What you must know about Aspire & Innovative Advertising IPO?

About Aspire & Innovative Advertising Limited

Aspire & Innovative Advertising Limited, founded in 2017, specializes in consumer durables encompassing kitchen appliances, home appliances, white goods, mobile phones and accessories, solar products, and more. The company offers products from reputed brands like Bajaj, Prestige, Vivo, Samsung, Crompton, Whirlpool, Hindware, Havells, among others.

Aspire & Innovative IPO, as part of its asset-light model, incurs expenses for facilitation fees and commissions paid to intermediaries. It provides various services to customers in rural and semi-urban areas, including marketing, field staff interaction, demand collation, and financial services.

Aspire & Innovative Advertising Limited, with a diverse product portfolio of over 50 items, the company caters to various needs such as cookware, electronics, and appliances like pressure cookers, induction cooktops, mixer-grinders, dinner sets, sewing machines, fans, irons, bulbs, heaters, phones, TVs, refrigerators, washing machines, headphones, and solar lanterns.

Aspire & Innovative IPO has established commercial agreements with more than 15 intermediaries and operates 19 warehouses spread across 16 states to efficiently manage its operations.

Aspire & Innovative Advertising Ltd intends to utilize the proceeds of the Issue to meet the following objectives:

1. To meet Working Capital requirements; and
2. To finance the cost of establishing new warehouses
3. General Corporate Purpose.

Highlights of Aspire & Innovative Advertising IPO

1. Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares.
2. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.
3. Aspire & Innovative IPO will list on NSE SME with the tentative listing date fixed as Wednesday, April 3, 2024.
4. Aspire & Innovative IPO price band is set at ₹51 to ₹54 per share. The minimum lot size for an application is 2000 Shares.
5. The minimum amount of investment required by retail investors is ₹108,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹216,000.

Hem Securities Limited is the book running lead manager of the Aspire & Innovative IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Aspire & Innovative IPO is Hem Finlease.

Aspire & Innovative IPO allocation & lot size for investment

Aspire & Innovative IPO will be distributed among retail investors, Qualified Institutional Buyers (QIBs) & High Net Worth Individuals (HNIs) / Non-Institutional Investors (NIIs). Allocation breakdown for overall Limited is mentioned below:

Lot sizes for investing in Aspire & Innovative IPO

The Aspire & Innovative IPO lot size details the minimum and maximum investment options for different investor categories:

Retail Investors: The minimum lot size for retail investors is 1 lot, which consists of 2000 shares. This requires a minimum investment of ₹108,000. Retail investors can apply for a maximum of 1 lot, allowing them to invest up to ₹108,000 in the IPO.

HNI (High Net Worth Individual) Investors: HNIs are required to bid for a minimum of 2 lots, totaling 4000 shares. This corresponds to a minimum investment of ₹216,000. HNIs have the flexibility to invest larger amounts in the IPO, with the option to bid for additional multiples of 2000 shares.

Overall, the IPO lot size structure allows both retail and HNI investors to participate in the offering with varying investment capacities. It offers flexibility in terms of investment amount while ensuring that all investors have equal opportunities to subscribe to the IPO.

Key dates for Aspire & Innovative Ltd?

Aspire & Innovative IPO opens on March 26, 2024, and closes on March 28, 2024.

Aspire & Innovative Ltd Financial Information

Aspire & Innovative Advertising Limited's revenue increased by 35.46% and profit after tax (PAT) rose by 21.38% between the financial year ending with March 31, 2023 and March 31, 2022.

Based on the financial information provided for Aspire & Innovative Advertising Limited, here is the analysis and interpretation:

1. Revenue Growth

Aspire & Innovative Advertising Limited experienced significant revenue growth over the years. From March 31, 2021, to March 31, 2022, revenue increased by approximately 137.09%. Moreover, from March 31, 2022, to March 31, 2023, revenue witnessed a further increase of approximately 35.46%.

2. Profitability

The company's profitability, as measured by profit after tax (PAT), also demonstrated growth over the stated periods. PAT increased from ₹227.75 lakhs in March 2021 to ₹530.85 lakhs in March 2023, indicating a growth rate of about 132.88% during this period.

3. Asset Growth

Aspire & Innovative Advertising Limited's asset base expanded consistently over the years, indicating potential business expansion and investment in infrastructure. From March 31, 2021, to March 31, 2022, assets increased by approximately 52.79%, and further by about 24.97% from March 31, 2022, to March 31, 2023.

4. Financial Health

The net worth of the company has shown a steady increase over the years, reflecting a positive trend in its financial health and shareholder equity. Similarly, reserves and surplus have also grown, indicating retained earnings and strengthened financial reserves.

5. Debt Management

Total borrowing has increased over the years, particularly from March 31, 2022, to March 31, 2023, where it saw a significant rise. However, this increase may be attributed to strategic financing decisions for business expansion or operational needs.

Overall, the financial analysis suggests that Aspire & Innovative Advertising Limited has been experiencing robust growth in revenue and profitability, accompanied by an expansion in assets and financial reserves. However, investors should also consider the company's debt levels and its ability to manage and service its borrowings effectively.