ITCONS E-Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Feb 2023 – 02 Mar 2023
- Listing date
- 13 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹8.67 Cr
- Market cap at offer price
- ₹25.65 Cr
- Promoter holding
- 89.67% → 59.36% pre-issue → post-issue
- ISIN
- INE0O6A01019
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- Regus Elegance 2F, Elegance Jasola District Centre, Old Mathura Road, New Delhi, 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 | 86,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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 (₹) | 4.16 | — |
| P/E (×) | 12.26 | — |
| Market cap | — | ₹25.65 Cr |
Key performance indicators
- Return on net worth
- 53.31%
- ROCE
- 58.00%
- Debt / equity
- 0.48
- PAT margin
- 7.00%
- EBITDA margin
- 9.87%
- NAV per share
- ₹7.80
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About ITCONS E-Solutions
ITCONS E-Solutions Limited, incorporated on May 15, 2007, is a human resource services company providing manpower supply and staffing services to both public and private organizations in India's organized sector. The company has grown to an 800+ staff team (including contractual employees) and serves well-known clients from the Information Technology, Staffing & Recruitment, Food, and FMCG sectors, including multinational corporations. Manpower Supply Services account for the majority of revenues, with Manpower Sourcing Services contributing the remainder. The company was converted from a Private Limited Company to a Public Limited Company on November 11, 2022.
Company Analysis
from RHPITCONS E-Solutions Limited provides human resource services, including manpower supply and staffing services, primarily to organized sector clients in IT, FMCG, and food industries.
ITCONS E-Solutions Limited, incorporated on May 15, 2007, is a human resource services company providing manpower supply and staffing services to both public and private organizations in India's organized sector. The company has grown to an 800+ staff team (including contractual employees) and serves well-known clients from the Information Technology, Staffing & Recruitment, Food, and FMCG sectors, including multinational corporations. Manpower Supply Services account for the majority of revenues, with Manpower Sourcing Services contributing the remainder. The company was converted from a Private Limited Company to a Public Limited Company on November 11, 2022.
Objects of the Issue
- Working capital requirements ₹600.00 Lakhs p.19
- Issue related expenses ₹127.00 Lakhs p.19
- General corporate purposes ₹140.00 Lakhs p.19
- Working capital requirements ₹600.00 lakhs p.65
- Issue related expenses ₹127.00 lakhs p.65
- General corporate purposes ₹140.00 lakhs p.65
Issue Structure
- Total Issue
- 17,00,000 Equity Shares aggregating to ₹867.00 Lakhs
- Fresh Issue
- 17,00,000 Equity Shares of face value of ₹10/- each for cash at a price of ₹51/- per equity share, aggregating to ₹867.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹51/- per Equity Share (Fixed Price Issue)
- Lot Size
- 2,000 Equity Shares (Minimum)
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through two primary services: (1) Manpower Supply/Recruitment Services, which account for the majority of revenues; and (2) Manpower Sourcing/Staffing Services. The company derives significant revenue from IT sector clients (60.58%-65.98% of revenue from operations across the periods reviewed), with Associate Employees deployed at client locations.
