Ravelcare IPO

Ravelcare, a relatively young player founded in 2018, aims to carve out a niche in personalized hair and skin care through its online quiz-based recommendations. The IPO, open December 1-3, prices shares at ₹130, valuing the company at roughly ₹90 crore. While revenue growth has only recently picked up (FY23-24), a significant red flag is its overwhelming reliance on direct website sales (93%). This lack of third-party verification makes genuine demand hard to gauge. Further concerns include an unregistered brand name, disproportionately rising inventory versus sales, and increasing receivables—odd for a D2C model. Even the lead manager's past performance raises eyebrows, often favoring promoters over investors. Despite projected net profits of ₹5-6 crore, recent cash conversion and overall cash flow look weak. While short-term listing gains might tempt some (GMP around 12-13%), this isn't a long-term play. The risks—from an unregistered brand to unverified sales and questionable financials—are simply too numerous. My Take: Frankly, Ravelcare feels like a high-risk gamble. The allure of personalized products is there, but the fundamental issues—unregistered brand, unverified sales, and shaky financials—scream caution. Short-term flippers might see a fleeting opportunity, but for serious investors, this IPO lacks the verifiable substance needed for a confident long-term commitment. Steer clear if you value stability.