Toss the Coin Limited, a marketing consulting firm specializing in custom-made marketing services, made a successful market debut on the BSE SME platform on December 17, 2024. The shares of Toss the Coin were listed at a 60% premium over the IPO price of ₹182, opening at ₹292 on the listing day. This strong market debut highlights the company's ability to attract significant investor interest, reflecting positive market sentiment around its business model and growth prospects.

The Book Built Issue of the Toss the Coin IPO raised ₹9.17 Crores through a fresh issue of 5.04 lakh shares. The subscription period ran from December 10 to December 12, 2024, with the IPO being oversubscribed by an impressive 951.92 times by the final day of the subscription period. The lot size for retail investors was set at 600 shares, with a minimum investment of ₹1,09,200.

Prior to listing, the Grey Market Premium (GMP) of Toss the Coin shares showed strong growth, with the GMP reaching ₹110 (approximately 60.43%) as of December 13, 2024. This suggests that investors expect substantial listing gains, although GMP is based on informal trading and should be taken for educational purposes only. The strong GMP, coupled with the company's impressive subscription numbers, indicates positive expectations for its performance in the market.

Company Overview and Financials

Toss the Coin, known for its expertise in growth acceleration, provides marketing solutions that are both creative and sustainable. The company works with clients to develop modern, tailored go-to-market strategies that cater to specific customer needs. Toss the Coin's innovative approach to marketing has helped it gain significant recognition in the industry.

The company's financials for the past three fiscal years reflect steady growth:

• FY24 Revenue: ₹495.53 Lakhs
• FY23 Revenue: ₹483.48 Lakhs
• FY22 Revenue: ₹299.85 Lakhs

For the EBITDA, the company reported:

• FY24 EBITDA: ₹154.15 Lakhs
• FY23 EBITDA: ₹245.12 Lakhs
• FY22 EBITDA: ₹144.69 Lakhs

The Profit After Tax (PAT) for FY24 stood at ₹109.85 Lakhs, highlighting its strong profitability in the past year.

Toss the Coin’s earnings per share (EPS) stands at ₹7.93 pre-issue and ₹5.81 post-issue, with a pre-issue P/E ratio of 22.95x and a post-issue P/E ratio of 31.31x. Given that the industry average P/E ratio is around 30x, the IPO appears to be fairly priced relative to its peers. Furthermore, the company’s return on capital employed (ROCE) for FY24 was 34.32%, and its return on equity (RoE) was 27.22%, indicating strong capital efficiency and high returns for investors.

IPO Proceeds and Utilization

The proceeds from the IPO will be utilized for the following key objectives:

• ₹294.73 Lakhs for funding capital expenditure towards the development of microservices applications.
• ₹120 Lakhs for funding capital expenditure for opening new offices.
• ₹200 Lakhs for meeting working capital requirements.
• Remaining funds will be used for general corporate purposes.

This allocation will enable Toss the Coin to expand its operations and continue its innovative growth trajectory.

Conclusion and Market Sentiment

The Toss the Coin IPO has been a major success, with the company’s shares listing with a 60% premium over the IPO price. The oversubscription and strong GMP indicate that investors are optimistic about the company's future growth prospects. With its solid financial performance, experienced leadership, and expansion plans, Toss the Coin is well-positioned for future success in the marketing consulting industry.

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