DU Digital Technologies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Aug 2021 – 17 Aug 2021
- Listing date
- 26 Aug 2021
- Face value
- ₹10 per share
- Issue price
- ₹65 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹4.49 Cr
- Market cap at offer price
- ₹16.90 Cr
- Promoter holding
- 100.00% → 73.46% pre-issue → post-issue
- ISIN
- INE0HPK01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- C-4 SDA, Community Centre, Hauz Khas, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 38,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹65
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,40,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹16.90 Cr |
About DU Digital Technologies SME
DU Digital Technologies Limited (DDTL) was incorporated on December 27, 2007 as Diva Envitec Filtration Technologies Private Limited, renamed DU Digital Technologies Private Limited in 2009, and converted into a public limited company in June 2018; the current promoter group acquired all its shares on July 23, 2015, and the company commenced visa processing operations in 2015. DDTL manages the human interface between visa applicants and the technical visa processing units of embassies, performing administrative and non-judgmental tasks — visa application digitalization, document verification and biometric data collection — and plays no part in visa approval decisions. It holds the exclusive sub-contract for Greece visa processing in India (outsourced by the Hellenic Ministry of Foreign Affairs via GVCW/VF Worldwide), operates Malaysia Visa Counters (VLN) under sub-contracts from Blue Island Consultancy DWC LLC, while 95.36%-owned subsidiary OSC Global Processing Private Limited runs One Stop Centres (OSC) for Malaysian visas (via VFM Global FZE), wholly owned Window Malay Visa Private Limited facilitates online Malaysian e-visa/eNTRI applications, and newly incorporated wholly owned Dudigital Global LLC (Sharjah, UAE) is intended to extend services to Dubai. The company earns money by invoicing applicants for visa fees collected and services provided, remitting the appropriate visa fees to the diplomatic missions and retaining its commission/service fees, supplemented by value-added services (Premium Lounge, Prime Time, Mobile Biometrics, Form Filling, SMS alerts, courier). Consolidated revenue from operations was Rs. 217.85 lakhs (FY 2020-21), Rs. 3,150.64 lakhs (FY 2019-20) and Rs. 3,674.14 lakhs (FY 2018-19), with PAT of Rs. 11.30 lakhs, Rs. (23.95) lakhs and Rs. 70.87 lakhs respectively, reflecting COVID-19 disruption to international travel.
Company Analysis
from RHPDU Digital Technologies Limited provides outsourced Visa Processing Services to embassies of various countries — managing the human interface between visa applicants and the embassies' technical visa processing units, currently for Greece and Malaysia — spanning the visa-processing/consular-outsourcing and travel & tourism industries.
DU Digital Technologies Limited (DDTL) was incorporated on December 27, 2007 as Diva Envitec Filtration Technologies Private Limited, renamed DU Digital Technologies Private Limited in 2009, and converted into a public limited company in June 2018; the current promoter group acquired all its shares on July 23, 2015, and the company commenced visa processing operations in 2015. DDTL manages the human interface between visa applicants and the technical visa processing units of embassies, performing administrative and non-judgmental tasks — visa application digitalization, document verification and biometric data collection — and plays no part in visa approval decisions. It holds the exclusive sub-contract for Greece visa processing in India (outsourced by the Hellenic Ministry of Foreign Affairs via GVCW/VF Worldwide), operates Malaysia Visa Counters (VLN) under sub-contracts from Blue Island Consultancy DWC LLC, while 95.36%-owned subsidiary OSC Global Processing Private Limited runs One Stop Centres (OSC) for Malaysian visas (via VFM Global FZE), wholly owned Window Malay Visa Private Limited facilitates online Malaysian e-visa/eNTRI applications, and newly incorporated wholly owned Dudigital Global LLC (Sharjah, UAE) is intended to extend services to Dubai. The company earns money by invoicing applicants for visa fees collected and services provided, remitting the appropriate visa fees to the diplomatic missions and retaining its commission/service fees, supplemented by value-added services (Premium Lounge, Prime Time, Mobile Biometrics, Form Filling, SMS alerts, courier). Consolidated revenue from operations was Rs. 217.85 lakhs (FY 2020-21), Rs. 3,150.64 lakhs (FY 2019-20) and Rs. 3,674.14 lakhs (FY 2018-19), with PAT of Rs. 11.30 lakhs, Rs. (23.95) lakhs and Rs. 70.87 lakhs respectively, reflecting COVID-19 disruption to international travel.
