Diensten Tech Limited IPO

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Originally incorporated as JKT Consulting Limited, the company rebranded to Diensten Tech Limited in 2021. It specializes in IT professional resourcing, consultancy, training, and Software Annual Maintenance Contracts (AMCs).

Core Business Activities

i. IT Professional Resourcing: Connecting clients with individuals possessing specific IT skills and managing team capacity or delivering in-house technology experts for project completion.
ii. IT Consultancy: Providing next-generation IT consultancy services that help enterprises reimagine their businesses for the digital age through end-to-end professional solutions.
iii. IT Training: Offering corporate training to build innovative learning modules for organizations, structuring smarter workforces, and supporting growth.
iv. Software AMC: Delivering maintenance and support for software applications.

Evolution and Strategic Shifts

The company initially focused on SAP software consulting and training but shifted towards broader IT consultancy, training, software sales, and AMCs around 2014-15. To strengthen its position in this domain, the company executed several strategic acquisitions:
1.  Acquisition of PS & T Business from JK Technosoft Limited: Effective April 01, 2022, through a Business Transfer Agreement dated April 30, 2022.
2. Further Acquisitions:
i. Klaus IT Solutions Private Limited (September 29, 2023)
ii. Skandha IT Services Private Limited (September 22, 2023)

These acquisitions have expanded the company’s client base and increased revenues.

Service Offerings

Consultancy and Training:
The company provides technical consultancy, training, and software services to large corporates, multinational companies, and SMEs across various sectors.

IT Skilled Staffing Solutions:
Diensten Tech Limited hires, trains, and deploys IT professionals based on client agreements, ensuring a strong national presence.

Clientele:
The company serves prestigious clients, including:
i. Illumina Technology Solutions LLC                                        ii. Mobiquest Mobile Technologies Pvt. Ltd
iii. ONE97 Communications Limited                                         iv. Thomas Cook (India) Ltd
v. Capgemini Technology Services India Ltd                            vi. Tata Consultancy Services Limited
vii. Maruti Suzuki India Ltd                                                        viii. Schenker India Pvt Ltd
ix. Motherson Technology Services Limited                              x. Pepsico Global Business Services India LLP

Company Culture and Expertise

Diensten Tech Limited prides itself on a strong culture of skilled and professional resources who are continuously trained and upgraded with modern technology to ensure top-quality customer service. The company’s commitment to lifelong learning helps enterprises build skills in emerging technologies at scale.

Summary

Diensten Tech Limited, formerly JKT Consulting Limited, has evolved from a SAP-focused consultancy to a comprehensive IT services provider. The company specializes in IT professional resourcing, consultancy, training, and software AMCs, serving a diverse range of clients from large corporates to SMEs. Strategic acquisitions have enhanced its service offerings and client base, positioning it as a key player in the IT consultancy and training sector in India.

Objects of the Diensten Tech Limited IPO:

The objects of the Issue are: i. Payment of liability raised against outstanding payment of consideration for "Professional Services and Training Division" business acquired from J K Technosoft Limited, vide Business Transfer Agreement Dated April 30, 2022. ii. To meet the Working Capital requirements of the Company; iii. To meet out the General Corporate Purposes; and iv. To meet out the Issue Expenses.
DRHP of Diensten Tech Limited IPO
RHP of Diensten Tech Limited IPO

Diensten Tech Limited IPO Details:

Open Date: Jun 26 2024
Close Date: Jun 28 2024
Total Shares: 2,208,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 22.08 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 95 - 100 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 03 2024

Promoters And Management:

