Mach Conferences and Events coming with IPO to raise Rs 125.28 crore

Mach Conferences and Events 

• Mach Conferences and Events is coming out with an initial public offering (IPO) of 55,68,000 equity shares in a price band Rs 214-225 per equity share.  
• The issue will open on September 4, 2024 and will close on September 6, 2024.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 21.40 times of its face value on the lower side and 22.50 times on the higher side.
• Book running lead manager to the issue is Beeline Capital Advisors.
• Compliance Officer for the issue is Yashashvi Srivastava.

Profile of the company

The company provides comprehensive array of services tailor made for MICE (Meeting, Incentives, Conferences, Exhibitions) and Events sector. Its experience ranges for arranging small corporate events to large global events. It is specialized in conference management, Exhibition management and Global Event Planning. It also manages all logistical aspects of events at specific destinations. This includes venue selection, accommodation arrangements, transportation logistics, local activities, and on-site coordination. It has a team of MICE and Events professionals working on the key essence of attention to detail, continuous budget control and endless creativity to help the client to explore new venues and new ways to impress its clients.

The company’s expertise lies in crafting tailored experiences, from conceptualization to logistics, to ensure impactful events that meet its clients' objectives. Leveraging innovative design, cost-effective management, and efficient operations. It strives to stay competitive in the dynamic market landscape. Its commitment to customer satisfaction drives it to continuously enhance its capabilities and deliver exceptional results in the MICE industry. Majorly, its clientele is from Banking, Finance and Insurance Sector. However, it has worked for various industries including Hospitality, Infrastructure, FMCG etc. As an established MICE company with a large customer base, it already has valuable insights into their preferences, travel habits, and booking behaviours. Furthermore, it is also planning to diversify its services into Religious Tourism. Since it is a blend of spirituality, economic opportunity, and cultural stewardship that makes investing in Religious Tourism both a prudent business decision and a meaningful contribution to India's tourism landscape. 

Proceed is being used for:

• Meeting working capital requirements.
• General corporate purpose.

Industry overview

The India meetings, incentives, conferences and exhibitions market size is estimated to be valued at $ 3.30 Bn in 2023 and is expected to reach $ 10.52 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 18% from 2023 to 2030. The MICE industry comprises of events like meetings, incentives, conferences, and exhibitions or trade fairs. It involves planning, booking, and organizing of all the above types of events. The India meetings, incentives, conferences and exhibitions market has been increasing rapidly driven by rising business travel and increasing focus of companies to organize events. The India Meetings, Incentives, Conferences and Exhibitions market is expected to witness significant growth in the near future. The business events industry in India is driven by favorable government policies that promote tourism and business travel. Several incentives like concessions on goods and services tax and infrastructure development programs are attracting both domestic and international event organizers to host events in India. Cities like Delhi, Mumbai, Bengaluru, and Chennai have emerged as top convention destinations in the country. However, the market also faces challenges in terms of lack of international level convention infrastructure in several emerging city destinations. While tier-1 cities are well-equipped, the infrastructure in other cities needs further development. High taxes on events and accommodation continue to remain a restricting factor. The other concern is the shortage of qualified local manpower to cater to the increasing demand of international standard business events.

In India, MICE tourism has seen a considerable growth in recent years. The exhibition industry is rapidly growing at a rate of more than 8% over the past few years outpacing the GDP growth rate of the country. According to the Ministry of Tourism, India hosted over 6.9 million foreign tourists in 2019 for various events, conferences, and exhibitions. As per ICCA city and country rankings, India with 158 meetings (out of total 13,254 meetings) secured 28th rank. The MICE segment contributes significantly to the overall tourism industry, generating substantial revenue and boosting the local economy. Jio World Convention Center, Biswa Bangla Convention Center, Bharat Mandapam, Yashobhoomi, etc. in India are emerging as major MICE destinations, equipped with state-of-the-art infrastructure and world-class facilities. The recent India G-20 Presidency recorded over 200 meetings across 56 cities, placing India on an international MICE landscape, showcasing robust infrastructure, cultural and national heritage internationally. The Ministry is working to take this momentum forward and place India as one of the leaders in MICE Tourism. The ‘National Strategy and Roadmap for MICE Industry’ is an appreciative enabling institutional framework that serves as a guiding document for the stakeholders. Additionally, State and city level MICE promotion Bureaus will facilitate the development of MICE industry in India. CII is actively engaging with the government and the industry fraternity to take this initiative forward through active stakeholder consultations and dialogues.

Pros and strengths

End to End Solution: With a comprehensive suite of services covering hotel and venue bookings, ticket and visa arrangements, airline services, logistics, events and conferences, as well as foreign exchange, Mach Conference is one-stop solution in the MICE industry. Its extensive network, personalized approach, and dedication to customer satisfaction ensure seamless experiences, making it a preferred choice for all MICE needs.

