IPO Details
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IPO Size
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Schedule of Ravelcare IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Ravelcare IPO
The IPO of Ravelcare Ltd comprises a fresh issue of up to 20,00,000 equity shares. There’s no offer for sale in this IPO which is a 100% book-built issue. The price band and the lot size are TBA.
The IPO opens on TBA and closes on TBA. The listing date is TBA. The initiation of refunds will take place on TBA. The allotment date is TBA. The credit of shares to the demat account will take place on TBA.
Objectives of Ravelcare IPO
- Funding the company’s organic growth initiatives, which includes:
➔ Marketing and awareness of the brand “Ravel”
➔ Funding the expansion of the company’s geographical footprint
➔ Investment into research and product development
- General corporate purposes
Ravelcare IPO Valuation
Ravelcare IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
Beauty and personal care market in India encompass the following sub-segments: Skincare, Oral Care, Hair Care, Men's Grooming, Makeup & Cosmetics, Fragrance, and Bath & Shower. The Indian beauty and personal care market is expected to grow at a CAGR of 9.6% from 2021 to 2026. Note that over the last decade, India has seen consistent growth in the personal care and cosmetics market with increasing shelf space in boutiques and retail stores across the country.
The Indian cosmetics industry is majorly categorised into skin care, hair care, oral care, fragrances, and colour cosmetics segments. The overall market share is expected to grow to US$ 20 billion by 2025 with a Compound Annual Growth Rate (CAGR) of 25%. On the other hand, India’s beauty, cosmetics and grooming market is expected to reach US$ 20 billion by 2025. The market share of organised and unorganised will be 44:55 by 2025 from the existing ratio of 25:75.
Company Information
Ravelcare Ltd specialises in personalised hair care, skincare and bodycare products within the beauty and personal care industry. Its core mission is to redefine beauty standards by offering bespoke products meticulously crafted to meet the needs and preferences of customers. It focuses on harnessing top-tier ingredients, cutting-edge product research, and direct customer feedback to curate exceptional formulations that deliver transformative results.
Its dedication to personalised beauty regimens empowers individuals to embrace their distinctiveness and enhances their self-assurance. It aims to foster a movement towards personalised self-care by revolutionising how people perceive and engage with beauty, thereby enhancing the overall customer experience.
Ravelcare IPO Strengths
Digital Distribution Channel
Ravelcare Ltd adopts a direct-to-consumer model, selling products directly through its website as well as from e-commerce websites such as Amazon and Flipkart. This approach eliminates intermediaries, allowing it to maintain control over the entire customer experience, from discovery to delivery.
It also enables it to offer competitive pricing by reducing distribution costs. Its digital strategy encompasses a variety of channels, including social media, email campaigns, WhatsApp and SMS marketing and targeted online advertising. By engaging with customers across multiple touchpoints, it builds strong brand awareness and fosters a loyal community.
Data-Driven Decision Making
The company leverages customer data to gain insights into consumer behaviour, preferences, and emerging trends. This data is critical for continuous product innovation and enhancement. By analysing customer feedback, market trends and purchasing patterns, it can swiftly adapt its offerings and marketing strategies for ensuring better services to its target customers.
Research and Development
The company’s products are developed in collaboration with formulation chemists who specialise in hair care, skincare and body care formulations. This collaboration ensures that its formulations are backed by cutting-edge product research and adhere to the highest standards of quality and efficacy. With advanced R&D efforts it focuses on leveraging the latest advancements in beauty science to deliver effective and innovative products.
Risks of Ravelcare IPO
- Dependence on Few Suppliers for Products
The company is dependent on few suppliers for purchase of products. Loss of any of these large suppliers may affect its business operations. It cannot assure that it will be able to get the same quantity and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.
- Not Own Registered Office
The company doesn’t own its Registered Office from where its operations are being conducted and have been taken on lease. Any difficulty in seeking renewal or extension of such lease terms may cause disruption in its operations.
