Details
- Dates: 9-11 Sept 2020
- Issue Size: ₹600 Cr
- Offer for Sale: ₹360 Cr (Around 60% of the issue)
- Fresh Issue: ₹240 Cr (Around 40% of the issue)
- Price Band: ₹345-350
- Post issue market capitalisation: ₹1,962 Cr – 1,990 Cr
- Market Lot: 40 Shares amounting to ₹14,000
- Promoter Holding Pre IPO: 96%
- Promoter Holding Post IPO: 66.33%
- IPO Listing At BSE, NSE
- Around ₹180 Cr raised from 15 anchor investors. For the complete list of anchor investors click here
Objectives of the Issue
- Repayment/prepayment in full or part, of certain borrowings of the company
- Acquisition and other strategic initiatives
- Purchase of office premises in Mumbai
- General Corporate Purposes
Company Description
- The company was incorporated in 2004 and is headquartered in Mumbai and they provide cloud-communication platform as a service (“CPaaS”) to enterprises, over-the-top (“OTT”) players and mobile network operators (“MNOs”).
- According to the ROCCO Report 2020, they were ranked as a tier one application-to-peer (“A2P”) service provider internationally.
- They provide cloud based communication platform for enterprises in order to enable multi channel digital communication.
- The offer mobile based services like SMS analytics, firewall, filtering, monetization and CPaaS and hubbing solutions.
Promoter
Sandipkumar Gupta and Rajdipkumar Gupta are the promoters of the company.
Financials
| Particulars | Q1FY21 | FY2020 | FY2019 | FY2018 |
|---|---|---|---|---|
| Total Revenue | 312.3 | 968.1 | 852.38 | 509.49 |
| YOY Growth | 13.57% | 67.30% | ||
| EBITDA | 39.3 | 111.67 | 99.96 | 80.14 |
| YOY Growth | 11.71% | 24.73% | ||
| PAT | 26.5 | 74.84 | 58.75 | 49.49 |
| YOY Growth | 27.38% | 18.71% | ||
| CFO | 81.13 | 93.44 | 28.46 | 32.18 |
| YOY Growth | 228.32% | -11.56% | ||
| Total Assets | 634.83 | 626.55 | 505.78 | 447.37 |
| YOY Growth | 23.87% | 13.05% | ||
| Cash | 158.69 | 102.64 | 95.65 | 102.59 |
| GP margin | 12.58% | 11.53% | 11.73% | 15.73% |
| NP margin | 8.49% | 7.73% | 6.89% | 9.71% |
- At the upper price band, the stock trades at 18.43x its FY21E EPS of Rs.18.99 (annualised).
Risk Factors
- Face a risk from potential claims resulting from client’s misuse of RML’s platform to send unauthorized text messages in violation of TRAI regulations.
- The sector is extremely competitive as can be seen in the minimal increase in the profit margins.
Company Positives
- Omni-channel cloud communication platform service provider with diversified service offerings for enterprises.
- Scalable delivery platform supported by robust infrastructure
(Disclaimer: I am not a SEBI registered investment adviser, kindly consult your financial adviser before taking any investment decisions.)