Innovatus Entertainment Networks Limited IPO

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i. Innovatus Entertainment offers all the Direct marketing solutions- Management, CRM, B2B and B2C, Activations and Exhibitions. They are a creative platform for complete ‘Info-tainment’ with a 360 degree solution. They focus on concept development to creative’s to a total turn key presentation and on ground execution.

ii. The company offers a complete range of designing, media and printing services. Their strength is media buying where they understand the clients marketing objective and use the correct media to achieve that objective. They are able to understand the various media available and use the right mix of media and the right prices to the achieve the client’s media objectives.

Event Management:

  • Entire Event Co-ordination.
  • Pre and Post event Publicity
  • Production, Printing and Distribution Literature
  • Venue Research and Booking
  • Staffing
  • Guest speakers
  • Celebrity Management
  • Transport, Accommodation and Catering
  • Translators
  • On-site management

Activations 

  • School/college activation.
  • Mall promotion
  • Society promotion
  • Road shows
  • Joggers park activity
  • Corporate park

Exhibitions 

  • Event Production
  • Exhibition, Design and Fabrication
  • Semi and Permanent Displays
  • Electrical Construction and Consultation
  • Graphic illustration and Production
  • Lighting
  • Semi and Permanent Sign age and Bill Board
  • Lettering

iii. They rely on third parties like material suppliers, designers, media providers and other service providers to help them meet their contractual obligations and provide services as required by the client.

Competitive Strengths

i. Creative activations and lateral approach to innovative concepts and their flawless execution
ii. Engage Partnership & Sponsorship
iii. Focus on clients

Objects of the Innovatus Entertainment Networks Limited IPO:

The company proposes to utilize the net proceeds from the issue towards funding the following objectives: 1. Augmenting additional working capital requirements. 2. Purchase of Exhibition Related Material. 3. General Corporate Purposes.
DRHP of Innovatus Entertainment Networks Limited IPO

Innovatus Entertainment Networks Limited IPO Details:

Open Date: Jul 25 2023
Close Date: Jul 27 2023
Total Shares: 1,548,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 7.74 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 50 Per Equity Share
Listing At: BSE SME
Listing Date: Aug 04 2023

Promoters And Management:

i. Sanjay Dattaram Khanvilkar, aged 46 years, is the Managing Director of the Company. He has completed his Bachelor of Arts from University of Mumbai. He is having over a decade of experience of marketing and exhibitions. Prior to joining the company, he was working in advertising industry. He takes care of day to day business of the Company and executes the strategy as per the approval of the Board of Directors. ii. Azharuddin R. Mulla, aged 36 years, is the Director of the Company. He has completed his B.Com from University of Mumbai. He is having over a decade of experience of marketing in broking and banking industry. He is also one of the Promoters of the Company. He was previously working in banking and broking industry, as well as apple trading and supply. He provides strategic guidance to the Company. iii. Ujwala Kisan Pagare, aged 34 years, is an Independent Director of the Company. She has completed her B.Com from University of Mumbai. She is having experience of over 5 years in field of accounting. She has been on the Board since April 14, 2022.

Financials of Innovatus Entertainment Networks Limited IPO:

Pariculares ( In Lakhs )

2020

2021

2022

2023
Revenue from Operations 1,042 784 787 1,367
Other Income 0 0 0 0
Total Revenue 1,042 784 787 1,367
Operating Expenses 943 678 695 1,228
Employee Benefits Expense 8 12 13 19
Other Expenses 13 13 15 18
EBITDA 76 79 63 1
Depreciation & Amortisation 37 34 22 18
Finance Cost 0 0 0 0
EBIT 39 44 40 82
OPM (%) 7.31% 10.13% 8.00% 7.34%
PBT 39 44 40 82
Tax 9 11 10 22
PAT 29 33 30 59
NPM (%) 2.83% 4.26% 3.83% 4.37%
No.of Shares 39.58 39.58 39.58 39.58
EPS 0.74 0.84 0.78 1.51
* Note:- Data of 6MFY23 is Analysised into 12MFY23.

Comparison With Peers:

Notes: - There is no listed companies peer according to its DRHP.

Recommendation on Innovatus Entertainment Networks Limited IPO:

Review and Recommendation of Innovates Entertainment Networks SME IPO is 3/10 A) Business Operations of Innovatus Entertainment Networks

1. Media Buying: They understand the client's marketing objective and tailor the media buying strategy accordingly. The company claims to understand various media platforms and ensures the client gets the best mix at the right prices.

2. Reliance on Third Parties: Innovatus relies on a network of third-party providers, including material suppliers, designers, media providers, and other service providers to meet their obligations.

3. Planning & Execution: The company emphasizes the importance of meticulous planning as a core part of their business operations, which ensures success in the delivery of their services. They offer a detailed roadmap to all stakeholders involved and provide continuous support.

4. Dedicated Team: Execution and management of events and services require a collaborative and dedicated team effort.

B) Target Audience of Innovatus Entertainment Networks

From the services offered, it's evident that the company targets a wide range of clientele, from businesses looking for B2B and B2C marketing solutions to educational institutions, and also the general public with mall and society promotions. C) Financial Analysis of Innovatus Entertainment Networks 1. Revenue from Operations: There's been a decline in Revenue from Operations since 31.03.2020 i.e. 10 Cr to 30.09.2022 i.e. 6.83 Cr This might raise concerns as one would ideally like to see increasing or stable revenues. 2. Employee benefit expenses is just 13 lac for a year, it means the company is totally dependent on Third party for their business expenses. 3. Business is in the last 3 years i.e. Fy20, Fy21 and Fy22 has generated negative cash flow from operations. Indicating business is not generating cash from operations. 4. In Fy22, the PAT is ~30 lac and after IPO total outstanding shares are ~40 Lac. So, EPS is 0.75 per share. 5. Asking P/E based on Fy22 number is 66x. We generally do not take FY23 numbers to find out P/E because they are mostly cooked before IPO.

Lead Manager of Innovatus Entertainment Networks Limited IPO:

  1. Inventure Merchant Banker Services Private Limited

Registrar of Innovatus Entertainment Networks Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Innovatus Entertainment Networks Limited 407, Crescent Royale, Off New Link Road, Andheri West, Mumbai – 400053, Maharashtra, Indi Phone: +91 22 4016 5928 Email: cs@innovatus.info Website: http://www.innovatus.info/

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