribution and marketing network.
  3. Diversified products portfolio and innovation.

Objects of the Fone4 Communications (India) Limited IPO:

The Objects of the Issue are: A. To meet the working capital requirements of the company B. To meet the Issue Expenses C. General Corporate Purposes

Fone4 Communications (India) Limited IPO Details:

Open Date: Apr 25 2022
Close Date: Apr 27 2022
Total Shares: 6,800,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 6.8 Cr.
Lot Size: 10000 Shares
Issue Price: ₹ 10 Per Equity Share
Listing At: BSE SME
Listing Date: May 06 2022

Promoters And Management:

i. Sayyed Hamid, aged 43 years, is an entrepreneur from Kerala settled in Kochi with astute business acumen and foresight. Over the last 15 years, he has diversified into Retail, Hospitality and Distribution businesses across South India. His journey as a businessman started in 1997 from a small room that his father owned in Kochi’s Penta Menaka which is now the hub for all kinds of electronic gadgets. Unlike many of his contemporaries he didn’t inherit a business empire but build it from scratch from that one room shop that he personally managed in along with two assistants. Right from the days of his first store, he brought in a personal touch in customer service & after sales service. This helped in developing a very good rapport with his clients. Mobile & automobile are the twin passions of Sayyed Hamid, and he owns one of the popular retail chain in Kerala for electronic gadgets. ii. Roudha Zerlina, aged 36 is the wife of Sayyed Hamid. She is a Graduate. After studies she had built a one of its kind dessert brands named pudding jar on her own especially for wide varieties of desserts in Bangalore, Karnataka. Pudding Jar’s 1st outlet was opened on Feb 14, 2020 at Frazer town Bangalore. Later expanded to 3 more new outlets at Bangalore itself. She is also adding value to the business of FONE4 Communications (India) Ltd as a Non-Executive Director of the company. iii. Sayyed Haris Sayyed Imbichi, aged 26 Years is an entrepreneur from Kerala settled in Kochi with astute business acumen and foresight. He has started working with heavy equipment rental business supported his father in Jeddah Kingdom of Saudi Arabia. He has completed his B Com. from Calicut University, is pursuing ACCA. He is the Executive Director and CFO of the Company.

Financials of Fone4 Communications (India) Limited IPO:

Particulars (in Lakhs) Dec-21 Mar-21 Mar-20 Mar-19
Sales 4,196 6,314 5,742 14,690
Cost of Materials Consumed 3,646 5,505 5,210 13,821
Changes in Inventories 0 0 0 0
Employee Benefits Expense 124 142 92 245
Other Expenses 316 466 306 944
Operating Profit 110 201 134 -320
OPM % 2.62% 3.18% 2.33% -2.18%
Other Income 17 66 10 6
Depreciation 63 107 142 182
Finance Cost 61 184 122 224
Profit before tax 4 -23 -119 -174
Total Tax Exps -5 -13 -22 -18
Net Profit 9 -10 -98 -155
NPM % 0.21% -0.16% -1.71% -1.06%
No. of shares 170.50 170.50 170.50 170.50

Comparison With Peers:

There are no listed company in the market with same business.

Recommendation on Fone4 Communications (India) Limited IPO:

Review and Recommendation of Fone4 Communication Limited IPO by InvestorZone is 2/10 1. There is a reduction in the revenue in the last 3 years. They have total 25 showrooms through which they sell products. And, also have online e-commerce website. Physical stores were affected due to Covid-19 and also these days very few people are buying phone from showrooms. Their online website has almost no traffic. Per day traffic is only 150 users. So, they have almost no sales from the online website. 2. They are continuously making losses at the PAT level in Fy19, Fy20 and Fy21. Due to this the total net-worth has reduced to negative. 3. Balance Sheet is very weak. 4. With Negative PAT nothing can be work out on valuation by evaluating P/E. 5. Asking Mcap is 1.7 Cr*10 = 17 Crores.

Lead Manager of Fone4 Communications (India) Limited IPO:

  1. Finshore Management Services Limited

Registrar of Fone4 Communications (India) Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Fone4 Communications (India) Limited 1st Floor, 45/692-B, Ashna Arcade, Vylopilly Road, Thammanam Ernakulam 682032, Phone: +91 8606 777 777 Email: Website

Discussion on Fone4 Communications (India) Limited IPO:

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