Magenta Lifecare Ltd IPO: Open/Close Date, Price, Lot Size, Allotment, Subscription

Q: When will Magenta Lifecare Ltd's IPO open for subscription?

The IPO subscription window will open on June 5, 2024 .

IPO Details

Bidding Dates

05 Jun '24 - 07 Jun '24

Minimum Investment

₹140,000/1 Lot ( 4,000 Shares )

Price Range

₹35

Maximum Investment

₹140,000/1 Lot ( 4,000 Shares )

Retail Discount

To be announced

Issue Size

₹7.00 cr

Investor category and sub category

Qualified Institutional Buyers (QIBs) | Retail Individual Investors (RIIs) | Non-institutional Investors (NIIs) | Corporate Bodies |

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Jun 5, 2024

IPO Closing Date

Jun 7, 2024

Basis of Allotment

Jun 10, 2024

Initiation of Refunds

Jun 11, 2024

Credit of Shares to Demat

Jun 11, 2024

IPO Listing Date

Jun 12, 2024

Cut-off time for UPI mandate confirmation

Jun 7, 2024

About Magenta Lifecare Ltd

Magenta Lifecare Limited, established on August 04, 2015, specialises in foam-based products like mattresses and pillows marketed under the brand "Magenta." Their extensive product range includes memory foam, latex-based, bonded mattresses, pocketed spring variants, and various pillows such as memory foam, moulded memory foam, and moulded contour foam pillows.

The company attributes its success to its unwavering commitment to providing top-notch products to retail, hospitality, and institutional customers. Magenta Lifecare consistently introduces new and inventive products with the collective effort of its adept team. For instance, they've introduced herbal mattresses infused with green tea, bamboo charcoal, and specialised pet bed mattresses. Additionally, Magenta Lifecare imports processed raw foam and adjustable bed frames (hydraulic beds) under its brand.

Their product line caters to diverse consumers, ranging from value-added offerings to the premium segment. Crafted with thoughtful design, their products prioritise comfort, incorporating ergonomic design elements, thermal regulation, pressure relief, motion isolation, easy repositioning, and long-lasting durability. Their mattresses are engineered to support, comfort, and regulate body temperature, ultimately enhancing sleep quality.

Magenta Lifecare also offers customisable mattresses, providing various options in fabric, shape, firmness, material, height, foam type and density, personalisation, utility, and structure.

Their products retail offline, including multi-brand outlets, dealer networks, and online e-commerce platforms. Magenta Lifecare strategically appoints distributors on a regional basis to ensure the widespread availability of their products.

In 2022, post the pandemic's impact, the industry exhibited a gradual resurgence, projecting a growth rate estimated between 7 to 8 percent. Looking ahead to 2023, a significant scope emerges as a result of several industry-driven initiatives aimed at enhancing consumer welfare.

Magenta Lifecare Limited is actively leading the charge within the organised sector, strategically implementing various measures to counter the prevalent dominance of the unorganised sector.

Industry Outlook:

The Indian mattress industry is expected to grow at a CAGR of 9%, with the organized sector experiencing significantly faster growth. This trend indicates a growing market for high-quality mattresses, which could benefit the company by creating a larger potential customer base.
The organized sector, targeting better quality with innovative materials like memory foam, is growing significantly faster than the unorganized sector, creating an opportunity for the company to capture market share in this expanding segment.

Magenta Lifecare Ltd IPO Details

Magenta Lifecare Ltd IPO Dates

Magenta Lifecare Limited IPO is open from June 5, 2024, to June 7, 2024. The IPO will be listed on BSE SME.

Magenta Lifecare Ltd IPO Price Band

Magenta Lifecare Limited is a fixed-price issue IPO. The price is set to ₹35 per share.

Magenta Lifecare Ltd IPO Lot Size

The lot size for Magenta Lifecare Limited’s IPO is 1 lot of 4,000 shares, with a minimum investment of ₹1,40,000.

Magenta Lifecare Ltd Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

Funding Working Capital Requirements: Magenta Lifecare Limited plans to use ₹424.00 lakh of the net proceeds to cover projected working capital needs of ₹212.00 lakh each for FY 23-24 and FY 24-25.
General Corporate Proceeds: The company intends to utilise the rest of the gross proceeds for general corporate purposes, including strategic initiatives, partnerships, acquisitions, branding, marketing, and facility enhancements, ensuring compliance with the Companies Act.

Peer Details

The companies considered by Magenta Lifecare as its peers include:

Tirupati Foam Limited
Sheela Foam Limited

How to Check the Allotment Status of the Magenta Lifecare Ltd IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app.
Go to the Individual order details page of the IPO that you had applied for.
Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email and SMS.

Contact Details of Magenta Lifecare Ltd

Registered office: N P Patel Estate, A & T Padamla, Vadodara – 391350, Gujarat, India

Phone: +91 7573022234

E-mail: info@magentalifecare.com

IPO Financials

Particulars	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operations (in ₹ lakh)	906.61	924.40	964.74
Growth in Revenue from Operations (%)	-1.92%	-4.18%	NA
EBITDA Margin (%)	9.62%	11.50%	10.83%
Profit After Tax (PAT)	24.55	18.89	19.44
PAT Margin (%)	2.71%	2.04%	2.02%
Cash & Cash Equivalents	34.16	33.73	26.89
Debt to Equity Ratio(x)	0.87	2.09	6.88
Return on Equity (%)	5.56%	7.49%	14.60%
Return on Capital Employed (RoCE) (%)	11.86%	8.95%	7.64%

Know before investing

Strengths

Magenta Lifecare Limited boasts a diverse customer network nationwide, catering to retail, hospitality, and institutional sectors, mitigating dependency on any single source of revenue. The top ten customers contribute 69.55% (₹45.34 lakh) to revenue, maintaining relationships spanning over 5 years.
With an extensive pan-India distribution network spanning 15+ states and involving 26 distributors, Magenta leverages long-term partnerships. Sales personnel actively engage with key distributors, strengthening market presence through e-commerce platforms.
Specialising in foam-based products like mattresses and pillows marketed under the brand "Magenta," the company offers a broad range of innovative products. These include memory foam, latex, herbal mattresses, and imported items like processed raw foam and adjustable bed frames, fostering customer loyalty across various sectors.

Risks

Failure to anticipate or respond swiftly to evolving consumer trends in the foam industry might lead to a decline in product demand, affecting Magenta Lifecare Limited's business, financial condition, and operational results.
The inability to adopt new technologies timely and cost-effectively could negatively impact operations, cash flows, and financial conditions. Magenta Lifecare Limited's success relies on efficiently adapting to technological advancements and industry standards.
Difficulty in obtaining or maintaining necessary statutory permits and licenses might hinder operations, affecting Magenta Lifecare Limited's performance and results. This includes consent required to operate manufacturing facilities.
Magenta Lifecare Limited doesn't own its registered factory offices, leading to a vulnerability in case of lease termination or disputes. Any issues with these leased premises could adversely affect business operations.
Extended credit periods of 60 to 120 days to distributors and customers pose a risk of payment delays or defaults. Any delays may reduce profits and impact Magenta Lifecare Limited's cash flows.