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Frog Cellsat IPO

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Frog Cellsat’s IPO summary – The company produces multiband 2G, 3G, and 4G digital RF repeaters, multiband frequency shift repeaters, multiband optical DAS systems, related software, and accessories. Along with radio access network (RAN) and backhaul network installation services, it also provides in-building coverage planning and design services.

The company operates two manufacturing facilities, one in Noida and the other in Dehradun. It has ISO 9001:2015 certification for its design, development, manufacturing, and quality control procedures.

In the marketplace, it sells things directly. Asia, Europe, Africa, and the Middle East are all served by IT’s goods and services.

For the creation of Cellular Interface Mitigation Solution for Indian Market, based on UBiFiX Solution, the company has received funding from the India-Israel Industrial R&D and Technology Innovation Fund (I4F), established by Department of Science & Technology (DST), Government of India from the Indian side and Israel Innovation Authority (IIA) from the Israeli side.

By eliminating outside interference at a cellular base-station receiver’s input, the UBiFiX technology helps mobile operators safeguard and make the most of their permitted spectrum.

The remedy is a simple-to-install accessory that goes between the protected radio and the site antennas. The device automatically detects, tracks, and cancels any non-cellular interference signals using a number of inputs from the diversity of cellular sites.

Strengths : 

  1. Utilizing the management’s and our Promoters’ experience.
  1. Competitive Price for a High-Quality Product.
  1. In House R&D Center.
  1. Effective Sales and Service Team.

Details on IPO :

The Frog Cellsat IPO will begin on September 29, 2022, and end on October 4, 2022. The IPO bid period for Frog Cellsat runs from September 29, 2022, at 10:00 A.M. through October 4, 2022, from 5:00 P.M. On the day of the issue’s conclusion, at 5 PM, UPI Mandate confirmation must be received.

1200 shares make up the Frog Cellsat IPO lot size. Retail investors may submit applications for up to 1 lot (1200 shares, or 122,400 Rs).

Objective of the Issue :

1. To contribute to the project’s financing.

2. Corporate general purposes.

3. Issue Expenses

IPO Review:

  1. FCL manufactures telecom equipment and offers related services.
  1. As of FY20, its business started to pick up steam and grow significantly.
  1. Its FY22 profits suggest that the issue is fully valued.
  1. Investors with excess cash or those seeking risk may take a long-term view when considering an investment.

Preface :

Frog Cell had previously been listed with NSE on its Emerge-ITP platform, however it decided to delist owing to dwindling business. It was still on the list from 2014 to 2018. With the new product portfolio and product mix, it has redesigned its operations and is presently releasing an IPO for the NSE Emerge listing. It is now ready for a fast-forward mode and management aims to continue its success with a roster of blue-chip clients.

Issue Details/ Capital History : 

FCL is launching its first initial public offering (IPO) of 4075200 equity shares of Rs. 10 each using the book-building mechanism with a price range of Rs. 97 to Rs. 102 per share to raise Rs. 62.52 cr. to partially fund its need for expansion project (Rs (at the upper cap). The subscription period for this issue begins on September 29, 2022, and ends on October 4, 2022.

Applications must be filed for at least 1200 shares and in multiples of that number afterwards. Shares will be listed on NSE SME Emerge upon allotment. The issue makes up 26.51% of the company’s post-issue paid-up capital.

Financial Performance : 

Regarding financial performance, FCL (on a combined basis) reported turnover/net profit for the previous three fiscal years of Rs. 88.51 crore/Rs. 1.39 crore (FY20), Rs. 129.40 crore/Rs. 14.26 crore (FY21), and Rs. 135.29 crore/Rs. 14.34 crore (FY22). Its static bottom lines for FY21 and FY22 suddenly increased and raised questions. Future viability of these margins is a serious problem.

Dividend Policy :

For FY 21–22, the corporation distributed a dividend of Rs. 1000 (10%). Following the IPO, it will implement a conservative dividend policy based on its financial performance and prospects for the future.

Conclusion :

From 2014 to 2018, the company was listed on NSE Emerge ITP, however due to declining business, it was delisted. According to the management, it has now updated its goods, achieved traction with blue-chip clients, and is moving forward quickly. Investors that are looking for risk or have extra capital may take a long-term view when considering an investment.

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