Focus Business Solution SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Jun 2021 – 05 Jul 2021
- Listing date
- 13 Jul 2021
- Face value
- ₹10 per share
- Issue price
- ₹19 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹1.22 Cr
- Market cap at offer price
- ₹4.22 Cr
- Promoter holding
- 100.00% → 71.11% pre-issue → post-issue
- ISIN
- INE0DXR01010
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Navigant Corporate Advisors Ltd.
- Registered office
- 703, Rajhans Complex, Nr.Kadiwala School, Ring Road, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 42,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹19
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,14,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,28,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,12,000 |
| B-HNI (min) | 9 | 54,000 | ₹10,26,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹4.22 Cr |
About Focus Business Solution SME
Focus Business Solution Limited, originally incorporated in 2006 as a private limited company in Surat, Gujarat, evolved into a financial services company engaged in debt collection services for banks, NBFCs, and financial institutions. The company acts as an authorized recovery and collection agent, deploying field staff for tele-calling and field visits to recover overdue loan payments including personal loans, business loans, vehicle loans, and other credit products. The company operates from a head office in Surat with branches in Baroda, Bharuch, Vapi, Anand, Ahmedabad, Rajkot, and Palanpur, employing around 551 staff (58 on payroll, 493 on contractual basis). It has processed over two lakh customer records with a recovery pool size exceeding Rs. 200 Crores and uses digital technology including a mobile application called 'fTouch' and a RCAP (Retail Collection Administrative Programme) platform for its operations.
Company Analysis
from RHPFocus Business Solution Limited is a debt collection and recovery services company operating in the financial services industry across Gujarat, India.
Focus Business Solution Limited, originally incorporated in 2006 as a private limited company in Surat, Gujarat, evolved into a financial services company engaged in debt collection services for banks, NBFCs, and financial institutions. The company acts as an authorized recovery and collection agent, deploying field staff for tele-calling and field visits to recover overdue loan payments including personal loans, business loans, vehicle loans, and other credit products. The company operates from a head office in Surat with branches in Baroda, Bharuch, Vapi, Anand, Ahmedabad, Rajkot, and Palanpur, employing around 551 staff (58 on payroll, 493 on contractual basis). It has processed over two lakh customer records with a recovery pool size exceeding Rs. 200 Crores and uses digital technology including a mobile application called 'fTouch' and a RCAP (Retail Collection Administrative Programme) platform for its operations.
Objects of the Issue
- To part finance working capital requirements of the Company ₹65.00 Lakhs p.21
- General Corporate Purpose ₹30.00 Lakhs p.21
- Issue related expenses ₹26.98 Lakhs p.21
- To part finance working capital requirements of the Company Rs. 65.00 Lakhs p.85
- To meet General corporate purposes Rs. 30.00 Lakhs p.85
- To meet the expenses of the Issue p.85
- General corporate purposes
Issue Structure
- Total Issue
- ₹121.98 Lakhs
- Fresh Issue
- 6,42,000 Equity Shares of face value of Rs.10 each at Rs. 19 per share aggregating Rs. 121.98 Lakhs
- Offer for Sale
- Nil
- Price Band
- Fixed Price of Rs. 19 per Equity Share
- Lot Size
- As per SEBI (ICDR) Regulations, 2018
- Face Value
- Rs. 10 per Equity Share
Business Model
Revenue is generated through service agreements with banks and financial institutions where the company acts as an authorized recovery and collection agent. The company earns revenue by collecting overdue payments on behalf of its clients, with occasional vehicle repossessions. Services include address tracking, tele-calling follow-ups, field visits for collection, repossession, and payment processing. The company also maintains a call centre with 64 work stations equipped with call recording, dialler, and CRM facilities.
