Vinsys IT Services Limited IPO

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i. Vinsys IT, is engaged in IT business. The core competence include Training and Certifications, Digital Learning,Project Management, and technology training. Vinsys IT, is dedicated to becoming an accredited training service provider to meet the growing demand for training and workforce development. Vinsys specializes in corporate training and consulting across a broad range of domains.

ii. They are a trusted partner with CompTIA, Hybris Software, EC-Council, Red Hat, Oracle, CISCO, IBM, PECB, Autodesk, Skillsoft, AWS, PMI, PRINCE2, ISACA, ITIL, PeopleCert, Citrix and Microsoft in more than 30 countries, with a strong presence in India, USA, UAE. They also have footprints by delivering services in Saudi Arabia, Oman, Qatar, Australia, Kenya, Tanzania, Singapore, and Malaysia. As on the date of this Red Herring Prospectus we offer 326 courses across 17 domains

iii. In addition to certifications and training offerings, the company provides a comprehensive end to end solution by delivering robust and advanced digital learning solutions. Their OTS library of over 100,000 titles is compatible with all LMS and LXP platforms. Their advanced IT development services offer a seamless project execution process and a successful IT strategy. Their full suite of software service offerings includes ERP solutions, DevOps practices, architectural consulting, integration, and middleware services. They also help organizations reduce geographical diversity through our foreign language translation services

iv. They cater to professionals across all industries and domains and offer assistance to organizations in formulating their learning and development strategies. Their organization, with its unwavering focus on quality, stands as a pioneer in the realm of training and development. Their dedication lies in offering, our clients with the best possible service, with trainers available on demand around the clock.

Core business can be divided in following categories:

i. Training & Certifications
ii. Digital Learning
iii. IT Development Services
iv. Foreign Language Services

Competitive Strengths

i. Experienced Promoters and Management Team
ii. Wide range of Service Portfolio
iii. Global Presence
iv. Quality assurance

Objects of the Vinsys IT Services Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Working Capital Requirements ii. Loan to Subsidiary /Repayment of loan to Subsidiary iii. General Corporate Purposes iv. To meet Public Issue Expenses
DRHP of Vinsys IT Services Limited IPO
RHP of Vinsys IT Services Limited IPO

Vinsys IT Services Limited IPO Details:

Open Date: Aug 01 2023
Close Date: Aug 04 2023
Total Shares: 3,894,000
Issue Type: Book Built Issue IPO
Issue Size: 49.84 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121-128 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 14 2023

Promoters And Management:

Mr. Vikrant Shivajirao Patil aged 53 years is Promoter-Chairman and Managing Director of the Company. He is having more than 14 years of experience in the field of corporate training and devlopment. Earlier, he was appointed as a PromoterExecutive Director of the Company since incorporation of the company i.e. January 11, 2008. Thereafter his designation was changed as Chairman and Managing Director of the company for the period of 5 (Five) years w.e.f. May 14, 2023. He plays key role in overall operation of the company and under his leadership company plan to develop the business. Mrs. Vinaya Vikrant Patil aged 50 years is Promoter- Whole Time Director of the company. She is having more than 14 years of experience in the financial reporting and taxation. Earlier, She was appointed as a Promoter- Executive Director of the Company since incorporation of the company i.e. January 11, 2008. Thereafter her designation was changed as Whole Time Director of the company for the period of 5 (Five) yeara’s w.e.f. May 14, 2023.She is control over Financial, admin and human resource department of the Company. Mr. Ravindra Kisanrao Kamthe aged 60 years is Independent Director of the company. He is having more than 35 years of experience in the various fields like, sales & marketing, contracts & commercials, logistics, strategic planning, operations, business development etc. He was appointed as an additional Independent Director of the company w.e.f March 21, 2023. After that he was regularized as an Independent Director of the company on May 15, 2023 for the period of 5(Five) years up to March 20, 2028.

