The shares of Aspire and Innovative Advertising debuted on the NSE SME platform with a premium of 4.6%. The stock was listed at Rs 56.5, compared with an offer price of Rs 54.
Ahead of the debut, the company’s shares traded with a GMP of Rs 5 in the unlisted market.
The net proceeds from the public offer will be used for working capital requirements, financing the cost of establishing new warehouses as well as general corporate purposes.
Founded in 207, the company is engaged in the business of trading a wide range of consumer durables like kitchen appliances, home appliances, white goods, mobile phones and its accessories, solar products etc.
The company’s objective is to provide basic but advanced products to India’s rural and semi urban population along with product delivery with focus on unbanked and underbanked customer segments.
To achieve this objective, in addition to the sales team, it sells its products majorly through intermediaries i.e. non-banking financial companies (NBFCs), micro finance institutions (MFIs).
The company has entered into commercial arrangements with a large number of intermediaries. Currently, it has more than 15 intermediaries for marketing of various products.
Aspire operates an asset light business model, where the major expenditure is for payment of facilitation fees and commission to these intermediaries for their services.
India’s consumer electronics and appliances industry is predicted to be the fifth-largest in the world by 2025. The appliances and consumer electronics market is expected to nearly double in the next 3 years, reaching approximately $17.93 billion by 2025.
For the six months ended September 2023, the company recorded revenues of Rs 177 crore and net profit of nearly Rs 4 crore.
Hem Securities acted as the lead manager to the issue and Bigshare Services was the registrar.
