ipo analysis on zomato and patym after and before ipo

ipo analysis of paytm and zomato

1. IPO Analysis Group assignment Member- Sushil Meghani , Yudhister , Aditya V adodariya , S heryansh

2. Company Selection : Mama Earth is an eco-conscious personal care brand specializing in natural and organic skincare, haircare, and baby care products. The company focuses on sustainability, using environmentally friendly packaging and toxin-free ingredients. Go Colour is a cosmetics company known for its bold and vibrant makeup products, including lipsticks, eyeshadows, and nail polishes. The brand emphasizes self-expression and inclusivity, catering to diverse customers. 01 02 mamaearth Go colors

3. Mama Earth: Company Name: Honasa Consumer Limited ( Mamaearth ) Industry : Beauty and Personal CareIPO Date : October 31, 2023, to November 2, 2023 Listing Date: November 7, 2023Issue Size: ₹1,701.44 CroresPrice Band: ₹308 to ₹324 per shareReasons for Going Public:The IPO comprised a fresh issue of shares aggregating to ₹365.00 Crores and an offer for sale of shares aggregating to ₹1,336.40 Crores. The public offering was likely aimed at funding business expansion, supporting working capital requirements, and providing an exit or partial exit for existing shareholders. Mamaearth

4. Reasons for Going Public : 1. Access to Capital : - Broadens access to capital from public investors. - Funds can be used for R&D, expanding product lines, scaling production. 2. Brand Visibility : - Enhances brand visibility, credibility in the market. - Attracts customers prioritizing sustainability, natural ingredients. 3. Liquidity for Investors : - Offers liquidity to existing investors (founders, early backers, employees). - Enables sale of shares on public market, realizing investment value. 4. Currency for Acquisitions : - Utilize stock as currency for acquisitions. - Consider acquiring complementary businesses, expanding product offerings .

5. Company Name : Go Fashion (India) Limited (Go Colors) Industry: Apparel (Women’s Bottom-Wear) IPO Details : - IPO Date : November 17, 2021, to November 22, 2021 - Listing Date : November 30, 2021 - Issue Size : ₹1,013.61 Crores - Price Band : ₹655 to ₹690 per share Reasons for Going Public : - The IPO included a fresh issue of ₹125.00 Crores and an offer for sale of 1.29 Crore shares. - Funds likely used for expansion of exclusive brand outlets, enhancing brand visibility, and general corporate purposes. Go colour

6. Reasons for Going Public : 1. Access to Capital : - Fuel growth initiatives like product development, marketing, international expansion. 2. Brand Recognition : - Elevate brand recognition, credibility. - Attract customers resonating with message of self-expression, inclusivity. 3. Liquidity for Investors : - Offer liquidity, enabling investors to monetize investments through share sales. 4. Acquisitions and Partnerships : - Leverage for potential acquisitions, partnerships. - Use publicly traded stock for strategic collaborations, acquiring complementary brands. 5. Employee Incentives : - Offer equity-based incentives to align employee interests with company's performance, growth objectives.

7. Mamaearth : - Market Conditions at IPO Time : - Beauty industry growing, driven by consumer awareness of natural products. - Mamaearth's digital-first approach leverages e-commerce boom, boosts sales. - Company’s Positioning : - Provider of toxin-free, natural beauty products. - Appeals to health-conscious consumers. - IPO boosts brand, expands product line, invests in marketing. - Market Trends and Challenges : - Trend towards sustainable, eco-friendly products supports growth. - Challenges: Intense competition, maintaining quality during rapid growth. .

8. Go Colors : - Market Conditions at IPO Time : - Apparel industry, especially women’s bottom-wear, expanding. - Consumers seek variety, comfort. - Go Colors taps unorganized market with wide range of styles, colors. - Company’s Positioning : - Pioneer in women’s bottom-wear segment. - Niche market created with diverse product portfolio. - IPO capital used to expand retail presence, enhance brand recognition. - Market Trends and Challenges : - Challenge: Maintain low marketing spends, manage inventory, fashion risks. - Organized bottom-wear market growth projected. - Must navigate competition, market dynamics for growth trajectory.

9. Financial Analysis Go Colors: Market Conditions at IPO Time: Apparel industry, especially women’s bottom-wear, expanding. Consumers seeking variety, comfort. Go Colors offered wide range of styles, colors, tapping into unorganized market. Company’s Positioning: Established as pioneer in women’s bottom-wear segment. Niche market created with diverse product portfolio. IPO provided capital to expand retail presence, enhance brand recognition . Market Trends and Challenges: Faced challenge of maintaining low marketing spends, managing inventory, fashion risks. Organized bottom-wear market projected to grow, but competition and market dynamics needed navigation for growth trajectory . .

10. Mamaearth ( Honasa Consumer Limited ): - Before IPO : - Centralized corporate governance. - Founders and key stakeholders made decisions. - Founders Varun Alagh and Ghazal Alagh led vision, strategy, and innovation. - After IPO : - Expanded corporate governance with broader shareholders and structured board. - Leadership role shifted to manage investor relations, regulatory compliance, and market transparency. - Leadership sustains growth amidst fast-paced fashion changes.

11. Mamaearth : - Evaluation: - Founders crucial to success, driving innovation and brand growth. - Challenges include managing increased scrutiny and balancing stakeholder interests. Go Colors : - Evaluation: - Saraogi family pivotal before IPO, steering company's direction and growth. - Post-IPO, formal governance framework introduced with diverse board. - Leadership now manages public shareholder expectations and enhances transparency. Overall: - Leadership's focus on expanding retail footprint and diversifying product portfolio key to post-IPO success. - Challenges include navigating competitive landscape.

12. Risks and Challenges Market Conditions : Significant risk: Volatility and unpredictability of stock market. Economic downturns or unfavorable conditions could impact IPO success and company valuation. Mitigation: Conduct thorough market research and timing analysis for optimal IPO window. 2.Valuation: Crucial to determine right IPO valuation. Overvaluing may reduce investor interest, undervaluing may leave money on table. Mitigation : Engage experienced investment bankers and financial advisors for thorough valuation analyses and appropriate pricing.

13. Risks and Challenges Regulatory Compliance : - Risk: Non-compliance with SEC regulations. - Consequences: Delays, fines, legal issues. - Mitigation: Work closely with legal experts, strict adherence to regulations. Market Perception : - Importance: Investor sentiment crucial for IPO success. - Risks: Negative publicity, market skepticism. - Mitigation: Proactive communication of business strategies, growth prospects, governance commitment through roadshows, presentations, media outreach.

14. Risks and Challenges Internal Readiness : - Requirement: Significant time, resources, organizational focus. - Challenges: Building robust financial reporting, enhancing governance, preparing for public scrutiny. - Mitigation: Invest in internal capabilities, hire experienced professionals, implement best practices. Competitive Landscape : - Challenge: Operate in competitive markets. - Risk: Intensified competition post-IPO. - Mitigation: Focus on unique value propositions, invest in innovation, execute strategic initiatives.

15. Conclusion and Recommendations:

16. Key Findings of the IPO Analysis: Positive Market Prospects Strategic Decision to Go Public Risks and Challenges Long-Term Growth Potential: Recommendations for Potential Investors or Stakeholders: Conduct Due Diligence Assess Risk Appetite Long-Term Perspective Monitor Performance Diversification:

17. T hanks