Premium decorative surfaces innovator Lamosaic India Limited is set to make its market debut with a strategic initial public offering (IPO), beckoning investor attention in the burgeoning speciality laminates segment. The company's maiden public issue, valued at ₹61.20 crores, unveils a fresh issuance of 30.6 lakh equity shares, with the subscription window opening on November 21, 2024, and drawing to a close on November 26, 2024. Aspiring investors can track this emerging player's market journey as it prepares for its anticipated listing on the NSE SME platform, scheduled for Friday, November 29, 2024.
Lamosaic India Limited presents an intricately structured public offering, with equity shares of ₹10 face value being offered at a premium price point of ₹200 per share and a lot size of 600 shares. For discerning retail investors, the minimum investment commitment is ₹120,000, while High Net-worth Individuals (HNI) are invited to participate with a minimum subscription of ₹240,000. The company has orchestrated a swift post-subscription timeline, with share allotment notifications slated for November 27, 2024, followed by its debut on the NSE SME platform on November 29, 2024. As this premium laminates specialist embarks on its public market journey, investors stand at the cusp of an emerging opportunity in India's evolving decorative surfaces sector.
Lamosaic India Limited IPO is a fundraise worth ₹61.20 crores comprising purely of a fresh issue with 153,000 shares reserved for the market maker SVCM Securities Private Limited. Each investor category, retail and others, have been assigned 50% of the net issue. The IPO will be available for subscription from November 21, 2024, to November 26, 2024, providing an opportunity for investors looking to gain a stake in the decorative laminates space.
| Lamosaic India IPO Date | November 21, 2024 - November 26, 2024 |
| Fixed Price | ₹200 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Issue Type | Fixed Price Issue IPO |
| Fresh Issue Size | 3,060,000 shares worth ₹61.20 crores |
| Total Issue Size | 3,060,000 shares worth ₹61.20 crores |
| Listing at | NSE SME |
| Market Maker Portion | 153,000 - SVCM Securities Pvt Ltd |
| Share Holding Post Issue | 10,338,008 |
| Share Holding Pre Issue | 7,278,008 |
The Lamosaic India Limited IPO opens for subscription on November 21, 2024, and closes on November 26, 2024, with allotment scheduled for November 27, 2024.
| IPO Open Date | November 21, 2024 (Thursday) |
| IPO Close Date | November 26, 2024 (Tuesday) |
| Basis of Allotment | November 27, 2024 (Wednesday) |
| Initiation of Refunds | November 28, 2024 (Thursday) |
| Credit of Shares to Demat Account | November 28, 2024 (Thursday) |
| Listing Date on NSE SME | November 29, 2024 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on November 26, 2024 |
Lamosaic India Limited, established in January 2020, has rapidly evolved from a trading enterprise to include manufacturing capabilities in its portfolio. The company's strategic expansion in September 2023 saw the establishment of a 650 sq. ft. workshop in Chembur, Mumbai, marking its entry into manufacturing operations. Under its flagship brand "Lamosaic," the company offers a diverse product range including flush doors, decorative laminates, acrylic sheets, printing paper, and plywood.
The company distinguishes itself through its customer-centric approach, offering bespoke solutions in laminate and acrylic sheet design, along with made-to-order laminated and decorative flush doors. Operating exclusively within Maharashtra, the business model combines direct market sales with strategic distribution through a Mumbai-based franchise, ensuring efficient market penetration and customer service.
At the core of Lamosaic's competitive advantage lies its robust network of dealers, distributors, stockists, and wholesalers, complemented by an experienced management team and in-house design capabilities focused on India-specific product adaptations. The company's operational structure comprises nine employees and 23 unskilled labourers as of September 2024, demonstrating a lean yet effective organisational framework.
The company intends to strategically deploy the Net Proceeds from the Issue across four key objectives: retiring select existing borrowings to optimise its debt structure, addressing the growing working capital needs to support business expansion, pursuing inorganic growth opportunities through potential acquisitions or partnerships, and fulfilling general corporate requirements that align with its operational and strategic goals.
