Ravelcare Limited Makes Strong Debut with 54.62% Premium, Lists at ₹201.00 Against Exceptional Subscription

Ravelcare Limited, a digital-first beauty and personal care brand offering comprehensive range of haircare, skincare, bodycare, and scalp care products through personalized digital consultations operating primarily via website and online marketplaces including Amazon, Flipkart, Myntra, and Blinkit with international presence in UAE, Australia, Canada, Germany, USA, and Saudi Arabia, made a strong debut on BSE SME on December 8, 2025. After closing its IPO bidding between December 1-3, 2025, the company commenced trading with a premium of 54.62% opening at ₹201.00 and touched ₹208.95 (up 60.73%).

Ravelcare Limited Listing Details

Ravelcare launched its IPO at ₹130 per share with minimum investment of 2,000 shares costing ₹2,60,000. The IPO received exceptional response with subscription of 437.60 times - individual investors at 463.13 times, QIB at 155.91 times, NII at 752.16 times.

First-Day Trading Performance

Listing Price: Ravelcare opened at ₹201.00 representing premium of 54.62% from issue price of ₹130.00, touched high of ₹208.95 (up 60.73%) and low of ₹190.95 (up 46.88%), with VWAP at ₹199.22, reflecting exceptional market enthusiasm supported by extraordinary subscription levels despite analyst concerns about static top and bottom lines from FY24 onwards and contract manufacturing model.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Metrics: Exceptional ROE of 68.04%, robust ROCE of 68.32%, RoNW of 50.77%, outstanding PAT margin of 21.01%, impressive EBITDA margin of 27.30%.

Digital-First Business Model: Direct-to-consumer channels reducing intermediary dependence, personalized digital consultation process enabling tailored product recommendations, customer-centric approach building strong relationships and driving organic growth through word-of-mouth, presence across multiple online marketplaces and quick commerce platforms.

International Expansion: Operations in UAE, Australia, Canada, Germany, USA, and Saudi Arabia providing geographic diversification, innovation-led product development based on customer feedback, comprehensive portfolio spanning haircare, skincare, bodycare, and scalp care addressing diverse customer needs.

Challenges:

Stagnant Growth: Revenue increased only 14% and PAT rose merely 5% between FY24 and FY25, analyst review highlights almost static top and bottom lines from FY24 onwards raising concerns about growth momentum and market saturation.

Manufacturing Dependency: Currently relies on contract manufacturing creating supply chain vulnerability, proposed integrated manufacturing facility in Amravati still under development requiring significant capital investment and execution capabilities, limited operating scale with just 25 employees.

Utilisation of IPO Proceeds

Marketing Investment: ₹11.50 crore for marketing and advertisement expenses toward enhancing awareness and visibility of brand supporting customer acquisition across digital channels and international markets.

Manufacturing Facility: ₹7.84 crore for setting up new integrated manufacturing facility at Mauje-Peth in Amravati with 1,050 TPA capacity housing research and development, manufacturing, packaging, warehousing, and distribution under one roof.

General Corporate Purposes: ₹2.13 crore allocated for general corporate purposes supporting working capital requirements, operational needs, and strategic initiatives.

Financial Performance

Revenue: ₹25.30 crore for FY25, modest growth of 14% from ₹22.28 crore in FY24, reflecting expanding customer base across digital channels and international markets though growth momentum appears to be slowing compared to earlier periods.

Net Profit: ₹5.26 crore in FY25, modest growth of 5% from ₹5.02 crore in FY24, demonstrating limited profit expansion despite revenue growth indicating margin pressure or increased operating expenses in digital-first beauty and personal care business.

Financial Metrics: Exceptional ROE of 68.04%, robust ROCE of 68.32%, zero debt, RoNW of 50.77%, outstanding PAT margin of 21.01%, impressive EBITDA margin of 27.30%, price-to-book of 6.29x, post-issue EPS of ₹9.32, P/E of 13.95x, net worth of ₹10.35 crore, and market capitalisation of ₹130.97 crore.