Encompass Design India (ScaleSauce) IPO Overview
Mumbai-based digital-first consumer brand builder raising ₹40.21 cr via 100% fresh issue of 37.58L shares. Price: ₹101-107. Lot: 1,200 shares (₹2.57L min, 2,400).
Funds for office capex (₹11.49 cr), working capital (₹7.29 cr), debt repayment (₹11 cr).
Founded 2010, 15 years old.
Brands: Stoa Paris, QuirkLoom, Small Batch (home/living/gourmet).
Products: Bed sheets, curtains, comforters, linens, sauces. Plus e-commerce solutions, digital marketing.
Omnichannel: D2C website, Amazon, Flipkart, Myntra, gated markets. 89 employees. FY25 financials TBD.
Lead: 3Dimension Capital. Competes with Urban Ladder, Pepperfry, Fab India, Mamaearth, Sleepy Owl, Wingreens, D2C brands.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 5 December 2025 (Thursday) |
| IPO Close Date | 9 December 2025 (Monday) |
| Allotment Date | 10 December 2025 (Tuesday) – Expected |
| Credit to Demat | 11 December 2025 (Wednesday) – Expected |
| Refund Initiation | TBD |
| Listing Date | 12 December 2025 (Thursday) – Tentative |
| Price Band | ₹101 – ₹107 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Min Investment (Retail) | ₹2,56,800 (2,400 shares / 2 lots at upper band) – Also reported as ₹1,28,400 (1,200 shares) |
| Issue Size | ₹40.21 crore total (at upper band) – Also reported as ₹37.96-40.21 cr range |
| Fresh Issue | ₹40.21 crore (100% fresh issue) – 37,58,400 shares |
| Offer for Sale (OFS) | NIL |
| Total Shares Offered | 37,58,400 equity shares (37.58 lakh) |
| Listing | NSE SME (Emerge Platform) |
| Post-Issue Market Cap | TBD (financials not fully disclosed) |
| P/E Ratio | TBD (FY25 financials not disclosed) |
| EPS | TBD |
Issue Break-up
| Category | Allocation | Percentage |
| QIB (Qualified Institutional Buyers) | 50% allocation | 50% |
| NII (Non-Institutional Investors) | 15% allocation | 15% |
| Retail Individual Investors | 35% allocation | 35% |
| Market Maker (Alacrity Securities) | Portion reserved | ~5% |
Note: Standard SME IPO allocation pattern. No anchor portion disclosed in available sources.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹40.21 crore gross / ~₹37.96 cr net after issue expenses) will be used for:
- Funding Capital Expenditure – Office Purchase, Interior Work, Refurbishment – ₹11.49 crore (30.2%)
- Purchasing new office space
- Interior fit-outs and furnishing
- Refurbishment of existing facilities
- Infrastructure upgrades
- Meeting Working Capital Requirements – ₹7.29 crore (19.2%)
- Inventory management (home products, food products)
- Trade receivables from marketplace platforms
- Day-to-day operations
- Supplier payments
- Repayment/Prepayment of Borrowings – ₹11.00 crore (29%)
- Debt reduction from banks/financial institutions
- Deleveraging balance sheet
- Reducing finance costs
- General Corporate Purposes – Balance amount (~21.6%)
- Brand building, marketing, technology, contingencies
Strategic Focus:
- Office infrastructure (30.2%) – suggests expansion or upgrade
- Significant debt repayment (29%) – indicates leverage
- Working capital (19.2%) – funding operations and inventory
- Mix of growth investment and financial restructuring
Note: This is a 100% fresh issue with no OFS. All proceeds go to the company.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- 3Dimension Capital Services Limited
- Address: K-37A, Basement, Kailash Colony, Near Kailash Colony Metro Station, New Delhi – 110048
- Phone: 011-40196737
- Website: www.3dcsl.com
Registrar:
- MUFG Intime India Private Limited (formerly Link Intime India)
- Address: C-101, 247 Park, 1st Floor, LBS Marg, Vikhroli (West), Mumbai – 400083
- Phone: +91 810811 4949
- Email: [email protected]
- Website: www.in.mpms.mufg.com
Market Maker:
- Alacrity Securities Limited
Promoters & Management
Key Promoters (4 Promoters):
- Mr. Amit Rajendraprasad Dalmia – Promoter
- Co-founder and key leadership
- Ms. Susmita Amit Dalmia – Promoter
- Co-founder and family member
- Mr. Ruman Kailash Agarwal – Promoter
- Co-founder bringing expertise
- Mr. Yogendra Vashishta – Promoter
- Co-founder with technology/digital expertise
Company History:
