Focus Business Solution IPO

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(i) The Company was originally incorporated in Gujarat as “Focus Business Solution Private Limited” in 2006. In 2020, after the conversion of the Company into a public limited company, the name was changed to “Focus Business Solution Limited”.

(ii) It has been evolved as a financial services company and is engaged in the business of debt collection services for Banks, NBFC, and financial institutions. It entered the agreement with India’s leading banks, financial institutions, and non-banking financial companies to act as authorized recovery/collection agents on their behalf.

(iii) It deploys its manpower to visit and collect overdue payments of loans/credit cards/credit facilities advanced to borrowers by the clients, who engage with in service agreements.

(iv) The organization follows a shrewd retail assortment authoritative program (RCAP) to recuperate past due installment on close to home credits, business advances, vehicle advances, advances against properties, 2-wheeler advances, SME advances, gold advances, and others. It’s anything but an exceptional call community with 64 workstations to take standard subsequent meet-ups from defaulters on the due installments.

Competitive Strengths
(i) Experienced Promoters
(ii) Robust Technological Infrastructure
(iii) Diversified and Quality Services

Objects of the Focus Business Solution IPO:

The Issue comprises a fresh Issue of 6,42,000 Equity Shares at an Issue Price of Rs. 19 per Equity Share and funds will be used for following activities. 1. To part finance working capital requirements of the Company; 2. To meet General corporate purposes; 3. To meet the expenses of the Issue
DRHP of Focus Business Solution IPO

Focus Business Solution IPO Details:

Open Date: Jun 30 2021
Close Date: Jul 05 2021
Total Shares: 6,42,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed
Issue Size: 1.22 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 19 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 13 2021

Promoters And Management:

Mr. Mohamedyaseen Muhammadbhai Nathani, aged 43 years, is the Promoter and Managing Director of the company. He holds Bachelor's degree in Commerce. He has an experience of more than 20 years in business management. He looks after of routine operational activities of the Company. With his multifunctional experience, he guides the company in growth strategies and lighting the company in increasing its scale in leaps and bounds. He is responsible for the overall operations of the Company. He is on the Board of Company since incorporation i.e. 10th November 2006. Mr. Mohamedamin Mohammad Nathani, aged 45 years, is the Promoter and Whole-Time Director of the Company. He holds Bachelor's degree in Commerce. He is a seasoned entrepreneur and has a rich experience of more than 22 years in the banking and financial industry. He looks after of routine operational activities of the Company. He is responsible for the manpower management of the company and liaising with clients. He is on the Board of the Company since incorporation i.e. 10th November 2006. Mr. Pareshkumar Arjanbhai Patel, aged 42 years, has experience of more than 13 years of in the field of IT products and sales and services related industry. He is an Independent Director of the Company. He holds Bachelor's degree in Commerce from Gujarat University. As an Independent Director of the Company with corporate acumen & experience, he brings value addition to the Company. He is on the Board of the Company since 28th February 2020. Mr. Tushar Mohanlal Mistry, aged 44 years, has experience of more than 18 years in the field of computer operations. He is an Independent Director of the Company. He is higher secondary passed by qualification. He is on the Board of the Company since 28th February 2020.

Financials of Focus Business Solution IPO:

 
Particulars (in Lakhs) 9MFY21 Mar-20 Mar-19 Mar-18
Revenue 799 1090 1073 1023
Employee Benefit Expense 232 387 395 386
Financial Costs 0.75 1.81 1.82 0.74
Depreciation and Amortization 16 15 16 10
Other Expense 524 665 643 610
Operating Profit 42 38 35 26
OPM % 5.32% 3.49% 3.3% 2.63%
Profit before tax 24 21 17 15
Total Tax Exp. 5 6 7 5
Net Profit 19.74 15.25 11.77 10.99
EPS 2.5 2.88 2.13 1.99
P/E Ratio 7.6 6.6 8.92 9.55

Comparison With Peers:

There are no peers in the market which can be compared with Focus Business Solution.

Recommendation on Focus Business Solution IPO:

Review and Recommendation of Focus Business Solution IPO by IZ team is 4/10. 1. They have good banking/NBFC clients to which Focus Business Solution provides recovery services. 2. The company is debt-free and raising funds for working-capital. 3. EPS for FY21 annualized = 1.18 4. P/E = 16x (looks over-valued) 5. Debt collection industry in India is highly fragmented with presence of many regional, local and unorganized sector players. The company faces intense competition from established as well as unorganized players.

Lead Manager of Focus Business Solution IPO:

  1. Navigant Corporate Advisors Limited

Registrar of Focus Business Solution IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Focus Business Solution Limited 703, Rajhans Complex, Nr. Kadiwala School Ring Road, Surat, Gujarat-395,002, India Phone: +91 261 4002823 Email: focusbsl2006@gmail.com Website: http://www.focusbsl.com/

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