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Faalcon Concepts Limited IPO Review: Faalcon Concepts Limited has issued 19,50,000 shares at INR 62 each, for a total of INR 12.09 crore. The company plans to purchase façade structural equipment, meet working capital requirements, and address general corporate demands.
Faalcon Concepts Limited IPO – Important Dates
| Faalcon Concepts IPO Date | April 19, 2024 to April 23, 2024 |
| Faalcon Concepts IPO Listing Date | April 26, 2024 |
| Faalcon Concepts IPO Price | INR 62 per share |
| Faalcon Concepts IPO Lot Size | 2000 shares |
| Faalcon Concepts IPO Total Issue Size | INR 1,209 lakhs |
| Faalcon Concepts IPO Basis of Allotment | April 24, 2024 |
| Faalcon Concepts IPO Initiation of Refunds | April 25, 2024 |
| Faalcon Concepts IPO Credit of Shares to Demat | April 25, 2024 |
| Faalcon Concepts IPO Issue Type | Fixed Price Issue IPO |
| Faalcon Concepts IPO Listing At | BSE, SME |
Faalcon Concepts Limited IPO – Company Profile
Faalcon Concepts Limited, founded in 2018, specializes in developing, engineering, producing, and installing technically challenging façade solutions. It offers specialized solutions for challenging projects and has built a solid reputation among customers.
They offer a wide range of products, including glass, doors, skylights, and cladding. They prioritize UV, rain, and noise resistance and service clients in many states from their Gurugram, Haryana headquarters.
The company, which is accredited as a merchant exporter, distributes numerous façade materials around the world. It ensures client satisfaction with innovative solutions and is ISO certified. In addition, the organization completes projects in a variety of industries around the world.
Faalcon Concepts Limited IPO Financials
Faalcon Concepts Technologies’ financial analysis shows a mixed performance. Revenue initially increased but eventually fell short. Profitability improved significantly, but equity continued to grow. The return on net worth decreased, reflecting varying firm performance.
- Revenue Trend: The revenue dropped from ₹1,840.80 lakhs in March 2022 to ₹1,315.17 lakhs in March 2023. The revenue for the current year’s seven-month period ending October 2023 is INR 1,246.55 lakhs, which falls short of the previous year’s benchmark.
- Equity and Liabilities: Equity has consistently increased over time, indicating potential growth and expansion.
- Profitability: The profit after tax (PAT) has increased from ₹97.79 lakhs in March 2022 to ₹131.82 lakhs in October 2023. This increase in profitability could boost investor confidence.
- Earnings per Share (EPS): The diluted EPS increased from ₹2.01 in March 2022 to ₹2.71 in October 2023, indicating better earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has fallen from 75.80% to 20.88%, suggesting a decline in the company’s capacity to create returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth.
Faalcon Concepts Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 October 2023 |
| Revenue (₹ in lakhs) | 1,840.80 | 1,315.17 | 1,246.55 |
| Equity (₹ in lakhs) | 129.02 | 327.53 | 631.39 |
| Expenses (₹ in lakhs) | 1,719.60 | 1,085.03 | 1,069.51 |
| Profit and Loss After Tax (₹ in lakhs) | 97.79 | 179.52 | 131.82 |
| Diluted EPS only (₹) | 2.01 | 3.69 | 2.71 |
| Return on Net Worth (%) | 75.80 | 54.81 | 20.88 |
| NAV per Equity Share (₹) | 2.66 | 6.73 | 12.96 |
| Total Assets (in lakhs) | 916.77 | 1,292.64 | 1,417.67 |
| Total Liabilities (in lakhs) | 787.75 | 965.11 | 786.29 |
Faalcon Concepts Limited IPO Peer Comparison
Faalcon Concepts Limited has lower comparison indicators than Innovators Façade Systems Ltd., indicating potential financial performance and shareholder value differences.
| Company | CMP (₹ in lakhs) | Face Value (₹) | P/E (₹) | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Faalcon Concepts Limited | 62 | 10 | 16.80 | 3.69 | 54.81 | 6.73 |
| Innovators Facade Systems Ltd. | 199 | 10 | 44.42 | 4.48 | 7.55 | 59.32 |
Faalcon Concepts Limited IPO Objective
Falcon Concepts Limited’s primary goal is to fund the acquisition of façade structural equipment while also meeting working capital requirements.
- To fund the capital expenditure for the acquisition of façade structural equipment: The company plans to use INR 2.51 crores of the net proceeds to fund capital expenditure for procuring façade structural equipment, improving operating capabilities, and expanding infrastructure to satisfy client demand.
- To partially finance the requirement for Working Capital: The company, which specializes in façade systems, is facing rising working capital requirements due to extended project timelines and capital-intensive nature. It intends to allocate Rs. 5.75 crores from the net revenues to cover these requirements.
- To meet General corporate purposes: The balance fund will be used to support general corporate goals such as business expansion, strategic initiatives, brand building, infrastructure strengthening, loan repayment, and contingencies, in accordance with applicable legislation.
Faalcon Concepts Limited IPO Risks and Challenges
Falcon Concepts Limited’s risk includes unresolved litigation harming its reputation, a significant reliance on customer relationships for orders, and vulnerability owing to strong reliance on a few key suppliers, which could affect corporate operations and financial stability.
- The existence of unresolved litigation concerning their firm and promoters is a big risk, as a negative conclusion could have a considerable impact on their reputation, business operations, financial health, and cash flow.
- They rely heavily on customer relationships to generate new orders from present and past clients. Failure to maintain or create new partnerships could have a substantial negative impact on their business operations and profitability.
- Their reliance on a few key vendors for material sourcing makes the organization susceptible. Any supply disruptions or pricing changes from these suppliers could have a substantial impact on their business operations and their financial well-being.
Faalcon Concepts Limited IPO – Industry & Market Potential
The India facade market was valued at US$ 2,638.2 million in 2022 and is expected to reach US$ 4,254.5 million by 2028, with an 8.23% CAGR. Facades provide aesthetic appeal, weather protection, and energy efficiency.
The real estate sector, which includes housing, retail, hotel, and commercial components, is a key engine of economic growth. India’s residential market expanded significantly in FY23, with record-high sales volumes and values.
India Ratings & Research anticipates a 9% year-over-year increase in housing sales for fiscal year 2023-24, with Grade I players experiencing 15-18% growth. Residential sales in the top eight cities increased by 18% between 2022 and 2023.
Faalcon Concepts Limited IPO Allotment Structure
Faalcon Concepts Limited’s IPO allotment structure has three categories: Retail Individual Investors (RII) with investments under ₹2 lakhs, other investors with investments beyond ₹2 lakhs, and 98,000 shares reserved for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares worth less than Rs. 2 lakh.
- Other than retail individual investors: Such applications have a value that exceeds INR 2 lakh.
- Market Makers Reservation: Market makers are allocated a specific percentage or number of shares. The corporation has reserved 98,000 shares for this purpose.
Faalcon Concepts Limited IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 19 April to 23 April 2024 | 62 | 5 | 67 (8.06%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
