Euphoria Infotech (India)
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Jan 2024 – 24 Jan 2024
- Listing date
- 30 Jan 2024
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹9.60 Cr
- Market cap at offer price
- ₹29.02 Cr
- Promoter holding
- 95.11% → 63.64% pre-issue → post-issue
- ISIN
- INE0PYT01018
- Registrar
- MAS Services Ltd.
- Lead managers
- Khandwala Securities Ltd.
- Registered office
- Bengal Eco Intelligent Park, Building, Tower I, EM-3, Unit 16, 13th Floor, Sector V, Salt Lake City, West Bengal
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 | 48,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹10,80,000 |
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 |
|---|---|---|
| EPS (₹) | 6.68 | 4.17 |
| P/E (×) | 14.97 | 23.98 |
| Price to book (×) | 4.73 | — |
| Market cap | — | ₹29.02 Cr |
Key performance indicators
- Return on net worth
- 31.62%
- ROCE
- 49.00%
- Debt / equity
- 0.38
- PAT margin
- 17.58%
- NAV per share
- ₹21.12
- Price to book
- 4.73
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Euphoria Infotech (India)
Incorporated on May 28, 2001 as a private limited company ('Euphoria Infotech (India) Private Limited') in Kolkata, West Bengal, and converted into a public limited company on May 22, 2023 (CIN: U92200WB2001PLC093236), Euphoria Infotech was founded in 2001 by its promoter and Managing Director Mr. Shamba Bhanja. It builds customised web applications and IT/ITes solutions spanning online recruitment and exam management, university and school management systems, urban local body services (property tax, e-mutation, trade licence), e-commerce, online ticketing and fleet management, ERP, APIs, mobile apps, IoT dashboards and AI/ML offerings, classifying its offerings into customized software, e-commerce, IoT, Artificial Intelligence and Machine Learning. Its clients are largely government and public institutions — including more than 100 municipalities in West Bengal, the Calcutta High Court, Urban Development & Municipal Affairs, the West Bengal Police Recruitment Board, Rabindra Bharati University and other universities, and South Bengal State Transport Corporation — and it is empanelled/channel partner of Webel Technologies Limited, the nodal agency for the Government of West Bengal's IT/ITes implementation. It also entered Bangladesh in 2018 through JV company Euphoria Infotech (Bangladesh) Private Limited, in which it holds 49%. For FY2023 it reported total revenue of ₹737.56 lakhs and profit after tax of ₹129.69 lakhs. It is raising an IPO of up to 9,60,000 equity shares on the SME Platform of BSE, entirely a fresh issue, to fund working capital and general corporate expenses.
Company Analysis
from DRHPEuphoria Infotech (India) Limited is a Kolkata-based full-stack IT and ITes solutions provider delivering customised software and web applications for government, municipal, educational, transport and enterprise clients.
Incorporated on May 28, 2001 as a private limited company ('Euphoria Infotech (India) Private Limited') in Kolkata, West Bengal, and converted into a public limited company on May 22, 2023 (CIN: U92200WB2001PLC093236), Euphoria Infotech was founded in 2001 by its promoter and Managing Director Mr. Shamba Bhanja. It builds customised web applications and IT/ITes solutions spanning online recruitment and exam management, university and school management systems, urban local body services (property tax, e-mutation, trade licence), e-commerce, online ticketing and fleet management, ERP, APIs, mobile apps, IoT dashboards and AI/ML offerings, classifying its offerings into customized software, e-commerce, IoT, Artificial Intelligence and Machine Learning. Its clients are largely government and public institutions — including more than 100 municipalities in West Bengal, the Calcutta High Court, Urban Development & Municipal Affairs, the West Bengal Police Recruitment Board, Rabindra Bharati University and other universities, and South Bengal State Transport Corporation — and it is empanelled/channel partner of Webel Technologies Limited, the nodal agency for the Government of West Bengal's IT/ITes implementation. It also entered Bangladesh in 2018 through JV company Euphoria Infotech (Bangladesh) Private Limited, in which it holds 49%. For FY2023 it reported total revenue of ₹737.56 lakhs and profit after tax of ₹129.69 lakhs. It is raising an IPO of up to 9,60,000 equity shares on the SME Platform of BSE, entirely a fresh issue, to fund working capital and general corporate expenses.
