Naapbooks SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 01 Sep 2021 – 06 Sep 2021
- Listing date
- 15 Sep 2021
- Face value
- ₹10 per share
- Issue price
- ₹74 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹3.99 Cr
- Market cap at offer price
- ₹13.74 Cr
- Promoter holding
- 88.93% → 63.10% pre-issue → post-issue
- ISIN
- INE0GOA01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Third Floor, Business Broadway Center, above V-Mart, Law Garden, 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 |
|---|---|---|---|
| Market maker | 27,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹74
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,18,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,36,800 |
| S-HNI (max) | 8 | 12,800 | ₹9,47,200 |
| B-HNI (min) | 9 | 14,400 | ₹10,65,600 |
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 | — | ₹13.74 Cr |
About Naapbooks SME
Naapbooks Limited, incorporated on April 21, 2017 and converted to a public limited company on January 7, 2021, is engaged in developing and providing Information Technological solutions to corporates. The company develops and provides Fintech App, Cloud Consulting, Blockchain App, Mobile App, Web App, and Embedded App products to its clients. Services broadly cover designing, developing, operating, installing, analyzing, maintaining, converting, porting, debugging, coding and programming software to be used on computers or microprocessor-based devices. The company is also engaged in Software Consultancy services. As of December 31, 2020, the company had revenues of ₹160.30 lakhs and PAT of ₹23.52 lakhs.
Company Analysis
from DRHPNaapbooks Limited develops and provides Information Technology solutions including Fintech, Cloud Consulting, Blockchain, Mobile, Web, and Embedded applications to corporates across the software consultancy industry.
Naapbooks Limited, incorporated on April 21, 2017 and converted to a public limited company on January 7, 2021, is engaged in developing and providing Information Technological solutions to corporates. The company develops and provides Fintech App, Cloud Consulting, Blockchain App, Mobile App, Web App, and Embedded App products to its clients. Services broadly cover designing, developing, operating, installing, analyzing, maintaining, converting, porting, debugging, coding and programming software to be used on computers or microprocessor-based devices. The company is also engaged in Software Consultancy services. As of December 31, 2020, the company had revenues of ₹160.30 lakhs and PAT of ₹23.52 lakhs.
Objects of the Issue
- Funding the working capital requirements of the company ₹200.00 lakhs p.20
- Funding purchases of equipment ₹50.00 lakhs p.20
- Marketing initiatives ₹40.00 lakhs p.20
- General Corporate Purposes [●] lakhs p.20
- Funding the working capital requirements of the company ₹200.00 lakhs p.60
- Funding purchases of equipment ₹50.00 lakhs p.60
- Marketing initiatives ₹40.00 lakhs p.60
- General Corporate Purposes p.60
Issue Structure
- Total Issue
- Upto 6,00,000 Equity Shares of ₹10/- each aggregating ₹[●] lakhs
- Fresh Issue
- Upto 6,00,000 Equity Shares of ₹10/- each for cash at a price of ₹[●] per Equity Share
- Price Band
- [●] (Floor Price) to [●] (Cap Price)
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue by developing and providing Information Technology solutions including Fintech applications, Cloud Consulting, Blockchain applications, Mobile applications, Web applications, and Embedded applications to corporate clients. Services include designing, developing, operating, installing, analyzing, maintaining, converting, porting, debugging, coding and programming software.
