Exhicon Events Media Solutions coming with an IPO to raise upto Rs 21.12 crore

Exhicon Events Media Solutions

• Exhicon Events Media Solutions is coming out with a 100% book building; initial public offering (IPO) of 33,00,000 shares of Rs 10 each in a price band Rs 61-64 per equity share.
• The issue will open for subscription on March 31, 2023 and will close on April 5, 2023.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 6.10 times of its face value on the lower side and 6.40 times on the higher side.
• Book running lead manager to the issue is Share India Capital Services.
• Compliance Officer for the issue is Abhishek Jain.

Profile of the company

The company is engaged in providing a full range of products and services for the Exhibitions, Conferences and Events industry. The company’s solutions include Media to Integrated Marketing Solutions, Temporary to Permanent Event Infrastructure and Management to Organizing. Over the period it has successfully developed itselves into End to End Services provider for the Exhibition and Event Industry. The company provides turnkey events and trade fairs constructs for small to large graphs B2B and B2C fairs and events. It also helps its clients in getting the requisite permissions and licenses for the events. Its clients include various state Governments, domestic associations and international clients. It also provides services to various domestic trade fair organizers. It has worked for various industries including Hospitality, F&B, Non-Chemical FMCG, International Trading and Healthcare.

It provides in-house infrastructure for large graph events to integrated marketing solutions. The company’s forte lies in effectively assimilating various project aspects and ensuring operational efficiencies and delivering optimum value for all stake holders. The company’s exhibitions include B2B, B2C and also hybrid events.

The company also supplies large span steel AC structures, octanorm systems, flooring and carpets, modular registration setup, furniture and general lighting, sound light and video, branding & signage’s CCTV and hardware setup, huge modular stocks of outdoor and indoor event venue construct spread over 5 cities of India. It also makes show bulletins for Distribution of Content, Design and Printing of Bulletins. It also caters to Outdoor, Print, Radio & Digital Media for Trade Fairs and Events, the services of this vertical includes Media Planning, Media buying, Creative Designing and Media releasing for Print, Electronics, Outdoors and Digital Advertising Mediums across cities in the country.

Proceed is being used for:

• Working capital gap
  
• Acquisition of exhibition material
  
• Issue expenses
  
• General corporate expenses

Industry overview

The India event & exhibition market (hereafter referred to as the market studied) was valued at $3,674.95 Million in 2022, and it is expected to reach $7,550.05 Million by 2027, registering a CAGR of 12.43% during the forecast period of 2022-2027. Exhibitions and events are some of the critical enablers and triggers of the economy. With India being one of the fastest growing economies, the government initiatives to help enterprises in different industries are expected to improve the need for events and exhibitions in the country. According to Make in India, among the chosen 190 countries, India ranked at 63rd position in comfort of doing business rank 2020, which was 142 out of 190 in 2014, a significant improvement of 79 positions. India has a vast consumer market, and it offers an unparalleled opportunity for enterprises to invest and expand in the country. According to the India Brand Equity Foundation and Retailers Association of India, the retail market size across India will reach $1,750 billion by 2026.

India Event and Exhibition market is segmented by Type (B2B, B2C, Mixed/Hybrid), By Revenue Stream (Exhibitor Fee, Sponsorship Fee, Entrance Fee, Services), By End-User (Consumer Goods and Retail, Automotive and Transportation, Industrial, Entertainment, Real Estate and Property, Hospitality, Healthcare, and Pharmaceutical).

With the growing construction, industrial manufacturing, textiles & apparel, and consumer durables market in India, various international events and exhibitions are keen on entering the country to offer their products and services, and such exhibitions are the means of networking and expansion opportunities to tie up with local vendors and distributors. In addition to this, the technological advancements in various industries, which different Indian industries lack as they still use conventional processes, are offering a prime opportunity for international vendors, as such events offer significant opportunities to attend and gain knowledge and adopt advanced solutions as part of their operations. Further, the government support to Indian event organizers involved in geo-cloning and large international conventions in the country are positively impacting the growth. This involves guaranteed footfall from customers owing to the brand reputation and involvement of international solutions and service providers.

