Nakshatra Asset Ventures IPO Details
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Schedule of Nakshatra Asset Ventures IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Nakshatra Asset Ventures IPO
The IPO of Nakshatra Asset Ventures Ltd comprises a fresh issue and an offer for sale of up to 2,66,34,000 and 42,99,000 shares respectively. It’s a 100% book-built offer.
Objectives of Nakshatra Asset Ventures IPO
- To meet out the expenses of identified acquisition
- To meet out the expenses towards minimum contribution for AIF
- To meet out the expenses for investment in subsidiary of the company, Nakshatra Investment Managers Pvt Ltd
- To meet out the expenses for Investment in proposed Subsidiary of the company, Nakshatra Alternative Investment Pvt Ltd
- To meet out the expenses for general corporate purpose
Nakshatra Asset Ventures IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 2,66,34,000 shares |
Offer for Sale | Up to 42,99,000 shares |
EPS in ₹ for FY 24 | 18.84 |
Nakshatra Asset Ventures IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer size |
Non-institutional Investors | Not less than 15% of the net offer size |
Retail Individual Investors | Not less than 35% of the net offer size |
Industry Outlook
The Indian Alternative Investment Fund (AIF) industry has witnessed substantial growth in recent years, emerging as a significant player in the country's financial landscape. As of the quarter ending September 30, 2024, AIFs have shown remarkable progress in terms of commitments, funds raised, and investments made, underlining their growing role in driving innovation and economic development across multiple sectors.
These funds are crucial in channelling capital into high-growth areas and have gained traction as preferred investment vehicles for sophisticated investors seeking higher returns. The Indian AIF industry is poised for significant growth in the coming years, driven by a confluence of factors. The increasing prominence of impact investing, coupled with the government's strong emphasis on sustainable development, will likely propel the growth of AIFs focused on environmental, social, and governance (ESG) factors.
Company Information
Nakshatra Asset Ventures Ltd is a boutique entity for Stressed Asset Resolution through Acquisition and Advisory services offering a spectrum of solutions for all stakeholders involved including borrowers, lenders & various intermediaries such as Asset Reconstruction Companies (ARCs).
Services related to stress resolution business include resolution of debt through restructuring, one-time settlement, business restructuring, advisory related to stressed assets, due diligence in transactions involving sale of stressed assets, acquisition of stressed assets and its turnaround.
The company is also a sponsor of two SEBI registered Alternative Investment Funds and Nakshatra Alternative Investments Private Limited.
Strengths of Nakshatra Asset Ventures IPO
Diversified Product Portfolio
The company is a boutique entity for Stressed Asset Resolution through Acquisition & Advisory thereon, offering a spectrum of solutions for all stakeholders involved including borrowers, lenders & various intermediaries such as Asset Reconstruction Companies (ARCs). Services related to stress resolution business include resolution of debt through restructuring, one-time settlement, business restructuring, advisory related to stressed assets, due diligence in transactions involving sale of stressed assets, acquisition of stressed assets and its turnaround.
Proven success and a client-centric approach make it the trusted choice for recovery
A client centric approach is the key strength in its business. By placing the needs and satisfaction of its clients at the forefront, the company ensures that every aspect of its services is designed to meet their expectations and address their concerns effectively. Its focus on understanding the unique circumstances of each client enables it to provide tailored solutions that deliver tangible results.
Through active listening and continuous feedback, it strives to build trust and foster long-term relationships with its clients, positioning it as their trusted partner in safeguarding and recovering their investments.
Established operations and proven track record
They have established operations. Their company was formed in the year 2013 and since then they have been focused on scaling up and increasing the profit after tax. They had a profit after tax of ₹1,828.37 in FY 2021-2022 despite the COVID crisis. In FY 2022- 2023 the company had a PAT of ₹21.8575 crores and for the year ended March 31, 2024, of ₹30.9503 crores based on consolidated financials.
Risks of Nakshatra Asset Ventures IPO
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Geographical Concentration: The company’s business operations span various regions across India. However, a significant portion of their revenue is concentrated in Maharashtra. Any factors relating to political and geographical changes, growing competition and any change in the demand for our service by customers of these states may adversely affect its ability to retain them.