Nurturing Long-term Relationships with Customer: The company thrives on cultivating dynamic customer relationships. Through proactive communication, personalized solutions, and unwavering support, it ensures its clients feel valued at every step. By exceeding expectations and remaining adaptable to their evolving needs, it forges strong, enduring partnerships that drive mutual success. Its commitment to unparalleled service and customer satisfaction sets it apart, fostering trust and loyalty that forms the foundation of its long-term collaborations.

Established relationship with hospitality & event partners: To make an event successful, the company needs to manage the food and beverages booking, venues booking, invitation cards preparations, arrangement of gift hampers to the guest, transportations and the hospitality part of the event. For undertaking these activities, it has over the years established strong relationship with different vendors who take care of these tasks. These vendors have been selected by the company based on the previous experiences and quality of work undertaken by them. Further, due to its relationship with them it is able to procure priority and quality services from these vendors.

Risks and concerns

Depend on few numbers of customers for sales: Top ten customers of the company for FY2023-24, FY2022-23 and FY 2021-22 contributed for 91.80%, 88.06% and 92.13%, respectively of its sales. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently its business. While it typically has long term relationships with its customers, it has not entered into long term agreements with its customers and the success of its business is accordingly significantly dependent on it maintaining good relationships with its customers and suppliers. The actual sales by the company may differ from the estimates of its management due to the absence of long-term agreements. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.

Operates in highly competitive environment: The company operates in a highly competitive industry where aggressive pricing for project acquisition is common. Consequently, it may need to bid more aggressively and accept unfavourable terms. Without securing new projects, its business growth and revenues may suffer, especially when competing against larger and more resourceful firms. New entrants willing to accept lower margins further strain industry profitability. This may intensify existing challenges, put pressure on pricing and profit margins for all. Continuous intense competition in these markets presents significant challenges, affecting its capacity to sustain growth and uphold satisfactory profit margins. Businesses must adapt to this fierce competition, where newcomers sacrifice profits for market share, impacting overall industry financial health. Failure to address these challenges effectively heightens the risk of losing market share to competitors and facing an overall decline in profits. 

Operating under various laws: The company’s business requires it to obtain and renew from time to time certain approvals, licenses, registrations and permits, some of which have expired and for which it has either made or are in the process of making an application for obtaining the approval or its renewal. In particular, the company has applied for registration under Shops & Establishments Acts of various states, PTEC and PTRC and registration under Inter-State Migrant Workmen Act. Moreover, the company is yet to apply for PTEC and PTRC for the States of Kerala, Sikkim and Goa. Further, these approvals, licenses, registrations and permissions under various regulations, guidelines, circulars and statutes regulated by various authorities for operating its business activities may contain conditions, some of which could be onerous. There can be no assurance that the relevant authorities will issue these approvals or licenses in a timely manner, or at all. In the event of any unanticipated delay in receipt of such approvals, it will have an adverse impact on its business operations. 

Outlook

A pioneer in the MICE industry, Mach Conferences and Events has set a high standard in successfully arranging, coordinating and carrying out formal Meetings, Incentives, Conferences and Events across the globe. A more than 20-years experience and certifications from eminent bodies like IATA, ADTOI, IATO, and PATA speaks volumes in itself. Having Conducted over 300 plus large and medium-size events in previous 3 years involving 30 plus of the most elite brands, it takes pride in claiming its stakes of being among the supreme performers in the MICE industry. Not only in the Indian subcontinent, but its wings span across multiple countries, all thanks to its 55 dedicated and proactive team members. These top-notch set of experts have varied expertise apart from being blessed with an in-depth and updated knowledge of the MICE Industry. On the concern side, any disruption in foreign countries poses a serious threat to the company’s business operations as the major revenue of the company is generated from international tours. Whether it's political instability, natural disasters, or public health crises, such events can have far-reaching implications, affecting its ability to conduct tours, secure bookings, and maintain customer satisfaction. 

The company is coming out with a maiden IPO of 55,68,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 214-225 per equity share. The aggregate size of the offer is around Rs 119.15 crore to Rs 125.28 crore based on lower and upper price band respectively. On performance front, the company’s Revenue from Operation has increased from Rs 14,129.17 lakh in FY 2022-23 to Rs 23,725.89 lakh in FY 2023-24 showing an increase of 67.92% from previous year i.e. FY 2022-23. The company recorded increase in its profit after tax (PAT) from Rs 2,618.27 lakh in the FY 2023-24 to Rs 880.76 lakh in the FY 2022-23. Meanwhile, as an established MICE company, it has a significant advantage in exploring the B2C travel market with the launch of its new ‘BookMyYatra.com’ portal. Its existing large customer base in the B2B segment presents a strategic opportunity to effectively leverage their preferences, travel habits, and booking behaviours as it expands its reach into the lucrative B2C travel market. It is also planning to diversify its services into Religious Tourism. The company would continue to associate itself with good quality customers and execute projects to their utmost satisfaction. It is highly conscious of its brand image and intends to continue its brand building exercise by providing excellent services to the satisfaction of the customers.