- Incorporated March 9, 2010 as “Encompass Design India Private Limited” (15 years old)
- Registrar of Companies: Mumbai, Maharashtra
- Converted to Public Limited: March 31, 2025 (EGM resolution) – renamed “Encompass Design India Limited”
- Fresh Certificate: May 5, 2025 from RoC Central Processing Centre
- CIN: U74210MH2010PLC200672
- Operating Brand: ScaleSauce
- Evolution: Started as fabric trading and e-commerce support company → diversified into manufacturing, branded products, digital services
- Brands Developed: Stoa Paris, QuirkLoom, Small Batch (home/living/gourmet food)
- Workforce: 89 full-time employees (as of September 30, 2025)
Company Contact:
- Registered Office: VirwaniIndlEstate, Shop No. A-101, Opp. Western Express Highway, Goregaon (East), Mumbai – 400063, Maharashtra
- Phone: +91 7738988671
- Website: www.edipl.in
COMPANY OVERVIEW
Establishment & Background:
- Incorporated on March 9, 2010 (15 years old)
- Converted to Public Limited in 2025 (just before IPO)
- Industry: Consumer Brands – Digital-First Home, Living & Food Products + E-Commerce Solutions
- Operating Brand: ScaleSauce
- Headquartered in Mumbai (Goregaon East), Maharashtra
- Workforce: 89 full-time employees (September 30, 2025)
Business Model:
- Multi-Vertical Digital-First Consumer Brand Builder
- Four Business Verticals:
- Manufacturing & Brand-Led Product Sales (Home & Living):
- Products: Bed sheets, curtains, comforters, table linens, pillow covers, home décor
- Brands: Stoa Paris, QuirkLoom (premium home textiles)
- Manufacturing and selling under proprietary brands
- Design-focused, quality products for modern urban consumers
- Food Products (Gourmet Sauces):
- Brand: Small Batch (artisanal sauces)
- Sauces, condiments, gourmet food products
- Targeting foodie/premium segment
- Trading (Gated Markets):
- Trading of cotton, fabrics, agro-based products
- Niche buyers via gated markets (B2B channels)
- Traditional trading business
- Digital & E-Commerce Solutions (D2C Enablement):
- Comprehensive services for brands:
- Technology: E-commerce platform development, app development, website management
- Marketing: Digital marketing, performance marketing, social media management, influencer partnerships
- Operations: Marketplace management (Amazon, Flipkart, Myntra), logistics coordination, customer service, inventory management
- Helping D2C brands and corporate clients scale online
- Agency-style B2B services
- Comprehensive services for brands:
- Manufacturing & Brand-Led Product Sales (Home & Living):
- Distribution Channels (Omnichannel Approach):
- Direct-to-Consumer (D2C): Own brand websites for Stoa Paris, QuirkLoom, Small Batch
- Major E-Commerce Marketplaces: Amazon, Flipkart, Myntra, others
- Gated Markets: B2B channels for trading business
- Digital Services: Tech/marketing clients across industries
- Target Customers:
- B2C: Modern urban Indian consumers, design-conscious buyers, millennials/Gen-Z
- B2B: D2C brands needing tech/marketing support, corporate clients
- Niche Buyers: Premium/segmented markets for home textiles and gourmet food
Market Position:
- Positioned as digital-first multi-brand consumer company in home/living/food segments
- Indian home textiles market: ₹1,00,000+ crore industry
- Indian gourmet food market: Growing premium/artisanal segment
- D2C enablement services: Competing with agencies and platforms
- Competing with diverse players:
- Home/Living: Urban Ladder, Pepperfry, Fab India, HomeStop, H&M Home
- Food: Mamaearth, Sleepy Owl, Wingreens, The Whole Truth, other D2C food brands
- Digital Services: E-commerce agencies, SaaS platforms
- Differentiation: Integrated model combining own brands + enabling others + traditional trading
Operations:
- Headquarters: Mumbai, Maharashtra (Goregaon East)
- Manufacturing: Home textiles production (likely outsourced/contract manufacturing)
- Food Production: Sauces manufacturing (likely co-packing arrangements)
- Technology: E-commerce platforms, digital marketing tools
- Team: 89 employees – brand managers, digital marketers, tech team, operations
Company Strengths
- Multi-Vertical Business Model – Diversified Revenue Streams:
- Four distinct verticals: Manufacturing (home), food products, trading, digital services
- Reduces dependency on single business line
- Cross-selling opportunities across verticals
- Hedges against single-category headwinds
- Flexibility to pivot based on market conditions
- Digital-First Approach – Omnichannel Distribution:
- Strong presence on major e-commerce platforms (Amazon, Flipkart, Myntra)
- Own D2C websites for brands (Stoa Paris, QuirkLoom, Small Batch)
- Digital marketing expertise in-house
- Data-driven approach to consumer insights
- Scalable online model vs traditional retail
- Multiple Proprietary Brands – Portfolio Approach:
- Stoa Paris, QuirkLoom: Home textiles brands with brand equity
- Small Batch: Gourmet food brand for foodies
- Brand portfolio allows targeting different consumer segments
- Diversification reduces single-brand risk
- IP ownership provides competitive moat
- D2C Enablement Services – B2B Revenue Stream:
- Provides technology, marketing, operations services to other brands
- Recurring B2B revenue alongside B2C product sales
- Leverages internal capabilities for external clients
- Asset-light services business with high margins
- Taps into growing D2C ecosystem in India
- 15-Year Track Record – Established Operations:
- Incorporated 2010 (15 years of operations)
- Survived economic cycles and COVID-19 pandemic
- Built relationships with suppliers, marketplaces, clients
- Experience in fabric trading, e-commerce, brand building
- Learning curve advantages vs new entrants
- Growing Premium Home & Food Markets – Structural Tailwinds:
- Rising disposable incomes driving premiumization
- Urbanization increasing demand for quality home products
- Gourmet/artisanal food segment growing with foodie culture
- D2C ecosystem expanding with UPI, digital payments, logistics
- Multi-year growth runway
- 100% Fresh Issue – All Proceeds for Growth (No Promoter Exit):
- Entire ₹40.21 cr goes to company
- No OFS signals promoter commitment
- Capital for office expansion, working capital, debt reduction
- Not a liquidity event for founders
- Strong Promoter Team – Multi-Founder Setup:
- 4 promoters (Amit Dalmia, Susmita Dalmia, Ruman Agarwal, Yogendra Vashishta)
- Diverse skills: Business, technology, digital marketing, operations
- Multi-founder setup provides depth and resilience
- Shared vision and execution capabilities
Key Risks & Challenges
- Flat GMP (₹0) – Zero Market Enthusiasm:
- GMP at ₹0 as of Dec 3-4, 2025 – completely flat
- Zero grey market interest or speculation
- Indicates market skepticism about issue
- Expected listing price = issue price (₹107) with no gains
- High risk of flat or negative listing
- Investors showing no confidence
- Financials Not Disclosed – Limited Transparency:
- FY25 revenue, profitability, margins not available in public sources
- Difficult to assess valuation (P/E, Price-to-Sales)
- Cannot evaluate growth trajectory
- Red flag for retail investors making blind investment
- Lack of transparency raises concerns
- Must review DRHP carefully before investing
- High Marketplace Dependency – “High Dependence” Warning:
- Zerodha explicitly warns: “High dependence on online marketplaces for a major share of revenue”
- Vulnerable to Amazon/Flipkart/Myntra commission changes, algorithm changes, policies
- Platforms charge 15-30% commissions eroding margins
- Platform downtime, account suspension = immediate revenue impact
- Building on rented land vs owned channels
- Intense Competition – “Intense Competition” Warning:
- Zerodha warns: “Intense competition in consumer products and the D2C brand space”
- Home/Living: Urban Ladder, Pepperfry, Fab India, HomeStop, H&M Home, hundreds of D2C brands
- Food: Mamaearth, Sleepy Owl, Wingreens, The Whole Truth, Epigamia, thousands of new D2C food brands
- Digital Services: Thousands of e-commerce agencies, SaaS platforms
- Low barriers to entry – anyone can launch D2C brand
- Price wars, customer acquisition cost wars, discounting battles
- Working Capital Pressures – “Working Capital Pressures” Warning:
- Zerodha explicitly notes: “Working capital pressures due to inventory and scaling needs”
