IPO Details
RHP/DRHPIssue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Ikeda IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About IKEDA IPO
The IPO of IKEDA Ltd comprises a fresh issue and an offer for sale. Fresh issue is up to 26,28,000 equity shares while offer for sale is up to 10,65,600 equity shares. It’s a 100% book-built issue. The price band is TBA. The lot size is TBA.
The opening date is TBA. The closing date is TBA. The listing date is TBA. The allotment date is TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA.
IKEDA Ltd is a tech enabled platform offering advanced financial technology solutions in B2B and B2B2C financial technology through an integrated business model via its online portal and mobile application.
The company segregates its services into these activities (i) Micro ATMs (ii) Direct Money Transfer (iii) Aadhar Enabled payments (iv) Utility Payments (v) Fund deposit (vi) Fund withdrawal (vii) Other services viz. Cash Management System, Insurance Service, Travel services, PAN card.
Objectives of IKEDA IPO
- Funding working capital requirements of the company
- General corporate purpose
IKEDA IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 26,28,000 equity shares |
Offer for Sale | Up to 10,65,600 equity shares |
EPS in ₹ in FY 24 | 3.21 |
IKEDA IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Applicants | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
The Indian Fintech industry’s total addressable market is estimated to be $1.3 Tn by 2025 and assets under management & revenue to be $1 Tn and $200 Bn by 2030, respectively. The payments landscape in India is expected to reach $100 Tn in transaction volume and $50 Bn in terms of revenue by 2030.
Company Information
IKEDA Ltd is a tech-enabled platform offering advanced financial technology solutions in B2B and B2B2C financial technology through an integrated business model via its online portal and mobile application.
The company segregates its services into these activities (i) Micro ATMs (ii) Direct Money Transfer (iii) Aadhar Enabled payments (iv) Utility Payments (v) Fund deposit (vi) Fund withdrawal (vii) Other services viz. Cash Management System, Insurance Service, Travel services, PAN card.
The company provides services in the Fintech sector that helps to revolutionise payment systems and transaction processing. The company provides services to last mile consumers who are often deprived of basic financial services.
Strengths of IKEDA IPO
Comprehensive Business Model for B2B, B2C, and B2B2C
IKEDA Ltd is a tech-enabled platform offering financial technology solutions through its online portal and mobile application, offering diverse services including Micro ATM, Direct Payment Transfer, payment of utilities bill and more.
All products and services are centrally conceived and IT processes are integrated. Adopting an omni-channel approach, it delivers varied services to clients and end-users. This combined approach makes the most of both B2B and B2B2C models, helping it find more opportunities for cross selling and upselling.
Asset Light and Scalable Business Model
The business strategy of the company revolves around a network partner-centric model that emphasises lean capital investment for network expansion. By associating with agents who operate their own premises and shops, it reduces its need for costly brick-and-mortar establishments.
This arrangement not only lowers the company’s operating expenses but also extends its reach into diverse markets through the local presence of its network partners.
Risks of IKEDA IPO
-
Revenues from Commission and Fees : A significant portion of the revenue is in the form of the commission and fees charged for the services provided. Currently its revenue is generated by its retailer/agents who are located in PAN India. Any material impact on the revenue from these agents will impact the company’s business, prospects, financial condition and results of operations significantly. The loss of any one or more of its major agents would have a material adverse effect on its business, cash flows, results of operations and financial condition.
-
Few Properties Not Owned by It : A few of the company’s properties, including the Registered Office of the company, are not owned by it. In the event, it’s unable to renew the lease/rent agreements, or if such agreements are terminated, it may suffer a disruption in its operations.
-
Significant Dependence on Service Providers : The company is significantly dependent on its agreements with service providers, Airtel Payments Bank, Paytm, Cashfree, Razorpay & PayU, and any breach or termination of the agreement or services could adversely affect its business and results of operations.
IKEDA IPO Financials
Peer Comparison
| Company Name | Revenue from Operations (in ₹ crores) | EBITDA Margin (in %) | PAT Margin (in %) |
|---|---|---|---|
IKEDA Ltd | 50.38 | 10.67 | 0.06 |
RNFI Services Ltd | 935.42 | 2.06 | 1.06 |
BLS E-Services Ltd | 301.47 | 16.56 | 11.12 |
Mos Utility Ltd | 186.77 | 9.56 | 6.50 |
Anchor Investor Bidding Date
TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Maashitla Securities Pvt Ltd
- Book Running Lead Manager: Fast Track Finsec Pvt Ltd
Business Model
IKEDA embarked on its journey in the fintech sector in 2019 with a mission to empower rural India by promoting accessibility to financial technology through simple and efficient financial solutions, contributing to the development of Digital Bharat. The services of IKEDA Ltd comprises:
- Domestic Money Transfer
- Micro ATM
- AEPS
- Fund Deposit
- Fund Withdrawal
- Other services include travel services, PAN card, cash management system and insurance services
Company Growth Trajectory
The EBITDA of IKEDA Ltd grew from ₹0.6303 crores in FY 22 to ₹5.3775 crores in FY 24, while EBITDA margin increased from 0.61% in FY 22 to 10.67% in FY 24. PAT margin witnessed a rise from 0.002% in FY 22 to 0.06% in FY 24. A comprehensive business model coupled and experienced leadership backed by a skilled professional team have contributed to the company’s growth over the years.
Market Position
As of its Draft Red Herring Prospectus (DRHP) date, IKEDA Ltd has partnered with 7 financial institutions, including national private and public sector banks, and payment banks. As business correspondents, it facilitates financial inclusion services.
In 2020, it launched a digital platform and initiated a pilot project in Rajasthan. Since the commencement of its operations, it has achieved remarkable milestones. As of June 30, 2024, it has processed over 75 lakh transactions and is present in over 27 states and 4 union territories.
IKEDA IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 50.39 | 25.12 | 104.08 |
Profit Before Tax (in ₹ crores) | 4.06 | 0.41 | 0.30 |
Profit After Tax (in ₹ crores) | 2.98 | 0.31 | 0.22 |
EBITDA (in ₹ crores) | 5.37 | 1.53 | 0.63 |
EPS in ₹ | 3.21 | 0.05 | 24.72 |
IKEDA IPO Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 4.06 | 0.41 | 0.30 |
Net Cash Flow from Operating Activities (in ₹ crores) | -4.05 | -1.34 | 0.89 |
Net Cash Used In Investing Activities (in ₹ crores) | -0.64 | -3.37 | -0.20 |
Net Cash Flow from Financing Activities (in ₹ crores) | 8.81 | 4.36 | 0.16 |
Cash & Cash Equivalents As At End of the Year (in ₹ crores) | 5.07 | 0.95 | 1.29 |
How to Apply for the IKEDA IPO?
Visit the Registrar’s Website
- Go to the official website of Maashitla Securities Pvt Ltd
- Choose ‘Public’ Issues from ‘Allotment Status’
- Select Company Name and enter either your PAN No, Application No or Demat Account No
- Click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for the IKEDA IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Ikeda IPO FAQs
Where can I read more about Ikeda business?
You can read more about Ikeda and its IPO from the company’s red herring prospectus (RHP) here.
What is the IKEDA IPO?
The IKEDA Ltd Ltd IPO comprises a fresh issue of up to 26,28,000 equity shares. It also has an offer for sale of up to 10,65,600 equity shares.
When will the IPO of IKEDA go live?
The exact dates of the IPO are not known.