Objects of the Issue
- To meet Working Capital requirements Rs. 151.50 lakhs p.74
- To make investment in our Subsidiary Company, Dudigital Global LLC (towards setting up a visa application centre in Dubai) Rs. 140.00 lakhs p.74
- General Corporate Purpose Rs. 110.00 lakhs p.74
- To meet Issue Expenses Rs. 47 Lakhs p.77
Issue Structure
- Total Issue
- Upto 6,90,000 Equity Shares aggregating up to Rs. 448.50 lakhs
- Fresh Issue
- Fresh Initial Public Issue of upto 6,90,000 equity shares of face value of ₹ 10/- each for cash at a price of ₹ 65/- per Equity Share (including a premium of ₹ 55/- per Equity Share) aggregating to ₹ 448.50 Lakhs
- Lot Size
- 2000 Equity Shares
- Face Value
- Rs. 10/- each
Business Model
Under multi-layered sub-contracts/service level agreements (Greece: Hellenic Ministry of Foreign Affairs → GVCW → AVISA/VF Worldwide → DDTL; Malaysia: Government of Malaysia → UKSB/MSHK → Blue Island → DDTL for VLN, and Foshwa → VFM Global FZE → OSC Global for OSC), the company and its subsidiaries operate Visa Application Centres, Malaysia Visa Counters and One Stop Centres: they receive applications and documents, collect biometrics and visa/service fees, transmit data securely to the diplomatic missions and return passports. Per the agreements, 'DU Digital raises invoice to its customers for the visa fees collected and the services provided', remits the appropriate visa fees to the mission and retains its share/commission; additional revenue comes from value-added services such as Premium Lounge, Prime Time, Mobile Biometrics, Form Filling, SMS alerts, courier and photo booth services.
Business Segments
SWOT Analysis
- • High entry barriers in a niche visa-outsourcing industry with very few key players(p.100)
- • Exclusive sub-contracts for Greece and Malaysia visa processing in and for India(p.101)
- • Secure collection and encrypted transmission of applicants' biometric/personal data(p.101)
- • Experienced management (MD with ~40 years in travel & tourism) and skilled employee base(p.101)
- • Track record of renewing sub-contracts at favourable terms with service providers(p.101)
- • Revenue concentrated in only two geographies - Greece and Malaysia(p.30)
- • Dependence on third-party service level agreements/sub-contracts valid only 1-3 years(p.26)
- • Outstanding service tax demand of Rs 5.74 crore plus penalty (Lotus Capital Corp import-of-service matter)(p.27)
- • Qualified statutory audit opinion for FY2021 (Section 185/186 loan non-compliance)(p.32)
- • Negative cash flows from operating, investing and financing activities in some years(p.39)
- • Heavy dependence on Promoter and Key Managerial Personnel(p.38)
- • High working capital requirements tied up in receivables, advances and current assets(p.40)
- • Extensive historical related-party transactions with Directors, Promoters and Promoter Group(p.38)
- • Procure visa processing contracts directly from governments across the globe(p.101)
- • Expand customer base on rising foreign travel and tourism from India(p.102)
- • Enter new outsourcing arrangements for larger visa processing contracts in India and South East Asia(p.102)
- • Geographic expansion into Dubai via wholly owned subsidiary Dudigital Global LLC(p.102)
- • Industry tailwind: Travel & Tourism share of global GDP projected to rise to 11.5% by 2029(p.93)
- • Visa facilitation trend reducing traditional-visa requirement expands addressable market(p.91)
- • COVID-19 pandemic has had and is expected to have material adverse effect on travel industry and the business(p.25)
- • Intense price competition; some competitors have greater experience and resources(p.35)
- • Full exposure to foreign currency exchange rate fluctuations on cross-border fees(p.37)
- • Travel industry highly sensitive to terror attacks, conflicts, epidemics and natural calamities(p.34)
- • Travel & tourism experiences disproportionately high adverse performance in economic downturns(p.42)
- • Changing laws, rules, regulations and legal uncertainties in India(p.43)
- • Anticipated Personal Data Protection Bill, 2019 may impose additional compliance including data localisation(p.26)
- • IT/cyber systems vulnerable to unauthorized access, hackers and viruses(p.27)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajinder Rai | Promoter | 35.434% | 26.031% |
| Mrs. Madhurima Rai | Promoter Group | 31.545% | 23.173% |
| Mr. Shivaz Rai | Promoter Group | 31.545% | 23.173% |
| Ms. Srishti Jindal | Promoter Group | 0.738% | 0.542% |
| Mrs. Mandira Rai | Promoter Group | 0.738% | 0.542% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.