Forcas Studio Limited operates in the menswear sector, offering a range of garments including shirts, denims, t-shirts, trousers, cotton pants, sportswear, party wear, fashion wear, and boxers. The company serves a broad customer base across India through online sales and wholesale channels. It also provides white-labeling services for prominent brands like Landmark Group, V-Mart Retail, V2 Retail, Highlander, Cobb, and Kontail.

Forcas Studio Limited IPO Allotment Status
Forcas Studio IPO allotment date is 22 August, 2024, Thursday. Forcas Studio IPO Allotment will be out on 22nd August 2024 and will be live on Registrar Website from the allotment date. Check Forcas Studio Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Solve Plastic Products Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

IPO Details and Subscription Information

The Forcas Studio IPO is a book-built issue amounting to ₹37.44 crores, entirely comprising a fresh issue of 46.8 lakh shares. The price band for the shares is set between ₹77 and ₹80 per equity share, with a minimum lot size of 1,600 shares. Retail investors need to invest a minimum of ₹128,000, while High-Net-Worth Individuals (HNIs) must invest in at least 2 lots (3,200 shares), totaling ₹256,000.

The subscription period for the IPO is from August 19, 2024, to August 21, 2024. The allotment is scheduled for August 22, 2024, with shares expected to be listed on the NSE SME platform on August 26, 2024.

Grey Market Premium and Market Sentiment

The Grey Market Premium (GMP) for the Forcas Studio IPO is projected to be between ₹70 and ₹72. GMP provides an informal gauge of market sentiment and expected listing gains. Although GMP is a useful indicator, it is based on unofficial trading and should be viewed cautiously.

Financial Performance and Valuation

Forcas Studio has demonstrated notable financial growth. Revenue increased from ₹5,113.14 lakhs in FY21 to ₹7,162.42 lakhs in FY23, although it saw a decrease to ₹2,424.30 lakhs in the 11 months of FY24. Despite this, the EBITDA grew from ₹341.84 lakhs in FY21 to ₹450.15 lakhs in FY23, reaching ₹927.59 lakhs in the 11MFY24. Profit After Tax (PAT) also showed stability, rising from ₹58.38 lakhs in FY21 to ₹117.19 lakhs in FY23, with a slight decrease to ₹116.97 lakhs in the 11MFY24.

For the IPO, the company is offering shares with a pre-issue EPS of ₹1.98 and a post-issue EPS of ₹0.66. The pre-issue P/E ratio is 40.40x, while the post-issue P/E ratio is 121.21x, compared to the industry P/E ratio of 136x. The company’s Return on Capital Employed (ROCE) for the 11MFY24 is 18.54%, and Return on Equity (ROE) is 27.06%, indicating a fair valuation for the IPO.

Also Read : Brace Port Logistics IPO Allotment – 3 Ways To Check Allotment Status

Objectives of the IPO

Proceeds from the IPO will be used for the following purposes:

Upgrading Warehouse: ₹165.67 lakhs will be allocated to enhance warehouse facilities.

Repayment of Loans: ₹1,300.00 lakhs will be used to prepay or repay certain secured loans.

Funding Working Capital: ₹1,200.00 lakhs will be dedicated to working capital needs.

General Corporate Purposes: Remaining funds will be used for general corporate needs.

Investment Recommendation

Given the company’s steady financial performance and the attractive Grey Market Premium, the Forcas Studio IPO presents a promising opportunity. The strong financial metrics and potential listing gains make it an appealing option for listing gains and long-term investment. Investors should review their financial objectives and consult with advisors before participating in the IPO.

Conclusion

The Forcas Studio Limited IPO offers a valuable opportunity in the menswear sector, supported by robust financial indicators and favorable market sentiment. For further details and guidance, review the company’s Red Herring Prospectus (RHP) and seek professional advice to make informed investment decisions.

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