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Review By Dilip Davda on July 23, 2017
Surevin BPO Services Ltd (SBSL) is one of the leading certified service providers of IT solutions and Business services, outsourcing services, digital solutions and marketing, data enrichment and management service, skill development and training program and HR consultancy. Currently SBSL is focusing on outsourcing services that include inbound and outbound call, software development and providing optical fibre cabling to Reliance, Idea and BSNL. It also provides principal services in sectors like BFSI, Government Agencies, Telecom, Technology and media industries, back office services, HRO services, Training etc.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 912000 equity shares via book building route with a price band of Rs. 38 - Rs.40 to mobilize Rs. 3.47 to Rs. 3.65 crore (based on lower and upper price band). Issue opens for subscription on 28.07.17 and will close on 01.08.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely lead managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 26.93% of the post issue paid up capital of the company. Company has raised entire equity at par and has issued bonus shares in the ratio of 10 for 1 in September 2011 as well as in September 2016. Post issue, its current paid up equity capital of Rs. 2.48 will stand enhanced to Rs. 3.39 crore.
On performance front, the company has reported revenue/net profits of Rs. 6.08 cr. / Rs. 0.10 cr. (FY14), Rs. 10.58 cr. / Rs. 0.73 cr. (FY15), Rs. 15.29 cr. / Rs. 1.77 cr. (FY16) and Rs. 15.328 cr. / Rs. 1.52 cr. (FY17). Thus for last two fiscals, its top line remain almost same, but bottom line marked some erosion. Based on the latest earnings, asking price for the issue is at a P/E of 6.51 (based on the upper price band) against peers trading at a P/E of 15 to 20. For last three fiscals it has reported an average 43.51% RoNW. Issue is priced at a P/BV of 2.08. Thus issue is priced reasonably.
On merchant banker's front, this is 37th mandate from its stable and so far and out of last 10 listings, one IPO gave negative return, two IPOs opens just above offer price and the rest opened at a good premium to offer price.
Conclusion: Investors may consider investment for short to long term.
Review By Dilip Davda on July 23, 2017
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Surevin BPO Services Ltd offers an early investment opportunity in Surevin BPO Services Ltd. A stock market investor can buy Surevin IPO shares by applying in IPO before Surevin BPO Services Ltd shares get listed at the stock exchanges. An investor could invest in Surevin IPO for short term listing gain or a long term.
Read the Surevin IPO recommendations by the leading analyst and leading stock brokers.
Surevin IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Surevin IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Surevin IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Surevin IPO.
The Surevin IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Surevin IPO allotment status to check.
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