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Mach Conferences & Events Ltd IPO: Things Smart Investors Need to Know

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Mach Conferences & Events Ltd, established in 2004, is a leading player in the MICE (Meetings, Incentives, Conferences, and Exhibitions) and event management industry. The company has carved a niche for itself by providing comprehensive and innovative solutions tailored to meet the diverse needs of its clients.

With a strong focus on delivering end-to-end services, Mach Conferences & Events Ltd manages everything from conceptualization and planning to execution and post-event analysis. Their portfolio includes organizing large-scale conferences, exhibitions, corporate events, and incentive programs across various sectors.

The company's commitment to excellence, coupled with a proven track record, has helped it build long-term relationships with clients and partners. Their experienced management team and established network with hospitality and event partners position them strongly in the competitive event management market.

Mach Conferences & Events Ltd IPO Details and Objectives

Purpose of the IPO

The primary objectives of the Mach Conferences & Events Ltd IPO are:

  • Business Expansion: To fund the expansion of operations into new geographical regions and diversify service offerings to capture a larger market share.
  • Debt Repayment: To utilize a portion of the proceeds for repaying existing debts, thereby strengthening the company's financial position and reducing interest obligations.
  • Infrastructure Development: To invest in advanced technology and infrastructure to enhance service efficiency and client experience.
  • General Corporate Purposes: To allocate funds towards general corporate needs, providing financial flexibility for future opportunities and contingencies.

Expected Funds to be Raised.

  • Total Issue Size: ₹125.28 Crores
    • Fresh Issue: ₹50.15 Crores
    • Offer for Sale: ₹75.13 Crores

The funds raised through the fresh issue will primarily be directed towards the objectives, enabling Mach Conferences & Events Ltd to solidify its market presence and drive sustainable growth.

Key Dates to Remember

  • Mach Conferences & Events Ltd IPO Opening and Closing Dates:
    • Opening Date: 4th September 2024
    • Closing Date: 6th September 2024
  • Listing Date:
    • Date: 11th September 2024

Ensure to mark these dates in your calendar to not miss out on this investment opportunity.

Pricing and Lot Size of Mach Conferences & Events Ltd IPO

  • Price Band for the IPO:
    • The price band is set between ₹214 to ₹225 per share, providing investors with a range to place their bids according to their valuation and investment strategy.
  • Minimum Lot Size and Application Details for Retail Investors:
    • Lot Size: 600 Shares per lot
    • Minimum Investment: ₹1,35,000 for 1 lot
    • Maximum Investment: ₹1,35,000 for 1 lot (for retail investors)

Investors must apply for a minimum of one lot and can increase their investment in multiples thereof as per the eligibility and investment limits.

How to Apply for the IPO of Mach Conferences & Events Ltd

Online Application Process

1.     Login to Bajaj Broking Trading Platform

2.     Navigate to the IPO Section:

o   Select the 'IPO' option from the main menu to view current and upcoming IPOs.

3.     Select Mach Conferences & Events Ltd IPO:

o   Choose the Mach Conferences & Events Ltd IPO from the list of available options.

4.     Enter Application Details:

o   Input the number of lots you wish to apply for and provide your UPI ID for payment processing.

5.     Confirm and Submit:

o   Review your application details and submit. Approve the UPI mandate request to block funds for the application.

6.     Application Confirmation:

o   Upon successful submission and fund blocking, you will receive a confirmation message for your IPO application.

Applying through Bajaj Broking ensures a seamless and secure investment experience, leveraging their robust online platform and support services.

Industry Outlook of Mach Conferences & Events Ltd IPO

  • Growing MICE Industry:
    • The global MICE industry is experiencing robust growth, driven by increasing corporate activities, globalization, and the need for professional event management services.
  • Technological Advancements:
    • Integration of technology such as virtual and hybrid events is creating new opportunities and expanding the reach of event management companies.
  • Economic Recovery Post-Pandemic:
    • As economies recover from the pandemic, there is a resurgence in demand for in-person events, conferences, and exhibitions.
  • Government Initiatives:
    • Supportive government policies and increased spending on infrastructure are fostering a conducive environment for the event management sector.
  • Competitive Landscape:
    • With growing competition, companies with proven track records and diversified service offerings, like Mach Conferences & Events Ltd, are better positioned to capture market opportunities.