Financials of Vinsys IT Services Limited IPO:

Particulars (in Cr) Fy23 Fy22 Fy21
Revenue 96.32 32.03 20.41
Gross Margins 50.95 14.71 7.93
Gross Margins (%) 52.89% 46% 38.83%
EBITDA 20.41 2.85 2.05
OPM (%) 21.19% 8.91% 10.03%
PBT 17.43 0.0068 0.2332
Tax 2.42 0.52 -0.11
Net-Profit 15.01 -0.52 0.35
NPM (%) 15.59% -1.61% 1.70%

Recommendation on Vinsys IT Services Limited IPO:

Review and Recommendation of Vinsys IT Solution by IZ team: 2/10 Vinsys IT Solution is primarily engaged in providing Training and Certifications, Digital Learning, Project Management, and technology training services to B2B clients. The nature of their business makes it highly working capital intensive, leading to low profit margins. One concerning aspect is the lack of significant growth since FY15, where the company's revenue was 37 Cr, and in FY22, it declined to 31 Cr. While there has been a staggering growth in FY23, it remains to be seen whether they can sustain this positive trend in the future. The purpose of raising 50 Cr is to address the working capital requirements, with 32 Cr allocated to this area. However, the company's plan for the remaining funds is not clearly disclosed, which raises questions about their future utilization. The IPO is priced at a P/E of 12.5, largely based on the remarkable performance in FY23. However, it's essential to exercise caution and monitor the company's performance after the IPO before making any investment decisions. Overall, there are few enticing factors in Vinsys IT Solution as of now. It would be prudent to observe their post-IPO performance and financial results closely to make an informed decision about investing in the company. The current rating for Vinsys IT Solution stands at 2 out of 10.

Lead Manager of Vinsys IT Services Limited IPO:

  1. Beeline Broking Limited

Registrar of Vinsys IT Services Limited IPO:

  1. Link Intime India Private Limited

Company Address:

S. No. 28/11- 12, Shivaji Niketan, C.T.S. No. 458A, Tejas Housing Society, Near Mantri Park Behind Kothrud Bus Stand, Kothrud, Pune City, Maharashtra- 411038, India.

Discussion on Vinsys IT Services Limited IPO:

3 Comments

    The company intends to utilise total of ₹ 8 Cr for payment to Vikvins Consultants Private Limited for their working capital requirement….

    The Vikvins Consultants Private Limited had 45 Cr revenue in Fy22, with EBITDA of just 71 lac, i.e. 1.57%. And , PAT of 31 lacs.

    Vikvins Consultants Private Limited (VCPL) is an HR outsourcing service provider. VCPL provides services such as payroll outsourcing services, reimbursement processing, management information system, exit formalities, and full final settlement processing, statutory compliances outsourcing services, recruitment, and associate database management. The company was incorporated in 2003 and has its registered office located in Pune, Maharashtra.

    So, IPO money of 8 Cr will be invested in a business that has EBITDA margins of less than 2%.

    Reply

    Where company will use 50 Cr fund?

    1. Working Capital Requirement = ~24 Cr

    2. Repayment of loan to Subsidiary = ~4 Cr

    3. Loan to Subsidiary = ~4 Cr

    Can anybody tell me where the rest money will go?

    Reply

    Nature of Business of Vinsys IT Services

    A) Core Competencies:

    1. Training and Certifications
    2. Digital Learning
    3. Project Management
    4. Technology training

    B) Certification:

    1. Vinsys IT is an ISO 9001:2015 certified organization.
    Mission:
    2. The company aims to be an accredited training service provider.
    3. This is to cater to the rising demand for training and workforce development.

    C) Specialization:

    1. Vinsys specializes in corporate training and consulting.
    2. Their expertise spans a wide range of domains.

    D) Clientele

    They primarily provide B2B training for various corporates.

    E) Trade Receivable Cycle:

    The cycle for receiving payments from clients is 3 to 3.5 months.

    F) Payment Obligations:

    The company needs to pay their trainers within 15 to 20 days.

    G) Working Capital Challenge:

    There’s a significant gap between the time they receive money from clients and the time they need to pay their trainers. This creates a working capital challenge.

    Reply

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