Sat Kartar Shopping Ltd IPO

Status: Closed

Overview

IPO date

10 Jan 2025 to 14 Jan 2025

Face value

₹ 10 per share

Price

₹ 77 to ₹81 per share

Issue Size

4,172,800 shares
(aggregating up to ₹ 33.8 Cr)

Allotment Date

15 Jan 2025

Listing at

NSE

Issue type

Book Building - SME

Sector

Pharmaceuticals

Objectives of Sat Kartar Shopping Ltd IPO

Initial public offering up to 41,72,800 equity shares of Rs. 10/- each ("Equity Shares") of Sat Kartar Shopping Limited ("SKSL" or the "Company") for cash at a price of Rs. 81/- per equity share (the "Issue Price"), aggregating to Rs. 33.80 crores ("The Issue"). Out of the issue, 2,33,600 equity shares aggregating to Rs. 1.89 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 39,39,200 equity shares of face value of Rs. 10/- each at an issue price of Rs. 81/- per equity share aggregating to Rs. 31.91 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.50 % and 25.02 %, respectively of the post issue paid up equity share capital of the company. The Issue Price is Rs. 81/- per equity share of face value of Rs. 10/- each. The Issue Price is 8.10 times of the face value of the equity shares. Bid can be made for a minimum of 1600 equity shares and in multiples of 1600 equity shares thereafter.

Objectives of Sat Kartar Shopping Ltd IPO

Sat Kartar Shopping Ltd IPO Strategy

About Sat Kartar Shopping Ltd

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Sat Kartar Shopping Ltd Financials (Restated Standalone)

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Sat Kartar Shopping Ltd Shareholding Pattern

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Strengths vs Risks of Sat Kartar Shopping Ltd

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Strengths

Operating on D2C model.
Effective market anticipation.
Cordial relations with its customers.
Having PAN India Presence.
Emerging segment in India.

Risks

The company present promoters of the Company are first generation entrepreneurs.
The Company depend on brand recognition and reputation and its inability to maintain or enhance brand image that the company operates could have a material adverse effect on its business, financial condition and results of operations.
Its Registered Office and other business premises from where the company operates are not owned by it. If the company is required to vacate the same, due to any reason whatsoever, it may adversely affect its business operations.
The company does not own manufacturing facility, and all the products are manufactured by the third-party manufacturers.
The company's Board of Directors does have any experience of listed companies.
The company is exposed to consumer complaints and potential litigation due to the nature of its products.
Since the company is catering to end customers, there might be chances that customers may feel unsatisfactory on the receipt or on usage of products. Further, in case of any delay in delivery of the product can result into losing out existing or potential consumers in the market.
There is outstanding litigation pending against its Promoters which, if determined adversely, could affect the company business, results of operations and financial condition.
Majority of its state wise revenues from operations for the last 3 years is majorly derived from its Top 5 States. Any adverse developments affecting the company operations in this state could have an adverse impact on its revenue and results of operations.
Its Top 10 Suppliers contribute a significant portion in providing finished goods which are sold by the company to end consumers during the current and previous financial years. Any dispute with one or more of them may adversely affect its business operations.
Its marketing and advertising activities may not be successful in increasing the popularity of the Company among domestic and international clients. If its marketing or advertising initiatives are not effective, this may affect the popularity of the Company.
All the formulations of the product are not in the name of the Company, but in the name of the manufacturers.
Conflicts of interest may arise out of common business undertaken by the Company and its corporate promoter.
Its may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of its goodwill and some of the trademarks filed are objected.
The illegal distribution and sale by third parties of counterfeit versions of its products could have a negative impact on the company reputation and business.
The company has had negative cash flows from operating, investing and financing activities in the past and may continue to have negative cash flows in the future.
The company has in past entered into related party transactions and its may continue to do so in the future.
The Company may incur penalties or liabilities for non-compliances with certain provisions of the GST Act, Income Tax and other applicable laws in the previous years.
The company is dependent on its Individual Promoters and its management team and the loss of, or the company inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.
The company operates in a significantly fragmented and competitive market and any failure on its part to effectively compete may adversely affect the company profitability and market share.
Its Promoters and Directors have provided personal guarantees to loan facility availed by it, which if revoked may require alternative guarantees, repayment of amount due or termination of the facilities.
If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report its financial risk.
The company funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its may have to incur additional cost to fund the objects of the Issue because of which its business, financial condition and results of operations may be adversely affected.
One of its objects is unidentified acquisitions. If the company is unable to successfully identify and integrate acquisitions, its growth strategy and prospects may be adversely affected.
One of its Independent Director, Mr. Sunil Kumar Mehdiratta, was holding directorship in a company, Venn Consulting Private Limited, which compulsory striken off by the Registrar of Companies under section 248 of Companies Act, 2013.
The final sale agreement for the purchase of property, with Plot Area 250 sq. mtr. And built-up area of 7500 sq. ft having purchase consideration of Rs. 85,000 Thousands, as mentioned in capital expenditure in the chapter objects of the issue is yet to be done.
Its profitability will suffer if the company is not able to maintain its pricing, control costs or continue to expand the company's business through more client engagements.
Business operation and stability depends on many factors, its may not be able to effectively implement the company's business and growth strategy.
The average cost of acquisition of Equity Shares by its Promoters could be lower than the issue price.
The company is required to maintain certain approvals and licenses required in the ordinary course of business and the failures to obtain or renew them in a timely manner or at all may adversely affect its operations.
In addition to normal remuneration, other benefits and reimbursement of expenses of some of its directors and Key Management Personnel who are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
Any variation in the utilization of Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
An inability to maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.
Significant differences exist between Indian GAAP and other accounting principles, such as Ind AS, IFRS and U.S. GAAP, which may be material to investors' assessments of our financial condition, result of operations and cash flows.
Certain Agreements, deeds or licenses may be in the previous name of the company.
The Company's ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
Industry information included in this Red Herring Prospectus has been derived from an industry report from various websites. The reliability on the forecasts of the reports could be incorrect and would significantly impact its operations.
The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by it, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.
There are certain restrictions on daily movements in the price of Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
Equity Shares of the Company have never been publicly traded, and after the Issue, the Equity Shares may be subject to price and volume fluctuations, and an active trading market for the Equity Shares may or may not develop. Further, the Issue Price may not be indicative of the market price of the Equity Shares after the Issue.
You may be subject to Indian taxes arising out of capital gains on the sale of its Equity Shares.
QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after the submission of their Bid, and Retail Individual Investors are not permitted to withdraw their Bids after closure of the Bid/ Issue Closing Date.
Sale of Equity Shares by our Promoters or other significant shareholder(s) or any future issue of Equity Shares may dilute your shareholding and adversely affect the trading price of the Equity Shares.
A third-party could be prevented from acquiring control of it post this Issue, because of anti-takeover provisions under Indian law.