The company engages in designing, manufacturing, and marketing readymade garments that include men's formal, casual wear, winter wear, party clothes, ethnic, sportswear, etc.
The company caters to its customers through physical outlets and online channels. In the Rajasthan and Haryana regions, the company has 40 outlets under the brand name Urban United. The company offers itself as a one-stop shop for all types of men's clothing.It is currently exploring the new markets of Bihar and has opened its first store in the state. The company operates through a network of franchises and stores.
Bizotic Commercial Ltd. IPO Details
The size of Bizotic Commercial Ltd. is Rs. 4009.60 lakhs. The IPO shares will be available for Rs. 175 per share.
Bizotic Commercial Ltd. has filed a prospectus with SEBI. However, the issuer hasn't announced the final Bizotic Commercial Ltd. dates for bidding and listing.
Bizotic Commercial Ltd. IPO Objectives
The net proceeds from the fresh issues are to be utilised for the following.
- In establishing retail network and company-owned stores
- Repayment and prepayment of certain loans
- To meet long-term working capital requirements
Should you invest in Bizotic Commercial Ltd.?
- The Indian technical and automotive textile market is expected to grow from UA$2.4 billion in 2020 to US$ 3.7 billion in 2027.
- The company is expanding its number of stores and online presence by teaming with leading Indian digital commerce platforms.
- It offers a diversified product portfolio, specialising in men's wear.
Competitive Peers
Other listed players in the segment recognised by Bizotic Commercial Ltd. are Trent Ltd., Bella Casa Fashion and Retail Ltd., and Lorenzini Apparels Ltd.
IPO Financials
| Particulars | Period ending on December 31, 2022 | Year ending on March 31, 2022 |
|---|---|---|
| Revenue from Operations | 3,748.26 | 5341.39 |
| Profit After Tax (PAT) | 290.28 | 59.57 |
| EPS | 5.37 | 595.69 |
| As on December 31, 2022 | As on March 31, 2022 | |
| Total Assets | 3867.35 | 3670.68 |
| Total Liability | 2738.03 | 3358.73 |
Know before investing
Strengths
3There is an in-housing designing team that undertakes designing works as per the client’s preference.
Experienced management team.
It caters to a diversified customer base through an established marketing setup.
Risks
3A substantial amount of the company’s revenue comes from a few customers.
The company has issues with debtors and being unable to recover the outstanding debt will impact its operation and financial performance.
It hasn’t executed franchise agreements with many of its franchisees.
