Innovative Ideals and Services (India) Limited IPO

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(i) The Innovative Ideals and Services Limited started its business as a proprietorship firm trading security equipment imported from Korea.

(ii) Then on 06 Dec 2000, the firm converted into a company and gradually evolved from trading to security solution provider.

(iii)  They provide various services such as Video Door Phone, Audio Door Phone, Access Control, Home intrusion systems, Intrusion Alarm Systems, CCTV, Fire Alarms and Telecom products. They target residential construction Industry in the B2B segment. To further strengthening B2B business company has also started giving FTTH Broadband Service in residential construction projects.

(iv) To Enter into the B2C segment, the company has developed two innovative products ” Armher” and ” Saviour” addressing the need of safety of the children, women and senior citizen. The Company has also launched basic feature mobile phone under a brand name “Inoyo.

(v)  Recently they have done a tie-up with Tata Sky to provide Broadband services, installation, maintenance, operations, security and provision of security infrastructure to the residents of ” Amarona Park” Pune for the five year period starting from March 2018 to March 2023. They have also entered an agreement to provide DTH service as an authorized distributor of Tata Sky to the residents of the area.

(vi) Innovative operates from and is located in the city of Mumbai, Maharashtra, and has an employee headcount of more than 60, which includes the management, the sales, and marketing team, the technical services team, as well as the administration staff.

(vii) Innovative Corporate Video

Innovative Ideals and Services (India) Limited IPO Stock Quote & Charts

66.50

+4.97%

  • Open: 66.50
  • High - Low: 66.50 - 66.50
  • Previous Close: 63.35
  • Total Traded Volume: 9000
  • Updated On: 17-Oct-2018

Objects of the Innovative Ideals and Services (India) Limited IPO:

Objective of Innovative Ideals and Services (India) Limited IPO are: 1. Funding the working capital Requirement of the Company 2. General Corporate Purposes.

Innovative Ideals and Services (India) Limited IPO Details:

Open Date: Sep 24 2018
Close Date: Sep 26 2018
Total Shares: 3,066,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 12.26 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36-40 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 05 2018

Promoters And Management:

Promoters of Innovative Ideals and Services (India) Limited IPO Company are: (i) Maqsood Shaikh, Promoter and Managing Director, aged 54 years is the Promoter and Managing Director of our Company. He has been associated with our Company since Incorporation and has been re-designated as Managing Director w.e.f September 22, 2017. He has completed his Diploma in Telecommunication Engineering from Board of Technical Examinations, Bangalore, Karnataka. He has been in the Electronic Security Industry since 1994. (ii) Tazyeen Shaikh, Promoter and Whole Time Director, aged 51 years is the Promoter and Whole Time Director of our Company. She has been Whole Time Director of our Company since September 22, 2017. She holds a degree of Bachelor of Architecture from the University of Poona. She has also completed her Post Graduate Diploma in Project Management (PGDPM) from National Institute of Construction Management And Research. She is the key person involved in defining product selection designing and placement for all the major projects.

Capital Structure:

(i) Authorized Share Capital 1,35,00,000 Equity shares at FV@10) 13.50 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (83,14,169 Equity Shares at FV@10) 8.315 Cr
(iii) Present Issue ( 30,66,000 Equity Shares at FV@10) 3.06 Cr
(iv) Reservation for Market Maker [*] Shares at FV@10) [*]
(v) Reservation for QIB & HNI [*] Equity Shares at FV@10) 50%
(vi) Reservation for Retail [*] Equity Shares at FV@10) 50%
(vii) Paid Up Share Capital after the issue 11.375 Cr

Financials of Innovative Ideals and Services (India) Limited IPO:

1. Assets and Liabilities Key Parameters
Year Asset(lacs) Liabilities(lacs) Net Worth(lacs) Book Value Debt D/E RONW Receiveable days
FY14 4774.17 4209.55 564.62 47.05 455.89 0.81 9% 673
FY15 2355.01 1774.83 580.18 48.35 405.07 0.70 3% 481
FY16 2081.86 1500.32 581.54 24.23 455.41 0.78 0.2% 384
FY17 2287.04 1608.75 678.29 22.61 450.97 0.66 14% 510
FY18 3479.82 2143.03 1336.79 16.08 767.82 0.57 23% 243
Post Issue 2563.19 767.82 0.30
2. Profit n Loss Key Parameters
Year Revenue(lacs) PAT(lacs) EBITDA Margins Profit Margins Outstanding Shares(lacs) EPS
FY14 1281.6 50.26 11.8% 3.9% 12.000 4.19
FY15 1245.07 15.56 8.5% 1.2% 12.000 1.30
FY16 1217.81 1.36 6.1% 0.1% 24.000 0.06
FY17 1074.57 96.76 20.0% 9.0% 30.000 3.23
FY18 2,031.84 308.79 24.0% 15.2% 83.142 3.71
Post Issue 113.8 2.71
3. Cash Flow Statement(all figures in lacs)
Particulars FY18 FY17 FY16 FY15 FY14
(i) Net Cash Generated from Operation -277.14 31.1 -50.88 -1511.72 1652.56
(ii) Net Cash Generated from Investment -297.4 37.29 33.98 1611.23 -1590.92
(iii) Net Cash Generated from Financing Activity 616.91 -77.84 -17.21 -127.4 -79.86
(iv) Total[ (i)+(ii)+(iii) ] 42.37 -9.45 -34.11 -27.89 -18.22
(v) Cash and Cash Equivalents at the Beginning of the Year 6.33 15.77 49.88 77.77 96
(vi) Cash and Cash Equivalents at the end of the Year 48.70 6.32 15.77 49.88 77.78
Key Notes a) The Revenue is growing at CAGR of 12.21% from FY14 to FY18. b) The PAT is growing at CAGR of 57.54% from FY14 to FY18. c)  EPS[post issue] = 2.71 c) P/E= 14.2 [ Reasonably Priced] d) P/B(post issue)= 1.77 [Reasonably Priced] e) D/E(post issue) = 0.30 [Manageable] f) Mcap/Sales(ideally <2)= 2.24 on FY18 Sales [ Aggresively Priced]

Comparison With Peers:

There is no listed player in the market in the segment in which company operates.

Recommendation on Innovative Ideals and Services (India) Limited IPO:

Review and Recommendation of Innovative Ideals and Services (India) Limited IPO from IZ Team is: 4/10 [ The issue looks fully priced and business model has a very low moat. As on date, they are more of the service based company than a product based as claimed by the company. Their collaboration with Tata Sky is big positive for the company going forward. The LM is Pantomath so downside risk is low. The Listing gain may happen]

Lead Manager of Innovative Ideals and Services (India) Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Innovative Ideals and Services (India) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Innovative Ideals and Services (India) Limited E/202, Skypark Building, Oshiwara Garden Road, Off S V Road, Goregaon West, Mumbai, Maharashtra 400104 Phone No. 91 022 67392121/2678 Website: www.innovative.in

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Innovative Ideals and Services (India) Limited IPO as on
26 Sep 2018 | 06:00:00 PM

Category No.of shares offered No. of shares bid
1,455,000 1,476,000
1,455,000 2,304,000
156,000 156,000
3,066,000 3,936,000
QIBs No
QIBs+HNIs Subscription 1.01X
Retail Subscription 1.58X
Total Subscription 1.30X

Discussion on Innovative Ideals and Services (India) Limited IPO:

    Very good listing of Innovative Ideals. Listed at 43

    LM is Pantomath. So downside risk is less. Can be a good candidate of listing gain based on subscription figure.

    (i) The company claimed itself a product based company, However, to date, they have not able to sell their manufactured products such as Armer, Innoeye, Saviour. They have also launched a basic phone ” Inoya” and we all know the kind of competition we are facing in the mobile industry. Therefore, generating revenue from the selling of mobile phone looks quite thin. Overall we can say till date they are more of a service based company rather than product based.

    (ii) In the service segment, they install and do maintenance of Video Door Phone, Audio Door Phone, Access Control, Home intrusion systems, Intrusion Alarm Systems, CCTV, Fire Alarms and Telecom products. The company imports these products from Korea, Taiwan and China etc.

    (iii) In short, we can say that moat in the business is very low. The entry barrier in the business is very low. The competition is very tough in the domestic market.

    They rely significantly on third parties to manufacture their products and then sell these products under their brand name. Any decline in the quality of products will adversely affect the company.