Business Segments
SWOT Analysis
- • Established client relationships with reputed MNCs across diverse sectors(p.18)
- • Significant growth in staffing industry with 21.9% YoY new employment in 2021-22(p.18)
- • Experienced promoter team with extensive industry background(p.32)
- • Grown to 800+ staff team since incorporation in 2007(p.18)
- • Strong management team with 15+ years industry experience(p.101)
- • Diverse service offerings across staffing and recruitment(p.97)
- • Strong financial performance and growth trajectory(p.101)
- • Well-trained and skilled employee pool(p.97)
- • Cost-competitive service offerings(p.97)
- • Strong relationships with marquee clients(p.97)
- • Over 15 years of operational track record in HR services(p.182)
- • Established client base including MNCs across diverse sectors(p.166)
- • Consistent revenue growth with improving profitability(p.169)
- • Positive net worth and tangible assets exceeding minimum regulatory requirements(p.182)
- • ISO certifications demonstrating quality and compliance standards(p.179)
- • Positive cash accruals in the last three financial years(p.183)
- • High concentration of revenue from top five clients (75.61% in FY2022)(p.26)
- • Heavy dependence on IT sector revenue (60.58% to 65.98%)(p.27)
- • Negative cash flow from operations in recent periods(p.27)
- • Employee benefits expenses dominate total expenses at 77.05%(p.30)
- • Lower gross margins in manpower business(p.31)
- • High outstanding receivables of ₹539.30 lakhs (67.88% of total assets)(p.26)
- • Group entity incurring losses with negative net worth(p.34)
- • Trademark registration still pending; not registered in company name(p.29)
- • Past instances of defaults on ESIC and EPFO statutory dues(p.28)
- • No owned properties – all premises on rental basis(p.101)
- • Staffing services perceived as overhead cost by clients(p.101)
- • High customer concentration risk(p.99)
- • Heavy dependence on limited number of customers for majority of revenues(p.167)
- • Concentration of manpower supply services accounting for 97.62% of revenue(p.166)
- • Short-term debt obligations with limited long-term borrowing capacity(p.146)
- • Pending income tax demands against director(p.174)
- • Unsecured related party loans recently repaid indicating working capital dependency on promoters(p.151)
- • No formal dividend policy and no dividend paid in last three years(p.140)
- • Staffing industry growth trajectory with 100+ ISF members employing 1.26mn flexi workforce(p.18)
- • Strong IT staffing industry growth at 30.7% with digital adoption across sectors(p.18)
- • Staffing industry poised for stable contribution to formal employment growth(p.18)
- • General Staffing Industry net new employment growth at 21% with diverse sector demand(p.18)
- • Use of IPO proceeds to expand working capital and general corporate purposes(p.19)
- • Growing outsourcing activity and job demand in India(p.101)
- • Industry consolidation through M&A(p.101)
- • Expansion in Indian staffing market with 21.9% YoY growth(p.79)
- • Rapid growth in IT staffing segment at 30.7% YoY(p.83)
- • Government initiatives supporting staffing and employment(p.75)
- • Strategic expansion into new geographic markets and client segments(p.116)
- • Growing demand for staffing services in organized sector across multiple industries(p.166)
- • Potential to grow manpower sourcing services which is currently only 2.38% of revenue(p.166)
- • Listing on BSE SME platform providing capital market access for growth financing(p.181)
- • Leveraging existing ISO certifications for business expansion and client acquisition(p.179)
- • Intense competition from numerous competitors with greater resources(p.23)
- • High employee turnover and intense competition for skilled personnel(p.24)
- • Client contracts can be terminated without cause or notice(p.30)
- • Significant adverse impact from COVID-19 pandemic on staffing demand(p.29)
- • Increased wage pressures in Indian IT services industry(p.28)
- • Economic downturn affects demand for manpower services(p.26)
- • Business significantly affected by general economic activity and Indian market conditions(p.30)
- • Foreign exchange rate fluctuations affect export revenue (7.57% of total revenue)(p.28)
- • Political instability and regulatory changes in India could harm business(p.38)
- • Extensive government regulation and compliance requirements(p.37)
- • Competition from established and larger staffing players(p.101)
- • Dependence on ability to hire suitable employees(p.101)
- • Highly competitive and rapidly evolving market(p.98)
- • Risk of increased competition from international firms with lower costs(p.98)
- • COVID-19 pandemic impact on business operations and economic conditions(p.167)
- • Intense competition in staffing and recruitment services sector(p.167)
- • Dependence on ability to retain key employees and maintain workforce relations(p.167)
- • Regulatory and compliance requirements in labor and employment laws(p.167)
- • Rapid technological advancement requiring continuous investment and capability upgrades(p.167)
- • Economic cyclicality and general business conditions affecting organizational spending(p.167)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Gaurav Mittal | Promoter | 58.93% | 39.00% |
| Swati Jain | Promoter | 30.74% | 20.36% |
| Gaurav Mittal | Promoter | 58.93% | 39.01% |
| Swati Jain | Promoter | 30.74% | 20.35% |
| Chetan Prakash Mittal | Promoter Group & Executive Director | 0.00% | 0.00% |
| Prem Lata Mittal | Promoter Group & Executive Director | 0.00% | 0.00% |
| Archana Gangal | Promoter Group & Non-Executive Director | 0.00% | 0.00% |
| Gaurav Mittal | Promoter | 58.93% | 39.01% |
| Swati Jain | Promoter | — | — |
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.