SecMark SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Sep 2020 – 23 Sep 2020
- Listing date
- 01 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹135 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹15.04 Cr
- Promoter holding
- 100.00% → 72.99% pre-issue → post-issue
- ISIN
- INE0BTM01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Indorient Financial Services Ltd.
- Registered office
- Plot No 36/ 227, RDP-10, CTS-1C/1/640, Sector-6, Charkop, Near Ambamata Mandir,, Kandivali,, Maharashtra
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 | 56,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹135
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 8,000 | ₹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 |
|---|
About SecMark SME
SecMark Consultancy Limited was originally incorporated as a private limited company under the Companies Act, 1956 on August 03, 2011 and converted to a public limited company on March 02, 2020. The Company offers services in the areas of compliance, operations, risk management, outsourcing, software development, and legal matters to financial market participants including stock and commodity brokers, depository participants, stock exchanges, wealth managers, research analysts, insurance companies, insurance brokers, corporate agents, portfolio managers, investment advisors, NBFCs, and banks. The Company served approximately 125 clients in FY 2015, which increased to approximately 200 clients in FY 2019-20. Operating from its registered office in Mumbai, the Company has local representatives at various locations including New Delhi, Ahmedabad, Indore, Jaipur, Bangalore, Chandigarh, and Raipur.
Company Analysis
from RHPSecMark Consultancy Limited provides compliance, operations, risk management, outsourcing, software development, and legal services to financial market participants and others across India.
SecMark Consultancy Limited was originally incorporated as a private limited company under the Companies Act, 1956 on August 03, 2011 and converted to a public limited company on March 02, 2020. The Company offers services in the areas of compliance, operations, risk management, outsourcing, software development, and legal matters to financial market participants including stock and commodity brokers, depository participants, stock exchanges, wealth managers, research analysts, insurance companies, insurance brokers, corporate agents, portfolio managers, investment advisors, NBFCs, and banks. The Company served approximately 125 clients in FY 2015, which increased to approximately 200 clients in FY 2019-20. Operating from its registered office in Mumbai, the Company has local representatives at various locations including New Delhi, Ahmedabad, Indore, Jaipur, Bangalore, Chandigarh, and Raipur.
Objects of the Issue
- To finance development and/or procurement of technology, applications, software, infrastructure etc. including strategic acquisitions of Firms/Companies in the technology space to complement and enhance our Company's value proposition on Technology, Outsourcing and Consultancy services ₹460.00 Lakhs p.20
- To expand and retain our leadership team that will lead our Company into the next phase of growth ₹300.00 Lakhs p.20
- To acquire / rent assets ₹150.00 Lakhs p.20
- Repayment of bank facilities ₹150.00 Lakhs p.20
- General corporate purposes ₹339.90 Lakhs p.20
- To finance development and/or procurement of technology, applications, software, infrastructure etc. including strategic acquisitions of Firms/Companies in the technology space to complement and enhance our Company's value proposition ₹460.00 Lakhs p.72
- To expand and retain our Leadership team that will lead the Company into the next phase of growth ₹300.00 Lakhs p.72
- To acquire / rent assets ₹150.00 Lakhs p.72
- Repayment of bank facilities ₹150.00 Lakhs p.72
- General corporate expenses ₹339.90 Lakhs p.72
- General corporate purposes and working capital needs p.203
Issue Structure
- Total Issue
- ₹1,503.90 Lakhs
- Fresh Issue
- 11,14,000 Equity Shares at ₹135.00 per share (Face Value ₹10.00 each) aggregating ₹1,503.90 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹135.00 per Equity Share (fixed price)
- Lot Size
- Minimum 1 Equity Share for Retail Individual Investors; proportionate allocation for others
- Face Value
- ₹10.00 per Equity Share
Business Model
The Company generates revenue primarily through consulting services provided on a transaction basis to financial market participants, with some long-term contracts in place. Services include compliance consulting, operations management, risk management solutions, business process outsourcing, software development, and legal advisory services. The Company's revenue from operations grew from ₹323.64 lakhs in FY 2018 to ₹562.56 lakhs in FY 2020.
