Ksolves India Limited IPO

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(i) Ksolves India Limite is an ISO certified software services and product company offering solutions that enable client organizations to rapidly develop powerful applications addressing their strategic business needs. The applications created by them enable organizations to drive digital transformation and competitive differentiation.

(ii) They do automation of routine business functions, making them faster, easier, and more accurate and increasing the channels or devices through which these functions can be performed.

(iii) The company is engaged in software development, enterprise solutions, and consulting, providing a range of Information Technology (“IT”) solutions to companies across sectors such as Real Estate, E-commerce, Finance, Telecom, and Healthcare etc. They design, develop, and maintain software systems and solutions, create new applications, and enhance the functionality for the customer’s existing software products.

(iv) The company also works on the latest and trending technologies like Salesforcem, AI, AR/VR, IoT, Chatbot, etc. The client’s trust is something that has made Ksolves reach so far.

Objects of the Ksolves India Limited IPO:

The Net Proceeds from the Fresh Issue will be utilized towards the following objects: 1. To Meet Working Capital Requirement 2. General Corporate Purpose 3. To Meet the Issue Expenses

Ksolves India Limited IPO Details:

Open Date: Jun 23 2020
Close Date: Jun 26 2020
Total Shares: 402000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 4.02 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 100 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 06 2020

Promoters And Management:

The Company was founded in the year 2014 by Mr. Ratan Kumar Srivastava and Mrs. Deepali Verma. (i) Mr. Ratan Kumar Srivastava, 41 years is Chairman and Managing Director and also the Promoter of our Company. He holds a degree of Bachelor of Technologies – Computer Science & Engineering. He was appointed on the Board on July 17, 2014, and further designated as the Chairman and Managing Director of the Company on April 29, 2020, for a period of 5 years not liable to retire by rotation. He looking after core management of the company and entrepreneur, active and enthusiastic in business activities. (ii) Mrs. Deepali Verma, aged 41 years, is the Whole Time Director of our Company and also the Promoter of our Company. She holds a degree in Master of Commerce. She was originally appointed on the Board on July 17, 2014 and further designated as the Whole Time Director of the Company on April 29, 2020 for a period of 5 years liable to retire by rotation. She is also Chief Financial Officer of our Company

Financials of Ksolves India Limited IPO:

(Fig. in Lakhs )
Year Revenue EBITDA OPM PAT NPM EPS
2018 340 14 4.12% 5.5 1.62% 0.37
2019 542 29 5.35% 15.83 2.92% 1.07
2020 814 107 13.14% 67.9 8.34% 4.58
IZ Review: 1. The company has shown excellent growth in revenue in the last 3 years. 2. EBITDA Margins and Profit Margins have shown strong growth in the last 3 years. 3. EPS (FY20) = 4.08 and P/E = 25x ( on higher side) 4. The company has zero debt on books. 5. In the last 3 years company is generating positive cash flow from operations. Moreover, in the last 3 years, it has generated a cumulative free cash flow of 33 lakhs. 6. Net-Worth Post IPO = 5.68 Cr and Book Value = 38. On that basis, asking P/B is 3.57x.

Comparison With Peers:

As per DRHP, Ksolves India has shown Dev Information Techno and Innovana Thinklabs as its listed peers that are currently trading at a P/Es of around 8.91 and 10.14 (as on 22.06.20).

Recommendation on Ksolves India Limited IPO:

Review and Recommendation for Ksolves India Limited IPO from InvestorZone is 5/10. [ The company has shown excellent growth in the last 3 years. No debt on the balance sheet. The company is continuously generating free cash flow in the last 3 years. The asking valuation is tad expensive at P/E of 25x ]

Lead Manager of Ksolves India Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Ksolves India Limited IPO:

  1. Bigshare Services Private Limited

Discussion on Ksolves India Limited IPO:

    Cost of acquisitions of shares by promoters i.e. Ratan Kumar Srivastava and Deepali Verma is 9.78 per share.