On Door Concepts Limited IPO

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  1. Company History: The company was originally incorporated as a private limited company in 2014 under the name ‘On Door Concepts Private Limited.’ It was later converted into a public limited company in 2023, with a name change to ‘On Door Concepts Limited.’
  2. Company’s Business: On Door Concepts Limited operates as a regional omni-channel retailer, focusing on groceries and household essentials. It is described as an early entrant in the supermarket industry that offers both physical stores and online home delivery services. Most of their stores fulfill online orders directly from their shelves.
  3. Store Locations: The company opened its first store in Bhopal, Madhya Pradesh, in 2015. As of March 31, 2023, it operates 55 stores in Madhya Pradesh. Out of these, 17 are company-owned and operated, while the rest operate under a franchise model.
  4. Store Formats: The stores come in various formats, primarily colony convenience stores, with sizes ranging from 200 sq. ft. to 3500 sq. ft. This variation is based on factors such as sales potential, available retail space, online order volume, and product assortment needed for the area.
  5. Online Ordering and Fulfillment: Online orders placed by customers are fulfilled from the inventory of the respective store. The company uses real-time technology to manage store inventory. Only products available in the store mapped to the customer’s delivery location are displayed on their website and mobile app.
  6. Expansion Strategy: The company plans to focus on smaller cities, particularly through a franchise model. They use a cluster approach, targeting densely-populated residential areas with middle to upper-middle-class consumers.
  7. Competitive Advantages: On Door Concepts Limited believes that its one-stop-shop convenience, competitive pricing due to local market knowledge, careful product selection, and supply chain efficiencies have contributed to its growth and success.
  8. Product Categories: The company classifies its products into three main categories:
    • Foods: This category includes staples, groceries, fruits & vegetables, snacks, dairy, beverages, and confectionery. It accounts for the majority of the company’s sales.
    • Non-Foods (FMCG): This category includes home care products, personal care items, toiletries, and other over-the-counter products.
    • General Merchandise: This category covers items such as crockery, utensils, plastic goods, and pooja items.

Objects of the On Door Concepts Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. Augmenting additional working capital requirements 2. General Corporate Purpose

On Door Concepts Limited IPO Details:

Open Date: Oct 23 2023
Close Date: Oct 27 2023
Total Shares: 1,498,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 31.18 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 208 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 06 2023

Promoters And Management:

i. Narendra Singh Bapna, aged 55 years, is the Managing Director of the Company. He has completed his Bachelor of Commerce from Bhopal University. He is a Chartered Accountant from ICAI, passed out in May 1992. He is having over 18 years of experience of running a NSB BPO Solutions Pvt. Ltd. , the Company engaged in the business of rendering services to back office related processes to telecom, banking and financial institutions and is also engaged in the business of trading in grocery items and vegetables. In 2014, he founded Ondoor to venture into Retail Sector. He looks after the overall business development, quality control, E Commerce and sourcing of material. ii. Pramod Ramdas Ingle, aged 53 years, is the Whole Time Director of the Company. He has completed his Bachelor of Commerce from Barkatullah Vishwavidyalaya, Bhopal. He is a Chartered Accountant and admitted as an associate member of ICAI, in February 1998. He has more than 18 years of experience as promoter and managing business of a NSB BPO Solutions Pvt. Ltd., the Company engaged in the business of rendering services to back office related processes to telecom, banking and financial institutions and is also engaged in the business of trading in grocery items and vegetables. He has been serving Ondoor from May 2015. He is a key person involved in strategic decision making and cater to further business opportunities and also looks after the Investor relations. iii. Vaishali Pramod Ingle aged 46 years is the Executive Director of the Company. She has completed her B. Ed. from Devi Ahilya Vishwavidyalaya, Indore. She has also done M. Sc. In Botany from University of Pune. She has over 10 years of experience in the field of HR & Administration. She has been appointed as director w.e.f. April 13, 2023 to broad base the Board of the Company.

