ITcons E-solutions IPO (BSE SME) subscription is opening up soon in February 2023. According to the prospectus, the IPO consists of a fresh issue of ₹ 867.00 Lakhs. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each and the Issue Price of ₹51/- per equity share. Minimum 50% to the Retail Individual Investors of “Net Issue” and a minimum of 5% to the Market Maker of “Issue”.
ITcons E-solutions SME IPO Review – The Company Business Description
ITcons E-solutions provides human resource services to both public and private organizations mostly in the organized sector.
- ITcons E-solutions operates in two segments of HR services – Manpower Supply/Recruitment
- Services; and Manpower Sourcing/Staffing Services.
- The company has grown to have over 800 staff since its establishment in the year 2007.
- Manpower supply is the major segment of the company contributing 97.6% of the total revenue of the company.
- Manpower supply services consist of IT staffing, General staffing, Rebadging, Recruitment Process Outsourcing (RPO), Pass through Services, Payroll Services, Managed IT Services, Product Installation, and Servicing Solutions.
- The Manpower Souring Services segment contributes 2.4% of the total revenue of the company.
ITcons E-solutions Pvt Ltd Founders and Leadership team
ITcons E-solutions Pvt Ltd management team has experience with diverse backgrounds and geographies. The team has strong experience with different areas of specialization within the IT industry, including Management Consulting.
Mr. Gaurav Mittal is the Promoter and Managing Director of the company since its establishment of the company in 2007. He B.Tech graduate in Electrical Engineering and a Doctor of Ayurveda Astrology & Vastu Science. He also has done Post Graduate Diploma in Business Administration.
Chetan Prakash Mittal is the Executive Director & CFO of the company since 2007.
ITcons E-solutions Pvt Ltd Revenue and Profit
The total Revenue from Operations of the company has gone up from INR 834.14 lakh in FY 2020 to INR 1,805.26 lakhs in FY 2022. The Net worth of the company has gone up from INR 96.78 lakh in FY2020 to INR 223.42 lakh in FY 2022. ITcons E-solutions Pvt Ltd seems financially strong over the last three years.
| All amounts in INR Lakhs | |||
| (Year ended March 31) | 2020 | 2021 | 2022 |
| Revenue Operation | 834.14 | 832.22 | 1,805.26 |
| Total Income | 834.95 | 842.48 | 1,820.36 |
| EBITDA | 38.59 | 23.04 | 179.71 |
| Net Worth | 96.78 | 104.31 | 223.42 |
| Net Profit After Tax | 10.57 | 7.53 | 119.11 |
| Earnings Per equity Share-Diluted | 0.37 | 0.26 | 4,16 |
| Net Cash from Operating Activities | (140.79) | 57.02 | 27.03 |
| Debt/Equity Ratio (%) | 1.50 | 1.31 | 0.48 |
| RoNW % | 10.93 | 7.22 | 53.31 |
| ROCE ratio | 0.22 | 0.15 | 0.58 |
| RoE ratio | 0.11 | 0.07 | 0.53 |
| Net capital turnover ratio | 8.63 | 8.08 | 8.15 |
Objective Behind the ITcons E-solutions IPO
- Out of the net proceeds of this IPO, the company is planning to spend INR 600 lakhs to meet the working capital requirements of the company.
- The rest of the net proceeds will be utilized to meet the general corporate expenses.
ITcons E-solutions SME IPO Review : Do you invest?
- ITcons E-solutions Pvt Ltd registered a revenue growth of over 50% from FY2020 to FY2020.
- The company has witnessed significant growth in PAT from INR 10.57 lakh in FY 2020 to INR 119.11 lakh in FY 2022. By September 2022 the company has earned INR 106 lakhs as PAT.
- Adjusted EPS of ITcons E-solutions Pvt Ltd has also gone up from 0.39 in FY 2022 to 3.46 in FY2022.
- However, net cash flow from operating activities was negative for FY 2020 though it is positive for the period FY 2021 and FY 2022. By September 2022 the net cash flow from operations become negative again. This means the company is yet to stabilize itself from a financial point of view.
- ITcons E-solutions Pvt Ltd has total borrowing of INR 176.7 lakhs by the end of September 30, 2022, which is manageable.
- Global growth is forecast slow during 2023 and 2024. Indian economic growth is expected to be 6.5% to 7% over the next five years.
- To increase the productivity and economic growth of India to achieve a 7-8% growth rate, the net employment rate needs to grow by 1.5% per annum from 2023 to 2030.
- This gives a lot of opportunities for ITcons E-solutions Pvt Ltd to grow.
- Looking at the financials and factors mentioned above, I would invest in this SME IPO at the moment for the medium term.
ITcons E-solutions SME IPO Details
| ITcons E-solutions IPO Details | ITcons E-solutions Ltd IPO subscription Date Price, and other details |
| ITcons E-solutions IPO Subscription Date | Feb 28, 2023 to Mar 2, 2023 |
| ITcons E-solutions IPO Price | ₹51 per share |
| ITcons E-solutions IPO Allotment date | Mar 8, 2023 |
| Refunds Initiation date | Mar 9, 2023 |
| Credit of Shares to Demat Account | Mar 10, 2023 |
| Listing Date | Mar 13, 2023 |
| Offer for Sale | Nil |
| Issue Size (Fresh Issue) | 1,700,000 shares of ₹10 (aggregating up to ₹8.67 Cr) |
| Minimum bid (lot size) For retail investor | 2000 Shares (₹₹102,000) |
| Retail Shares Offered | 50% of the Net Issue |
| HNI (Min) | 4000 Shares (₹204,000) |
| Face Value | INR 10 per share |
| Listing on | BSE SME |
ITcons E-solutions IPO : Lead Managers and Contact
| Contact Details | Lead Managers |
| 3rd Floor, B-10, Bajaj Bhawan, Sector-3, Jamna Lal Bajaj Marg, Noida – 201301, Uttar Pradesh, India Email ID:cs.pooja@itconsinc.com Tel No: +91 120 4149563 https://www.itconsinc.com/ | 1. FINSHORE MANAGEMENT SERVICES LIMITED |
More Across from our Website
We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO, India IPO Trends 2022, New Companies in the Indian share market 2022. To know more information about business overview of each company, here are some suggested readings on company insights for investment – 10 Best IPOs in 2022, Tata Play IPO, Upcoming IPOs, Upcoming SME IPOs.