Naapbooks Limited IPO

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i. Incorporated as “Naapbooks Private Limited” on April 21, 2017 and was converted into a Public Limited Company and the name of Company was changed to “Naapbooks Limited” on December 29, 2020.

ii. Company is engaged in the business of developing and providing Information Technological solutions to corporates for their requirements. The company develops and provides Fintech App, Cloud Consulting, Block chain App, Mobile App, Web App, Embedded App products to its clients. The services broadly covers designing, developing, operating, install installing analyzing, designing, maintaining, converting, porting, debugging, coding and programming software to be used on computer or any microprocessor-based device or any other such hardware.

iii. The Company is also engaged in Software Consultancy services.

Competitive Strengths
i. Quality Assurance and Standards
ii. Growing Domestic Economy
iii. Experienced & Qualified Management

Objects of the Naapbooks Limited IPO:

Company proposes to utilize the funds which are being raised through this Issue towards the following objects: a) Funding the working capital requirements of the company b) Funding purchases of equipment c) Marketing initiatives d) General Corporate Purposes
DRHP of Naapbooks Limited IPO
RHP of Naapbooks Limited IPO

Naapbooks Limited IPO Details:

Open Date: Sep 01 2021
Close Date: Sep 06 2021
Total Shares: 539,200
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built
Issue Size: 3.99 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 71 - 74 Per Equity Share
Listing At: BSE SME

Promoters And Management:

i. Nirmal Kumar Jain, aged 61 years, Chairman and Executive Director of the Company. He is associated with the Company since its incorporation. He has overall business experience of more than 35 years. He is responsible for Human Resource related matters of the company. ii. Ashish Jain, aged 34 years is Promoter, Executive Director and Chief Executive Officer of the Company. He holds a Bachelor of Engineering Degree from Government Engineering Collage, Modasa, affiliated with Hemchandracharya North Gujarat University, Patan, Gujarat. He also holds a degree of post-graduation diploma in information technology Symbiosis Center for Distance learning, Pune, Maharashtra. He is associated with the Company since its incorporation. He has experience of more than 13 years in Information Technology sector. He is responsible for Execution of assignments and Finance related matters of the company. iii. Yaman Saluja, aged 31 years is Promoter and Whole Time Director and Chief Finance Officer of the Company. He holds a bachelor degree in Arts faculty with specialization in Journalism and Mass Communication from Periyar University, Salem, Tamil Nadu. He is associated with the Company since April, 2017. He has experience of more than 7 years in Information Technology sector. He is responsible for marketing and finance related matters of the company. iv. Abhishek Jain, aged 30 years, is Non-Executive Director of the Company. He is a commerce graduate from GLS Institute of Commerce, Ahmedabad affiliated with Gujarat University. He is a qualified chartered accountant and a Fellow Member of Institute of Chartered Accountants of India. He is associated with the Company since Incorporation.

Financials of Naapbooks Limited IPO:

Particulars (in Lakhs) Mar 21 Mar 20 Mar 19
Revenue 271 225 221
Development Expenses 72.28 16.84 103.26
Employee Benefit Expenses 78 87.42 51
Other Expenses 31 45 30
Operating Profit 91 76 37
OPM % 33.45% 33.63% 16.80%
Other Income 0.12 0.21 0.02
Depreciation & Amortisations 19 20.64 16.17
Financial Cost 7 11.44 2.4
Profit Before Tax 65 43.83 19
Profit After Tax 47 32.44 13.78
NPM% 17.30% 14.41% 6.23%
 

Comparison With Peers:

Companies Face Value PE Ratio NAV EPS RoNW
Infosys Limited 5 39.32 167.89 42.37 26.23%
Happiest Minds Technologies Limited 10 140.92 38.56 11.71 27.10%
Tech Mahindra Limited 5 31.02 258.38 10.16 17.47%

Recommendation on Naapbooks Limited IPO:

Review and Recommendation of Naapbooks Limited IPO by InvestorZone is 3/10. 1. The company has shown timid growth in the revenue. 2. The asking P/E of ~30 looks very high for a small company. 3. The LM has shown peers like Infosys, Happiest Mind and Tech Mahindra is a joke.

Lead Manager of Naapbooks Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Company Address:

Naapbooks Limited Third Floor, Business Broadway Center above V-Mart, Law Garden Ahmedabad – 380006 Phone: 079-26446872 Email: compliance@naapbooks.com Website: http://www.naapbooks.com/

Discussion on Naapbooks Limited IPO:

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