Understanding the industry dynamics is crucial for investors to assess the potential and sustainability of their investments in the IPO.

Financial Health and Performance

Key Financial Metrics

Particulars

FY 2024 (₹ million)

Total Assets

101.28

Total Liabilities

101.28

Total Revenue

238.99

Total Expenses

204.13

Profit After Tax

26.18

EBITDA

36.65

Adjusted EBITDA

0

Recent Performance and Growth Prospects

  • Steady Revenue Growth:
    • The company has demonstrated consistent revenue growth, highlighting its ability to secure and execute large-scale events successfully.
  • Profitability:
    • A healthy EBITDA margin indicates effective cost management and operational efficiency.
  • Balanced Asset-Liability Structure:
    • The balance between assets and liabilities reflects prudent financial management.
  • Future Expansion Plans:
    • Proceeds from the IPO will facilitate expansion into new markets and enhance service capabilities, positioning the company for sustained growth.
  • Market Opportunities:
    • Leveraging industry growth trends and technological advancements, Mach Conferences & Events Ltd aims to capture increased market share.

A thorough understanding of the company's financial performance assists investors in evaluating the viability and potential returns of their investment.

Investment Risks and Opportunities

Potential Risks of Investing in the IPO

  • Non-Owned Operating Offices:
    • The company's reliance on leased or co-working spaces may expose it to location-related risks and potential operational disruptions.
  • Dependency on Key Clients:
    • A significant portion of revenue comes from a few major clients; loss of any could adversely affect financial performance.
  • High Indebtedness:
    • With total debt amounting to ₹1233.08 lakhs, servicing obligations could strain financial resources, especially during economic downturns.
  • External Factors:
    • Events like pandemics or economic recessions can severely impact the event management industry, affecting business operations and profitability.
  • Legal and Regulatory Risks:
    • Ongoing litigations and compliance requirements pose potential threats to the company's reputation and financial health.

Opportunities and Growth Potential

  • Expanding Market Demand:
    • Growing corporate activities and globalization are increasing demand for professional event management services.
  • Technological Integration:
    • Adoption of innovative technologies enhances service delivery and opens avenues for virtual and hybrid events.
  • Strong Industry Positioning:
    • Established relationships and a proven track record provide a competitive edge in acquiring new clients and projects.
  • Diversification:
    • Plans to diversify services and enter new markets can lead to increased revenue streams and business stability.
  • Economic Recovery:
    • Post-pandemic economic recovery is expected to boost the MICE industry, presenting growth opportunities for the company.

Balancing the potential risks and opportunities is crucial for investors to make informed decisions regarding participation in the IPO.

Conclusion

The Mach Conferences & Events Ltd IPO presents a compelling opportunity for investors seeking to participate in the growing event management industry. With a solid business foundation, strategic expansion plans, and favourable market conditions, the company is well-positioned for future growth. However, potential investors should carefully weigh the associated risks and conduct thorough due diligence to make informed investment decisions.

Frequently Asked Questions

What is the price band for the Mach Conferences & Events Ltd IPO, and how was it determined?

Answer Field

The price band is set between ₹214 to ₹225 per share. It was determined based on factors like the company's financial performance, industry benchmarks, and prevailing market conditions to ensure fair valuation.

What are the key risks and rewards of investing in the Mach Conferences & Events Ltd IPO?

Answer Field

Risks: Dependence on key clients, significant debt levels, and susceptibility to external factors like economic downturns.

Rewards: Participation in a growing industry, potential for substantial returns due to expansion plans, and investing in a company with a strong operational track record.

What are the lock-up period details for Mach Conferences & Events Ltd IPO?

Answer Field

Specific lock-up period details will be outlined in the final prospectus. Typically, promoters and certain pre-IPO investors are restricted from selling their shares for a specified period post-listing to ensure market stability.

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