ITCONS E-Solutions IPO envisages to raise ₹8.67 crore at a fixed IPO price band of ₹51 with a market lot of 2000 shares. ITCONS E-Solutions Limited is a New Delhi-based human resource services provider company. It will list on BSE SME platform.
IPO opens
28-Feb-23
IPO Closes
02-Mar-23
IPO Size (Rs.)
~ ₹8.67 Crores
IPO Size (shares) (100% fresh isue)
17,00,000
Face Value:
₹10
IPO Pricebin Rs :
51
Minimum Lot
2000
Listing At
BSE SME
NII Quota
50% of Net Issue
Retail Quota
50% of Net Issue
Lead Manager
Finshore Management Services
Registrar
Cameo Corporate Services
IPO opens
28-Feb-23
IPO Closes
2-Mar-23
IPO Size (Rs.)
~ ₹8.67 Crores
IPO Size (shares) (100% fresh isue)
1,700,000
Face Value:
₹10
IPO Pricebin Rs :
51
Minimum Lot
2000
Listing At
NSE SME
NII Quota
50% of Net Issue
Retail Quota
50% of Net Issue
Lead Manager
Finshore Management Services
Registrar
Cameo Corporate Services
ITCONS e-Solutions is a global, professional staffing and recruitment company specializing in strategic services for the Information Technology, Healthcare, Manufacturing, Oil and Gas, Engineering, Logistics/Transportation, Light Industrial, Media, Finance/Accounting, Administrative Services/Clerical, Marketing/Creative, related industries along with State Govt. Central Govt. and PSUs. ITCONS e-Solutions provides Long-term or Short-term staff Augmentation or Managed task contract or Contingent employment/staffing solution.
ITCONS E-Solutions Limited, is in the business of providing human resource services to both public and private organizations mostly in organized sector in diverse roles and responsibilities since 2007. Our services primarily include 1) Manpower Supply/Recruitment Services; and 2) Manpower Sourcing/Staffing Services.
Incorporated in 2007, it has well-known and reputed clients from the Information Technology, Staffing & Recruitment, Food, FMCG space amongst others, which include MNCs as clients. Presently Manpower Supply Services account for a majority of revenues, and Manpower Souring Services contributes to rest of revenues.
Its marquee repeat and prestigious clients include Wipro Technologies, Wipro Infotech, Central Warehousing Corporation (CWC), Municipal Corporation agencies of Maharashtra Govt., Nokia Siemens, L&T Infotech, MSource, HCL Services, HCL Comnet, HCL Technologies, HCL Infotech, Genpact, MindTree, TATA Tele Services, Radico Khaitan, Microland, Saksoft, Motherson Sumi, Amdocs, ThompsDigital, ICICI Bank, Sopra Steria, Path Infotech, Sintex, Agreeya, Aricent, TVS Electronics, Xebia, Hitachi, CMS, Collabera Technologies, Magic Software, IF& FS Technologies, Team computers, SBSC, Hughes Systique etc.
Mr. Gaurav Mittal and Mrs. Swati Jain are the promoters of company.
ITCONS e-Solutions IPO: Financials
Particulars / Rs. Lacs
H1FY23
2022
2021
2020
Total Revenue
1,605.05
1,820.36
842.48
834.95
Profit After Tax
106.12
119.11
7.53
10.57
Total Share Capital
332.87
1.14
1.14
1.14
Total Net Worth
462.23
223.42
104.31
96.78
Net Asset Value per equity share
13.89
1965.99
917.89
851.63
Post issue Share Capital
503.00
FV
10
IPO price
51
EPS FY22
2.37
PE Fy22
21.54
EPS Fy233 (ann)
4.22
PE Fy23 (ann)
12.09
Market cap in Lacs
2565
Market Cap/sales
0.80
Salient Points
General Staffing Industry was primarily driven by demands from FMCG, E-commerce, Manufacturing, Healthcare, Retail, Logistics, Banking, Energy etc.
As per company, IT staffing industry post Quarter-2 has started witnessing a stabilisation in the demand.
The company is providing IT consulting along with Permanent/temp staffing and is funded by Amity Capital Ventures (ACV) and supported by MSME (Ministry of Small and Medium size Enterprises) and TDB (Technology Development Board).
Beside marque clients from Information Technology, IT ITCONS e-Solutions has well-known and reputed clients from the Information Technology, Staffing & Recruitment, Food, and FMCG space
ITCONS finalized it’s agreement with Tech Mahindra as recruitment services provider on 27th Jan 2023
Peers:
Peer Group/ Rs Cr
Face Value (in ₹)
CMP
Revenues
Net Proft
NPM
PE
RONW
Integrated Personnel Services Limited
10
82
170
4.01
2.4%
14.7
23.34
ANI Integrated Services Limited
10
48
143
5.46
3.8%
29.9
12.28
ITCONS E-Solutions Limited^
10
51
18.20
1.19
6.5%
12.09
53.31
Company’s vision is “To be a Pan India respected corporation that provides best-of-breed Staffing Business Solutions / Services, leveraging technology, delivered by best-in-class people.”
Compnay has been sanctioned financing facilities from the HDFC Bank.
Social media reports indicate a low GMP of about Rs. 3-4 on the issue price.
P/BV ratio is 1.9x based on its post-IPO NAV of Rs. 26.43 per share.
PE ratio is 21x (fy22 earnings) and 12x (fy23 annualized).
Management aims to make it a 100 cr revenue company.
ITCONS e-Solutions IPO could see average subscription.
I have a neutral to slightly positive view view on ITCONS e-Solutions IPO. There are several SME coming in next few days. I may apply in this IPO on last day looking into subscription figures.
SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
The lead manager Finshore Management has an average record with most of the SME IPOs lead managed by them have listed with some gains while few have listed below the issue price.
Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