Financials of On Door Concepts Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 202.51 202.51 386.46
Reserves -6,291 -6,828 4,734
Borrowings 11,190 11,190 118
Trade Payables 1,282 1,824 2,655
Other Liabilities 180 1,394 1,116
Total Liabilities 12,652 14,408 3,889
Net Block 3,123 3,608 4,761
Other Assets 357 389 266
Total NC Assets 3,480 3,997 5,027
Receivables 115 203 1,111
Inventory 2,343 3,005 2,460
Cash & Bank 20 42 54
Other Assets 606 535 358
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 18,265 17,314 18,015
Purchases of Stock In Trade 15,950 14,836 15,187
Change in Inventory -905 -662 545
Employee Cost 1,302 1,204 626
Other Expenses 1,844 1,796 1,254
Other Income 41 19 0.5
Depreciation 305 394 336
EBITDA 115 158 403
EBITDA Margin 0.63% 0.91% 2.24%
Interest 352 348 66
Profit before tax -542 -584 1
Tax -19 -47 -5
Profit after tax -523 -537 6
NPM (%) -2.86% -3.10% 0.03%
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 73 139 1,703
Receivable -2 -89 -908
Inventory -905 -662 545
Payable 552 542 831
Loans And Advances -100 -3 57
Other WC Items -2 1,288 -158
Working Capital Changes -457 1,077 367
Direct Taxes 0 0 0
Net Cash Inflow from Operating Activity -384 1,216 2,070
Cash from Investing Activity
Fixed assets purchased -675 -879 -1,489
Other investing items -26 34 129
Net cash inflow from investing activities -701 -845 -1,360
Cash from Financing Activity
Proceeds from shares 950 0 10440
Proceeds from borrowings 350 -0.4 68
Repayment of borrowings 0 0 -11140
Intrest paid fin -352 -348 -66
Net Cash Flow -136 22 12

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
On Door Concepts Limited 180 0.06 0.11 1808 208 112
Osia Hyper Retail Ltd 732 10 0.92 51.9 53 544
* All the data is as per FY23.

Recommendation on On Door Concepts Limited IPO:

Review and Recommendation of On Door Concepts Limited IPO by IZ team is 2/10 A) Company Overview On Door Concepts operates as an omni-channel retailer focusing on groceries and household essentials. It combines both physical and online sales channels. With 55 stores primarily in Madhya Pradesh, the focus is on smaller cities and densely populated middle to upper-middle-class areas. The company boasts local market knowledge, an efficient supply chain, and a broad array of product categories. 75% sales comes from Offline Channel and 25% Online. B) Financial Analysis (i) Revenue There is no growth in revenue over the past three years, which is a concern. FY21: ₹182 Cr FY23: ₹180 Cr (ii) Debenture Conversion and Debt Waiver The company has reduced its debt burden by converting ₹35 Cr raised from debentures into equity and getting a debt waiver of ₹13 Cr. This is generally a negative sign for the business. This ₹13 Cr is shown as income in P&L which has inflated the earnings. (iii) Pre-IPO and IPO Pricing The IPO is priced lower than the pre-IPO round, indicating that the company or its advisors see risk factors requiring a lower price to attract public investors. Pre-IPO Price: ₹259/share IPO Price: ₹208/share (iv) Profit & Loss Analysis The company revenue in the last 3 years is stagnated.The company has shown improvement in EBITDA margins from 0.63% in FY21 to 2.24% in FY23. Interest expenses have reduced significantly, aligning with the debt waiver. However, the company is just barely profitable with extremely low profit margins. IPO is coming at Mcap of 120 Cr. C) Risks (i) Financial Risks The lack of revenue growth and low profitability are significant concerns. Debt-to-equity conversion also leads to shareholder dilution. (ii) Business Model Risks Managing both online and offline sales channels can be operationally complex and resource-intensive. Real-time inventory management is crucial for the business model to succeed. (iii) Competitive Risks The grocery retail space is highly competitive, including competition from online giants like Amazon and Flipkart. A price war could quickly erode profitability. (iv) Other Risks With stores primarily in Madhya Pradesh, the business might be overly reliant on the region's economic health. The company must also adhere to various food safety and franchise regulations, which could impact operations.

Lead Manager of On Door Concepts Limited IPO:

  1. First Overseas Capital Limited

Registrar of On Door Concepts Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

On Door Concepts Limited Phoenix Corporate Park, First Floor, Opp. Vrindawan Garden, Hoshangabad Road Bhopal, 462026 Phone: +91 755 3511480 Email: cs@ondoor.com Website: http://www.ondoor.com/

Discussion on On Door Concepts Limited IPO:


    October 12, 2019 they have raised 35.4 cr by issuing 354 NCDs at Fv =10 lakh…

    However, out of these 130 were waived off and rest 224 were converted into equity…..

    So, in FY23, P&L, 13 cr shows as an extraordinary income.

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