July 16, 2018
admin
Flemingo Travel Retail Ltd is expected to enter the Capital Market, 2018 July end or August frist week.
Short Note about the Company:
FTR is a global travel retailer with a leading position in the high growth Indian and Sri Lanka travel retail markets in terms of the number of locations where it operated core duty-free stores and the aggregate retail area of core duty-free stores . The Company has unique and interesting business and detailed note about the Travel Retail Sector and about this company is given in Page-bottom-box
The promoters :
ATUL VINI AHUJA AND FLEMINGO INTERNATIONAL (BVI) LIMITED
Main object of the issue is:
Out of the Fresh Issue of Shares
a)acquisition of 100% of the issued and paid-up share capital of Flemingo Dutyfree Shop Private Limited from our Corporate Promoter, Flemingo International, certain individual members of our Promoter Group being, Viren Ahuja, Arjun Ahuja and Karan Ahuja, and Symbolic Infra Projects Private Limited (“Symbolic”);
(b) acquisition of 100% of the equity interest in Flemingo International (UK) Limited (“Flemingo UK”) from our Corporate Promoter, Flemingo International; and
(c) general corporate purposes.
Offer of Equity Shares Up to [?] Equity Shares, aggregating up to INR [?] million
of which:
Fresh Issue Up to [?] Equity Shares, aggregating up to INR 24,230 million
Offer for Sale Up to 1,129,500 Equity Shares, aggregating up to INR [?] million
of which: Employee Reservation Portion Up to 150,000 Equity Shares, aggregating up to INR [?]
million
Financials:
For Fiscals 2015, 2016 and 2017, on a proforma consolidated basis, its total revenue was INR 24,069.08 million, INR 35,713.83 million and INR 38,950.10 million, respectively, which increased at a CAGR of 27.21%.
Its EBITDA was INR 1,346.02 million, INR 2,115.78 million and INR 1,622.04 million, respectively. For Fiscals 2015, 2016 and 2017,the Company, on an unconsolidated basis, generated total revenue of INR 4,253.71 million, INR 5,474.61 million and INR 6,063.79 million, respectively, which increased at a CAGR of 19.40%, and had an EBITDA of INR 308.89 million, INR 441.41 million and INR550.24 million, respectively.
Total Income of 2016-17 Rs.3895 Crore
Net Profit of 2016-17 Rs. (Loss)
Earnings per Share (EPS) Rs.(29.25)
Equity Capital as on 31.3.2017
Equity Capital after the IPO: Rs.
Upper Price Band/last EPS: ?
Book Value of the Share as per last Balancesheet Rs.(91.84)
Upper offer price/Book Value Ratio:
Return on Net Worth: (36.44)%
Lead Managers:
ICICI Securities Limited
Axis Capital ltd
Credit Suisse Securities (India)
Private Limited
HSBC Securities and Capital
Markets (India) Private Limited
YES Securities (India) Limited
Registrar to the IPO:
Link Intime India Private Limited
Registrered Office of the Company :
Chhatrapati Shivaji International Airport,
New Terminal 2, Sahar Road,
Andheri (East) Mumbai-400 099
IPO Analysis by Experts / Fund Managers
FTR is a global travel retailer with a leading position in the high growth Indian and Sri Lanka travel retail markets in terms of the number of locations where it operated core duty-free stores and the aggregate retail area of core duty-free stores
As of September 30, 2017, FTR had operations in 119 locations in 26 countries spread across the Indian Subcontinent ( India, Sri Lanka and Maldives operations), the US/Caribbean, Europe, the Mediterranean and Australia (its cruise line travel retail operations), Europe (its Baltona, Chacalli and Turkey operations) and the Rest of the World (its Middle East, Africa and St. Marteen operations). FTR started travel retail operations in India in 2003 and have expanded its operations successively into other emerging markets and, to diversify its revenue streams, into duty-free sales on cruise ships. According to the Avalon Report, along with its leading market position in the core duty-free segment in India and Sri Lanka, it is also one of the key players in the global cruise line travel retail market.
It derives its revenues from multiple sales channels, including airports, cruise lines, in-flight sales and other channels (including stores at seaport, border-crossing and downtown diplomatic/military duty-free locations). As of September 30, 2017, FTR operated 308 stores with an aggregate retail area of 39,625 square meters, including 99 stores located in 39 airports, 186 stores on-board 60 cruise ships, 23 stores at seaport, border-crossing and downtown diplomatic/military duty-free locations, and in-flight duty-free retail operations for seven airlines. In addition, it has recently forayed into a new sales channel, duty-free retail on ferries, which commenced operation out of Swinoujscie, Poland in November 2017.
The total value of the global duty-free sector is estimated to be US$ 63.4 billion in 2016 and is forecasted to grow to US$ 82.6 billion in 2021 registering a CAGR of 5.4% during the period.1 Looking ahead, the duty-free market presents an optimistic outlook based on strong growth in the international travel industry. This is because dutyfree shopping has moved beyond liquor and souvenirs to a wider retail offering with upscale luxury retail, clothing, fragrances & cosmetics and also due to the growth in the number of international travellers especially to and from China, Southeast Asia and the Indian Subcontinent .
A key factor that has contributed to strong passenger travel growth over the last 35 years is increasingly liberalised airline markets. Liberalisation has driven significant traffic growth by removing constraints on route entry . pricing, service capacity and airline cooperative arrangements. As airline competition and operating efficiency have grown, pricing has decreased in real terms, while flight frequencies and product choices have increased for passengers globally.
India – Airport Duty-free Market
The airport duty-free business in India has evolved from traditionally retailing only liquor and tobacco products.As part of this evolution, fragrances, cosmetics and confectionery have been added to the duty-free offering and now luxury and fashion brands are being added similar to with leading global duty-free locations. The airport duty-free market in India had sales of around US$ 374.6 million in 2016.5 It is estimated to reach around US$ 592.7 million by the year 2021, growing at a CAGR of 9.6% for the period of 2016-2022.6 This growth will be primarily be driven by growth in passenger traffic. India has seen healthy passenger traffic growth over the last ten years, as low-cost airlines have been gaining popularity. At present, airport security protocols mandate international passengers to report in advance (at least one-and-a-half hours and preferably three hours). Once consumers pass through security and immigration checks, they get considerable time to spend at the airport,
especially in the retail area where duty-free outlets dominate the retail offering. This waiting time contributes towards duty-free sales at airports. Travelers typically buy products at duty-free shops either for gifting purposes or personal use. Availability of a wide range of products including luxury goods at duty-free outlets together with a superior shopping experience attracts new consumers.
Cruise line – Global
The modern cruise industry has not only gained popularity over the past few years but has also become a major part of the tourism sector. The industry recorded an average of 8.5% annual growth over the last two decades and nearly 90 million passengers since 1980.10 It also offers of airlift options and modernised port structures that have enabled cruising to emerge as a vacation alternative.
In order to cater to the dynamic vacation pattern of today’s customers, the cruise industry is currently undergoing significant investment into new, more innovative and bigger vessels capable of carrying more than 5,000 passengers. In addition to this, inclusion of on-board activities such as multi-story shopping centres, restaurants, cafés and pubs, nightclubs, discos, casinos, art galleries and museums, theatres and cinemas, libraries, personal care areas and spas, gyms, swimming pools, tennis courts and ice skating rinks, increase the passenger footfall.
Global cruise passenger numbers have grown consistently from 14.6 million in 2007 to 24.6 million in 2016.Going forward, this steady growth is likely to continue and the number of passengers is likely to reach 30.3 million by 2022, registering a CAGR of 4% between 2016 and 2022.