Net Avenue Technologies Limited IPO

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1. Core Business:

  • The company is engaged in online digital direct-to-consumer business for Indian Ethnic wear and accessories.
  • Presence in international cross-border e-commerce direct-to-consumer.

2. Product Range:

  • Offers Indian ethnic wear and accessories for women, men, teens, and kids.
  • Product categories include Lehenga Choli, Salwar Kameez, Gowns, Kurtas, Sherwani, Kurta Sets, Kids wear, and Accessories.

3. Company History:

  • Originally incorporated as “Net Avenue Technologies Private Limited” in 2001, later converted into a Public Limited Company with the name changed to “Net Avenue Technologies Limited” in 2023.

4. Locations:

  • Registered office in Chennai, Tamil Nadu, India.
  • Corporate office and operational unit in Surat, Gujarat, India.

5. Market Presence:

  • Targets the South Asian Diaspora, with a focus on the United States, United Kingdom, Australia, and Canada.
  • Sells products through the company’s websites (cbazaar.com and ethnovog.com) and various prominent e-commerce platforms.

6. Sales Channels:

  • Direct-to-consumer approach through the company’s websites.
  • Distribution of products through prominent e-commerce platforms, including Myntra, Nykaa, and Ajio.

7. Business Strategy:

  • Foundation built on iterative innovation to enhance consumer satisfaction and optimize purchasing behavior.
  • Focus on understanding the consumer’s decision-making process and providing support throughout their journey on the platform.
  • Integration across multiple touchpoints for personalized browsing and purchasing experiences.

8. Payment Options:

  • International orders are prepaid to ensure seamless transactions.
  • Domestic customers in India have the option of Cash on Delivery (COD).

9. International Operations:

  • Established a subsidiary in the United States, serving as a collection agency.
  • Responsible for collecting payments from international customers and transferring them to the company regularly.

10. Product Categories:

  • Specializes in selling a wide range of Indian Ethnic wear, including traditional attire and accessories.

11. Consumer Reach:

  • Targets a global audience, with a focus on specific geographical markets.
  • Aims to engage consumers through multiple touchpoints and personalized experiences.

Objects of the Net Avenue Technologies Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Customer Acquisition - Marketing and Awareness. ii. Funding Working Capital Requirement. iii. General Corporate Purpose. iv. To Meet the Issue Expenses.
DRHP of Net Avenue Technologies Limited IPO
RHP of Net Avenue Technologies Limited IPO

Net Avenue Technologies Limited IPO Details:

Open Date: Nov 30 2023
Close Date: Dec 04 2023
Total Shares: 5,696,000
Face Value: ₹ 1 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 10.25 Cr.
Lot Size: 8000 Shares
Issue Price: ₹ 16 - 18 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 12 2023

Promoters And Management:

i. Mr. Rajesh Nahar, aged 47 years is Chairman cum Managing Director and also the Promoter of the Company. He holds Diploma in Business Administration (Marketing). He was appointed on the Board on June 07, 2001 and further designated as the Chairman cum Managing Director of the Company on September 23, 2023 for a period of 5 years, not liable to retire by rotation. He has experience of 22 years in the same company. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. His Vision to do business with ethics & to keep up with latest developments and Management practices has helped him provide an overall growth for the company. ii. Mr. Ritesh Katariya, aged 47 years is the Whole-Time Director and also Promoter of the Company. He holds Certificate Programme in Strategic Retail Management and Diploma in Business Administration. He was originally appointed on the Board on June 06, 2001 and further designated as Whole-Time Director w.e.f. September 23, 2023. He has experience of 22 years in the same company. He has expertise in the field of Market research, People Management and Team leading which helped for the overall development of the Company. iii. Mr. K Naresh Kumar, aged 54 years is Non-Executive Director of the Company. He was originally appointed on the Board as NonExecutive Director on November 07, 2014. He has worked as IT Analyst in TATA Consultancy Services limited. He holds degree in Bachelor of Engineering and has cumulative experience of 23 Years in the Information Technology and Capital Markets.

Financials of Net Avenue Technologies Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
3M-FY24
Revenue from Operations 1,380 3,123 3,344 760
Other Income 68 153 108 24
Total Revenue 1,448 3,276 3,451 784
Cost of Materials consumed 147 253 558 14
Purchase of Stock-in-Trade 430 829 702 49
Change in Inventories -36 -223 -259 64
Employee benefits expenses 286 409 487 117
Other Expenses 611 1,721 1,760 489
EBITDA 10 289 203 51
Depreciation & Amortisation 4 10 17 3
Finance Cost 9 7 11 5
EBIT 6 279 186 48
OPM (%) 0.69% 8.82% 5.87% 6.54%
PBT -3 271 175 94
Tax -26 10 -0.9 -0.3
Share of Loss from Associates -0.02 -0.02 -0.02 -0.01
PAT 23 262 176 94
NPM (%) 1.60% 7.98% 5.11% 12.04%
No.of Shares 214.54 214.54 214.54 214.54
EPS 0.10 1.21 0.82 0.43

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Net Avenue Technologies Limited 33 1.76 0.82 21.9 18 39
Nandani Creations Limited 45 0.11 0.10 N/A 78.6 90
* All the data is as per FY23.

Lead Manager of Net Avenue Technologies Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Net Avenue Technologies Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Net Avenue Technologies Limited New No. 16, Old No. 13, 1st Floor Prithvi Avenue, Alwarpet Chennai - 600018 Phone: +91-044-42789289 Email: investor@natl.in Website: https://www.natl.in/home.html

Discussion on Net Avenue Technologies Limited IPO:

2 Comments

    Consider avoiding due to high competition and limited growth.

    Over the past seven years, there hasn’t been significant progress. Back in 2016, the revenue stood at ₹36 Crores, and the Profit After Tax (PAT) was at a negative ₹19 Crores. Fast forward to FY23, the revenue slightly decreased to ₹33 Crores, with the PAT improving to ₹1.76 Crores.

    This data indicates a challenging growth trajectory and a highly competitive market environment

    Reply

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