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Safa Systems & Technologies Limited IPO
The Company was originally incorporated as “Safa Systems & Solutions”, a Partnership firm in the state of Kerala on October 18, 2012. Subsequently, they have converted the Partnership firm into a Public Limited Company in the name of “Safa Systems & Technologies Limited” on September 21, 2021 bearing Corporate Identification Number U52100KL2021PLC071051 vide Certificate of Incorporation issued by Registrar of Companies – Central Registration Centre.
Brief Overview of Company and its Business:
Safa Systems & Solutions, the erstwhile partnership firm, started its business in the year 2012 as a new entrant in the field of consumer durable like Mobile phones and its accessories. They were appointed for all Kerala distribution for Micromax Smartphones and the initial year net turnover (after considering sales return) i.e., in the financial year 2012-13 was Rs.7.84 crores. In the financial year 2013-14, we crossed a net turnover of Rs.51.24 Crores. In the year 2015, they also made an arrangement with Micromax for its Feature Phones distributions in the State of Kerala, and in the financial year 2014-15 and 2015-16, we crossed a net turnover of Rs.94.98 Crores and 90.90 crores respectively. In the Financial year 2016-17, the net turnover dropped to Rs.73.30 crores because of the brand issues with Micromax. Until then they were only dealing with the products of Micromax. In the year 2017-18, they decided to create a portfolio of brands rather than sticking to one brand and were looking forward to capture 25% to 30% of the Smartphones market size in the state of Kerala. In the same year they signed up with the brand OPPO and crossed a net turnover of Rs.169.41 Crores. In the financial year 2018-19 they signed up with more brands like Xiaomi, Vivo, LG, etc. and our net turnover was Rs.254.92 Crores. Further, In the Financial Year 2019-20 we also signed up with more brands like Huawei, Motorola, etc. and we crossed a net turnover of Rs.255.12 Crores. In the Financial Year 2020-21 we signed up with the brand One Plus for the Kerala region. The net turnover in financial year 2020-21 dropped to Rs. 208.51 crores due to Covid-19, pandemic.
Presently, they company is in the business of distributorship of consumer durable products like Mobile phones, Mobile phone accessories, Tablets, LED TVs, Home appliances and wearable devises of various brands like Xiaomi, OPPO, TECNO, Micromax, One Plus in Kerala. The company works in B2B (Business to Business) model.
Objects of the Safa Systems & Technologies Limited IPO:
Safa Systems & Technologies Limited IPO Details:
|Open Date:||Jan 28 2022|
|Close Date:||Feb 01 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||4 Cr.|
|Lot Size:||10000 Shares|
|Issue Price:||₹ 10 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Feb 09 2022|
Promoters And Management:
Financials of Safa Systems & Technologies Limited IPO:
|Safa Systems & Technologies Ltd|
|Particulars (in Lakhs)||6MFY22||Mar-21||Mar-20||Mar-19|
|Cost of Material Consumed||14,184||20,406||24,774||24,911|
|Employee Benefits Expense||95||131||195||256|
|Profit before tax||37||39||42||71|
|Total Tax Exp.||9||10||11||35|
|No. of shares||150.78||150.78||150.78||150.78|
|EPS in Rs||0.18||0.19||0.21||0.24|
Comparison With Peers:
Recommendation on Safa Systems & Technologies Limited IPO:
Lead Manager of Safa Systems & Technologies Limited IPO:
Registrar of Safa Systems & Technologies Limited IPO:
Discussion on Safa Systems & Technologies Limited IPO:
Thank you Umesh ji
They operate in the highly competitive industry. There are no entry barriers in the industry which puts company to the threat of competition from new entrants. There are numerous players operate in the industry.
They face tough competition in the business from a large number of unorganized and a few organized players.
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