Xelpmoc Design and Tech IPO Opens on 23rd January 2019. The state of the primary markets can be judged form the f act that a ,main board IPO is coming almost after 5 months and that too is of a very small size. Xelpmoc Design IPO intends to raise Rs. 23 crore, via fresh issue of equity shares of Rs.10 . The price band fixed for Xelpmoc Design IPO is Rs. 62 to Rs. 66 per share. The IPO is offering a retail discount of Rs. 3 per share.
Assessment:
- Xelpmoc Design is a provider of professional and technical consulting services.
- Xelpmoc Design has allotted 15.68 lakh shares at ₹66 a share aggregating to ₹10.35 crore to two anchor investors,. Washington University Chanakya Capital Partners and University of Notre Dame DU LAC.
- The company proposes to utilise the net proceeds of the issue for the purchase of IT hardware and network equipment for development centres in Kolkata and Hyderabad, purchase of fitouts for new development centres in Kolkata and Hyderabad, funding working capital requirements, and general corporate purposes.
- For Fy18, Xelpmoc Design made a Loss of Rs. 3.5 crore on a revenue Rs. 5 crore.
- Even in H1FY19 ,Xelpmoc Design has continued to make loss.
- A main board IPO for mere Rs. 23 crore with 10% marked for retail and resulting market cap of less than 100 crores is not much to look forward to given the state of markets. CIt is possible that Company’s business may turn out to be high risk high reward.
- Iam not covering this IPO due to reasons detailed above and will be giving it a miss.
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.