Mach Conferences & Events IPO: Opens September 4, 2024
Mach Conferences & Events
Mach Conferences & Events IPO: Opening on September 4 with Plans to Raise ₹125.28 Crore
Mach Conferences & Events Limited, a prominent player in the event management sector, is set to launch its initial public offering (IPO) on September 4, 2024.
The company aims to raise ₹125.28 crore through this IPO, which will be open for subscription until September 6, 2024.
The shares will be offered in a price band of ₹214 to ₹225 each. Following the subscription period, the company’s shares are expected to be listed on the BSE SME platform on September 11, 2024.
The IPO includes both a fresh issue of equity shares and an offer for sale (OFS), with a special provision for anchor investors to subscribe on September 3, 2024.
IPO Structure and Key Details
The Mach Conferences & Events IPO will issue a total of 55.68 lakh equity shares. This includes 22.29 lakh fresh equity shares valued at ₹50.15 crore and 33.39 lakh shares worth ₹75.13 crore through the OFS route.
The fresh issue is aimed at raising capital for expanding operational capabilities and fulfilling general corporate needs.
The IPO’s anchor investor portion will be available for a single day, September 3, 2024, allowing institutional and high-net-worth individuals to take an early stake in the company.
Beeline Capital Advisors Private Limited is the lead manager for the IPO, providing strategic guidance throughout the process.
Skyline Financial Services Private Limited will act as the registrar, managing the allotment and distribution of shares.
Use of Proceeds
The funds raised through this IPO will primarily be used to support the company’s working capital needs, ensuring it has the necessary resources to sustain and expand its operations.
Additionally, a portion of the funds will be allocated to general corporate purposes, which may include enhancing infrastructure, investing in technology, and expanding market reach.
Amit Bhatia, Chairman and Managing Director of Mach Conferences & Events Limited, expressed optimism about the IPO.
He stated, “This IPO marks a pivotal moment in our journey, setting the stage for our future growth and success.
With more than two decades of experience in the industry, Mach Conferences is well-positioned to leverage this opportunity for further expansion and innovation.”
Market Response and Expected Returns
The IPO is generating significant interest in the grey market, where shares are currently trading at a premium of approximately ₹200.
If this trend continues, the shares could list at around ₹425, potentially delivering a substantial return of about 89% to investors.
This high premium reflects strong market confidence in the company’s growth prospects and the overall appeal of its IPO.
Company Overview and Expertise
Mach Conferences & Events Limited has established itself as a leader in the event management industry over the past 20 years.
The company provides comprehensive event management solutions, handling everything from venue selection and accommodation to transportation logistics, local activities, and on-site coordination.
Its extensive experience and expertise make it a valuable partner for organizing a wide range of events, including corporate meetings, conferences, trade shows, and various ceremonies.
The company’s clientele primarily consists of major players in the banking, finance, and insurance sectors. However, its services extend to other industries such as hospitality, infrastructure, and fast-moving consumer goods (FMCG).
Mach Conferences’ ability to cater to diverse sectors underscores its versatility and competence in managing complex and large-scale events.
Financial Performance
Mach Conferences & Events Limited has demonstrated impressive financial growth in recent years. The company’s revenue has surged from ₹23.14 crore in FY22 to ₹237.26 crore in FY24, reflecting a robust expansion in its operations and market presence.
This growth trajectory highlights the company’s successful penetration into the MICE (Meetings, Incentives, Conferences, and Exhibitions) and events sector.
In terms of profitability, Mach Conferences has maintained a strong performance, with a PAT (Profit After Tax) margin of 11.04% and an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of 14.56%. These margins indicate effective operational management and the company’s ability to generate significant profits from its revenue.
The company’s return metrics further underscore its financial strength. With a Return on Equity (RoE) of 72.78% and a Return on Capital Employed (RoCE) of 57.57%, Mach Conferences has demonstrated exceptional efficiency in utilizing its capital to generate returns.
These high return ratios are indicative of the company’s effective management and strategic positioning in the market.
Growth Prospects and Industry Position
Mach Conferences & Events Limited’s strong financial performance and extensive industry experience position it well for future growth.
The company’s comprehensive event management services and its ability to handle large-scale and diverse events make it a significant player in the industry.
As the demand for sophisticated event management solutions continues to grow, Mach Conferences is poised to capitalize on new opportunities and expand its market share.
The IPO represents not only a significant milestone for the company but also an opportunity for investors to participate in its growth journey.
With its proven track record, solid financial performance, and strategic growth plans, Mach Conferences & Events Limited is well-positioned to achieve continued success in the event management sector.
In summary, the Mach Conferences & Events IPO offers a promising investment opportunity, with strong market interest and potential for substantial returns.
The company’s solid financial foundation, extensive experience, and strategic plans for utilizing the raised funds contribute to its attractiveness as an investment option.
Investors looking to participate in a well-established and growth-oriented company in the event management industry should consider this IPO as a valuable opportunity.
