Innovatus Entertainment Networks Limited

As per financial performance Innovatus Entertainment Networks Limited has posted total income/net profits of Rs 7.84 Cr / Rs 0.33 Cr (FY21), Rs 7.87 Cr / Rs 0.30 Cr (FY22) and Rs 10.94 Cr / Rs 0.48 Cr (FY23), So company has shown average results. Company has posted an average EPS of Rs 1.22/- and average RoNW of 9.98% for last three fiscals. As per FY22 earnings on fully diluted equity post issue, asking price is at P/E of around 65.55 and as per FY23 earnings P/E is 41.01. As per RHP, there are no listed peers. On BRLM's front, Inventure Merchant Banker Services Private Limited is associated with this SME IPO and handled 7 SME IPOs in last 3 years. From last 7 IPOs, three opened below issue price and remaining opened above issue price on the listing day. As of now from last 7 IPOs, all are trading below issue price. ( As on 24.07.23 ) As per financials, Innovatus Entertainment Networks Limited has shown average results, RoNW is 9.98% and P/E is respectively 65.55 and 41.01 as per FY22 and FY23 earnings, which looks aggressively priced. Company is in business of direct marketing solutions, which is a highly fragmented and competitive. Performance of BRLM is poor post listing. So we are giving AVOID rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1   Miniboss Consultancy Private Limited
• 2   Rich Pockets Online Services Limited
• 3   Azharuddin R. Mulla