Jeena Sikho Lifecare coming with an IPO to raise Rs 55.50 crore

Jeena Sikho Lifecare

• Jeena Sikho Lifecare is coming out with an initial public offering (IPO) of 37,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 150 per equity share.
• The issue will open on March 30, 2022 and will close on April 7, 2022.
• The shares will be listed on NSE Emerge Platform.
• The share is priced 15 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Fast Track Finsec.
• Compliance Officer for the issue is Nikita Juneja.

Profile of the company

Jeena Sikho Lifecare is ayurvedic healthcare company headquartered in Zirakpur, Punjab. Founded by Manish Grover (popularly known as Acharya Manish) in the year 2017, the main motive of the company is to build a healthy India through preventive measures by providing authentic and good quality ayurvedic products. The company is a developing health care product & services providers in India. The company has portfolio of over a wide range of Ayurvedic products. The company also conducts various health checkup camps, yoga sessions free of cost to make people aware of their health problems.

Ayurveda is an alternative medical system with historical roots in Indian subcontinent. The origin of Ayurveda dates back to the Vedic era. It was developed more than 3,000 years ago in India. It is based on the belief that health and wellness depend on a delicate balance between the mind, body, and spirit. Its main goal is to promote good health, not fight disease. Ayurvedic theory states that all areas of life impact one's health, so it follows that the Vedas cover a wide variety of topics, including health and healthcare techniques, astrology, spirituality, government and politics, art, and human behavior.

Proceed is being used for:

• Undertaking marketing and sales promotion.
• Replying short-term loan.
  
• Meeting out the working capital requirements of the company.
  
• Meeting out the general corporate purposes.
  
• Meeting out the issue expenses.

Industry Overview

India ayurvedic products market exhibited strong growth during 2015-2020 and is expanding at a CAGR of around 15% during 2021-2026. Ayurveda is an ancient science and healthcare system that has been adopted by cultures globally. Ayurveda analyses and cures diseases after understanding an individual’s body type, heartbeat patterns, appearance, vision, etc. There are various protocols and treatments in the ayurvedic system to rectify ailments through the use of herbs, plants, exercise, diet and changes in lifestyle. Throughout the country, various segments of ayurvedic healthcare and personal care products are available. For personal care range, the market is divided into oral care, skincare, make-up, hair care and fragrances. Whereas, for the healthcare range, the market is segmented into ayurvedic nutraceuticals, ayurvedic medicines and dietary supplements. Corporations throughout the country are focusing on developing innovative ayurvedic products and generating awareness among consumers.

The Indian wellness industry estimated at Rs. 49,000 crore ($6.70 billion) is gaining momentum on the back of government focus on building a healthy and fit India. Ayurveda is an alternative medicine system with historical roots in India. The Indian wellness and ayurveda industries go hand in hand. Ayurveda is globally acclaimed for its preventive healthcare properties and treatment of many chronic lifestyle disorders. The Indian ayurveda industry has several large players, with the micro, small and medium enterprises (MSMEs) capturing 80% market share. Ayurveda is witnessing resurgence in India because people have accepted this as a way of life.

India has the potential to become a health and wellness hub, attracting investments and creating additional jobs. The government has set a target of increasing spending on healthcare from the current 1.3% to 3% of its GDP by 2022. With continuous support from the government and various industries shifting towards a healthy ayurveda-based approach, the Indian wellness & ayurveda market is on its way to touch the lives of millions of people at domestic and global levels. 

Pros and strengths

Strong franchisee partner network: The company has established its presence in every part of the country. People appreciated its efforts. It is the reason that it has been continuously expanding and developing its Ayurvedic clinics. The company will also establish its Ayurvedic medicine systems across the world. The company is operating over 150 Ayurvedic Clinic in 23 states, out of them 9 clinics are owned & operated by it and rest of the clinics are operated by its franchisee partners on commission basis & to maintain quality, it is mandatory for all the franchisee to follow its standard operating procedure (SOPs) issued by the company from time to time.

Team of experienced doctors: The company’s ayurvedic doctors are zealous to treat people naturally. All of its ayurvedic doctors are well qualified and skilled. They carry a clean career history and are capable of treating critical stages of any health condition. Its expert Ayurvedic doctor performs various Ayurvedic therapies to heal almost all of the health problems. The company has appointed experienced ayurvedic doctors in its clinics. The doctors always treat patients with patience. The doctors are skin experts, piles experts, kidney treatment experts, and many more.

Experienced promoter and management expertise: The company is managed by a team of competent personnel having knowledge of core aspects of its Business. Its promoter Manish Grover with his knowledge and experience as well as assisted by its Key Managerial Persons who have helped it to have long term relations with its consumers & vendors. Further, it has also facilitated the company to entrench with new consumers. The key members’ experience, knowledge and human resources will enable the company to drive the business in a successful and profitable manner.

Risks and concerns 

Significantly revenue comes from 2 states: Punjab & Delhi contribute to a substantial portion of its revenues for the period ended on September 30, 2021 (88.40%) & year ended March 31, 2021 (91.36%), March 31, 2020 (92.44%) & March 31, 2019 (95.59%). Any decline in its quality standards, growing competition and any change in the demand for its products and services by consumers of these states may adversely affect its ability to retain them. The company has maintained good quality standard for its products, however, there can be no assurance that consumers of these states will continue to buy its products. The company cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

Limited operating history: The company was incorporated in the year 2017 and consequently have a limited operating history (upto 4 years only) upon which its business and future prospects may be evaluated. Thus, the company have very limited operating history from which one can evaluate its business, future prospects and viability.

Stiff competition: The company operates in highly competitive market segments that are highly fragmented among several market participants. In the general ayurvedic product market, it competes with numerous multinational and Indian companies with sizeable market shares as well as the broader industry comprising numerous small competitors. Moreover, free information available on internet websites about ayurvedic products & homemade remedies also poses a competitive risk.

Outlook

Jeena Sikho Lifecare provides ayurvedic healthcare products & services. The company is engaged in conducting health check-up camps, free yoga sessions to make people aware of health problems. It offers a wide range of Ayurvedic products such as Dr. Shuddhi Package (Shuddhi Kit)-40 Day Detox Package, Shuddhi 32 Herbs Tea, Shuddhi Addiction Free Kit, Shuddhi BP Package, Shuddhi Diabetes Care Package, and Shuddhi Divya Sanjeevani-Anti-Viral Package. On the concern side, the company’s top 2 states (Punjab & Delhi) contributed major portion of revenues in last 3 years i.e. for the period ended on September 30, 2021 & year ended on March 31, 2021, March 31, 2020 & March 31 2019. Any loss of business from one or more of these states may adversely affect its revenues and profitability

The company is coming out with a maiden IPO of 37,00,000 equity shares of Rs 10 each at a fixed price of Rs 150 per share to mobilize around Rs 55.50 crore. On performance front, total income of the company for the half year ended September 30, 2021 stood at Rs 7251.91 lakh. For the Financial Year FY 2020-21, it stood at Rs 13687.45 lakh whereas in Financial Year 2019-20 it stood at Rs. 9517.40 lakh representing an increase of 43.81%. Moreover, the restated profit after tax for the half year ended September 30, 2021 is Rs 621.53 lakh. For the Financial Year 2020-21, it was Rs 1015.57 lakh whereas in Financial Year 2019-20, it was Rs 572.58 lakh. This represents increase of 77.36%. The company intends to expand its geographical reach and enter the large domestic market for growth opportunities of its business. Currently it has limited presence and it plans to deepen its presence in the existing market and expand its reach and penetrate into the large available market by giving scale down low price solution and grab major market share.