AHMEDABAD, JANUARY 12, 2024 (AGS): Fonebox Retail Limited (The Company), a popular mobile and consumer durables retailer in Gujarat, today announced its plans to mobilise Rs. 20 crore through an Initial Public Offering (IPO) in January 2024. The IPO will comprise a fresh issue of 29,10,000 equity shares with a face value of Rs. 10/- each at book build price. Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and KFIN Technologies Limited is the registrar of the issue.
The Ahmedabad-based retailer operates a huge network of 153 multi-brand outlets under three brand names: Fonebox, Fonebook and MyMobile in more than 20 cities across Gujarat. Of the total stores, 40 are Company Owned and Company Operated (COCO model) stores and 113 stores are Franchise Owed and Company Operated (FOCO model).
Fonebox Retail sells smartphones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. The company also offers consumer durable electronic goods like laptops, washing machines, smart TVs, air conditioners and refrigerators from popular brands, including TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme and OnePlus in its multi-brand stores across Gujarat.
The company intends to mobilise Rs. 20 crore from the proposed initial public offering and plans to utilise funds to meet working capital requirements, general corporate purposes and public issue expenses. Fonebox Retail plans to invest Rs. 13.5 crore to expand its retail store network to more cities in Gujarat. Apart from this, the company proposes to spend the remaining capital on acquiring land to build corporate headquarters, hiring human resources in marketing and technical departments, servicing repayment obligations under existing and future financing arrangements and funding future growth opportunities.
Commenting on the company’s fund-raising plans, Mr. Manishbhai Girishbhai Patel, Chairman & Executive Director, Fonebox Retail Limited, said, “India is the second largest smartphone market in the world, and the number of mobile subscribers is set to cross 142 crore in 2024. We see a great opportunity for smartphones and the consumer electronic goods market as internet penetration rises and rural markets remain untapped. Following a phenomenal response from the customers, we intend to continue our retail store expansion across the state with the help of proceeds from the proposed IPO. Moreover, we are committed to delivering top-notch customer experience at all our stores.”
The company is promoted by a group of dynamic and experienced entrepreneurs – Manishbhai Girishbhai Patel, Jigar Lallubhai Desai, Parth Lallubhai Desai, Jigneshkumar Dashrathlal Parekh and Amitkumar Gopalbhai Patel. The retailer commenced its operations in February 2021 with the brand ‘Fonebox’, before acquiring retail store brands ‘Fonebook’ and ‘MyMobile’ in 2022.
Fonebox Retail has partnered with leading financial institutions such as Bajaj Finance, HDB Financial Services, HDFC Bank and IDFC First Bank to provide credit/EMI facilities to its customers. The company also offers aftersales support to customers buying mobile handsets and tablets in its retail stores and franchisee outlets.
The retailer posted a revenue of Rs. 140.22 crore and a profit (PAT) of Rs. 1.55 crore in the first half of the current financial year ending September 30, 2023. The company’s total revenue grew to Rs. 196.26 crore in FY2022-23, up from Rs. 90.92 crore in the previous financial year. In FY2022-23, Fonebox Retail reported a profit (PAT) of Rs. 1.59 crore, compared to Rs. 12.79 Lakh in FY2021-22.
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