InfoBeans Technologies Ltd (ITL) is engaged in software development services, specializing in business application development for web and mobile and operate at Capability Maturity Model Integration (CMMI) level 3. ITL’s services can be broadly categorized as storage & Virtualization, Media & Publishing and eCommerce. In India it operates out of 2 facilities in Indore and Pune employing more than 600 people across locations. As the company has prominence in exports, it has established local presence in the North American market by way of a 100% subsidiary, which has 2 offices located in California & Georgia, USA. ITL is ServiceNow partner for implementing their software.
To part finance its acquisition and strategic initiatives, technical development, investment in subsidiaries, sales promotion pans and generate corpus funds, the company is coming out with a maiden IPO of 6342000 equity issue of Rs.10 each at a fixed price of Rs. 58 per share to mobilize Rs. 36.78 crore. Issue opens for subscription on 18.04.17 and will close on 21.04.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Link Intime India Pvt Ltd is the registrar to the issue. This Issuer has been graded by CRISIL SME Rating as ‘SME 1’, indicating highest level of creditworthiness, adjudged in relation to other SMEs and it has been graded by Credit Analysis and Research Limited (“CARE”) as ‘SME Fundamental Grade 4’ [SME Fundamental Grade Four] indicating very good fundamentals. Except for private placement in March 2015, it issued all equity at par and has also issued bonus shares in the ratio of 14 for 1 in March 2013, 1 for 1 in March 2014 and 5 for 2 in March 2017. Post issue its current paid up equity capital of Rs. 17.67 crore will stand enhanced to Rs. 24.02 crore.
On performance front, the company has (on consolidated basis) posted revenue/net profits of Rs. 38.14 cr. / Rs. 7.02 cr. (FY14), Rs. 43.03 cr. / Rs. 5.55 cr. (FY15) and Rs. 74.40 cr. / Rs. 13.20 cr. (FY16). It suffered a setback in FY 15 in bottom-line. For the first nine months of the current fiscal, it has earned net profit of Rs. 7.84 cr. on revenue of Rs. 62.72 cr. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 13 plus and at a P/BV of around 2 plus. Its listed peers are trading at an average P/E of 15 and thus issue appears to have been fully priced.
On merchant banker’s front, this is the 25th mandate from its stable and if we consider last 15 issues, they have given positive returns on the day of listings.
Conclusion: Cash surplus Investors may consider investment for long term as issue appears to have been fully priced.
The promoters of the company are:
1. Mr. Siddharth Sethi,
2. Mr. Avinash Sethi and
3. Mr. Mitesh Bohra
Summary of financial Information
||For the year/period ended (in Rs. Million)
|Profit After Tax (PAT)
Objects of the Issue:
The objects of the Issue are:
1. Acquisitions and Other Strategic Initiatives;
2. Technical Development;
3. Investment in their Subsidiaries
4. Advertising and Sales Promotion;
5. General Corporate Purposes;
6. Issue Expenses.
Infobeans Tech IPO subscribed 31 times, raises Rs1,100 crore
Look at their CSR activities in 2015-16, Can you tell me one single company who does such things at this stage where their Mcap is hardly 150 Cr…