Radiowalla Network Limited IPO

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Venturenet Partners Private Limited, established on July 30, 2010, and later renamed Radiowalla Network Private Limited in 2012, has evolved into a public limited company, Radiowalla Network Limited, as of December 18, 2023, following a resolution passed in November 2023. Initially registered in Maharashtra, the company relocated its headquarters to Karnataka in November 2023, reflecting its dynamic growth and expansion.

Radiowalla Network Limited specializes in customer engagement services, catering primarily to the business-to-business (B2B) sector. Their offerings include:

In-Store Radio Services: They provide exclusive radio channels for brands on a subscription basis, enhancing the customer experience in malls, retailers, and hospitals with AI-driven, continuously updated music playlists for ambient background audio.

Corporate Radio: Tailored for employee engagement, their corporate radio services combine musical and non-musical content to enhance office environments. This includes background music, internal communications, announcements, and company news, aimed at creating a pleasant auditory experience.

Audio Advertising: Their approach to advertising is data-driven, utilizing programmatic advertising for efficient and precise ad placements. This modern method automates the ad buying process, allowing for targeted advertising and optimized budget use.

Visual Advertising: They offer Digital Out of Home Advertising (DOOH) and Static Branding Opportunities. DOOH uses digital standees, video walls, and other digital displays for dynamic content management and engagement. Static Branding focuses on creating interactive brand visibility to enhance recognition and generate leads.

Radiowalla Network Limited’s innovative services in audio and visual advertising, along with its unique in-store and corporate radio offerings, position it as a leader in enhancing customer and employee engagement across various sectors.

Objects of the Radiowalla Network Limited IPO:

The objects of the Issue are: - i. To meet out the expenses for Investment in Technology ii. To meet out the Capital Expenditure for the Company iii. To meet out the Working Capital requirements of the Company iv. To meet out the General Corporate Purposes; and v. To meet out the Issue Expenses.
DRHP of Radiowalla Network Limited IPO
RHP of Radiowalla Network Limited IPO

Radiowalla Network Limited IPO Details:

Open Date: Mar 27 2024
Close Date: Apr 02 2024
Total Shares: 1,875,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 14.25 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 72 - 76 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 05 2024

Promoters And Management:

Mr. Harvinderjit Singh Bhatia, the CEO and CFO of the company, brings over 30 years of experience in management, finance, and consulting, with previous roles as CFO at Netmagic Solutions, Digicable Network, and Radio Mirchi. A Chartered Accountant, he has an Executive Program in Management from Columbia Business School and an Executive Master's in International Trade from the Indian Institute of Foreign Trade. Beyond his corporate achievements, Bhatia co-founded Sochcast Media, serves as a Founding Trustee of the “Gift of Life Adventure Trust” NGO, and is a founding Charter Member of the Rotary Club of Organ Donation. Mr. Anil Srivatsa, with over 30 years in the Radio and Digital Media industry and a Master of Science in Telecommunications from Kutztown University, has held key positions including CEO of Kings XI Punjab and COO of Radio Today Broadcasting in India. His varied roles have also included Production Manager at Medstar Communication, Director at Kelly Broadcasting, and EVP at ImaginAsian TV, along with hosting the radio show “Anil Ki Awaaz.” As the Managing Trustee of the “Gift of Life Adventure Trust,” focused on organ donation, Anil also founded the world’s first Rotary Club dedicated to Organ Donation, alongside founding 2 other Rotary clubs. Ms. Gurneet Kaur Bhatia is the promoter and Non-Executive Director of the company. She has done Masters of Home Science [Textiles and Clothing] in April 1992 from SVT College of Home Science, Juhu, SNDT University. She has an experience of nearly 20 years in Education and Upskilling sectors. She has been the topper of the University. She is also the designated partner of Wordaholix Mindfield LLP. Wordaholix Scrabble® Academy has been training children and adults to play competitive Scrabble since the last 16 years, both at Jamnabai Narsee School, Juhu and at their private centre in Juhu. Their students have also represented India at ten World Youth Scrabble Championships.

