What You Must Know About Naturewings Holidays IPO: Price ₹74 Per Share

Incorporated in December 2018, Naturewings Holidays Limited is a specialized tour company that offers holiday packages for leisure travellers visiting the Himalayan ranges. The company primarily focuses on regions such as India, Nepal, and Bhutan, providing comprehensive travel solutions that include:
Land and air bookings

• Hotel reservations
• In-transit arrangements
• Local sightseeing
• Destination management services

Naturewings Holidays caters to individuals and groups visiting Himalayan destinations. Recently, the company expanded its services by launching an international division to offer its offerings to global destinations.
Key highlights of Naturewings Holidays' operations include:

Access to over 750 hotels in the Himalayan Ranges and various international destinations as of 31st March 2024
Served approximately 7,163 packages to over 33,065 travellers on a cumulative basis by 31st March 2024
Network of more than 100 registered travel agents across major cities in India
Launched international packages in March 2022, serving 54 holiday packages to destinations including Indonesia, Thailand, Egypt, Kenya, Sri Lanka, Vietnam, Singapore, and the Maldives
Employs 51 department employees as of 31st March 2024

The Objective of the Issue

1. Meeting Working Capital Requirements: A portion of the IPO proceeds will be used to support the company's increasing working capital needs as it expands operations.
2. Marketing and Business Promotions: Funds will be allocated to enhance the company's marketing efforts and promote its services to a wider audience.
3. General Corporate Purposes: A portion of the funds will be used for various corporate activities that align with the company's strategic goals.

Highlights of Naturewings Holidays IPO

• Naturewings Holidays IPO is set to launch with a fixed price issue of ₹7.03 crores. The issue comprises entirely of a fresh issue of 9.5 lakh shares. Here are the key details of the IPO:
• The IPO opens for subscription on 3rd September 2024 and closes on 5th September 2024.
• The allotment is expected to be finalized on 6th September 2024.
• Refunds will be initiated on 9th September 2024.
• Credit of shares to Demat accounts is also expected on 9th September 2024.
• The company will tentatively list on BSE SME on 10th September 2024.
• The price is fixed at ₹74 per share.
• The lowest lot size for the IPO application is 1600 shares.
• Retail investors need to invest a minimum of ₹118,400.
• The minimum investment for HNI is 2 lots (3,200 shares), amounting to ₹236,800.
• Fedex Securities Pvt Ltd is the book-running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.
• Pure Broking is the market maker.

Naturewings Holidays IPO- Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 5th 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 must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Naturewings Holidays IPO Issue Details/Capital History

The Naturewings Holidays IPO is scheduled from 3rd September to 5th September 2024, with a fixed price of ₹74 per share and a face value of ₹10. The lot size is 1,600 shares, and the total issue size is 950,400, raising to ₹7.03 crores through a fresh issue. The IPO will be listed on the BSE SME, with the shareholding increasing from 2,210,000 pre-issue to 3,160,400 post-issue. Pure Broking is the market maker responsible for 48,000 shares within the issue.

Naturewings Holidays IPO Allocation & Minimum Investment Lot Size

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

Investors can place bids for at least 1,600 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: Naturewings Holidays Limited

Strengths:

• Specialised focus on Himalayan destinations, offering unique travel experiences
• Comprehensive travel solutions covering all aspects of holiday planning
• Strong network of over 100 registered travel agents across major Indian cities
• Recent expansion into international destinations, diversifying offerings

Weaknesses:

• Relatively young company, incorporated in 2018
• Heavy focus on specific geographical regions (Himalayan ranges)
• Limited international presence with only 54 packages served since March 2022
• Small team of 51 employees, which may limit rapid expansion

Opportunities:

• Growing interest in adventure and nature tourism, particularly in Himalayan regions
• Potential for further expansion into international destinations
• Increasing demand for specialized and curated travel experiences
• Scope for technological advancements in travel booking and management

Threats:

• Seasonal nature of Himalayan tourism
• Potential environmental and geopolitical risks in focus regions
• Intense competition in the travel and tourism sector
• Economic downturns affecting discretionary spending on travel

Financial Highlights: Naturewings Holidays Ltd

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

SEBI

Naturewings Holidays Limited's financial performance over the fiscal years ending March 2022, 2023, and 2024 demonstrates a strong growth trajectory.

The company's assets have shown steady growth, increasing from ₹309.57 lakhs in FY22 to ₹571.61 lakhs in FY24, representing a growth of about 85% over two years. This growth in assets indicates the company's expanding operational capabilities.

Revenue has seen a remarkable increase, rising from ₹412.54 lakhs in FY22 to ₹2,181.18 lakhs in FY24, marking an impressive growth of about 428%. This substantial revenue growth demonstrates the company's ability to expand its market presence and increase its service offerings rapidly.

The profit after tax (PAT) figures underscore the company's improving profitability. The PAT rose from ₹19.89 lakhs in FY22 to ₹111.92 lakhs in FY24, representing a significant growth of about 463% over two years. This sharp rise in profits indicates the company's successful execution of its business strategies and ability to manage costs effectively while growing revenues.

The company's net worth has also grown substantially, rising from ₹88.63 lakhs in FY22 to ₹265.63 lakhs in FY24, a growth of about 200%. This increase in net worth reflects the company's ability to generate and retain earnings.
Interestingly, the company has reduced its total borrowings from ₹8.73 lakhs in FY22 to ₹5.12 lakhs in FY24, indicating a strong cash flow position and reduced dependency on external debt.

These financial metrics collectively paint a picture of a young company in a high-growth phase, successfully scaling its operations and improving its profitability. The consistent growth across key financial parameters, coupled with decreasing debt, suggests that Naturewings Holidays Limited has effectively executed its business plan and capitalised on the growing demand for specialized travel services, particularly in the Himalayan region.