Business Segments
SWOT Analysis
- • Experienced management with 20+ years in debt collection business(p.107)
- • Established operations serving major Indian banks and financial institutions(p.107)
- • Robust proprietary technology platform (myrcap.in)(p.107)
- • Diversified service offerings with quality focus(p.107)
- • Scalable modern technology infrastructure(p.107)
- • Experienced promoters with 20+ years business management track record(p.144)
- • Promoter with 22+ years in banking and financial industry experience(p.145)
- • Stable promoter ownership with no changes in past five years(p.144)
- • Clean regulatory record with no litigation or disciplinary actions(p.147)
- • Consistent profitability and positive cash flows over multiple years(p.201)
- • High dependence on contractual workforce (89.5% of staff)(p.104)
- • Intensive staffing requirements for operations(p.111)
- • Reliance on agreements with third-party software vendor(p.104)
- • High dependency on few major customers for revenue(p.184)
- • Minimal cash reserves with low cash and bank balances(p.155)
- • Low profit margins relative to revenue(p.184)
- • Operational leverage vulnerability with high fixed employee costs(p.183)
- • No formal dividend policy or history of dividend payment(p.149)
- • Expand into new geographical markets(p.111)
- • Diversification into new service lines like DSA and legal assistance(p.108)
- • Leverage listing to access capital for expansion(p.111)
- • Adopt emerging technologies like AI and machine learning(p.109)
- • Strategic acquisitions and joint ventures to expand presence(p.109)
- • Growth in recovery agent services demand from banks and financial institutions(p.182)
- • Expansion of client base and service offerings to additional financial institutions(p.144)
- • Revenue growth potential through increased market penetration(p.185)
- • Highly dependent on banking and financial sector(p.111)
- • Low barriers to entry attracting new competitors(p.111)
- • Intense competitive pressure from established and unorganized players(p.110)
- • Industry susceptible to regulatory changes(p.111)
- • Challenges from borrower behavior and delays(p.111)
- • Potential loss of major clients and revenue concentration risk(p.184)
- • Regulatory and policy changes affecting recovery operations(p.181)
- • Inability to attract and retain qualified manpower(p.181)
- • Increasing competition in the recovery services industry(p.181)
- • Promoter conflict of interest risk through other ventures(p.146)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Mohamedyaseen Muhammadbhai Nathani | Promoter | 65.51% | 46.58% |
| Mr. Mohamedamin Mohammad Nathani | Promoter | 25.51% | 17.96% |
| Mr. Sajid Mohammadbhai Nathani | Promoter Group | 5.06% | — |
| Mr. Aslam Muhammadbhai Nathani | Promoter Group | 3.80% | — |
| Mr. Mohd. Safi Mohd Ibrahim Bhai Bhagwani | Promoter Group | 0.13% | — |
| Mr. Sohel Amin Hingora | Promoter Group | 0.13% | — |
| Mr. Mohd Yusuf Mohd Amin Hingora | Promoter Group | 0.13% | — |
| Mr. Mohamedyaseen Muhammadbhai Nathani | Promoter | 65.51% | 46.58% |
| Mr. Mohamedamin Mohammad Nathani | Promoter | 25.25% | 17.96% |
| Mr. Sajid Mohammadbhai Nathani | Promoter Group | 5.06% | 3.60% |
| Mr. Aslam Muhammadbhai Nathani | Promoter Group | 3.80% | 2.70% |
| Mr. Mohd. Safi Mohd Ibrahim Bhai Bhagwani | Promoter Group | 0.13% | 0.09% |
| Mr. Sohel Amin Hingora | Promoter Group | 0.13% | 0.09% |
| Mr. Mohd Yusuf Mohd Amin Hingora | Promoter Group | 0.13% | 0.09% |
| Mr. Mohamedyaseen Muhammadbhai Nathani | Promoter | 65.51% (10,35,000 shares as of 31-Dec-20) | — |
| Mr. Mohamedamin Mohammad Nathani | Promoter | 25.25% (3,99,000 shares as of 31-Dec-20) | — |
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.