Kandarp Digi Smart BPO SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Sep 2022 – 20 Sep 2022
- Listing date
- 28 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹30 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹8.10 Cr
- Market cap at offer price
- ₹26.92 Cr
- Promoter holding
- 100.00% → 69.91% pre-issue → post-issue
- ISIN
- INE0MOT01016
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- GF-22, Hans Bhawan, Bahadur Saha Zafar Marg, 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 | 1,40,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 36,000 | ₹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 (₹) | 1.50 | — |
| P/E (×) | 20.00 | — |
| Market cap | — | ₹26.92 Cr |
Key performance indicators
- Return on net worth
- 11.97%
- ROCE
- 19.90%
- Debt / equity
- 0.38
- PAT margin
- 7.30%
- NAV per share
- ₹1.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kandarp Digi Smart BPO SME
Kandarp Digi Smart BPO Limited, incorporated in 2001 and originally named Dynamic Restructuring Management Services Private Limited, is a BPO services company specializing in support services solutions. The company provides End-to-End solutions including Call Centre services, Contact Point Verifications, Site Visits, Document check/Pickup, E-KYC, Skip Tracing, Employee Background Checks, Staffing Solutions, Payroll Management, Payment Collections, and AMC Booking Services. It primarily serves clients in banking, NBFC and financial services sectors. The company operates from registered office in New Delhi and corporate office in Noida, with a branch in Chennai. As of March 31, 2022, the company reported total revenue of ₹1,287.84 lakhs with profit after tax of ₹94.04 lakhs.
Company Analysis
from RHPKandarp Digi Smart BPO Limited provides Business Process Outsourcing (BPO) and support services including call centre, contact verification, site visits, document checks, E-KYC, skip tracing, and staffing solutions to banking, financial services and related sectors.
Kandarp Digi Smart BPO Limited, incorporated in 2001 and originally named Dynamic Restructuring Management Services Private Limited, is a BPO services company specializing in support services solutions. The company provides End-to-End solutions including Call Centre services, Contact Point Verifications, Site Visits, Document check/Pickup, E-KYC, Skip Tracing, Employee Background Checks, Staffing Solutions, Payroll Management, Payment Collections, and AMC Booking Services. It primarily serves clients in banking, NBFC and financial services sectors. The company operates from registered office in New Delhi and corporate office in Noida, with a branch in Chennai. As of March 31, 2022, the company reported total revenue of ₹1,287.84 lakhs with profit after tax of ₹94.04 lakhs.
Objects of the Issue
- To Meet Working Capital Requirement ₹600.00 Lakhs p.18
- General Corporate Expenses ₹110.00 Lakhs p.18
- Public Issue Expenses ₹100.00 Lakhs p.18
- To Meet Working Capital Requirement ₹600.00 Lakhs p.70
- General Corporate Purpose ₹110.00 Lakhs p.70
- To Meet the Issue Expenses ₹100.00 Lakhs p.72
- —
Issue Structure
- Total Issue
- ₹810.00 Lakhs
- Fresh Issue
- 27,00,000 Equity Shares of ₹10/- each for cash at a price of ₹30/- per Equity Share aggregating to ₹810.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹30/- per Equity Share (Fixed Price Issue)
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue by providing specialized BPO and support services to its clients, primarily in the banking, NBFC and financial services sectors. Revenue is generated through provision of services such as call centre operations, field verification services, document processing, E-KYC services, skip tracing, payroll management, and other back-office processing services.