Mr. Vipul Prakash, 50, is the Promoter and Managing Director of the Company with a Bachelor of Business Studies from the University of Delhi and over 26 years of experience. He oversees operations, client relationships, and new setups, driving strategic decisions and business development. He also runs Wowjobs, a search firm with a presence in Africa, Europe, and the Middle East, and co-founded the Indian Staffing Federation. Previously, he was a partner in the Ed-Tech fund EVC and served on the boards of Action for India and the Delhi Chapter of the Entrepreneur Organization. Mr. Abhishek Singhania, 51, is the Promoter and Director of the Company. A Bachelor of Commerce from the University of Kanpur, he founded the Company and has been a Director since its inception. With 33 years of experience in project management, strategic planning, and business development, he has driven the Company’s growth. Previously, he worked with American Express and various JK Organisation companies, managing operations and leading expansion programs. He has international experience, having lived and worked in the USA and UK. Mr. Sanjay Kumar Jain, 57, is a Chartered Accountant with a commerce degree from Sri Ram College of Commerce, Delhi University, and a diploma in business finance from ICFAI. With over 33 years of experience, he has worked in long-term strategy, corporate finance, treasury, and investor relations. He spent 15 years with reputed groups like Ranbaxy, JM Financial, PwC, and Rabobank, and 17 years as an independent consultant for companies and private equity funds. His industry experience spans ceramics, sanitary ware, construction, chemicals, alcoholic beverages, agricultural commodities, consumer food, media, and pharmaceuticals.

Financials of Diensten Tech Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 523 72 3,753 2,608
Other Income 2 4 8 13
Total Revenue 525 77 3,760 2,621
Purchases of stock-in-trade 0 0 12 13
Employees Benefit Expenses 235 4 1,815 1,765
Other Expenses 88 50 1,777 949
EBITDA 202 23 157 -106
OPM (%) 38.51% 29.60% 4.17% -4.03%
Depreciation & Amortisation 0.3 0.1 117 92
EBIT 202 23 40 -197
Finance Cost 38 16 18 37
PBT 163 6 22 -235
Tax 46 5 6 -63
PAT 117 1 16 -172
NPM (%) 22.30% 1.89% 0.43% -6.55%
No.of Shares 82.60 82.60 82.60 82.60
EPS 1.41 0.01 0.19 -2.07

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Diensten Tech Limited 38 0.2 0.19 514.4 100 83
ANI Integrated Services Ltd 158 3 2.69 23.4 137 132
Integrated Personnel Services Ltd 198 5 6.29 19.6 146 105
* All the data is as per FY23.

Recommendation on Diensten Tech Limited IPO:

1. Diensten Tech Limited operates in the Information Technology (IT) sector, specializing in professional resourcing, IT consultancy, IT training, and software Annual Maintenance Contracts (AMC). 2. Their core services include: i. IT Professional Resourcing: Connecting clients with individuals possessing specific IT skill sets, managing team capacity, and delivering in-house technology experts. ii. IT Consultancy: Providing comprehensive IT solutions to enhance business competitiveness. iii. IT Training: Offering corporate training to build skills in emerging technologies and structuring a smarter workforce. iv. Software AMC: Ensuring ongoing software maintenance and support. 3. Client Portfolio Their diverse client portfolio includes prestigious names such as: i. Illumina Technology Solutions LLC                      ii. Mobiquest Mobile Technologies Pvt. Ltd iii. ONE97 Communications Limited                      iv. Thomas Cook (India) Ltd v. Capgemini Technology Services India Ltd        vi. Tata Consultancy Services Limited vii. Maruti Suzuki India Ltd                                     viii. Schenker India Pvt Ltd ix. Motherson Technology Services Limited        x. Pepsico Global Business Services India LLP They cater to large corporates, multinational companies, and small and medium enterprises across various sectors, offering technical consultancy, training, and software services. 4. Competition The IT professional services industry in India and globally is highly fragmented, with numerous firms generating significant revenues. They face competition from large, non-specialized professional service outsourcing companies and a few specialized IT professional service firms. 5. The Revenue has Increased from Rs.5 Crore in FY21 to Rs.37 Crores in FY23. 6. The EBITDA has Decreased from 2 Crore in FY21 to 1.5 Crore in FY23. 7. The PAT has Decreased from 1 Crore in FY21 to 16 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is (-2.77), 9. Market Capitalization is 83 Crores & P/E is (-36.1)x based on FY24.

Lead Manager of Diensten Tech Limited IPO:

  1. Corporate Professionals Capital Private Ltd

Registrar of Diensten Tech Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Diensten Tech Limited 7 th Floor, A-2, L.S.C., Masjid Moth, Greater Kailash-II, New Delhi – 110048 Phone: 011-40562187 Email: cs@jkdtl.com Website: http://www.dienstentech.com/

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