@Manan Surana Hem is a positive, despite the recent discount listing, there is credibility in the Lead Manager. QIB portion is there as well which can be construed positive, though the actual subscription will give more insight and whether QIB portion actually benefits the company.
On the company front, the business sector is not niche and has little entry barriers. Company has concentrated clients and regions from where they derive revenue, which was seen in declining stage, like USA, Netherlands, probably due to alternatives available, yet the company posted higher profits. Forex issues for which hedging is surely required due to significant portion of revenues derived from outside India is lingering on with the company.
Despite the company claiming to be indulged in AI, SaaS, Ed-tech type of business, little information with respect to research and development is visible.
The company has a subsidiary in ROMANIA, which is inching towards closure even before start of business
Increasing set of trade receivables with increasing set of outstanding creditors can dent the cash cycle going ahead, as management themselves has given clues for the same, Company has till now not taken registration for its business premise and nor registered their trademark despite 7 or so years being in existence. Post issue it is possible that the company is already valued at 7-8 times of book value, which is higher than other peers which trade near 4-5 times.
On the other hand, the company has been able to ramp up its domestic business and grab orders from Maharashtra Co-op Govt., is using the whole proceeds from issue to lower its debt.
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