Financials of Radiowalla Network Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
7M-FY24
Revenue from Operations 585 1,050 1,399 872
Other Income 5 0.2 3 0.1
Total Revenue 590 1,050 1,403 872
Cost of Materials Consumed 192 522 669 360
Employees Benefit Expenses 306 391 483 305
Other Expenses 61 63 100 64
EBITDA 30 74 152 143
Depreciation & Amortisation 12 14 28 23
Finance Cost 18 15 16 10
EBIT 18 59 124 120
OPM (%) 5.16% 7.02% 10.85% 16.40%
PBT 0.7 45 108 109
Tax -9 -2 6 -5
PAT 10 47 102 114
NPM (%) 1.73% 4.48% 7.28% 13.07%
No.of Shares 70.48 70.48 70.48 70.48
EPS 0.14 0.66 1.44 1.61

Comparison With Peers:

Note :- There are no listed companies in India that are engaged in the business line similar to this company.

Recommendation on Radiowalla Network Limited IPO:

Review and Recommendation of Radiowalla Network by team IZ is 4/10. 1. The company operates in a dynamic and rapidly evolving industry, providing comprehensive customer engagement services through a blend of audio and visual solutions tailored for the business-to-business (B2B) sector. This detailed overview encompasses the core areas of their operations, including In-Store Radio services, Corporate Radio, and a multifaceted approach to advertising that leverages both audio and visual mediums to enhance brand experience and customer engagement. 2. Business Model and Services Radio Engagement Solutions:- **In-Store Radio:** Tailored audio services for spaces such as malls, retailers, and hospitals, focusing on creating an ambient atmosphere through AI-driven music playlists. **Corporate Radio:** A mix of musical and non-musical audio services for corporate clients, enhancing workplace ambiance and facilitating internal communications. Advertisement Solutions:- Programmatic Advertising: Utilizes data-driven technology for the automated purchasing and placement of digital advertisements, optimizing targeting and budget efficiency. Digital Out of Home Advertising (DOOH): Modern advertising through digital formats like standees, video walls, and touch screen kiosks, managed content to engage the audience. Static Branding Opportunities: Direct interaction strategies for enhanced brand visibility and lead generation, focusing on tangible brand engagement. 3. Business Verticals Operating under a B2B model, the company has carved out two primary verticals: i.  Radio Engagement Solutions and Subscription Services             ii. Advertisement Solutions 4. SWOT Analysis STRENGTHS 1. Diverse service portfolio encompassing audio and video solutions. 2. Skilled Radio Jockeys (RJs) ensure high-quality content. 3. Established client base and partnerships with major retailers. WEAKNESS 1. Heavy dependency on the retail sector for revenue. 2. Increasing competition may lead to pricing pressures. 3. Ongoing investments needed to keep up with technological advancements. OPPORTUNITIES 1. Leverage advanced technologies for more effective advertising. 2. Potential for global expansion into new markets. THREATS 1. Economic uncertainty affecting client budgets. 2. Evolving advertising regulations and compliance challenges. 3. Rapid technological changes necessitating investments for adaptation. 5. Competitive Landscape The competitive environment is marked by challenges such as rapid technological advancements, policy shifts, and increasing market entrants. Despite these challenges, their company's advantages lie in its technology, service record, and client retention over the past decade. Competitors like Adonta Media Private Limited, Timbre Media Private Limited, and Alenka Media Private Limited represent significant players in the market. 6. The Revenue has Increased from Rs.6 Crore in FY21 to Rs.14 Crore in FY23. 7. The EBITDA has Increased from 30 Lakhs in FY21 to 1.5 Crore in FY23. 8. The PAT has Increased from 10 Lakhs in FY21 to 1 Crore in FY23. 9. As per FY23, CFO/EBITDA is 4.68, As per FY24, EPS is 2.77, 10. Market Capitalization is 53 Crore & P/E is 27.41x based on FY24.

Lead Manager of Radiowalla Network Limited IPO:

  1. Narnolia Financial Services Ltd

Registrar of Radiowalla Network Limited IPO:

  1. Maashitla Securities Pvt. Limited

Company Address:

Radiowalla Network Limited 16A, Basement Floor, Maratha Bhavan, Millers Tank Bund Road, Vasanthnagar, Bangalore-560052 Phone: +91 8044999917 Email: compliance@radiowalla.in Website: https://www.radiowalla.in/

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