Business Segments
SWOT Analysis
- • ISO 9001:2015 quality certification demonstrates commitment to quality assurance standards(p.79)
- • Leveraging India's economic growth trajectory and infrastructure for IT services demand(p.80)
- • Experienced and qualified management team with IT sector expertise(p.80)
- • Development of products incorporating latest technology trends(p.80)
- • Long-standing customer relationships built on quality and trust(p.80)
- • Strong and experienced human resource base dedicated to growth(p.80)
- • Young, experienced management team with IT sector expertise(p.115)
- • Government recognition as a certified startup with quality certifications(p.117)
- • Diversified service portfolio across multiple IT domains(p.117)
- • Increasing profitability with 135% growth in profit before tax year-over-year(p.125)
- • Strong internal capability development reducing outsourcing dependency(p.125)
- • Heavy concentration of revenue among top 5 customers(p.25)
- • Significant competition from larger, well-established competitors with greater resources(p.24)
- • Limited operating history and inexperience in executing business plan(p.25)
- • Promoters lack industry experience and vintage(p.27)
- • Unregistered trademark assets lack statutory protection(p.26)
- • High dependence on third-party service providers(p.27)
- • Company does not own registered office premises(p.27)
- • Past instances of non-filing and delays with statutory authorities(p.25)
- • Promoter and promoter group will retain majority control, limiting other shareholders' influence(p.26)
- • Conflicts of interest between promoter group entities and company(p.26)
- • High promoter concentration with promoters holding 55.13% of pre-issue paid-up capital(p.60)
- • Small company size with only 39 total employees limiting operational scale(p.85)
- • Modest revenue base with only ₹160.30 lakhs in nine-month period ending December 2020(p.79)
- • Limited geographic presence with single registered office location in Ahmedabad(p.78)
- • Significant shareholding concentration among family promoters (Ashish Jain 30.37%, Nirmal Jain 15.24%, Yaman Saluja 18.03%, Abhishek Jain 18.44%)(p.61)
- • Heavy dependence on limited number of customers for revenues(p.118)
- • Significant unsecured borrowings from promoters and related parties(p.128)
- • High finance costs and debt burden relative to company size(p.137)
- • Minimal cash reserves despite recent fundraising(p.127)
- • Outstanding income tax demands and TDS liabilities against company and promoters(p.129)
- • Global IT industry growth projected at 5% CAGR through 2024(p.19)
- • Technology industry recovery post-pandemic with projected 4.2% growth in 2021(p.19)
- • Diversification of business through new models and services(p.24)
- • Expansion through strategic partnerships and acquisitions(p.28)
- • Expansion of nationwide IT services operations across new geographies(p.63)
- • India's growing digital economy projected to reach $1 trillion by 2025(p.76)
- • Leveraging cloud computing and analytics expertise to meet enterprise demand(p.80)
- • Expanding customer base through marketing initiatives and relationship management(p.80)
- • India IT-BPM industry expected to grow from $191 billion in FY20 to $350 billion by 2025(p.76)
- • MNC manufacturing setup expansion in India creating demand for office automation and IT services(p.80)
- • Expansion into global markets beyond India(p.118)
- • Growth in office automation and SME/corporate digitalization sectors(p.118)
- • Capitalize on fintech and digital transformation trends(p.118)
- • Leveraging cost efficiency and improved margins from internal capability development(p.124)
- • Continuing uncertainty from COVID-19 pandemic impact on business operations(p.23)
- • Highly competitive industry with fragmented market and low entry barriers(p.24)
- • Business dependent on Software Consultancy industry performance and economic slowdowns(p.25)
- • Regulatory changes and uncertainties in information technology sector laws(p.33)
- • GST implementation affecting tax incidence and compliance requirements(p.33)
- • Vulnerability to Indian economic and political instability(p.34)
- • Dependence on availability and quality of power supply(p.29)
- • Natural calamities could negatively impact Indian economy and business(p.35)
- • Terrorist attacks and civil unrest could adversely affect financial markets and business(p.35)
- • Foreign investment restrictions limiting ability to attract foreign investors(p.34)
- • Intense competition from established IT service providers with greater scale and resources(p.72)
- • COVID-19 pandemic's ongoing impact on IT sector spending and business operations(p.74)
- • Uncertainty in global economic outlook affecting IT services demand(p.70)
- • Volatility in technology markets and potential adoption of alternative competing technologies(p.74)
- • Emerging market economies expected to experience softer growth than developed markets(p.70)
- • Regulatory compliance burdens including complex IT, employment, and tax laws(p.87)
- • Intense competition from established IT service providers(p.118)
- • Uncertainty regarding industry growth rates and market saturation(p.118)
- • COVID-19 pandemic impacts on business operations and customer demand(p.118)
- • Regulatory risks in fintech and business expansion areas(p.118)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ashish Jain | Promoter | 30.37% | [●]% |
| Yaman Saluja | Promoter | 18.04% | [●]% |
| Swati Singh | Promoter | 6.72% | [●]% |
| Nirmal Jain | Promoter Group | 15.24% | [●]% |
| Abhishek Jain | Promoter Group | 18.44% | [●]% |
| Sweta Suryabaksh Singh | Promoter Group | 0.12% | - |
| Ashish Jain | Promoter | 30.37% | — |
| Yaman Saluja | Promoter | 18.04% | — |
| Swati Singh | Promoter | 6.72% | — |
| Nirmal Jain | Promoter Group | 15.24% | — |
| Abhishek Jain | Promoter Group | 18.44% | — |
| Sweta Suryabaksh Singh | Promoter Group | 0.12% | — |
| Ashish Jain | Promoter | 30.37% | — |
| Yaman Saluja | Promoter | 18.04% | — |
| Swati Singh | Promoter | 6.72% | — |
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.