Introduction to Sat Kartar Shopping IPO
Sat Kartar Shopping Ltd, an Ayurveda-focused healthcare company, has launched its ₹33.8 crore IPO, offering 41.73 lakh shares through a book-built issue. The IPO, priced between ₹77 and ₹81 per share, is open for subscription from January 10 to January 14, 2025, and the shares will list on the NSE SME platform on January 17, 2025.
With a strong focus on natural wellness solutions, the company is a direct-to-consumer (D2C) player leveraging its own website, third-party platforms, TV marketing, and digital ads on Google and Meta.
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History of Sat Kartar Shopping Ltd
Incorporated in 2012, Sat Kartar Shopping Ltd started with a mission to promote natural Ayurvedic remedies. Over time, the company streamlined its focus on Ayurveda, catering to both specific therapeutic needs (e.g., addiction and joint pain) and lifestyle solutions (e.g., mental wellness and PCOD management).
The company has grown to serve a PAN-India customer base, employing 1,122 people across departments.
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Objectives of the IPO
The company aims to use the IPO proceeds for the following purposes:
- Acquisitions (domestic or international)
- Marketing and advertising initiatives
- Capital expenditure and infrastructure development
- Investments in technology
- General corporate purposes
Current status of the company
Sat Kartar Shopping Ltd has shown consistent growth in revenue and profit over the past three years. The company’s grey market premium (GMP) currently stands at ₹25, indicating a 30.86% premium over the upper price band.
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Financial performance
| Financial Year | Assets (₹ Cr) | Revenue (₹ Cr) | PAT (₹ Cr) | Net Worth (₹ Cr) |
| FY22 | 1,239.33 | 5,230.75 | 1.39 | 76.87 |
| FY23 | 1,471.20 | 8,297.74 | 2.51 | 327.48 |
| FY24 | 2,175.43 | 12,810.96 | 6.3 | 943.33 |
| Dec 15, 2024 (YTD) | 3,117.07 | 10,955.26 | 5.89 | 1,728.14 |
IPO details
| Parameter | Details |
| IPO Dates | January 10 – January 14, 2025 |
| Price Band | ₹77 to ₹81 per share |
| Lot Size | 1,600 shares |
| Minimum Investment | ₹1,29,600 |
| Issue Size | ₹33.8 Cr (41.73 lakh shares) |
| Listing Date | January 17, 2025 |
| Lead Manager | Narnolia Financial Services Ltd |
| Registrar | Skyline Financial Services Pvt Ltd |
Shareholding pattern
| Category | Pre-Issue (%) | Category |
| Promoters | 86.06% | Promoters |
| Public | 13.94% | Public |
Fund utilisation plan
- Acquisitions: Focused on expanding its portfolio through domestic and international deals.
- Marketing & Advertising: To increase brand reach across digital and traditional channels.
- Technology Investments: Enhancing operational and customer experience efficiencies.
- Capital Expenditure: To improve logistics and production capabilities.
- General Corporate Purposes: To maintain financial health.
Why should you invest in this IPO?
Advantages
- Strong market presence: Sat Kartar Shopping Ltd has a solid foothold in the Ayurveda and wellness market.
- Consistent financial growth: Revenue and profit have shown consistent upward trends.
- Grey market premium: A 30% GMP suggests potential listing gains.
- Emerging trends: Rising awareness of Ayurveda and wellness supports long-term growth.
Disadvantages
- Valuation concerns: The post-issue P/E ratio of 20.23x may indicate a fully-priced offering.
- Industry competition: The Ayurveda and D2C space are highly competitive, with established players.
- Dependency on acquisitions: Uncertainty around the effectiveness of future acquisitions.
Bottomline
The Sat Kartar Shopping IPO presents a compelling opportunity for investors keen on the Ayurveda and wellness sector. The company’s consistent growth, combined with strong market potential, makes it attractive for medium to long-term investors. However, fully priced valuations and competition warrant careful consideration.
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