WomanCart Limited IPO opens on Monday, issue price set at ₹86. Check GMP, review, other details

WomanCart Limited IPO opens for subscription on Monday, October 16, and closes on Wednesday, October 18. WomanCart Limited IPO's price band is set at ₹86. The face value of equity shares is ₹10 each and the issue price is 8.6 times of the face value of the equity shares. Investors can bid for a minimum of 1600 shares and in multiples thereof.

WomanCart, founded in 2018, is an online retail platform that offers a diverse selection of beauty brands and wellness goods for men and women's skin care, hair care, and body care. Customers can choose from over 100 skincare brands offered by the company. The company also has an offline presence in Delhi's Shalimar Bagh, which will open in April 2022. The corporation developed four subsidiaries that acquired and ran internet businesses that were listed on an online platform.

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WomanCart IPO details

WomanCart IPO, which is worth ₹9.56 crore, is completely a fresh issue of 1,112,000 equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

The company intends to use the funds collected to fund the following goals and reap the rewards of being listed on the NSE's Emerge Platform.

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The issue's goals are to pay for issue expenses as well as general corporate purposes, app development costs, working capital requirements, branding and marketing costs, and issue costs.

The company plans to use its net proceeds, which total ₹13,554 thousand, for online platform marketing and brand branding. The company plans to use a total of ₹1,416 thousand in net proceeds towards app development. The business plans to use ₹57,004 thousand to cover its working capital needs during regular business operations, as per the RHP.

The company's (P/E ratio is 45.99) comparable listed peer is FSN E-Commerce Ventures Ltd (Nykaa) with a P/E ratio of 564.77.

Between the fiscal year ending on August 31, 2023, and March 31, 2023, WomanCart Limited's revenue fell by -12.57% while its profit after tax (PAT) increased by 15.62%, as per reports.

Maashitla Securities Private Limited is the registrar for the WomanCart IPO, and Narnolia Financial Services Ltd is the book running lead manager. Nikunj Stock Brokers is WomanCart IPO's market maker.

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WomanCart Limited IPO GMP today

WomanCart Limited IPO GMP today or grey market premium is +10. This indicates WomanCart share price were trading at a premium of ₹10 in the grey market on Friday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of WomanCart share price was indicated at ₹96 apiece, which is 11.63% higher than the IPO price of ₹86.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

WomanCart Limited Reviews

“The company is in digital consumer centric personal care product marketing for men and women. Its financial performance so far is average and not matching the asking price. Its compare with Nykaa appears to be an eyewash. Small equity base post IPO indicates longer gestation for migration to mainboard. Higher spending hints at fully structured IPO funding. Well-informed/cash surplus investors may park funds for long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.