Focus Suites IPO comprises issue of 3608000 equity shares of Rs. 10 each at a fixed price of Rs. 18 to mobilize Rs. 6.49 crore. Focus Suites Solutions & Services Limited is a Market Research Company based in Bangalore having operations across 18 countries, focusing on Qualitative Market Research. Focus Suites caters to other Market Research Companies, offering Fieldwork, Panel Research, and primary data collection services. A high proportion of its revenues come from foreign markets
Focus Suites IPO Details
| Issue Period | 30 Jan 2018 to 01 Feb 2018 |
| Issue Size (No. of Shares) | 3607999 |
| Issue Size | ~ 6.5 Crore |
| Face Value | 10 |
| Issue Price | 18 |
| Premium | 8 |
| Market Lot | 8000 |
| Maximum Bid Quantity | 3424000 |
| Lead Managers | Pantomath Capital Advisors Private Limited |
| Registrar | Bigshare |
About Focus Suites Solutions & Services Limited
- Focus Suites Solutions & Services Limited is a qualitative fieldwork agency, having presence across 18 major countries in Asia, Middle East and Latin America. Its project teams have handled the project execution of different fieldwork across various industries like healthcare, automobiles, IT and telecommunications, FMCG, Retail etc
- Focus Suites provide insights to its clients and assist them in making strategic decisions in their respective lines of business.
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Subsidiaries of the Company:
- Pure Online Panel Research Services Private Limited (POPRSPL): This is a is a Digital Data Collection Agency and Online Panel Provider for research agencies and clients spread across Asia Pacific and Middle East.T
- Genpop Consumer Research Private Limited is engaged in the business of providing online market research service to research agencies.Services offered by GENPOP include Survey Programming, Survey Hosting, and Mobile Surveys
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The primary services offered by Focus Suites Solutions & Services Limited are:
- Qualitative Fieldwork
- Sensorial Fieldwork
- Usability Fieldwork
- Data Acquisition and Data Analysis
- Majestic Market Research Support Services Limited is the promoter of the Company. MRSS (Majestic Research Services & Solutions) (founded in 2012) offers customized solutions in market research to clients across various business sectors. MRSS is a Subsidiary of Majestic Market Research Support Services Ltd. which claims to be one of the Asia’s largest full service market research firm.
Financials:
| (Rs in Lakhs ) | |||
| Particulars | HY Fy18 | 2017 | 2016 (stand alone) |
| INCOME | |||
| Revenue from Operations | 577.77 | 1,541.56 | 744.52 |
| Profit before tax | 80.82 | 192.06 | 98.38 |
| Total Tax Expense | 24.97 | 63.15 | 33.09 |
| Profit for the year (D-E) | 55.84 | 128.9 | 65.28 |
| Equity Capital | 974 | ||
| NAV | 17.51 | ||
| RONW % | 28.37% | ||
| Face Value | 10 | ||
| EPS | 0.00 | ||
| Post Issue Equity | 1335 | ||
| IPO Price | 18 | ||
| Price/Book Value | 1.03 | ||
| EPS Post Issue (on Fy17 earnings) | 0.97 | ||
| PE – (fy17 Earnings) | 18.64 | ||
| Market Cap | 2403.00 | Lacs | |
| Market cap / Sales | 1.56 | ||
Objectives of Focus Suites IPO
Company intends to use entire Issue proceeds for working capital of its subsidiaries, General Corporate Purpose and issue expenses
Rationale for Investment
- Focus Suites Solutions & Services Limited is specialized in Qualitative fieldwork, which is a broad methodological approach that encompasses many fieldwork methods and has qualitative field expert to find the best solution to client’s research objective. It has best project management teams in each country with industry experts and technically advanced fieldwork tools to get accurate and precise output.
- 93% of Focus Suites revenues accrue in foreign markets viz: North America, European Region, MENA region
State % of Total Revenue for Fy17 % of Total Revenue for HY, FY18 North America 50% 51.05% European Region 40% 38.75% - Company enjoys continued patronage of clients in the various markets its operates.
Risks & Concerns
- Foreign Exchange fluctuations as major operations are outside India
- Business is working capital intensive pand a significant portion of itsworking capital is utilized towards trade receivables
Assessment
- Focus Suites operates in diverse geographies and enjoys patronage of it clients in the different markets segments and appears to have good skill set.
- Company’s subsidiary POPRSPL has good strength in Healthcare Market Research owing to its active and highly engaged pool of Healthcare Professionals i.e., Physicians, Nurses, and Hospital support and administrative staff and Patients from more than 20 countries.
- Promoter company has a reasonable track record.
- Issue is priced reasonably at PE of 18.64 on Post issue Equity and Debt equity ratio is less than 1 and RONW stands at about 28%.
- I intend to apply in this IPO considering its reasonable valaution, good strenths of company in fieldwork and backing of promoters MRSS. Further record of BRLM Pantomath Advisors encouraging.
- A key pint to watch is any important development in the Union Budget today.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. I may have vested interest in every stock I discuss and my views may be biased. Please do your own due diligence as stock market investments have high degree of inherent risk.