What You Must Know About Mach Conferences and Events IPO: Price Band ₹214 to ₹225 Per Share

Established in 2004, Mach Conferences and Events Limited is a comprehensive service provider for the MICE (Meetings, Incentives, Conferences, Exhibitions) and events sector. The company specializes in conference management, exhibition management, and global event planning. Their services extend to all logistical aspects of events at specific destinations, including venue selection, accommodation, transportation logistics, local activities, and on-site coordination.

Mach Conferences and Events Limited caters to a diverse clientele, primarily from the banking, finance, and insurance sectors. The company has also worked across various industries, including hospitality, infrastructure, and FMCG. In the financial year 2023-24, the company conducted 90 events in locations such as London, Mussoorie, Bangalore, South Korea, Paris, Goa, Srinagar, and Singapore. The average revenue for conducting such events in FY 2023-24 was Rs. 263.62 lakhs per event.

The company maintains a presence with co-working spaces in more than 18 states and union territories, including Delhi, Maharashtra, Kolkata, Assam, Tamil Nadu, Jammu & Kashmir, Himachal Pradesh, Goa, and Rajasthan. As of 31st March 2024, the company employed a total of 55 people.

The Objective of the Issue

To Meet Working Capital Requirements: The company plans to use a portion of the IPO proceeds to support its increasing working capital needs as it expands operations and takes on larger events.

General Corporate Purpose: Funds will be allocated for various corporate activities that align with the company's strategic goals, such as expanding into new geographical markets or investing in new event technologies.

Highlights of Mach Conferences and Events IPO

Mach Conferences and Events IPO is set to launch with a book-built issue of ₹125.28 crores. The issue is a combination of a fresh issue and an offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 4th September 2024 and closes on 6th September 2024.
• The allotment is expected to be finalized on 9th September 2024.
• Refunds will be initiated on 10th September 2024.
• Credit of shares to Demat accounts is also expected on 10th September 2024.
• The company will tentatively list on BSE SME on 11th September 2024.
• The price band is set at ₹214 to ₹225 per share.
• The lowest lot size for the IPO application is 600 shares.
• Retail investors need to invest a minimum of ₹135,000.
• The minimum investment for HNI is 2 lots (1,200 shares), amounting to ₹270,000.
• Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the IPO.
• Skyline Financial Services Private Ltd serves as the registrar.
• Spread X Securities is the market maker.

Mach Conferences and Events IPO- Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 6th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. It's important to note that all UPI mandates will only be accepted until this cut-off time on the IPO closure day, as per exchange guidelines. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Mach Conferences and Events IPO Issue Details/Capital History

The Mach Conferences and Events IPO is scheduled from 4th September to 6th September 2024, with a price band of ₹214 to ₹225 per share and a face value of ₹10. The lot size is 600 shares, and the total issue size is 5,568,000 shares, raising up to ₹125.28 crores. This includes a fresh issue of 2,229,000 shares aggregating to ₹50.15 crores and an offer for sale of 3,339,000 shares aggregating to ₹75.13 crores. The IPO will be listed on the BSE SME, with the shareholding increasing from 18,808,100 pre-issue to 21,037,100 post-issue. Spread X Securities is the market maker responsible for 300,000 shares within the issue.

Mach Conferences and Events IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for at least 600 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and high-net-worth individuals (HNI), expressed in shares and monetary values.

 
SWOT Analysis: Mach Conferences and Events Limited

Strengths:

• Established player in the MICE sector with 20 years of experience
• Comprehensive range of services covering all aspects of event management
• Strong presence across 18 states and union territories in India
• Diverse client base across banking, finance, insurance, and other sectors

Weaknesses:

• Relatively small team of 55 employees, which may limit rapid scaling
• Dependency on key sectors like banking and finance for a significant portion of revenue
• Potential vulnerability to economic downturns affecting corporate event budgets

Opportunities:

• Expansion into new geographical markets, both domestic and international
• Diversification of client base into emerging sectors
• Potential for technological innovation in event management and virtual events
• Growing demand for experiential marketing and corporate events

Threats:

• Intense competition in the event management sector
• Economic uncertainties affecting corporate spending on events and conferences
• Potential disruptions due to global events or health crises (e.g., pandemics)
• Rapidly changing technology in the events industry requires continuous adaptation

Financial Highlights: Mach Conferences and Events Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

The financial performance of Mach Conferences and Events Limited over the fiscal years ending March 2022, 2023, and 2024 demonstrates a remarkable growth trajectory, particularly impressive given the challenges faced by the events industry in recent years.

The company's assets have shown significant growth, increasing from ₹4,049.21 lakhs in FY22 to ₹10,133.75 lakhs in FY24, representing a growth of about 150% over two years. This substantial asset growth indicates significant investments in the company's operational capabilities and infrastructure.

Revenue has seen an extraordinary increase, rising from ₹2,383.88 lakhs in FY22 to ₹23,898.58 lakhs in FY24, marking a staggering growth of about 902%. This exponential revenue growth demonstrates the company's ability to expand its market presence and secure high-value contracts rapidly.

The profit after tax (PAT) figures underscore the company's dramatic turnaround and improved profitability. From a loss of ₹260.63 lakhs in FY22, the company achieved a profit of ₹2,618.29 lakhs in FY24. This represents a remarkable improvement in the company's financial performance and operational efficiency.

The company's net worth has also grown substantially, rising from ₹1,357.71 lakhs in FY22 to ₹4,956.72 lakhs in FY24, a growth of about 265%. This significant increase in net worth reflects the company's ability to generate and retain earnings and potentially attract additional investments.

The reserves and surplus have grown from ₹1,352.71 lakhs in FY22 to ₹3,075.91 lakhs in FY24, indicating the company's policy of reinvesting profits to fuel further growth and maintain a strong financial position.

Total borrowings have increased from ₹509.69 lakhs in FY22 to ₹1,233.08 lakhs in FY24, which, while representing an increase, is not disproportionate given the company's growth in revenue and assets.

These financial metrics collectively paint a picture of a company in a high-growth phase, successfully scaling its operations and dramatically improving its profitability. The consistent growth across all key financial parameters suggests that Mach Conferences and Events Limited has been highly effective in executing its business plan and capitalizing on the recovery and growth of the events industry post-pandemic.