The Lamosaic India Limited IPO has grabbed attention as the company reportedly saw an annual rise of 75.25% in its revenue and 102.13% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of September 30, 2024, the key performance indicators reflect the company's financial health, with a Return on Equity (ROE) at 41.36% and a Debt-to-Equity ratio of 0.57, indicating that the company does not rely very heavily on debt financing. The RoNW stands at 41.36%, and the ROCE is seen at 39.95%. The PAT Margin was 14.77% and the Price to Book Value was 5.59. The company’s market capitalisation is ₹206.76 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 7,286.98 | 5,565.72 | 3,175.85 | 1,003.45 |
| Assets | 8,151.84 | 5,126.79 | 2,905.61 | 581.13 |
| Net Worth | 2,601.95 | 1,525.71 | 1,143.33 | 295.99 |
| Profit After Tax | 1,076.24 | 822.94 | 407.14 | 50.89 |
| Reserves & Surplus | 1,874.15 | 797.91 | - | - |
Amount in ₹ crores
The pre-IPO EPS is at ₹11.31 while the post-IPO EPS will be ₹20.82. Similarly, the pre-IPO Price to Earnings ratio is 17.69 and will become 9.61 post-IPO.
Lamosaic India has established a robust foundation in the decorative materials market through its diverse product portfolio and recent expansion into manufacturing, evidenced by its Mumbai workshop facility. The company's operational excellence is reflected in its ISO 9001:2015 certification, substantial order book of ₹5,618.04 lakhs for FY 2025, and the capability to offer over 200 unique laminate designs through in-house designers. Their strong distribution network, spanning four dealers across Maharashtra along with wholesalers and stockists, ensures efficient market penetration.
Led by promoters with over a decade of industry experience, the company has demonstrated impressive growth with a 75.25% revenue increase and 102.13% profit growth between FY23 and FY24. Their strategic positioning in the growing housing and renovation market, combined with their ability to serve both do-it-yourself (DIY) and premium segments, presents significant growth potential. The successful transition from trading to manufacturing further showcases their adaptability and market responsiveness.
The company faces significant operational vulnerabilities due to its limited operating history as a recently incorporated entity and high concentration risks, with laminates accounting for 86% of revenue in FY 2024. Their geographic restriction to Maharashtra exposes them to regional market fluctuations, while their dependency on leased premises poses operational continuity risks. The substantial reliance on top 10 suppliers for 94.81% of purchases in FY 2024 presents a critical supply chain concentration risk.
The financial structure presents notable challenges, including significant working capital requirements evidenced by trade receivables of ₹2,982.97 lakh in FY 2024, and existing debt obligations that could impact cash flow management. The company's strategy to pursue inorganic growth through acquisitions and joint ventures, while potentially beneficial, introduces additional risks related to integration and business model alignment, particularly challenging for a company with limited operational history.
Being among the early public investors in Lamosaic India Limited could present an opportunity to participate in the company's growth trajectory in the space of decorative laminates and plywood. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the Lamosaic India Limited IPO?
The Lamosaic India Limited IPO is an NSE SME offering consisting of 3,060,000 equity shares with a face value of ₹10, aiming to raise to ₹61.20 crore. The fixed share price has been set at ₹200, with a minimum order quantity of 600 shares. This IPO will be open for subscription from November 21, 2024, to November 26, 2024. Inventure Merchant Banker Services Private Limited is the book-running lead manager, Kfin Technologies Limited is the registrar while SVCM Securities Private Limited is the market maker.
When will the Lamosaic India Limited IPO open?
The Lamosaic India Limited IPO will open for subscription on November 21, 2024, and will close on November 26, 2024.
When is the Lamosaic India Limited IPO listing date?
The tentative listing date for the Lamosaic India Limited IPO is Friday, November 29, 2024.
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