Objects of the Issue
- Working Capital Requirement (funding working capital requirements for Fiscal Year 2024) ₹682.79 Lakhs of IPO proceeds earmarked for working capital per funding-pattern table (headline amounts in the Objects table shown as [●]) p.60
- General Corporate Expenses (capped at 25% of Gross Proceeds) [●] p.61
Issue Structure
- Total Issue
- Upto 9,60,000 Equity Shares aggregating to ₹ [•] Lakhs
- Fresh Issue
- Upto 9,60,000 Equity Shares aggregating to ₹ [•] Lakhs (entire issue is a Fresh Issue)
- Offer for Sale
- Nil
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue by developing, implementing and maintaining customised software and web applications and related IT/ITes services for government departments, urban local bodies, recruitment boards, universities, transport corporations and corporates, winning work substantially through tenders (including orders floated by Webel Technologies Limited on behalf of West Bengal government departments) and direct client contracts. Per its restated accounts, 'Sales of services comprises of income arising from IT consulting contracts which includes software development, domain hosting services, other hosting services and reimbursement of expenses incurred on projects,' recognised on accrual basis against invoices raised per contract terms.
Business Segments
SWOT Analysis
- • Experienced promoter with 22+ years of industry experience driving the company since inception(p.81)
- • Empanelment/collaboration with Webel Technologies Limited (nodal agency of Govt. of West Bengal) giving a competitive edge in winning projects(p.82)
- • Established technology partner to government and financial organisations, including more than 100 municipalities in West Bengal(p.78)
- • Repeat/recurring business from a marquee client base of municipal boards, government agencies and corporates(p.78)
- • Demonstrated growth and profitability trajectory (revenue up to ₹737.56 lakhs and PAT up to ₹129.71 lakhs in FY2023)(p.88)
- • Scalable, technology-driven business model proven since incorporation(p.81)
- • Broad agile engineering and delivery capabilities across web, cloud, mobile, IoT, AI/ML and DevOps(p.81)
- • Large income-tax demand of ₹1,031.07 lakhs (AY 2017-18) under appeal before the Calcutta High Court(p.22)
- • Extreme customer concentration – top 10 clients contributed ~99% of revenue(p.25)
- • Heavy dependence on the Promoter and key managerial personnel(p.23)
- • Business reliant on continued registration and orders from Webel Technologies Limited(p.23)
- • Substantial working-capital requirements supported by outstanding working-capital borrowings of ₹155.09 lakhs(p.25)
- • History of negative operating cash flow (FY2022)(p.27)
- • Past instances of delayed statutory filings and delayed statutory dues (EPFO/ESIC)(p.28)
- • Indian IT industry tailwind – expected to contribute 10% of India's GDP by 2025 (vs 7.4% in FY22)(p.73)
- • Planned diversification of business portfolio into product development, training/capacity building, project management and fintech(p.83)
- • Geographic expansion beyond West Bengal to reach a larger market and access clients directly(p.84)
- • Scope to acquire new clients and deepen key account relationships(p.83)
- • Digital India programme creating digital infrastructure and access-led demand(p.73)
- • Artificial Intelligence expected to accelerate national growth, supporting AI/ML offerings(p.77)
- • Adverse changes in government regulations or their implementation(p.31)
- • Increases in taxes and other levies (e.g., GST, customs duties) affecting cost, price and demand(p.31)
- • Rising interest rates increasing borrowing costs on outstanding debt(p.29)
- • Political instability or changes in economic liberalisation/deregulation policies(p.32)
- • Global economic and political conditions beyond the company's control(p.32)
- • Increased competition and risk of markets failing to develop(p.22)
- • Natural calamities impacting the Indian economy and business(p.33)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Shamba Bhanja | Promoter | 49.77% | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.