Forcas Studio IPO: Men's clothing company Forcas Studio Ltd is set to launch its initial public offering (IPO) next week to raise more than ₹37 crore from the primary markets. Forcas Studio sells its products through an online platform under the brand name of ‘FTX’, ‘Tribe’ and ‘Conteno.
Forcas Studio IPO will open for public subscription on Monday, August 19, and will close on Wednesday, August 21. The bidding for the Anchor portion will open on August 16. The IPO allotment date is August 22 and the share listing date is August 26. Forcas Studio IPO is an SME IPO and the equity shares of the company will be listed on NSE SME.
Forcas Studio IPO price band has been set at ₹77 to ₹80 per share. The company plans to raise ₹37.44 crore at the upper-end of the price band of the book-built issue which is entirely a fresh issue of 46.80 lakh equity shares.
The IPO lot size for an application is 1,600 shares and the minimum investment amount required by retail investors is ₹128,000.
The net proceeds from the IPO will be utilized for funding of upgradation of warehouse, prepayment or repayment of certain secured loans availed by the company, funding of working capital requirements and general corporate purposes.
“As we move forward, our focus remains on expanding our reach and enhancing our brand presence both online and offline. With over 1,200 SKUs and a strong presence on major e-commerce platforms, we are committed to delivering value to our customers, particularly in Tier-2, Tier-3, Tier-4 cities and Towns, where we see tremendous potential for growth,” said Sailesh Agarwal, Managing Director of Forcas Studio.
Horizon Management Private Limited is the book running lead manager of the Forcas Studio IPO, while Mas Services Limited is the IPO registrar.
Forcas Studio IPO GMP today, or grey market premium today, is ₹70 per share, according to stock market observers. This indicates that Forcas Studio shares are trading with a premium of 87.5% to the issue price.
Considering IPO GMP today, Forcas Studio share price in the grey market is ₹150 apiece as against its IPO price of ₹80 per share.
Forcas Studio specializes in men’s garments, including shirts, denims, T-shirts, trousers, sportswear, and more. The company offers products under their brands 'FTX,' 'Tribe,' and 'Conteno,' while also white-labelling for major brands like Landmark Group and V-Mart.
Forcas Studio reached over 15,000 pin codes, targeting Tier-2, Tier-3, Tier-4 cities and Towns with 95% of their products priced below ₹499.
For 11 months ended February 2024, the company reported a revenue of ₹96.07 crore, EBITDA of ₹9.27 crore and a net profit of ₹5.14 crore.