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Regulatory Compliance Requirement: The company is subject to various laws and regulations and required to comply with several regulatory compliance requirements, in jurisdictions where it operates, including environmental and health and safety laws and regulations, which may subject it to increased compliance costs, which may in turn result in an adverse effect on their financial condition.
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Arbitration or Litigation: The resolution of stressed assets frequently necessitates arbitration and litigation, which are accompanied by substantial risks, including potential financial losses, significant legal expenses, and the possibility of not recovering the anticipated value. Adverse outcomes in these proceedings could materially affect the financial performance and damage the reputation of the company.
Nakshatra Asset Ventures IPO Financials
Peer Comparison
| Company Name | PAT (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
Nakshatra Asset Ventures Ltd | 17.14 | 9.59 | 17.38 | 55.14 |
Nisus Finance Services Co Ltd | 23.05 | 12.55 | NA | 17.17 |
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Manager: Narnolia Financial Services Ltd
Business Model
Nakshatra Asset Ventures Ltd has three business verticals which are:
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Vertical 1: Stressed Assets Resolution through Acquisition and Advisory Services
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Vertical 2: Company is acting as a Sponsor to two registered Alternative Investment Funds and its proposed subsidiary Nakshatra Alternative Investments Private Limited is the investment manager to both the registered AIFs.
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Vertical 3: Company’s subsidiary Nakshatra Investment Managers Private Limited shall be applying for Portfolio Managers License with SEBI. After getting SEBI approval it will commence its operations. Company Growth Trajectory
The revenue from operations of Nakshatra Asset Ventures Ltd grew from ₹29.8263 crores in FY 22 to ₹31.4943 crores in FY 24. Its PAT grew from ₹18.2888 crores in FY 22 to ₹30.9503 crores in FY 24. A dedicated and experienced workforce along with a client-centric approach have helped in the company’s growth.
Market Position
Offering stressed asset resolution for several stakeholders including borrowers, lenders, etc., Nakshatra Asset Ventures Ltd aims to be the preferred partner for corporate entities navigating any problems related to stressed assets. It’s also the sponsor to two registered AIFs.
Nakshatra Asset Ventures Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 48.11 | 32.60 | 30.42 |
Profit Before Tax (in ₹ crores) | 40.33 | 29.34 | 24.56 |
Profit After Tax (in crores) | 30.95 | 21.85 | 18.28 |
EPS in ₹ | 18.84 | 13.58 | 11.36 |
Nakshatra Asset Ventures IPO Cash flow statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 40.33 | 29.34 | 24.56 |
Net Cash Flow from Operations (in ₹ crores) | (11.85) | 9.75 | 60.07 |
Net Cash Used in Investing Activities (in ₹ crores) | 18.06 | (44.60) | 3.87 |
Net Cash Flow from/ (used in) Financing Activities (in ₹ crores) | 3.54 | 2.75 | (34.06) |
Cash and Cash Equivalents at the Closing of the Year (in ₹ crores) | 9.77 | 0.01 | 32.10 |
How to Check the Allotment Status of Nakshatra Asset Ventures IPO?
Visit the Registrar’s Website
- Visit the official website of Bigshare Services Pvt Ltd
- Click on ‘IPO Allotment Status’ from ‘Solutions’
- Click on any one of the three servers
- Choose company name from dropdown and input either your PAN no, beneficiary ID or application no
- Enter captcha and click on ‘Search’ 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 Nakshatra Asset Ventures 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.
Nakshatra Asset Ventures IPO FAQs
Where can I read more about Nakshatra Asset Ventures business?
You can read more about Nakshatra Asset Ventures and its IPO from the company’s red herring prospectus (RHP) here.
What is the Nakshatra Asset Ventures IPO?
The IPO of Nakshatra Asset Ventures Ltd comprises a fresh issue and an offer for sale. The total number of shares in this IPO are 3,09,33,000.
When will the IPO of Nakshatra Asset Ventures go live?
The exact dates of the IPO are yet to be announced
