Company is into B2B exhibition and event management. They have recently entered the corporate catering industry.
The promoters have 15+ years of experience in the industry.
The business is fairly asset light and cash rich allowing sustainable margins of 20-22%. The same props and decorative items can be reused across events.
Company has minimal debt on the books and has the exclusive lease to Messe Global Pune, a large exhibition ground.
They have recently organized some marquee events like General Insurance Festival of India (GIFI) by Bajaj Alliance, UP state Rural Livelihood Mission at UP International Trade Show 2023, G-20 summit in Pune.
Post IPO seems like they have made good use of attention to get more clients. They have also acquired a stake in an exhibition space in Dubai, an exhibition data and research company, an exhibition booth design and manufacturing company.
They have also developed and/or bought IPs like Sarangkheda Chetak Festival, Hospital Design and Infrastructure Expo and Smart Urban Farming Expo.
B2B exhibition is a growing field. The company has shown the ability to win tenders and host prestigious events. They have a large runway for growth.
For a lot of events, full payment is done in advance. Working capital should not be a problem for them.
They have hosted exhibitions/events internationally too in UAE, Saudi Arabia, Germany, Singapore etc.
Risks:
They announced 51% stake acquisition in Maple Business Center LLC and put the logo on their website without completing the transaction. When contacted for details, they were reticent in divulging information about the seller.
A couple of months, post IPO, one of their employees created a WhatsApp group for investors. Upon being questioned about purpose of group and realizing his folly, he quickly deleted it.
The event management industry is infamous for being corrupt as illicit cash is easy to use and circulate.
Leave a Reply