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Integrated Personnel NSE SME IPO review (May apply)

Review By Dilip Davda on October 25, 2022

•    IPSL is engaged in delivering integrated human resource solutions.
•    Due to the pandemic, it suffered a minor setback for FY21.
•    The company operates in a highly competitive and fragmented segment. 
•    Based on its performance, the issue is fully priced. 
•    Cash surplus/risk seekers may consider parking funds for the long term. 

Integrated Personnel Services Ltd. (IPSL) is engaged in delivering integrated Human Resource solutions under the three broad categories of Raising, Leasing, and Management for various industries and diverse functional roles for both, Information Technology (IT) and non-IT companies. 

Under these broad categories, IPSL has bifurcated its services in such a way as to enable its clients to select services as per their requirements. Our employment services broadly include temporary staffing solutions (Flexi- staffing), permanent recruitment (executive search) services, specialized staff recruitment, outsourced recruitment processes, and payroll management.

It has over 11 branch offices for sourcing and recruitment in 128 cities with more than 6,000 Associates deployed as on June 30, 2022. As of June 30, 2022, March 31, 2022, March 31, 2021, and March 31, 2020, IPSL had 143, 169, 132, and 139 core employees, respectively, and 6522, 6810, 5503, and 6298 Associates, respectively. It operates in a highly competitive and fragmented segment. 

To part finance its needs of funds for working capital (Rs. 8.40 cr.), and general corporate purpose (Rs. 2.22 cr.), IPSL is coming out with a maiden IPO of 2160000 equity shares of Rs. 10 each at a fixed price of Rs. 59 per share to mobilize Rs. 12.74 cr. The issue opens for subscription on October 31, 2022, and will close on November 02, 2022. A minimum application is to be made is for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on the NSE SME Emerge platform. The issue constitutes 29.97% of the post-IPO paid-up capital of the company. IPSL is spending Rs. 2.12 cr. for this IPO process. Higher IPO expenses indicate the structuring of the IPO with arranged funds. 

The issue is solely lead managed by Unistone Capital Pvt. Ltd., and Bigshare Services Pvt. Ltd. is the registrar to the issue.  Nikunj Stock Brokers Ltd. is the market maker for this company. 

Having issued initial equity at par, the company issued further equity shares in the price range of Rs. 100 to Rs. 637 per share between May 2009, and February 2018. It also issued bonus shares in the ratio of 97 for 1 in June 2018. The average cost of acquisition of shares by the promoters is Rs. 3.24, and Rs. 3.40 per share. 

Post the issue, IPSL's current paid-up equity capital of Rs. 5.05 cr. will stand enhanced to Rs. 7.21 cr. Based on the IPO pricing, the company is looking for a market cap of Rs. 42.52 cr. 

On the financial performance front, for the last three fiscals, IPSL has (on a consolidated basis) reported a total income/net profit of Rs. 169.30 cr. / Rs. 3.11 cr. (FY20), Rs. 138.64 cr. / Rs. 1.91 cr. (FY21), and Rs. 169.92 cr. / Rs. 4.01 cr. (FY22). For Q1 of FY23, it earned a net profit of Rs. 0.83 cr. on a total income of Rs. 45.14 cr. 

For the last three fiscals, IPSL has posted an average EPS of Rs. 6.26 and an average RoNW of 21.11%. The issue is priced at a P/BV of 1.65 based on its NAV of Rs. 35.68 as of June 30, 2022, and at a P/BV of 1.42 based on its post-IPO NAV of Rs. 41.51. 

If we annualize FY23 earnings and attribute it to post-IPO fully diluted equity capital, then the asking price is at a P/E of around 12.77, and based on FY22 earnings P/E stands at 10.61. Thus, the issue appears fully priced. 

The company has not declared any dividends since incorporation. It will adopt a prudent dividend policy based on its financial performance and future prospects. 

As per the offer document, IPSL has shown Aarvi Encon and ANI Integrated as their listed peer. They are currently trading at a P/E of 16.31 and 13.53 (as of October 25, 2022). However, they are not truly comparable on an apple-to-apple basis. 

This is the 6th mandate from Unistone Capital in the last three fiscals (including the ongoing one). Out of the last five listings, 1 opened at a discount and the rest with premiums ranging from 10.97% to 270.40% on the day of listing. 

Conclusion / Investment Strategy

The company is operating in a highly competitive and fragmented segment. It has posted an average performance so far. Based on its financial data, the issue is fully priced. Risk seeker/cash surplus investors may consider a moderate investment with a long-term perspective.

Review By Dilip Davda on October 25, 2022

Review Author

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

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: ).

Integrated Personnel Services IPO FAQs

  1. 1. Why Integrated Personnel Services IPO?

    The initial public offer (IPO) of Integrated Personnel Services Limited offers an early investment opportunity in Integrated Personnel Services Limited. A stock market investor can buy Integrated Personnel Services IPO shares by applying in IPO before Integrated Personnel Services Limited shares get listed at the stock exchanges. An investor could invest in Integrated Personnel Services IPO for short term listing gain or a long term.

  2. 2. How is Integrated Personnel Services IPO?

    Read the Integrated Personnel Services IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Integrated Personnel Services IPO what should investors do?

    Integrated Personnel Services IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Integrated Personnel Services IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Integrated Personnel Services IPO good?

    Our recommendation for Integrated Personnel Services IPO is to subscribe for long term.

  5. 5. Is Integrated Personnel Services IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Integrated Personnel Services IPO.

  6. 6. When will Integrated Personnel Services IPO allotment status?

    The Integrated Personnel Services IPO allotment status will be available on or around November 7, 2022. The allotted shares will be credited in demat account by November 10, 2022. Visit Integrated Personnel Services IPO allotment status to check.

  7. 7. When will Integrated Personnel Services IPO list?

    The Integrated Personnel Services IPO will list on Friday, November 11, 2022, at NSE SME.