Forcas Studio, a clothing retailer, made a strong debut on the NSE’s SME platform today.
The company’s IPO was highly successful, with an overall subscription of 417 times.
Shares were issued at Rs 80, but they opened at Rs 152 on listing day, giving investors a 90% gain right from the start.
The shares continued to rise, hitting the upper circuit at Rs 159.60, which means investors have now nearly doubled their money with a 99.5% profit.
IPO Details and Company Background
The IPO, worth Rs 37.44 crore, was in high demand.
The portion reserved for Qualified Institutional Buyers (QIB) was subscribed 205.39 times, Non-Institutional Investors (NII) subscribed 701.85 times, and retail investors subscribed 415.82 times.
A total of 46.80 lakh new shares were issued, each with a face value of Rs 10.
The funds raised will be used to upgrade the company’s warehouse, repay debt, meet working capital needs, and for general corporate purposes.
Strong Financial Growth of Forcas Studio
Forcas Studio, founded in 2010, sells a wide range of clothing including shirts, jeans, T-shirts, trousers, and sportswear under the brands FTX, Tribe, and Conteno.
Their products are available online and through major retailers like V-Mart Retail, V2 Retail, and Metro Bazaar.
The company operates four warehouses in Kolkata to support its supply chain.
Financially, Forcas Studio has shown significant growth. The net profit increased from Rs 55.55 lakh in the financial year 2021 to Rs 1.15 crore in 2023.
The company’s revenue has grown at a compound annual growth rate (CAGR) of over 18%, reaching Rs 71.62 crore in 2023.
In the first 11 months of the financial year 2023-24, Forcas Studio reported a net profit of Rs 5.53 crore and revenue of Rs 96.48 crore.
