Infollion Research Services Limited IPO

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Infollion Research Services is a tech-oriented marketplace, operating in the B2B Human Cloud segment, catering to on-demand contingent hiring and work arrangements with senior management talent, subject matter experts, and high-ranking, seasoned professionals. They provide a platform for workers or knowledge providers (gig workers) and employers or knowledge seekers to connect and find synergetic outcomes.

Their key clients include top-tier Global Management Consulting firms, renowned Private Equity funds, Hedge funds, and mid-tier Corporates.

They operate in the premium segment of the gigeconomy and are one of the enablers of contingent hiring, temporary workforce management, contracting SOW-employees, high-level independent consultations, knowledge tours, and more.

The company helps its clients by enabling knowledge sharing sessions and provides flexi-staffing solutions to enable businesses to draw actionable insights from people who have been there done that.

Competitive Strengths

i. Accomplished Leadership Team and qualified workforce
ii. Long Lasting Business Relationships
iii. Comprehensive Talent Pool
iv. Strong Research Capabilities

Objects of the Infollion Research Services Limited IPO:

The company proposes to utilize the net proceeds from the issue towards funding the following objectives: i. Expansion of current service line in the US and Western European regions ii. Pex-Panel- Adding new categories of freelancers iii. Technology Development iv. General Corporate Purposes
DRHP of Infollion Research Services Limited IPO
RHP of Infollion Research Services Limited IPO

Infollion Research Services Limited IPO Details:

Open Date: May 29 2023
Close Date: May 31 2023
Total Shares: 2,616,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 21.45 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 80-82 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 08 2023

Promoters And Management:

Gaurav Munjal is the Managing Director of the Company. He has completed Bachelor’s of Technology in Mechanical Engineering under the Dual Degree Programme from Indian Institute of Technology, Bombay and Master of Technology in Mechanical Engineering with specialization in Thermal and Fluids Engineering under the Dual Degree Programme from Indian Institute of Technology, Bombay. He has over 15 years of experience working in Indian & International geographies and under his leadership the company has grown to a 100+ member organization serving global clients across global geographies. Aayara Shaheer is the Non-Executive Director of the Company. She holds a Bachelor’s of Science degree from Delhi University. She also holds Post Graduate Diploma in Management from T. A. Pai Management Institute, Manipal, Karnataka. She has worked with Morgan Stanley India Financial Services Private Limited New Delhi as an Associate in the International Wealth Management Division, with Ask Wealth Advisors as a Vice President and with Systematix Shares and Stocks (India) Limited as a Vice President of Wealth Management Department. Munish Bansal is an Independent Director of the Company. He has completed his Bachelor’s of Technology (Honours) in Electronics and Electrical Communication Engineering from Indian Institute of Technology Kharagpur. He has an experience of more than 13 years. He is the founder of Simplifii Labs Private Limited, a Company provides a versatile Cloud Application Platform. He joined the Company in 2022.

Financials of Infollion Research Services Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 1.49 1.49 746.69
Reserves 701 1,042 854
Trade Payables 58 27 72.93
Other Liabilities 88 111 127
Total Liabilities 146 138 200
Net Block 1 2.24 0.23
Other Assets 7 9 11
Total NC Assets 8 9 11
Receivables 378 550 925
Cash & Bank 343 402 627
Other Assets 119 218 238
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 1,597 2,198 3,503
Employee Cost 377 550 764
Other Expenses 958 1,227 2,061
Other Income 9 22 27
Depreciation 1 1 1
Interest 2 1 5
Profit before tax 269 441 700
Tax 61 100 142
Net profit 208 341 558
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity 188 52 247
Cash from Investing Activity 6 7 -21
Cash from Financing Activity 0 0 0
Net Cash Flow 194 59 225

Comparison With Peers:

*  There are no listed companies in India that engage in a business similar to the Company.

Recommendation on Infollion Research Services Limited IPO:

Review and Recommendation of Infollion Research Services SME IPO by IZ Team is 6/10 1. The company operates in the B2B Human Cloud segment, connecting businesses with high-level professionals. They offer on-demand contingent hiring and work arrangements globally. Their tech-oriented marketplace provides access to a premium talent pool, enabling synergetic outcomes and efficient hiring processes. Customer satisfaction and excellence are their top priorities.

2. Company’s business is dependent on ;

a) Building and growing a network of experts with specific knowledge and expertise.

b) Collecting and updating information about the experts, including their experience and potential conflicts of interest.

c) Developing and improving technology to efficiently match experts with client projects.

d) Ensuring that the experts respond promptly to project invitations.

e) Making sure that the skills of the experts align with the requirements of the client engagements.

3. Infollion SME IPO relies on a vast network of 62,194 experts, including 10,573 international experts and 51,621 domestic experts from India. These experts play a crucial role in delivering quality services to their clients and upholding its reputation. They come from various industries and hold senior positions, providing valuable insights and opinions that contribute to Infollion success

4. Infollion's selection process focuses on growth, diversity, and updates. They stand out with the research capabilities and data analysis from network interactions, enhancing client experience. The technology captures and optimizes data on members' expertise for accurate matching and valuable guidance in decision-making.

5. The revenue has grown from 15 Crores in Fy21 to 35 Crores in Fy23. 6. PAT has increased from 2 Crores in Fy21 to 5.58 Crores in Fy23. 7. In the last 3 years, total cash generated from operations is 8. EPS of FY23 post IPO = 5.81, P/E = 14x, and Mcap = 78 Crores 9. ROE (Post IPO) = 16% 10. Debt Free Company 11. Blume Venture fund which has invested ~80 Lac in 2013 is exiting the company by selling its 50% stakes at Rs.~3 Crores.

Lead Manager of Infollion Research Services Limited IPO:

  1. Holani Consultants Private Limited

Registrar of Infollion Research Services Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Infollion Research Services Limited 80/28, Malviya Nagar, New Delhi - 110017 Phone: 9836468248 Email: madhumita.pramanik@infollion.com Website: http://www.infollion.com/

Discussion on Infollion Research Services Limited IPO:

1 Comment

    Blume Ventures -1 a VC fund has invested in the following manner.

    1. 100 Equity shares at Rs. 5102 per share in 2013 = ~5 lac

    2. Then April 15,2013, total 684 preference shares were allotted at Rs.5102 per share = ~35 Lac

    3. Then April 25,2014, total 784 preference shares were allotted at Rs.5102 per share = ~40 Lac

    So, total investment was ~80 Lacs

    4. Just before filling for an IPO, the preference shares were converted into 1:1 ratio and total equity shares become = 1568

    5. In Dec 2022, the company has issued bonus shares in 500:1 ratio. So, total shares becomes = 785568

    6. Out of this Blume Ventures is selling 3,92,784 approx 50% in the IPO.

    7. Today’s value of investment = ~6 Crores.

    8. So, in the last 10 years, Blume Ventures 80 lac investment has become 6 Crores today.

    CAGR return of 25%

    Reply

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