Business Segments
SWOT Analysis
- • Established cloud infrastructure enabling business continuity(p.20)
- • Growing and diversified client base in financial services(p.19)
- • Strong revenue growth trajectory(p.28)
- • Consistent profit growth with healthy net profit margins(p.21)
- • Registered trademark in Class 35(p.33)
- • Qualified and experienced management team with domain expertise in financial services(p.94)
- • Diversified portfolio of services across consulting, software, and outsourcing(p.97)
- • Strong long-term client relationships in financial services sector(p.95)
- • Established cloud infrastructure enabling business continuity(p.94)
- • Experienced and qualified management team with 20+ years in financial services(p.116)
- • Cloud infrastructure established pre-pandemic enabling uninterrupted operations(p.166)
- • Diversified client base across financial services including leading institutions(p.149)
- • Consistent revenue growth trajectory from FY2018 to FY2020(p.147)
- • Strong profitability with net profit after tax growing from ₹86.59L to ₹116.32L(p.147)
- • Established cloud infrastructure predating COVID-19, enabling uninterrupted remote operations(p.194)
- • Significant revenue growth from client expansion and increased business volume(p.198)
- • Rapid client base expansion demonstrating market traction(p.194)
- • Strong profitability with 3-year positive earnings trajectory(p.198)
- • Positive net worth and tangible assets exceeding regulatory minimums(p.220)
- • High customer concentration risk with top 5 clients driving over one-third of revenue(p.27)
- • Significant debt burden with secured borrowings(p.31)
- • Dependency on single lender for financial assistance(p.33)
- • Limited long-term contract base with transaction-based business model(p.36)
- • Minimal insurance coverage for operational risks(p.34)
- • No ownership of office premises creating lease dependency(p.36)
- • Domain name not registered in company name(p.32)
- • High concentration of revenue among top clients(p.97)
- • Significant infrastructure requirements to meet emerging demand(p.96)
- • Significant concentration of shareholding with 100% held by single holding company(p.132)
- • Dependence on limited number of major customers for revenue generation(p.149)
- • High employee benefit obligations and cost structure(p.147)
- • Significant accumulated liabilities including long-term borrowings of ₹90.02L(p.153)
- • Declining return on net worth from 41.66% to 27.61%(p.162)
- • Deteriorating operating cash flow in FY 2019-20 turning negative(p.201)
- • Significant increase in finance costs reflecting higher debt burden(p.199)
- • Debt-to-equity ratio deteriorating to 0.28 from 0.14(p.205)
- • Rising employee benefit expenses consuming 45.11% of total revenue(p.198)
- • High dependence on top 10 clients representing substantial portion of revenue(p.208)
- • Expansion of technology and outsourcing business beyond consultancy(p.28)
- • Growth in India's IT and business services sector(p.19)
- • Rapid expansion of Indian financial services infrastructure(p.19)
- • Talent availability from growing engineering graduate pool(p.19)
- • Technology investments to develop proprietary applications and infrastructure(p.20)
- • Expansion of geographic footprint with existing local representatives(p.19)
- • Expansion of software products and services offerings(p.96)
- • Growing IT and BPM sector in India with favorable market conditions(p.90)
- • Acceptance of outsourcing as a valuable business model in financial services(p.96)
- • Market consolidation creating opportunities for service providers(p.96)
- • Expansion of leadership team across multiple geographies(p.96)
- • Expansion into new service areas including Risk Management and Software Development(p.149)
- • Digital transformation and increased demand for cloud-based solutions in financial services(p.111)
- • Listing on BSE SME platform to access capital markets and enhance brand visibility(p.168)
- • Geographic expansion opportunities through subsidiary Markets On Cloud Private Limited(p.111)
- • Employee incentive schemes to attract and retain talent through ESOP mechanism(p.131)
- • Growing demand for compliance and outsourcing services in financial sector(p.194)
- • Expansion potential through geographic footprint and service offerings(p.194)
- • Strategic expansion to diversified financial services client base(p.194)
- • Uncertain continuing impact of COVID-19 pandemic on business operations(p.26)
- • Intense competition from well-capitalized competitors(p.29)
- • Regulatory and legal risks affecting financial services clients(p.27)
- • Pay-per-use model revenue susceptible to industry slowdown(p.27)
- • Downturns in financial and capital markets reducing transaction volumes(p.42)
- • Data security breaches and cyber threats exposure(p.26)
- • Cyber threats including phishing, hacking, data theft and advanced persistent threats(p.27)
- • Dependency on few key managerial personnel(p.29)
- • Pending regulatory licenses and approvals(p.30)
- • Lender consent requirements for corporate actions including this IPO(p.32)
- • Conflicting business interests with promoter group entities(p.35)
- • Changing regulatory landscape in financial services sector(p.96)
- • Large-scale influx of competitors with comparable capabilities(p.98)
- • Technology disruption and cybersecurity risks(p.96)
- • Potential impact of COVID-19 pandemic on business operations(p.94)
- • Regulatory changes in financial services and securities markets affecting compliance requirements(p.123)
- • Increased competition in fintech and compliance services segments(p.149)
- • Economic sensitivity of financial services sector and client business disruptions(p.149)
- • Cybersecurity and data protection risks given cloud-based operations(p.111)
- • Foreign exchange and interest rate fluctuations impacting service pricing(p.147)
- • COVID-19 pandemic creating ongoing business uncertainty and economic volatility(p.195)
- • Regulatory changes and compliance requirements affecting service demand(p.195)
- • Exposure to technology changes and IT infrastructure risks(p.195)
- • Economic cyclicality and political instability impacting financial services sector(p.195)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| SecMark Holdings Private Limited | Corporate Promoter | 100.00% | — |
| Mrs. Indira Vijay Ramaiya | Individual Promoter | — | — |
| Mrs. Ilaben Jaswantlal Shah | Individual Promoter | — | — |
| SecMark Holdings Private Limited | Corporate Promoter | 100.00% | 72.99% |
| Mrs. Ilaben Jaswantlal Shah | Individual Promoter | — | — |
| Mrs. Indira Vijay Ramaiya | Individual Promoter | — | — |
| SecMark Holdings Private Limited | Corporate Promoter | 100% | — |
| Mrs. Ilaben Jaswantlal Shah | Individual Promoter | Nominee shareholder | — |
| Mrs. Indira Vijay Ramaiya | Individual Promoter | Nominee shareholder | — |
| Jignesh Mehta | Promoter/Managing Director | — | — |
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.