Pros and strengths

Gamut of product and service: The company provides the full gamut of products and services for the exhibition, conference, and events industry. It not only hosts the exhibitions but also manages the exhibitions from ‘Concept to Completion’ it provides in-house infrastructure for large graph events to integrated marketing solutions. The company’s lies in effectively assimilating various project aspects, ensuring operational efficiencies, and delivering optimum value for all stakeholders.

Meeting expectation of clients: The company has built robust relationships with its customers through its ability to provide comprehensive services. It aims to generate results at pat with the expectation of its clients, through research, compelling creative works and strategic media planning. The company strives to measure success for its clients through increased brand awareness, impact on sales volume and other parameters mutually agreed with the clients. Its success in exhibitions can be attributed to continuous monitoring and improvement of service quality through exhibitor feedback.

Core expertise: The company’s core expertise includes: Conceptualizing new ideas and themes around which exhibitions can be organized; Enlisting support and association of relevant trade bodies and industry associations; Marketing the exhibition to relevant exhibitors (Clients); Attracting relevant visitors through adequate publicity and advertisement to make the exhibition a success; and Hosting the exhibitions.

Risks and concerns

Face risks associated with currency exchange rate fluctuations: As the company has a foreign subsidiary. Changes in value of currencies with respect to the Rupee may cause fluctuations in its operating results expressed in Rupees. The exchange rate between the Rupee and other currencies is variable and may continue to fluctuate in future. Although it generally hedges its foreign exposure, any adverse or unforeseen fluctuations with respect to the unhedged exchange rate of any foreign currency for Indian Rupees may affect its company’s results of operations.

No alternate arrangements for working capital requirements: The company has not made any alternate arrangements for meeting its working capital requirements, other than the existing sanctioned limits. It meets its additional working capital requirements through internal accruals. Any shortfall in internal accruals and its inability to raise debt would result in it being unable to meet its working capital requirements, which in turn will negatively affect its financial condition and results of operations.

Highly dependent on promoter and other key managerial personnel: The company’s success largely depends on the continued services and performance of its management and other key personnel. The loss of service of the Promoters and other senior management could seriously impair the ability to continue to manage and expand the business efficiently. Further, the loss of any of the senior management or other key personnel may adversely affect the operations, finances and profitability of the company. Any failure or inability of the company to efficiently retain and manage its human resources would adversely affect its ability to expand its business.

Outlook

Exhicon Events Media Solutions provides products and services for the exhibition, conferences, and events industry. The company offers media to integrated marketing solutions, event infrastructure, and management to organizing solutions to B2B and B2C fairs and events. On the concern side, the company has not made any alternate arrangements for meeting its regular working capital requirements. If its operations do not generate the necessary cash flow, its working capital requirements may negatively affect its operations and financial performance.

The company is coming out with an IPO of 33,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 61-64 per equity share. The aggregate size of the offer is around Rs 20.13 crore to Rs 21.12 crore based on lower and upper price band respectively. On performance front, total income has increased 390.04% from Rs 949.12 lakh in the fiscal year ended March 31, 2021 to Rs 4651.08 lakh in the fiscal year ended March 31, 2022. The main reason of increase was increase in the business operations of the company (i.e. Exhibition, Conferences, Trade Fairs and Events). Moreover, Net Profit has increased from profit of Rs 11.73 lakh in the fiscal year ended March 31, 2021 to profit of Rs 428.38 lakh in the fiscal year ended March 31, 2022.

Going forward, the company intends to launch new in-house brands in new exhibitions segments for the industries such as Interior Designing, Hospitality, Real Estate, Capital Goods, Lightings, Mold/Die/ Toolings, Textiles/ Yarn and HVAC/ Electrical products. It is focused on increasing the number of client relationships and having more number of relationship managers to service these relationships. Its strategy is to increase the number of client relationships and then leverage those client relationships into offering in a whole suite of media products. During downturn of the markets the increased number of client relationships will add stability to its earnings.