Sat Kartar Shopping IPO: issue dates, price, and lot size

Sat Kartar Shopping Limited, a company specializing in Ayurveda healthcare, is preparing to debut in the market with an initial public offering (IPO) worth ₹33.80 crores, consisting of a fresh issue of 41.73 lakh shares. The subscription period for the IPO opens on January 10, 2025, and will close on January 14, 2025. Investors can follow the company’s progress as it gears up for its listing on the NSE SME platform, set for Friday, January 17, 2025.

The public offering includes equity shares with a ₹10 face value, priced within the range of ₹77 to ₹81 per share, and a lot size of 1,600 shares. Retail investors can participate with a minimum investment of ₹129,600 for one lot, while High Net-Worth Individuals (HNIs) are invited to subscribe with a minimum investment of ₹259,200 for two lots. The company has scheduled a quick post-subscription process, with share allotment notifications to be issued on January 15, 2025, followed by its listing on the NSE SME platform on January 17, 2025.

Sat Kartar Shopping IPO details

Sat Kartar Shopping Limited IPO is a fundraise worth ₹33.80 crores comprising purely of a fresh issue with 233,600 shares reserved for the market maker Prabhat Financial Services Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 10, 2025, to January 14, 2025, providing an opportunity for investors looking to gain a stake in the company.

Sat Kartar Shopping IPO timeline

The Sat Kartar Shopping Limited IPO opens for subscription on January 10, 2025, and closes on January 14, 2025, with allotment scheduled for January 15, 2025.

Sat Kartar Shopping IPO review

Sat Kartar Shopping Limited, established in June 2012, is a holistic wellness company that leverages traditional Ayurvedic principles to develop natural healthcare and lifestyle solutions. The company distributes its products through multiple channels, including its own website, e-commerce platforms, television marketing, and digital advertising on Google and Meta platforms. Their primary focus is on delivering therapeutic products for specific health conditions and lifestyle-related health issues, with offerings ranging from addiction treatment to personal care products like Addiction Killer and Liv Muztang.

The company is actively expanding its product portfolio to address a broader spectrum of health concerns, including weight management, hair care, digestive health, PCOD, and mental wellness solutions. With a workforce of 1,122 employees as of November 2024, Sat Kartar Shopping operates across various departments to deliver natural wellness solutions that bridge traditional Ayurvedic practices with modern healthcare needs.

The primary objectives of this issue are to secure funding for multiple strategic initiatives, including potential acquisitions both domestically and internationally, marketing and advertising campaigns, capital expenditure requirements, technological investments, general corporate purposes, and covering the costs associated with the issue itself.

Sat Kartar Shopping IPO financials

The Sat Kartar Shopping Limited IPO’s key performance indicators, As of March 31, 2024, reflect the company's financial health with a Return on Equity of 66.84%, Return on Capital Employed (ROCE) at 91.55% and a Debt-to-Equity ratio of 0.19. The Return on Net-Worth (RoNW) stands at 66.84%, and the PAT Margin was 4.93%. The Price to Book Value was 2.40. The company’s market capitalisation is ₹127.53 crore.

Amount in ₹ lakhs

The pre-IPO EPS is at ₹5.45 while the post-IPO EPS will be ₹4. Similarly, the pre-IPO Price to Earnings ratio is 14.87 and will become 20.23 post-IPO.

Sat Kartar Shopping IPO strengths

Sat Kartar Shopping has established itself as an emerging brand with a comprehensive pan-India presence, operating through a highly efficient asset-light business model that enables scalability and operational flexibility. The company maintains a strong digital media footprint across platforms like Google, Meta, and various e-commerce channels, which facilitates broad market reach. Their commitment to customer privacy through anonymity features sets them apart in the healthcare sector.

The company's operational excellence is demonstrated through their robust in-house research and development capabilities, backed by clinical trials that ensure product quality and efficacy. Their well-structured logistics process and direct-to-consumer (D2C) model enable effective market anticipation and foster strong customer relationships. This infrastructure, combined with their focus on emerging market segments in India, positions them favorably for continued growth and market expansion.

Sat Kartar Shopping IPO weaknesses

As a company led by first-generation entrepreneurs, Sat Kartar Shopping faces challenges related to limited business management experience, which could affect growth opportunities and potential partnerships. The company's heavy reliance on digital platforms for marketing and third-party e-commerce platforms creates significant dependency risks. Additionally, operating from leased business premises introduces operational vulnerability, as any need to relocate could disrupt business continuity. The absence of owned manufacturing facilities, with complete dependence on third-party manufacturers, adds another layer of operational risk.

The company faces several structural challenges, including the board's limited experience with listed companies and exposure to consumer complaints and potential litigation due to the nature of their products. Their revenue concentration in five key states makes them vulnerable to regional market fluctuations. The significant dependence on their top 10 suppliers for finished goods creates supply chain risks, while their strong reliance on brand recognition means any damage to their reputation could seriously impact their business performance and financial results.

Should you invest in the Sat Kartar Shopping IPO?

Investing early in Sat Kartar Shopping Limited offers a potential opportunity to be part of the company’s growth in the Ayurveda healthcare sector. However, investors should thoroughly evaluate various factors, including the company’s operational history, financial stability, market dynamics, and growth plans. It's essential to consider your personal investment goals and risk tolerance before making a decision. Reviewing the offer document and seeking professional advice, if necessary, will help ensure a well-informed investment choice when considering participation in this IPO.

FAQs

What is the Sat Kartar Shopping Limited IPO?

The Sat Kartar Shopping Limited IPO is an NSE SME offering consisting of a fresh issue of 41.73 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹33.80 crores. The price band has been set between ₹77 to ₹81 per share, with a minimum order quantity of 1,600 shares. This IPO will be open for subscription from January 10, 2025, to January 14, 2025. Namolia Financial Services Limited is the book-running lead manager, Skyline Financial Services Private Limited is the registrar while Prabhat Financial Services Limited is the market maker.

When will the Sat Kartar Shopping IPO open?

The Sat Kartar Shopping Limited IPO will open for subscription on January 10, 2025, and will close on January 14, 2025.

When is the Sat Kartar Shopping IPO listing date?

The tentative listing date for the Sat Kartar Shopping Limited IPO is Friday, January 17, 2025.