Shaswat Furnishing Solutions IPO Analysis Details

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Shashwat Furnishing Solutions Limited is a company engaged in manufacturing furniture, handicraft, and hand-based design items. The Company’s major source of revenue is from Industrial Furniture and the furniture used in restaurants and Café. The Company has also added a new line to their business operation by adding the Garden and Outdoor Furniture. In this article, we take a closer look at the Shaswat Furnishing Solutions IPO details and its possible future prospects.

Shashwat Furnishing Solutions Limited has also executed their expansion plan of Vintage Furniture with Mirror Frames, Wall clocks and other Home Décor. The experts of the Company have an objective to build up an exclusive product range with an extended plan of setting up a remarkable finish along with the unique designs and trendy colour combinations. The designers associated with the Company are experts in making flawless detailing with unbreakable quality and higher durability.

The Company has been engaged in purchasing, finishing, assembling, & repairing various kinds of semi-furnished and furnished furniture that helps them convert it into finished goods. The Company sells its finished products and furniture to wholesalers, retailers and customers. The Company has a physical and online platform presence through platforms such as Indiamart, Exporter India, Amazon, Trade India, etc. Shashwat Furnishing Solutions Limited, in its latest strategic acquisition, acquired a sole proprietorship on the business upfront of Handicrafts Village in 2021. The registered office, along with the warehouse and processing unit of the Company, is located in Jodhpur, Rajasthan.

Some of the Competitive Strengths of the Company are as follows:

  • The Company has an Experienced Management Team that the Technical and operations team has well supported.
  • Shashwat Furnishing Solutions Limited has established a strong existing supplier relationship and a solid clientele base.
  • The Company has a highly Scalable Business Model.
  • Shashwat Furnishing Solutions Limited has been verified for Quality Assurance and Standard for their finished product and manufacturing facility.
  • The greatest proficiency of the Company lies in understanding and modifying as per the specific requirement of their customers. 

While some of the disadvantages been associated with the Company is that the Company only has 11 months of financial data. This financial data is not in sync with the Company’s asking price, considering that the Company has a very small equity capital post IPO. It indicates a longer gestation period for the Company for migration to the main board stream. Hence on Current Valuation, IPO is exorbitantly priced. 

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the loans of the Company, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  
  • The Company also has an objective to fund its CAPEX Plan to expand its existing manufacturing units and develop new facilities for refinery and manufacturing.
  • The Company also intends to fund various investments and strategic acquisitions.

SHASHWAT FURNISHING SOLUTIONS IPO DETAILS:

Shashwat furnishing solutions limited recently got approval from SEBI to float their IPO in the market. The board of the Company approved an IPO Offer of Rs. 2.51 Crores of issuance of fresh equity. The listing of the Company’s stock will be on the BSE SME Platform. The Company stated that the IPO Offer would be a fixed Price Issue type IPO Offer of Rs. 45 per equity share of the Company. Check Day by Day IPO Subscription Details (Live Status)

The Company also stated that from the funds been raised by the issuance of the fresh equity as on the IPO offer, the Company would fund Rs. 1.60 Crores for working capital and 51 lakhs for general corporate purposes. The IPO issue offer of the Company constitutes 26.72% of the post-IPO fully paid-up capital of the Company. The IPO offer of the Company has been solely managed by the Beeline Broking Limited as the lead manager, while KFin Technologies Pvt. Limited is the registrar of the IPO Offer. The Company also stated in its IPO offer that after post-IPO, its current paid-up equity capital will be Rs. 2.09 crores and the all-over-market capitalization of Rs. 9.40 crores.

IPO Opening DateApril 20, 2022
IPO Closing DateApril 25, 2022
Issue TypeFixed Price Issue type IPO
Face ValueRs. 10 per equity share
IPO PriceRs. 45 per equity share
Market LotOne lot corresponding to 3000 equity shares
Minimum Order Quantity3000 Equity Shares
Minimum Order PriceRs. 135,000
Maximum Order Quantity3000 Equity Shares
Maximum Order PriceRs. 135,000
Listing AtBSE SME
Issue Size     558,000 Equity Shares of the Company corresponds to an IPO offer of Rs. 2.51 Crores.  
Fresh Issue558,000 Equity Shares of the Company corresponds to an IPO offer of Rs. 2.51 Crores.
Retail Shares Offered50% of the net IPO offer
NII (HNI) Shares Offered50% of the net IPO offer
Issue Size Constitutes to26.72% of the IPO offer
Market Cap of the CompanyRs. 9.39 Crores
Equity Shares Offered (Fresh)5,58,000 Equity Shares
Equity Shares Prior to the Issue15,30,000 Equity Shares
Equity Shares after the Issue20,88,000 Equity Shares

FINANCIAL TRENDS OF THE COMPANY:

ParticularsFor the year ending with the amount as in Rs in Lakhs
28 February 2022
Total Assets234.44
Total Revenue123.46
Profit After Tax16.10
Particulars (in Lakhs)Feb-22Mar-21
Sales1230
Cost of Materials Consumed890
Changes in Inventories-170
Employee Benefits Expense170
Other Expenses110
Operating Profit230
OPM %18.65%0.00%
Other Income00
Depreciation20
Profit before tax220
Total Tax Exps50
Net Profit160
NPM %13.04%0.00%
No. of shares20.8820.88
EPS in Rs1.090.00

VALUATIONS OF THE COMPANY:

  • On Current Valuations, the NAV of the Company is at Rs. 11.61 
  • The average EPS of the Company is Rs. 1.09 
  • The Average P/E ratio of the Company is 41.28. 
  • The fully diluted post-IPO P/E ratio of the Company is 53.6. 

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PEER GROUP COMPARISON:

As per the latest data and the list of the Company been listed on the BSE – SME platform, there is no such company that is a direct comparison or a competitor to Shashwat Furnishing Solutions Limited. 

COMPANY PROMOTERS:

The promoters of the Company are as follows:

  • Mr Hitesh Karnawat 
Pre – Issue Share Holding100%
Post Issue Share Holding73.28%

Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.

Subscriptions:

DayDay1Day2Day3Day4
NII0.000.230.752.43
Retail0.491.722.536.81
Total0.240.971.644.62

COMPANY CONTACT INFORMATION:

Shashwat Furnishing Solutions Limited
121, Mahaveer Nagar, Jain Colony,
Jodhpur – 342001, Rajasthan, India.
Tel. No.: +91-9001269000
E-mail: info@handicraftsvillage.com
Website: www.handicraftsvillage.com

SHASHWAT FURNISHING IPO REGISTRAR:

KFIN TECHNOLOGIES PRIVATE LIMITED
Selenium Building, Tower-B,
Plot No 31 & 32, Financial District, Nanakramguda,
Serilingampally, Hyderabad,
Rangareddi, Telangana-500032 India.
Tel. No.: +91-40-6716-2222
Email: shashwat.ipo@kfintech.com
Website: www.kfintech.com

LEAD MANAGER TO THE ISSUE:

BEELINE BROKING LIMITED
MB Division: 807, Phoenix Tower, Opp. New Girish Cold Drinks,
Near Vijay Cross Roads, Navrangpura, Ahmedabad – 380 009
Telephone Number: +91 79 4840 5357
Email Id: mb@beelinemb.com
Investors Grievance Id: ig@beelinebroking.com
Website: www.beelinebroking.com

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