Net Avenue Technologies IPO

Net Avenue Technologies Limited

₹1,28,000 /8000 sharesMinimum Investment

Net Avenue Technologies IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
NSE₹18.00₹42.00₹24.00 (133.33%)

Net Avenue Technologies IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
30 Nov ‘23 - 4 Dec ‘23₹1,28,0008,000₹16 - ₹18
Issue SizeIPO Doc
10.25Cr
RHP PDF

About Net Avenue Technologies

Net Avenue Technologies operates in the digital direct-to-consumer business, specializing in Indian ethnic wear and accessories. The company also extends its presence in international cross-border e-commerce for its products. Their product range covers Indian ethnic wear and accessories for women, men, teens, and kids. Established on June 7, 2001, Net Avenue Technologies focuses on selling Indian Ethnic wear and accessories, primarily targeting the South Asian Diaspora. Their products are available through their website, mobile applications, and various E-commerce platforms like Myntra, Nykaa, and Ajio, among others. ;
Parent Organisation
Net Avenue Technologies Limited
Founded
2001
Managing Director
Mr. Rajesh Nahar

Strengths & Risks

  • Net Avenue Technologies Limited provides a range of premium Indian ethnic fashion to South Asians globally through its E-commerce platform. The offerings cater to various cultural preferences, including wedding attire, festive wear, party clothing, and accessories.
  • In 2020, Cbazaar.com, owned by Net Avenue Technologies, was rated as one of the best online shops in the United States. It was also one of the fastest-growing brands in the United States in 2022.
  • With an IT division, the company has internally developed and managed its entire digital platform, covering the website, order processing, seller panel, design creation, content management, and production coordination. This approach improves unit economics, accelerates processes, and minimizes reliance on external IT vendors.
  • The company has embedded sustainability into its culture and processes, establishing itself as a sustainable fashion brand. The operational model is designed for just-in-time manufacturing, reducing waste and environmental impact.
  • Leveraging a vast repository of body measurement data from stitching millions of custom outfits for hundreds of thousands of customers, the company employs machine learning to enhance customer comfort and fit.
  • The company faces the risk of revenue decline and reduced margins if it cannot retain existing consumers or sustain Average Order Value (AOV) levels. Such a scenario could significantly impact their business and operational results.
  • Maintaining relationships with brands, manufacturers, distributors, and sellers is critical. Failure to retain these partnerships or establish new ones could adversely affect the company's financial condition, cash flows, and overall operations.
  • International expansion efforts come with inherent risks, including complex management, legal, tax, and economic challenges, which may negatively impact the company's business, financial condition, cash flows, and operational results.
  • Dependence on third-party couriers for order delivery raises operational risks. The company's existing insurance policies may prove insufficient to cover unforeseen or unpredictable future costs and losses, impacting business operations and results.
  • As of March 31, 2023, the company's short-term borrowings stood at Rs. 2.76 crores on a standalone basis, and additional indebtedness is anticipated in the future, with potential consequences for the company.
  • The company has unsecured loans. It owes Rs. 0.83 crores to lenders as of March 31, 2023, on a standalone basis.
  • Non-compliance with financial and other covenants in financing agreements may affect operational flexibility, business, and prospects. As of March 31, 2023, the company's total secured borrowings amounted to Rs. 1.50 crores from banks.
  • Major dependence on third parties for transportation needs poses a risk, and disruptions could impact operations, business, and financial conditions.
  • Any material adverse effects on future earnings, financial condition, or cash flows may influence the ability to pay dividends in the future.

Financials

*All values are in Rs. Cr
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Application details

Apply asPrice bandApply upto
Regular16 - 18₹2 Lakh
High Networth Individual16 - 18₹2 - 5 Lakh
For Net Avenue Technologies IPO, eligible investors can apply as Regular.
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