Magenta Lifecare Limited IPO

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The Company was initially incorporated as “Magenta Lifecare Private Limited” under the Companies Act, 2013, receiving its certificate of incorporation on August 04, 2015, from the Assistant Registrar of Companies, Gujarat. Following a special resolution by our shareholders on June 19, 2023, the company was converted into a public limited company and renamed “Magenta Lifecare Limited.” A fresh certificate of incorporation was issued by the Registrar of Companies, Ahmedabad, on July 05, 2023.

Product Offerings

Magenta Lifecare Limited is a manufacturer of foam-based products, including mattresses and pillows, marketed under the brand “Magenta” in India. Their product range includes various types of mattresses such as memory foam, latex-based, bonded mattresses, and pocketed spring mattresses. Additionally, they offer pillows including memory foam pillows, molded memory foam pillows, and molded contour foam pillows. They pride themselves on the quality of their products, which serve customers across retail, hotels, and institutions.

Innovation and Product Development Driven by innovation, they continuously introduce new and innovative products. Their offerings include green tea and bamboo charcoal-based herbal mattresses and pet bed mattresses. They also supply processed raw foam and adjustable bed frames (hydraulic beds) under the Magenta brand. Their products cater to a broad segment of society, from value-added products to the premium segment, providing comfort, ergonomic design, thermal comfort, pressure relief, motion isolation, easy position realignment, and long-term durability.

Customization and Distribution They offer extensive customization options for mattresses in terms of fabric, shape, firmness, material, height, foam type & density, personalization, utility, and structure. Their well-developed distributor and dealer/retailer network spans multiple states in India. They sell their products through offline multi-brand outlets, a network of dealers, and online e-commerce platforms, with region-wise appointed distributors.

Vision and Mission They aim to provide high-quality, innovative foam-based products that enhance comfort and sleep quality for their customers. Their mission is to support, comfort, and cool the body, leading to better-quality sleep with products designed for long-term durability and ergonomic benefits.

Objects of the Magenta Lifecare Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Funding there working capital requirements; and ii. General corporate purposes
DRHP of Magenta Lifecare Limited IPO
RHP of Magenta Lifecare Limited IPO

Magenta Lifecare Limited IPO Details:

Open Date: Jun 05 2024
Close Date: Jun 07 2024
Total Shares: 2,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 7.00 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 35 Per Equity Share
Listing At: BSE SME
Listing Date: Jun 12 2024

Promoters And Management:

Divyesh Modi, aged 43 years is the Chairman & Managing Director of the board of their Company. He is one of the Promoter of their Company. He holds a bachelor of commerce degree from The Maharaja Sayajirao University of Baroda. He has been associated with their company since incorporation and has over 6 years of experience in the field of mattresses and pillow industry. Khyati Modi, aged 43 years is the Non-Executive Director of the board of their Company. She is one of the Promoter of their Company. She has been associated with their Company since incorporation and has over 6 years of experience in the field of mattresses and pillow industry. She holds a bachelor of commerce degree from The Maharaja Sayajirao University of Baroda. She also holds degree of master of computer applications from Gujarat University She has over in the field of mattresses and pillow industry. Vipinchandra Modi, aged 76 years is the Non-Executive Director of their Company. He has been associated with their Company since December 14, 2022. He has a completed his secondary schooling from M S Patel Sarvajanik Vidhyalaya, Nasvadi. He has over 45 years of experience in the field of human resource management.

Financials of Magenta Lifecare Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 965 924 907 602
Other Income 1 14 49 29
Total Revenue 966 938 955 631
Cost Raw Material Consumed 716 658 601 393
Employees Benefit Expenses 55 69 77 55
Other Expenses 89 91 141 59
EBITDA 106 120 136 124
OPM (%) 10.96% 12.83% 14.22% 19.68%
Depreciation & Amortisation 20 20 20 15
EBIT 86 100 116 109
Finance Cost 68 77 84 42
PBT 18 23 32 66
Tax -2 4 7 42
PAT 19 19 25 24
NPM (%) 2.01% 2.01% 2.57% 3.86%
No.of Shares 68.69 68.69 68.69 68.69
EPS 0.28 0.27 0.35 0.35

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Magenta Lifecare Limited 9 0.2 0.35 97.9 35 24
Sheela Foam Limited 2,873 203 20.62 58.8 894 9,716
Tirupati Foam Limited 102 2 4.31 15.6 74.3 33
* All the data is as per FY23.

Recommendation on Magenta Lifecare Limited IPO:

1. Magenta Lifecare Limited specializes in the manufacture of foam-based products, prominently featuring a diverse range of mattresses and pillows marketed under the brand "Magenta" in India. The company’s product portfolio includes: i. Mattresses: Memory foam, latex-based, bonded mattresses, pocketed spring mattresses, and more. ii. Pillows: Memory foam pillows, molded memory foam pillows, molded contour foam pillows, among others. Additionally, the company has innovatively introduced herbal mattresses infused with green tea and bamboo charcoal, as well as pet bed mattresses. The product line also extends to processed raw foam and adjustable bed frames (hydraulic beds), which are imported and sold under the Magenta brand. 2. Market Position Magenta Lifecare’s success is attributed to the superior quality of its products, which cater to various sectors including retail, hospitality, and institutional clients. 3. Distribution Network Magenta Lifecare has established a robust distribution network across multiple states in India. The company utilizes both offline and online channels to reach its customers. Offline sales are conducted through multi-brand outlets and a network of dealers and retailers, while online sales are facilitated via e-commerce platforms. Distributors are appointed on a regional basis to ensure effective market penetration. 4. Competitive Landscape Operating in the sleep economy industry, Magenta Lifecare faces competition from legacy mattress manufacturers, retailers, and direct-to-consumer companies. The company competes on factors such as brand awareness, innovation, product quality, price, delivery speed, and performance. The competitive environment includes both organized and unorganized players, ranging from small to large manufacturers. Magenta Lifecare’s competitive edge lies in its quality assurance, client relationships, reputation, and the relative quality and price of its products. 5. The Revenue has Decreased from Rs.9.6 Crores in FY21 to Rs.9 Crores in FY23. 6. The EBITDA has Increased from 1 Crores in FY21 to 1.3 Crores in FY23. 7. The PAT has Increased from 19 Lakhs in FY21 to 25 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 0.47, 9. Market Capitalization is 24 Crores & P/E is 74.02x based on FY24.

Lead Manager of Magenta Lifecare Limited IPO:

  1. Fedex Securities Limited

Registrar of Magenta Lifecare Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Magenta Lifecare Limited N P Patel Estate, A & T Padamla, Vadodara – 391350, Gujarat, India Phone: +91 7573022234 Email: info@magentalifecare.com Website: https://www.magentamattresses.com/

Discussion on Magenta Lifecare Limited IPO:

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