Ravelcare Limited Refiles DRHP for IPO

Mumbai, 31 July 2025: Ravelcare Limited has refiled its Draft Red Herring Prospectus (DRHP) with SEBI, proposing a 100% book-built IPO of up to 19,00,000 equity shares with a face value of ₹10 each. The company plans to raise fresh capital to expand its digital-first brand presence and develop an in-house manufacturing facility in Maharashtra, aiming to reduce reliance on third-party producers and strengthen margins.

Ravelcare’s IPO to Fuel Manufacturing and Brand Growth with Over ₹19 Cr Fresh Issue

The entire issue is a fresh offering of 19,00,000 equity shares, with no Offer for Sale (OFS) component. Ravelcare’s IPO will be listed on the BSE SME platform, with Marwadi Chandarana Intermediaries Brokers Pvt. Ltd. acting as the Book Running Lead Manager (BRLM) and KFin Technologies Limited as the registrar.

The net proceeds from the issue are intended to fund:

• ₹1,150.00 lakh for marketing and advertisement to boost brand visibility
• ₹808.15 lakh for establishing a new manufacturing facility
• Remaining funds will be allocated towards general corporate purposes (final amount yet to be confirmed)

New Amravati Facility to Reduce Costs and Support Scalable In-House Production

Ravelcare aims to build its in-house manufacturing facility at Mauje-Peth in Amravati, Maharashtra, focusing on haircare, skincare, and scalp care production. This facility is expected to reduce third-party dependency, helping the company improve operational efficiency and margin control.

Financials Show Rapid Growth in Revenue and Profitability Across FY25

The company has demonstrated strong growth in the last three financial years. In FY25, Ravelcare reported ₹2,497.89 lakh in revenue from operations, up from ₹2,208.78 lakh in FY24 and a substantial leap from ₹349.36 lakh in FY23. Profit After Tax (PAT) stood at ₹524.76 lakh in FY25, compared to ₹502.41 lakh in FY24 and ₹41.53 lakh in FY23.

The EBITDA margin moderated to 27.30% in FY25 from 30.12% in FY24 but remained significantly higher than 14.58% in FY23.

A strong repeat order rate of 32.55% in FY25, up from 22.12% in FY24 and 16.81% in FY23, reflects deepening consumer trust.

Notably, over 95% of sales in FY25 came through its own website, underlining the company’s D2C strength.

Ravelcare’s Promoters Retain Strong Ownership with Nearly 100% Pre-IPO Holding

Ravelcare is promoted by Ayush Mahesh Varma, Maheshkumar Ramchandra Varma, and Anita Mahesh Varma. Before the IPO, the promoter group holds 99.96% of the paid-up capital, comprising 50,02,998 equity shares.

• Ayush Mahesh Varma: 87.91%
• Maheshkumar Ramchandra Varma: 4.02%
• Anita Mahesh Varma: 3.99%
• Kritika Aggarwal & Jyoti Aggarwal (non-promoter shareholders): 4.04%

All shares are fully paid-up and held in dematerialised form.

Capex Plan of ₹808.15 Lakh Includes Civil Work, Machinery and R&D Support

The new facility will include not only manufacturing but also R&D, packaging, and warehousing.

Estimated capital expenditure includes:

• ₹320.55 lakh for civil works and construction
• ₹442.60 lakh for machinery procurement
• ₹45.00 lakh as a contingency provision

Vendor selection is underway, with companies such as Packwell India Machinery, Karadani Engineering, and Bandma Equipcorp being considered for key machinery orders.

High Dependency on Haircare Segment and Past Compliance Delays Among Key Risks

While the company is growing, several risks remain:

• Over 95% of revenue in FY25 came from the haircare category, indicating limited product diversification
• Since this is the first public issue, no existing market for its shares currently exists
• Until the in-house facility becomes operational, dependency on third-party manufacturers may impact scalability
• Ravelcare has experienced delays in statutory filings and regulatory compliance in the past

AI-Driven D2C Beauty Brand Ravelcare Eyes Premium Market with Scalable Tech and Personalisation

Founded in November 2018 and converted into a public company in June 2024, Ravelcare operates in the premium beauty and personal care (BPC) space with a digital-first approach. The company specialises in personalised haircare, skincare, bodycare, and scalp solutions, using AI-based consumer profiling and end-to-end digital sales.

Its core strength lies in its customised product formulations and consultation-led D2C model, supported by digital channels like Amazon, Flipkart, Blinkit, Myntra, and its own platform. Ravelcare currently has no listed peer of similar scale in the BPC sector.

The proposed IPO will be launched under Chapter IX of SEBI’s ICDR Regulations, 2018, and the equity shares are expected to be listed on the BSE SME platform.

REF: https://www.bsesme.com/download/318690/SME_IPO InPrinciple/DRHPRavel_20250730224704.pdf

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