Business Segments
SWOT Analysis
- • Established BPO service provider with 21 years of operations(p.2)
- • Diversified service portfolio across multiple customer segments(p.15)
- • Experienced management with significant industry tenure(p.29)
- • Strong revenue growth trajectory(p.19)
- • Profitability improvement in recent fiscal year(p.19)
- • ISO 9001:2015 certified for Quality Management Services(p.91)
- • 20+ years operational experience in BPO services(p.91)
- • Subsidiary of listed promoter company with established reputation(p.91)
- • Experienced promoter with 27 years BPO industry expertise(p.92)
- • Wide geographic distribution network across India(p.92)
- • Long-term stable relationships with key customers(p.91)
- • Diversified service portfolio and customer base(p.92)
- • Long operating history and client relationships in BPO sector(p.170)
- • ISO 9001:2015 certification for quality management(p.170)
- • Experienced management team with significant industry expertise(p.171)
- • Broad range of specialized support services offerings(p.170)
- • Part of established Reliable Data Services Limited group listed on NSE Emerge(p.170)
- • Strong revenue growth trajectory(p.173)
- • High customer concentration risk with top 10 customers dominating revenue(p.26)
- • Significant debt burden with floating rate exposure(p.25)
- • Dependency on rental properties for operations(p.24)
- • History of statutory compliance lapses and delays(p.28)
- • Outstanding tax demands and litigation(p.19)
- • Negative cash flows from investing and financing activities in past years(p.31)
- • Promoter-controlled shareholding limits minority shareholder influence(p.35)
- • No dividend payment history(p.35)
- • High customer concentration risk with top 5 clients representing 67% of revenue(p.97)
- • Strict client policies and audit controls create operational hurdles(p.97)
- • Low bargaining power with customers(p.97)
- • Small employee base of 41 people limiting scalability(p.98)
- • High concentration of ownership among promoters(p.124)
- • Significant debt obligations relative to equity(p.165)
- • Negative working capital position(p.152)
- • Substantial intangible assets under development with uncertain completion(p.141)
- • High proportion of outsourced expenses limiting control(p.173)
- • Significant portion of trade receivables outstanding beyond six months(p.160)
- • High customer concentration risk(p.176)
- • Significant outstanding dues to creditors(p.182)
- • Pending direct tax litigation with income adjustment demands(p.178)
- • Major concealed income addition claim by tax authority(p.179)
- • Large outstanding receivable from major customer in insolvency proceedings(p.179)
- • Growing global sourcing market with India commanding significant share(p.15)
- • Expanding IT-BPM sector contributing significantly to GDP(p.15)
- • Strategic focus on optimal resource utilization and customer relationships(p.25)
- • Working capital augmentation to support operational scaling(p.18)
- • Expansion to new service segments and geographies(p.71)
- • Exploration of new service domains in credit cards and online gaming(p.71)
- • Huge growth potential in BPO service segment(p.97)
- • Possibility of providing associated services with main offerings(p.97)
- • Growing India BPO market and IT-ITeS sector expansion(p.88)
- • Expansion into new geographical markets and service areas(p.170)
- • Technology investment to enhance service capabilities(p.171)
- • Growth in BPO and outsourced services demand(p.170)
- • Leverage group synergies with parent company Reliable Data Services Limited(p.170)
- • Customer default risk impacting cash flows and collection ability(p.24)
- • Technology disruption and obsolescence risk(p.23)
- • Economic slowdown and macroeconomic volatility affecting industry demand(p.32)
- • COVID-19 pandemic impacting business operations and demand(p.31)
- • Regulatory compliance requirements and penalties risk(p.26)
- • Intense competition from larger organized players and startups(p.23)
- • GST and tax regime changes affecting cost structure(p.38)
- • Employee attrition and skilled labor scarcity in competitive market(p.27)
- • Concentration risk if key customers reduce or terminate contracts(p.27)
- • Floating rate interest exposure amid rate volatility(p.27)
- • Intense competition from local and large national players(p.97)
- • Risk of changes in government policies affecting BPO operations(p.97)
- • Regulatory compliance requirements for BPO and outsourcing services(p.103)
- • Dependence on few major customers creates business continuity risk(p.97)
- • Ongoing impact and uncertainty of COVID-19 pandemic on operations(p.171)
- • Dependence on limited number of key clients(p.170)
- • Macroeconomic vulnerability to recession and market downturns(p.171)
- • Exposure to regulatory and compliance risks(p.171)
- • Risk of loss or damage from natural disasters affecting operations(p.171)
- • Technological disruption and rapid industry changes(p.171)
- • Potential regulatory changes affecting BPO industry(p.175)
- • Customer insolvency and non-payment risks(p.179)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sunil Kumar Rai | Promoter | 2.01% | 1.40% |
| Mrs. Meenakshi Pathak | Promoter | 7.98% | 5.58% |
| M/s Reliable Data Services Limited | Promoter | 89.95% | 62.89% |
| Mr. Sunil Kumar Rai | Promoter | 2.01% | 1.40% |
| Mrs. Meenakshi Pathak | Promoter | 7.98% | 5.58% |
| M/s Reliable Data Services Limited | Promoter Company | 89.95% | 62.89% |
| Mr. Rakesh Jha | Promoter Group | 0.01% | 0.01% |
| Mr. Sandeep Kumar Jha | Promoter Group | 0.01% | 0.01% |
| Mr. Anil Kumar Jha | Promoter Group | 0.01% | 0.01% |
| Mr. Sanjay Kumar Pathak | Promoter Group | 0.01% | 0.01% |
| Mr. Sunil Kumar Rai | Promoter | 2.01% | — |
| Mrs. Meenakshi Pathak | Promoter | 7.98% | — |
| M/s Reliable Data Services Limited | Promoter | 89.96% | — |
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.