Forcas Studio IPO Listed at 90% Premium Over IPO Price

Forcas Studio Limited made a significant entrance into the stock market today with its IPO listing on the NSE SME. Forcas Studio's shares experienced a remarkable beginning during their debut on 26 August 2024, opening at ₹152, representing an impressive premium of 90 per cent above the issue price of ₹80 on the NSE SME.

The IPO, open for bidding from 19 August to 21 August 2024, received an overwhelming response from investors. The subscription closed with a remarkable overall rate of 416.99 times, indicating strong market confidence in Forcas Studio's business strategy and growth potential.

The most significant demand came from Non-Institutional Investors (NIIs), who subscribed to the IPO at an astonishing rate of 701.85 times. This category's enthusiastic participation highlights the appeal of Forcas Studio's offering among wealthy individuals and smaller institutions. Retail investors also played a crucial role, with their category reaching a subscription rate of 415.82 times, reflecting widespread interest from individual investors in the company’s prospects.

Qualified Institutional Buyers (QIBs), who typically wait until the final hours to invest, also showed substantial interest, with their subscription rate hitting 205.39 times. This strong demand across all investor categories underscores the overall positive sentiment towards Forcas Studio Limited.

Forcas Studio IPO was a book-built issue aiming to raise ₹37.44 crores through the fresh issue of 46.8 lakh equity shares. The price band was set between ₹77 to ₹80 per share, with a minimum lot size of 1,600 shares. Retail investors had to invest a minimum of ₹128,000, while High Net-Worth Individuals (HNIs) required at least ₹256,000 for two lots. Horizon Management Private Limited acted as the book-running lead manager, with Mas Services Limited as the registrar and Giriraj Stock Broking as the market maker. The shares were successfully listed on the NSE SME on August 26, 2024.

Forcas Studio Limited, incorporated in April 2010, has become a prominent player in the Indian menswear market. It offers a wide range of products under FTX, Tribe, and Conteno. The company sells its products online and in bulk across India, serving over 15,000 pin codes and maintaining a strong offline presence in over 500 large-format stores.

The company’s financial performance has been solid, with total assets of ₹12,379.43 lakhs and revenue of ₹9,648.78 lakhs as of 29th February 2024. The Profit After Tax (PAT) stands at ₹553.31 lakhs, reflecting the company’s profitability and growth trajectory.

The strong subscription rates across all investor categories reflect the market’s positive outlook on Forcas Studio Limited's future. Analysts believe that despite the competitive pricing of the IPO, the company’s focus on quality products and strategic market positioning gives it a strong foundation for long-term success. However, some caution that the high subscription rates might lead to short-term volatility in the stock price as investors look to capitalise on their gains.

To Summarise

The successful listing at a 90% premium is evidence to investor confidence in Forcas Studio Limited’s potential to grow and deliver value. The company’s commitment to expanding its market presence and steady financial performance suggest it is well-positioned to capitalise on the increasing demand in the Indian menswear segment. Investors looking for long-term growth may find Forcas Studio Limited a compelling addition to their portfolios.