Plada Infotech Services Limited IPO

Apply 0
Avoid 0

Plada Infotech Services Limited specializes in providing customized Business Process Outsourcing (BPO) services to its clients in India. Their business model revolves around exceeding delivery standards and offering high-quality solutions using advanced technology and industry best practices. They have a skilled team of professionals offering various services to support different aspects of their clients’ business operations. The company primarily operates in India, with a focus on the states of Maharashtra and Tamil Nadu. While they serve clients nationwide, a significant portion of their revenue comes from these two states.

Key elements of their business model:

1. Domestic Focus: Plada Infotech Services Limited operates solely within India, emphasizing efficient service delivery and customer satisfaction within the Indian market. They do not have any foreign operations or subsidiaries.

2. Clear Business Agreements: The company maintains well-defined and established business agreements with their clients. These agreements outline the terms, scope, and responsibilities of both parties, ensuring clear expectations and a harmonious working relationship.

3. Stable Workforce: They do not employ contractual employees, emphasizing the importance of a stable and reliable workforce directly associated with their operations and values.

4. Service Offerings:

a) Account Management: They specialize in account management, which includes recruitment, training, onboarding, relationship management, performance monitoring, risk management, cross-selling, and customer support. This helps clients focus on other aspects of their business while Plada Infotech manages their business requirements.

b) Merchant Acquisition: Plada Infotech offers expertise in merchant acquisition, assisting businesses in expanding their merchant base to drive revenue growth and market strength. They onboard new merchants through a referral model and open market strategy, ensuring compliance with necessary documentation requirements such as KYC information and business entity proof.

c) Business Correspondents: Acting as trusted partners, they represent their clients’ brands and provide a range of services to retailers at off-site locations. Their dedicated team of Business Correspondents ensures a high level of service and professionalism consistent with the client’s own standards.

Competitive Strengths

i. Customers’ Satisfaction and their retention
iMaintaining Long term relationship with clien
Experienced promoter and senior management team

Objects of the Plada Infotech Services Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To meet the working capital requirements. ii. To purchase Laptops and Accessories for IT Development. iii. Repayment and/or prepayment in part or in full, of certain outstanding loans of the Company. iv. General Corporate Purposes. v. To meet the issue expenses.

Plada Infotech Services Limited IPO Details:

Open Date: Sep 29 2023
Close Date: Oct 05 2023
Total Shares: 2,574,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 12.36 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 48 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 13 2023

Promoters And Management:

Shailesh Kumar Damani, aged 57 years is the Promoter, Chairman and Managing Director on the Board of the Company. He holds a Higher Secondary School (HSC) Certificate from Maharashtra State Board of Secondary and Higher Secondary Education, Pune, Maharashtra. He has been associated as the Director of the Company, since inception and has more than 18 years of experience in Textile Industry and was looking after entire Sales Department of Family Business and thereafter since 2006 he has been into placement and data entry and started Merchant acquiring Business. Anil Mahendra Kotak, aged 54 years, is the Promoter, Whole Time Director & Chief Financial Officer of the Company. He holds a Bachelor of Commerce (B.Com.) Degree from University of Mumbai. He has been associated as a director of the Company since April, 2012. He has been appointed as Chief Financial Officer with effect from April 12, 2023 & later on he was appointed as Whole Time Director with effect from May 12, 2023 and accordingly re-designated as Whole-Time Director & Chief Financial Officer with effect from May 12, 2023. He has approximately 14 Years of experience in Logistic and relocation industry as Business Development Manager from 2007 to present date. He is responsible for handling the corporate courier and logistic operations in the Company. He also looks after the accounts and finance function of the Company. Prasanna Lohar, aged 44 years is the Non-Executive Independent Director on the Board of the Company. He holds a Bachler of Engineering (B.E.) Degree from Swami Ramanand Teerth Marathwada University, Nanded. He has more than 23 years of experience in the industry of Engineering and Development, Business Process Management, E-Commerce, Payments, etc. He has been associated with the Company as Non-Executive Independent Director since April 12, 2023.

