Finelistings Technologies Limited IPO Review

Finelistings Technologies engage in the buy-n-sell model where they procure the pre-owned cars from its owners, under take necessary services, refurb the cars mechanically and aesthetically to make it ready for display in their showroom and also on their other platforms. Their vision is to create an O2O (online-to-offline) ecosystem for automobiles which connects customers, OEMs, dealers, banks, insurance companies and other stakeholders. 

The company is backed by strong promoters and a Board of Directors who has experience of over 5 years in re-owned luxury car retail/ software development, and digital transformation services. Finelistings Technologies showed some major losses in FY21 & FY22 but turned the table from FY23. PAT showed major return in the last 11 Months of FY24 at ₹ 276.99 Lakhs and earlier it was 178.92 Lakhs for FY23. Also, Revenue slightly decreased to 1,359.40 lakhs from 1,388.75 in last 11 Months of FY24 as compared to FY23. The Company continued the growth for the Period ending February 2024 as EPS have increased from ₹ 8.76 to ₹10.92. Also, ROE and ROCE is also strong at 43.16% and 21.73% respectively.
Finelistings Technologies IPO Issue price is ₹ 123 per share and Post Issue EPS of ₹ 7.61 which makes the valuation of 16.16x post PE Ratio against an Industry PE Ratio of 56.01x times and there is also robust Returns on Equity (ROE) and Returns on Capital Employed (ROCE) which makes the IPO favourable for Listing Gain and Investing for long term. The Grey Market Premium (GMP) of Finelisting Technologies IPO is also trading at ₹25 indicating Premium of 20% above issue price. There is some margin of Safety for Investors and traders but Liquidity is a concern in SME IPO. Risky Investors can apply for Listing Gains and Long Term Gains.