Review By on July 23, 2017
Surevin BPO Services Ltd (SBSL) is one of the leading certified service providers of IT solutions and Business services, outsourcing services, digital solutions and marketing, data enrichment and management service, skill development and training program and HR consultancy. Currently SBSL is focusing on outsourcing services that include inbound and outbound call, software development and providing optical fibre cabling to Reliance, Idea and BSNL. It also provides principal services in sectors like BFSI, Government Agencies, Telecom, Technology and media industries, back office services, HRO services, Training etc.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 912000 equity shares via book building route with a price band of Rs. 38 - Rs.40 to mobilize Rs. 3.47 to Rs. 3.65 crore (based on lower and upper price band). Issue opens for subscription on 28.07.17 and will close on 01.08.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely lead managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 26.93% of the post issue paid up capital of the company. Company has raised entire equity at par and has issued bonus shares in the ratio of 10 for 1 in September 2011 as well as in September 2016. Post issue, its current paid up equity capital of Rs. 2.48 will stand enhanced to Rs. 3.39 crore.
On performance front, the company has reported revenue/net profits of Rs. 6.08 cr. / Rs. 0.10 cr. (FY14), Rs. 10.58 cr. / Rs. 0.73 cr. (FY15), Rs. 15.29 cr. / Rs. 1.77 cr. (FY16) and Rs. 15.328 cr. / Rs. 1.52 cr. (FY17). Thus for last two fiscals, its top line remain almost same, but bottom line marked some erosion. Based on the latest earnings, asking price for the issue is at a P/E of 6.51 (based on the upper price band) against peers trading at a P/E of 15 to 20. For last three fiscals it has reported an average 43.51% RoNW. Issue is priced at a P/BV of 2.08. Thus issue is priced reasonably.
On merchant banker's front, this is 37th mandate from its stable and so far and out of last 10 listings, one IPO gave negative return, two IPOs opens just above offer price and the rest opened at a good premium to offer price.
Conclusion: Investors may consider investment for short to long term.
Review By on July 23, 2017
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Surevin BPO Services Ltd. offers an early investment opportunity in Surevin BPO Services Ltd.. A stock market investor can buy Surevin BPO IPO shares by applying in IPO before Surevin BPO Services Ltd. shares get listed at the stock exchanges. An investor could invest in Surevin BPO IPO for short term listing gain or a long term.
Read the Surevin BPO IPO recommendations by the leading analyst and leading stock brokers.
Surevin BPO IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Surevin BPO IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Surevin BPO IPO?"
Our recommendation for Surevin BPO IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Surevin BPO IPO.
The Surevin BPO IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Surevin BPO IPO allotment status to check.
