SME IPO: Akai India to raise Rs 32.13 cr with price band around Rs 80-85 per share

SME IPO: AKAI is Japanese brand of consumer electronics and white goods company formed in the year 1929.

Home Tech Digital Limited, a parent company for Akai India has filed for a draft red herring prospectus (DRHP) with SEBI for raising funds through an initial public offering. The company will issue fresh equity shares of 37.8 lahks at a price band of Rs 80 to Rs 85, sources told Moneycontrol. At the upper price band, the company will be raising Rs 32.13 crore.

AKAI is a Japanese brand of consumer electronics and white goods company formed in the year 1929. The company entered into a trademark licensee agreement in the year 2016 with Phenomenon Agents Limited (Brand Owner of AKAI) as per which it has acquired rights to designing, manufacturing, distributing, selling, and servicing AKAI products in India.

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The present product range for the company includes Smart QLED and LED televisions (With Google OS), Air-conditioners, Fully Automatic Washing Machines, Home theatres, Sound Bars and Tower Speakers.

Promoters of the company are Anurag Sharma and Anil Sharma. Anurag Sharma holds 42.58 percent of the company while Anil Sharma holds 30.81 percent. Rahul Mehta holds 0.14 percent of the company.

The book-running lead manager will be Beeline Capital Advisors. The company is raising funds to satisfy its working capital requirement. The company has secured an order for more than 15000 TVs (Google range) out of which 5000 units have been delivered. The infusion of fresh funds will help execute the same order and satisfy the other working capital needs of the company.

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The revenue was reported at Rs 65.89 crore for 6 month period ending September 2023 while the revenue for March 2023 was reported at Rs 120.94 crore The PAT stood at Rs 1.07 crore for September six-month period while PAT was declared at Rs 2.28 crore for March 2023. The total borrowings remained at Rs 30.51 crore. The total debt-to-equity ratio stands at 1.73. The PAT grew by 104 percent in March 2023 to Rs 2.28 crore from Rs 1.12 crore in March 2022.

With a fresh infusion of funds, the gross margins are expected to improve by 3 to 5 percent. According to DRHP, the company is expected to benefit from the China+1 story and the rising consumption in India.