Aspire & Innovative Advertising Listing: Stock makes tepid market debut, opens at 4.60% premium

Aspire & Innovative Advertising witnessed a tepid market entry today, on April 03, 2024, with its shares debuting at ₹56.50 each on NSE SME, marking a premium of 4.62% over the issue price of ₹54.

The SME IPO, amounting to ₹21.9 crore, was available for subscription from March 26 to March 28, 2024, within a price range of ₹51–54 per share. The IPO consisted solely of a fresh issue of 4,068,000 equity shares, without any offer-for-sale component.

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The IPO garnered an overall subscription of 15.17 times. Retail investors exhibited notable interest, subscribing to their segment 16.39 times, while non-institutional buyers showed strong enthusiasm with a subscription of 25.60 times. The qualified institutional buyers (QIBs) section witnessed a subscription of 5.21 times, as per data available on Chittorgarh.

Proceeds from the IPO are earmarked for capital expenditure, working capital requirements, debt repayment, and general corporate purposes.

Operating within the consumer durables trading sector, Aspire & Innovative Advertising offers an array of products, including kitchen appliances, home appliances, mobile phones, and solar products sourced from renowned brands like Bajaj, Prestige, Vivo, and Samsung, among others.

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Their product portfolio covers a spectrum of price ranges, ensuring accessibility to a diverse customer base across India, with a focus on rural and semi-urban regions. By consolidating multiple brands under one platform, the company aims to enhance the lifestyles of its customers.

Established in 2017, their objective is to deliver essential yet advanced products to rural and semi-urban communities, facilitating doorstep deliveries to underserved areas. They particularly aim to reach unbanked and underbanked customer segments through strategic partnerships.

In terms of financial performance, the company's revenue stood at 10,833.44 lakh in FY21, increased to ₹25,558.30 lakh in FY22, and further rose to ₹34,620.10 lakh in FY23. Additionally, for the first six months of FY24, the company reported revenue of ₹17,710.29 lakh.

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Regarding profitability, the profit after tax (PAT) was ₹227.75 lakh in FY21, which rose to ₹437.36 lakh in FY22, and further increased to ₹530.85 lakh in FY23. For the initial six months of FY24, the PAT stood at ₹393.28 lakhs.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.