Royal Sense Ltd. IPO: Review, Valuation, Date & GMP

Royal Sense Limited IPO  - Complete Overview

Established in 2023, Royal Sense Limited offers a diverse array of surgical accessories, tools, equipment, and related products.

Prior to its incorporation, the company's promoter, Rishabh Arora, operated a business under the name "M/s Royal Traders, PHT, and Anaya" as a sole proprietorship. On April 28, 2023, Royal Sense Limited acquired this business, including its assets and liabilities.

The company distributes its products through government e-procurement systems such as tender systems and the GEM Portal etc. Additionally, it supplies its products to various state Ministries of Health, including those in Uttar Pradesh, Himachal Pradesh, Rajasthan, and Jammu & Kashmir. 

The company also serves both government institutions and private hospitals across India, either directly or through a network of distributors and sub-distributors.

As of June 30, 2023, the company reported a total revenue of Rs. 464.05 lakhs, as per its Restated Financial Statements.

Royal Sense Limited IPO Overview:

Royal Sense Limited IPO date is slated to be open for subscription from March 12, 2024, to March 14, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Royal Sense Limited IPO price is fixed at Rs.68 per share. 

The total issue size of this IPO amounts to Rs.9.86 Cr. The company has allocated 50% to retail investors and 50% to other investors. 

Company Financial

Compared to the previous fiscal year, Royal Sense Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

(Amount in Lakhs)

Period	30 June 2023	31 Mar 2022
Total Assets	631.18	44.62
Total Revenue	464.05	126.45
Profit After Tax	50.64	13.11
Net Worth	395.66
Reserve and Surplus	50.64	13.11

 

The Objective of the Issue

The company intends to utilize the net proceeds of the fresh Issue to meet the following objectives: 

1. Working capital requirement

2. Issue Expenses

3. General corporate purposes

 

 

Peers of Royal Sense Limited IPO

There is no similar company listed in India with a business model similar to that of the company, it is not feasible to offer an industry comparison for the company.

Evaluation

The IPO is fixed at the price of Rs.68 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 0.38 from the last year, the resulting P/E ratio is 178.95x.

• Taking into account the weighted EPS of Rs 1.47 for the last three years, the P/E ratio amounts to 46.25x.
  
  

Comparative Analysis with Listed Peers

• There are no listed peers of the company.
  
  

IPO's Strengths 

• Experienced Promoter and core management team.

• Strong reputation and customer relationships.

• The company offer a diversified range of products.

• Quality Assurance and safety of products.

 

 

IPO weaknesses 

• The company has a limited operating history.

• To operate its business, the company must obtain, renew, or maintain various statutory and regulatory permits and approvals.

• The company relies on a small number of customers and suppliers for its sales and purchases, which poses a dependency risk.

• Failure to comply with increasingly stringent safety, health, environmental, and labour laws, as well as other applicable regulations, could have adverse effects on the business.

• The company encounters competition from both organized and unorganized players in its industry.
  
  

IPO GMP Today 

The Latest GMP of Royal Sense Limited IPO is Rs.37.

 

Royal Sense Limited IPO timetable (Tentative)

Royal Sense Limited IPO is scheduled from March 12 to March 14, 2024, with allotment on March 15, refund initiation on March 18, and listing on March 19, 2024.

Events	Date
IPO Opening Date	March 12, 2024
IPO Closing Date	March 14, 2024
IPO Allotment Date	March 15, 2024
Refund initiation	March 18, 2024
IPO Listing Date	March 19, 2024

Royal Sense Limited IPO Details 

Royal Sense Limited IPO, with a face value of Rs.10 per share, opens on March 12 and closes on March 14, 2024, offering 1,450,000 shares at Rs.68 per share, with a lot size of 2000 shares, aiming to raise Rs.9.86 Cr, and will be listed on BSE SME.

IPO opening & closing date	March 12, 2024 to March 14, 2024
Face value	₹10 per share
Issue Price	₹68 per share
Lot Size	2000 Shares
Price of 1 lot	₹136,000
Issue Size	1,450,000 shares (aggregating up to ₹9.86 Cr)
Fresh issue	1,450,000 shares (aggregating up to ₹9.86 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Royal Sense Limited IPO Lot Details 

For Royal Sense Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.136,000 while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.272,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Royal Sense Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

 

Promoters and Management of Royal Sense Limited

• Rishabh Arora

Pre-issue Promoter shareholding	99.99%
Post-issue Promoter shareholding

 

Royal Sense Limited IPO Lead Managers

• Expert Global Consultants Private Limited
  
  

Dividend Policy

The company has not distributed any dividends in the past fiscal years, and the potential for future dividend payments depends on the financial performance of the company.

 

 

Conclusion

Royal Sense Limited offers a promising opportunity for investors seeking to invest in the medical sector. However, it's important to note that the company has a limited operating history. Therefore, investors are encouraged to conduct a comprehensive analysis before considering allocating their funds to this upcoming IPO to ensure optimal outcomes.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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