Sat Kartar Shopping Ltd., an Ayurveda healthcare company, has launched its Initial Public Offering (IPO) to raise ₹33.80 crore.

Company Overview

Established in June 2012, Sat Kartar Shopping Ltd. focuses on delivering natural wellness solutions through therapeutic and lifestyle products based on traditional Ayurveda practices. The company serves individual consumers directly through its website, third-party e-commerce platforms, television marketing, and digital applications.

IPO Timeline

• Issue Opens: January 10, 2025
• Issue Closes: January 14, 2025
• Allotment Finalization: January 15, 2025
• Refund Initiation: January 16, 2025
• Shares Credited to Demat Accounts: January 16, 2025
• Listing Date: January 17, 2025

Price Band and Lot Size

• Price Band: ₹77 to ₹81 per share
• Lot Size: 1,600 shares per lot
• Minimum Investment: ₹1,29,600 (at the upper end of the price band)

Financials

For the fiscal year ending March 2024, Sat Kartar Shopping reported a revenue of ₹127.90 crore, an increase from ₹82.96 crore in the previous year. The company’s EBITDA rose to ₹10.24 crore, and it achieved a net profit of ₹6.30 crore, marking significant growth from a profit of ₹2.50 crore in the prior year.

Strengths

• Diverse Product Portfolio: Offers a wide range of Ayurvedic wellness products catering to various health and lifestyle needs.
• Established Digital Presence: Utilizes multiple online platforms and digital marketing strategies to reach consumers.
• Focus on Traditional Ayurveda: Emphasizes natural and holistic health solutions based on traditional practices.

Risks

• Market Competition: Faces competition from other players in the wellness and Ayurveda industry.
• Regulatory Compliance: Must adhere to health and safety regulations governing Ayurvedic products.
• Dependence on Consumer Preferences: Relies on consumer demand for natural and Ayurvedic products.

IPO Anchor Investors Details

Sat Kartar Shopping raised ₹9.55 crore from anchor investors, with the anchor bid date on January 9, 2025.

IPO Promoter Holding

The promoters of the company are Mr. Manprit Singh Chadha, Mr. Pranav Singh Chadha, Ms. Simrati Kaur, and M/s Ajooni Wellness Private Limited. Pre-issue, the promoter holding is 86.06%, which will reduce to 63.25% post-issue.

IPO Grey Market Premium (GMP)

As of January 10, 2025, the Grey Market Premium for Sat Kartar Shopping’s IPO was ₹25 per share, indicating a potential listing price of ₹106 per share.

Final Thoughts

Sat Kartar Shopping Ltd.’s IPO offers an opportunity for investors interested in the Ayurvedic wellness sector. With a strong financial performance and a comprehensive product portfolio, the company is well-positioned for future growth. However, potential investors should consider the inherent risks and conduct thorough due diligence before making investment decisions.