Lamosaic India Ltd is a prominent player in the decorative laminates, plywood, and wooden furniture accessories market. With a reputation among architects, interior designers, and homeowners, the company offers a comprehensive solution ranging from concept creation to the designing and supplying of tailor-made laminated doors and furniture. The company has established itself as a reliable source for high-quality products that cater to a wide variety of customer needs, making it a leader in the industry.

The Lamosaic India IPO is a Fixed Price Issue totaling ₹61.2 Crores, offering 30.6 Lakh shares. This offering will be open for subscription from November 21, 2024, and will close on November 26, 2024. The allotment is expected to be finalized by November 27, 2024, with the tentative listing date set for November 29, 2024. The share price is set at ₹200 per equity share, resulting in a Market Capitalisation of approximately ₹206.76 Crores. Investors need to buy in lots of 600 shares, with retail investors required to invest a minimum of ₹1,20,000. For HNIs, the minimum investment is ₹2,40,000 for 2 lots (1,200 shares).

Grey Market Premium (GMP) & Subscription Status

As of November 26, 2024, the Lamosaic India IPO has been subscribed 1.82 times, indicating moderate investor interest. The Grey Market Premium (GMP) for the IPO is currently ₹0, suggesting no expected listing gains based on market conditions.

The Grey Market Premium (GMP) reflects speculative trading that is not representative of official stock market prices. While GMP is sometimes used to predict listing performance, the absence of any noticeable premium highlights the challenges in accurately gauging the stock’s post-IPO performance.

Company Financials and Performance

For the past three fiscal years, Lamosaic India has shown impressive growth. The Revenues from operations for FY24 stood at ₹5,565.72 Lakhs, a significant jump from ₹3,175.85 Lakhs in FY23 and ₹1,003.45 Lakhs in FY22. The EBITDA for FY24 was ₹1,417.20 Lakhs, while the Profit After Tax (PAT) surged to ₹822.94 Lakhs.

Key financial metrics such as Return on Capital Employed (ROCE) at 42.25% and Return on Equity (RoE) at 53.94% suggest a highly efficient use of capital and profitability. However, the IPO's P/E ratio stands at 17.68x pre-issue and 25.12x post-issue, which is significantly lower than the industry P/E ratio of 121.99x. While this indicates a competitive valuation relative to peers, it also suggests that the company is fully priced at the offering price.

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IPO Proceeds Utilization

The proceeds from the Lamosaic India IPO will be used for several key purposes:

1. ₹445.77 Lakhs will be allocated to repay certain borrowings.
2. ₹3500.00 Lakhs will be used to meet incremental working capital needs.
3. ₹600.00 Lakhs will be invested in pursuing inorganic growth opportunities.
4. ₹1400.00 Lakhs will be earmarked for general corporate purposes.

IPO Review and Investment Advice

Despite the company's robust growth and healthy financial performance, the Grey Market Premium (GMP) being ₹0 and the current pricing suggest no immediate listing gains. Given these factors, we recommend that investors exercise caution and avoid the Lamosaic India IPO for both listing gains and long-term investment purposes.

Allotment Status & Check
Investors can check their Lamosaic India IPO allotment status on the Registrar’s website by entering their application number, PAN, or DP Client ID. The allotment will be available starting November 27, 2024.

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