Financials of Plada Infotech Services Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 4,455 4,878 6,217
Other Income 6 10 58
Total Revenue 4,461 4,887 6,275
Services Cost 24 76 21
Cost of material consumed 0 1 7
Employee benefits expenses 3,342 3,221 4,538
Other Expenses 738 1,155 1,196
EBITDA 357 435 513
Depreciation & Amortisation 30 21 14
Finance Cost 234 268 234
EBIT 327 414 499
OPM (%) 8.00% 8.89% 8.18%
PBT 94 145 265
Tax -27 -35 -31
PAT 67 110 234
NPM (%) 1.50% 2.25% 3.73%
No.of Shares 85.74 85.74 85.74
EPS 0.77 1.28 2.72

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Plada Infotech Services Limited 62 2 2.72 17.6 48 41
Firstsource Solutions Limited 6,022 514 7.33 20.8 164 11,529
Eclerx Services Limited 2,648 489 99.71 17.8 1,803 8,825
* All the data is as per FY23.

Recommendation on Plada Infotech Services Limited IPO:

Review and Recommendation of Plada Infotech Services Limited by IZ team is 3/10 Plada Infotech Services, a provider of call center services, operates within a multifaceted business model. Company offer a wide array of services such as account management, recruitment, training, onboarding, relationship management, performance monitoring, risk management, cross-selling, and customer support. These services are not limited to just inbound or outbound calls; they extend to digital channels like email, chat, and social media.

Challenges in This Sector

1. High Turnover Rate: The call center industry is known for high employee turnover, which results in additional costs for recruitment and training. 2. Customer Expectations: In today's digital age, customer expectations are ever-changing, forcing companies to continuously update their strategies and technologies. 3. Data Security: Handling personal and financial information poses a significant data security risk. 4. Technological Challenges: With the advent of AI and automation, traditional call center roles are evolving, requiring companies to invest in these technologies. 5. Regulatory Compliance: Adhering to the laws and regulations of different countries is a challenge, especially if you provide global services. 6. Quality Assurance: Maintaining high-quality customer service is a considerable challenge, especially when operating across multiple channels and geographies.

Business Offering

1. Merchant Acquisition for Banks: They specialize in guiding banks on Point-of-Sale (POS) systems, payment gateways, and other payment processing technologies. Additionally, they also handle Know Your Customer (KYC) procedures. Their clientele is predominantly banks, financial institutions, and payment aggregators. 2. On-Field Support: Once a merchant is onboarded, Plada offers on-site issue resolution services. This also extends to marketing new banking products and providing training. 3. Account Management: This involves managing the processes and compliances related to merchant acquisition and implementation programs for banks. 4. Payroll Management: Operated through their platform "Kundali," Plada provides end-to-end payroll management services. This includes recruitment, training, and additional HR benefits such as insurance and career guidance.


1. Revenue in FY23 is distributed as follows: 15% from Merchant Acquisition, 25% from Field Support, 20% from Account Management, and 40% from Recruitment and Payroll Management. 2. The company has shown growth from INR 11 Cr in sales in 2015 to INR 50 Cr in 2020. However, due to the pandemic, there was a dip to INR 44 Cr in 2021, followed by a recovery to INR 48 Cr in FY22 and then INR 64 Cr in FY23.

Market Challenges:

1. Manpower Availability: One of the major challenges is human resource constraints. 2. High Competition: The market is saturated with competitors, and there is a lack of entry barriers.


The IPO size is pegged at INR 12 Cr with a P/E ratio of 17 and a market capitalization of INR 41 Cr.


Given the financial trajectory and current market challenges, the company appears to be facing growth saturation. The valuation seems rather optimistic, especially considering the highly competitive market and modest growth in the past 3-4 years. Investors would do well to exercise caution and conduct thorough due diligence, particularly in scrutinizing the P/E ratio and market capitalization against the backdrop of industry norms and growth potential. The lack of substantial growth post-2020 raises questions about the company's ability to navigate market challenges effectively.

Lead Manager of Plada Infotech Services Limited IPO:

  1. Indorient Financial Services

Registrar of Plada Infotech Services Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Plada Infotech Services Limited Santosh A. Mishra Compound, Mograpada, Mogra Village, off. Old Nagardas Road Andheri (East), Mumbai - 400069 Phone: +91 8976996702 Email: Website

Discussion on Plada Infotech Services Limited IPO:

1 Comment

Leave a Reply