- ₹7.29 cr (19.2% of IPO) for working capital – indicates strain
- Home textiles = inventory-heavy business
- Food products = perishability and inventory management challenges
- Marketplace payment cycles (30-90 days) vs supplier payment needs
- Cash flow challenges typical of product businesses
- Digital Marketing Vulnerability – “Vulnerability to Changes” Warning:
- Zerodha warns: “Vulnerability to changes in digital marketing and platform algorithms”
- Google, Meta (Facebook/Instagram) algorithm changes impact visibility
- Rising customer acquisition costs (CAC) across digital channels
- Performance marketing ROI declining
- Dependency on paid advertising for brand awareness
- Organic reach declining on social platforms
- Third-Party Supplier Reliance – “Reliance on Third-Party” Warning:
- Zerodha notes: “Reliance on third-party suppliers for manufacturing and logistics”
- Likely outsourcing manufacturing (textiles, food)
- Quality control challenges with contract manufacturing
- Supply chain disruptions = production delays
- Logistics dependency = delivery quality issues
- No control over cost structure
- Litigation & Regulatory Exposure – Zerodha Mentions Risks:
- While not detailed publicly, SME IPOs often have pending litigation
- E-commerce, consumer products face regulatory scrutiny
- GST compliance, product quality standards, labeling requirements
- Consumer complaints, returns management
- Legal costs and reputational damage risks
- Significant Debt – ₹11 Cr (29%) for Repayment:
- ₹11 crore (29% of IPO proceeds) for debt repayment
- Indicates leverage and financial stress
- Past borrowings to fund inventory, operations
- Interest costs impacting profitability
- Post-IPO debt may still remain (only partial repayment)
- Small Scale – 89 Employees, Multiple Verticals:
- Just 89 employees managing 4 business verticals
- Stretched organizational bandwidth
- Difficult to excel in manufacturing, food, trading, digital services simultaneously
- Risk of spreading too thin
- Competing against focused players in each vertical
- Limited Brand Recognition – New Brands:
- Stoa Paris, QuirkLoom, Small Batch are relatively unknown brands
- Building brand awareness requires massive marketing spend
- IPO proceeds may not be sufficient for sustained brand building
- Competing with established home brands (Fab India 65+ years, Urban Ladder 13+ years)
- Customer loyalty takes years to build
- Promoter Lack of Disclosure – Limited Public Information:
- Promoters’ backgrounds, expertise not extensively disclosed
- Previous business successes unclear
- Track record in consumer brands not established
- Retail investors investing with limited founder information
CONCERNS: Flat GMP (₹0) indicates zero market interest. Zerodha explicitly warns: “High dependence on online marketplaces,” “intense competition in consumer products and D2C brand space,” “working capital pressures due to inventory and scaling,” “vulnerability to changes in digital marketing and platform algorithms,” “reliance on third-party suppliers.” Significant debt (₹11 cr or 29% for repayment), financials not publicly disclosed, small scale (89 employees across 4 verticals), limited brand recognition (new brands).
POSITIVES: Multi-vertical business model (diversified revenue), digital-first approach (omnichannel), multiple proprietary brands (Stoa Paris, QuirkLoom, Small Batch), D2C enablement services (B2B revenue), 15-year track record, growing premium home/food markets, 100% fresh issue (no OFS), strong promoter team (4 founders). This is a digital-first consumer brands play with multiple verticals but faces intense competition and marketplace dependency.
Disclaimer: This information is based on publicly available sources including IPO platforms and media reports. FY25 financials (revenue, profit, margins) are NOT disclosed in available public sources. Investors MUST review the DRHP document carefully before investing to assess financial performance, valuation, and risks. Investors should conduct their own research and consult with financial advisors before making investment decisions. SME investments carry higher risks than mainboard listings.
