SME IPO: Fone4 Communications (India) Limited IPO

Grey Market Trend News :
On 27 April 2022
Subject to Rates# :  Rs 7000
GMP Rates :  – nil
Past Trend details at the bottom

Subscription Trend on 27 April 2022 @ 5.00 pm
NII (50%) 3230,000 Sh : 7.43 T
RII (50%) 32,30,000 Sh : 22.07 T
Tot 64,60,000 Sh : 14.75 T

IPO Opening Date Apr 25, 2022
IPO Closing Date Apr 27, 2022
Issue Type Fixed Price Issue IPO
Face Value ?10 per equity share
IPO Price ?10 per equity share
Market Lot 10000 Shares
Min Order Quantity 10000 Shares
Listing At BSE SME
Issue Size 6,800,000 Eq Shares of Rs10
(aggregating up to Rs6.80 Cr)
Fresh Issue 6,800,000 Eq Shares of Rs 10
(aggregating up to Rs6.80 Cr)
Retail Shares Offered 50% of the net offer
NII (HNI) Shares Offered 50% of the net offer

Net IPO size  Rs. 6.46 Crore/ 6460,000 Shares
Retail Quota : 50 % ( net  3230,000 Shares)
Price Band ( FV Rs. 10) of Rs. 10

Retail Min Application : 10000 Shares/ Rs. 100,000
Retail Max Application : 20000 Shares/ Rs. 200,000
Retail : 323 Applications required for one time subscriptions.

IPO Timetable:
Basis of Allotment Date May 2, 2022
Initiation of Refunds May 4, 2022
Credit of Shares to Demat Account May 5, 2022
IPO Listing Date May 6, 2022

Business :

Fone4 Communications (India) Limited – An online E-commerce Electronics outfit commenced its business in the year 2014 headquartered at Cochin, Kerala. Inspired by the growth in the
Online E-Commerce segment particularly for electronics and electricals gadgets, the Company developed a robust Technological Platform www.fone4.in, wherein customers could buy their desired products through online E-Commerce with attractive offers and more particularly during festive and other seasons. The company has a wide range of offerings through both online as well as offline platform for electronic gadgets and accessories for Smart Phones, Laptops, Smart Television etc on the likes of Apple, Samsung, Oppo, Vivo, Xiaomi, Nokia, Redmi, Techno, Karbonn, One Plus, Dell, Lenovo, Asus, HP, Acer, Avita, TCL, LG, Sansui etc.
The Company to boost the online E-commerce sales in the State of Kerala, gradually started opening up retail stores at strategic locations and presently the company has 25 showrooms spread at: (Calicut (02), Cochin (06), Kollam (02), Kottayam (02), Malappuram (01), Palakkad (07), Thrissur (02), Trivandrum (03)). Whilst the retail stores are located at prominent locations to attract greater footfalls but the overall idea was to effectively deliver the products booked through online.

Though E-Commerce has no boundaries but to be more effective the delivery logistics chains play a key role in this model to be more successful. The Company has a plans to expand the base to the entire Southern Region by either having its own Retail Stores or through a franchise model. The presence in the Southern Region will make our company as well as its E-Commerce model a One Stop Techno Hub for buying leading brands of electronics gadgets and accessories. The Company has tied-up with several reputable brands under the sub-dealership arrangement, to showcase their products, both at its Retail Outlets as well as on its online E-Commerce portal.
The Company plans to expand the base through strategic acquisition in the similar field and in the logistics arena. The Company also has plans to strengthen its Technological platform so that more and more innovative tools can be made available to customers at large at a most competitive pricing.
Click https://www.fone4.in/

Promoters:

Mr. Sayyed Hamid and Mrs Roudha Zerlina

Objects of the Issue:

To meet the working capital requirements of the company.

Registered office :

Fone4 Communications (India) Limited
1st Floor, 45/692-B,
Ashna Arcade, Vylopilly Road,
Thammanam Ernakulam 682032,
Company Secretary and Compliance Officer: Ms. Nisha Shaw

Lead Manager:

Finshore Management Services Limited

Observations & Guidance by Paresh Gordhandas ( Research Analyst) : 

SME IPO Financial & Analytical Ratios#
Earnings per Share 2019-20,Rs (5.59)
Earnings per Share 2020-21 Rs (0.57)
Return on Net Worth: 19-20 (1182.60) %
Return on Net Worth: 20-21: (_) %
Book Value of the Share as on 30.12.21 Rs 7.08
Book Value of the Share after the IPO Rs 8.95

IPO Peer Comparison:
None of the listed companies in India offer products or services across the various business segments
in which the company operates. Hence a strict comparison is not possible.

Observation by Paresh Gordhandas ( Research Analyst )
The business in which the company operates has tough competition from the giants like Amazon, Flipkart etc. The past performance is also not impressive.

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News of Grey Market Past Trend
On 25 April 2022 @ 7.00 pm SbT# :  Rs 14000 but no trades