NAPS Global India IPO: Strengths, risks, strategies and financials to know ahead of ₹12 crore offer opening

NAPS Global India IPO, a fixed-price issue at ₹90 per share, will open for subscription on Tuesday, March 4. The initial public offer will conclude on Thursday, March 6.

The initial share sale is a fresh issue of shares valued at ₹11.88 crore. The net proceeds will be utilised for working capital requirements and corporate general purposes.

NAPS Global India IPO: Strengths

• The company has long-term relationships with an array of international suppliers, sourcing products from China and Hong Kong to minimise procurement costs.
• As NAPS Global India is a concise organisation, its executive directors and promoters participate in day-to-day business activities.
• The company has maintained a healthy balance sheet.

NAPS Global India IPO: Risks

• The company derives a substantial portion of its revenue from the sale of fabric, and any reduction in demand for such products could affect its financial condition.
• It depends on a few suppliers to procure the fabrics to supply its products. Any major disruption to the timely supply could affect business.
• Trade receivables, short-term loans and advances, inventories, cash, and cash equivalents form a substantial part of the company's total assets. Failure to manage them could affect net sales, profitability, cash flow, and liquidity.
• Its top 10 customers contributed 72.72% to its total revenue for the nine months ended December 31, 2024. The loss of any one or more of such customers can impact profitability.
• The company has reported a negative net close flow in the past.

NAPS Global India IPO: Strategies

• The company focuses on enhancing fund-based capacities to boost business growth, capitalising on relationships with Chinese suppliers and a strong Indian customer base.
• It intends to start garment manufacturing with the outsourcing business model from local manufacturers.
• The company intends to acquire new customers and become a cost-efficient dealer of fabrics and readymade garments.

NAPS Global India IPO: Financials

NAPS Global India reported a 434.48% increase in its profit after tax (PAT) to ₹1.45 crore in the financial year 2024-24, compared to ₹27 lakh in the previous fiscal.

Revenue from operations rose 82.7% to ₹47.31 crore in FY24 as against ₹25.89 crore in FY23.

For 9M FY25, revenue and net profit stood at ₹52.44 crore and ₹1.53 crore, respectively.