- Dependence on Third-party Manufacturers for Products
The company’s dependence on third-party manufacturers for all our products subjects it to risks, which, if realised, could adversely affect its business, results of operations, cash flows and financial condition. It subjects the company to various risks such as product liability for incidents, change in cost of acquisition of products, etc.
All Financial Information about Ravelcare IPO
Comparison with peers
| Company | Revenue (in ₹crores) | EBITDA Margin (in %) | Return on Equity (in %) |
|---|---|---|---|
Ravelcare Ltd | 22.08 | 30.38 | 187.41 |
Macobs Technologies Ltd | 20.62 | 16.55 | 36.06 |
FSN E-Commerce Ventures Ltd | 6386 | 5.89 | 2.44 |
Honasa Consumer Ltd | 1764 | 10.65 | 13.8 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Marwadi Chandarana Intermediaries Brokers Private Ltd
Business Model
Specialising in personalised haircare, skincare and body care products, Ravelcare Ltd business model focuses on a direct-to-consumer (D2C) approach, strategically leveraging e-commerce platforms and digital channels to engage with customers directly. Its core business is to deliver tailored haircare, skincare, and body care products.
Company Growth Trajectory
The revenue of operations of Ravelcare Ltd increased from ₹0.7886 crores in FY 22 to ₹22.0878 crores in FY 24. Its EBITDA margin increased from 27.61% in FY 22 to 30.38% in FY 24. The company’s profit after tax increased from ₹(0.2819) crores in FY 22 to ₹5.0954 crores in FY 24. Digital distribution channels coupled with data-driven decision-making has helped in the company’s growth.
Market Position
Ravel Ltd has sales across India, from north to south and from east to west. As on date of the company’s draft red herring prospectus (DRHP), it had served 2,02,861 customers on Pan India basis. Also, as on the date of the DRHP, the company had 11 master SKUs and 40 child SKUs. It introduced 4 SKUs and 3 SKUs in haircare & skincare range respectively during the financial year 2023-2024. It introduced 4 SKUs and 1 SKU in haircare & skincare range respectively in the first quarter of financial year 2024-25.
Ravelcare IPO Profit and Loss
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Total Income (in ₹crore) | 22.2788 | 3.4937 | 0.7886 |
Restated Profit /(Loss) Before tax (in ₹crore) | 6.8088 | 0.5064 | (0.2254) |
Profit After Tax (in ₹crore) | 5.0954 | 0.5624 | (0.2819) |
EBITDA (in ₹crore) | 6.7104 | 0.5095 | (0.2178) |
Basic EPS in ₹ | 10.18 | 1.12 | (0.56) |
Ravelcare IPO Cash Flow Statement
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Restated Profit/ (Loss) Before Tax (in ₹crore) | 6.8088 | 0.5064 | (0.2254) |
Net Cash from Operating Activities (in ₹crore) | 6.4860 | 1.0029 | (0.4103) |
Net Cash (Used In) from Investing Activities (in ₹crore) | (6.9167) | (0.0116) | 0.0001 |
Net Cash (Used in)/Generated from Financing Activities (in ₹crore) | (0.4365) | (0.0113) | 0.4094 |
Closing Balance of Cash and Cash Equivalents (in ₹crore) | 0.1179 | 0.9852 | 0.0052 |
How to Check Allotment Status of Ravelcare IPO?
1. Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
- Click on any one of the appearing links
- Choose IPO name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’ to know the status
2. Check on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Ravelcare Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Ravelcare IPO?
To apply for this 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.
Ravelcare IPO FAQs
Where can I read more about Ravelcare business?
You can read more about Ravelcare and its IPO from the company’s red herring prospectus (RHP) here.
What is the Ravelcare Technologies Ltd IPO?
The IPO of Ravelcare Ltd consists of a fresh issue of up to 20,00,000 equity shares. It has no offer for sale.
When will the IPO of Ravelcare Ltd go live?
The exact dates of the Ravelcare Ltd IPO are yet to be announced.
From where can I read more about Ravelcare Ltd and its IPO?
You can read more about Ravelcare Ltd and its IPO from the company’s draft red herring prospectus here.
