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Review By Dilip Davda on December 5, 2017
One Point One Solutions Ltd. (OPO) is providing services in 13 languages to various industries namely, Telecommunication, BFSI, Travel, Manufacturing, E-commerce etc. Its tailor made solutions offers customized engagement models to facilitate the ease of doing their business. OPO is engaged in providing Business Process Management Services Company, offering services for Enrichment & Process Management Service, Skill Development, Training Program. The company is mainly engaged in outsourcing services which includes Inbound and Outbound Call, Back Office/Transaction Processing, Data Management services and Business Analytics. Its tailor made solutions offers customized engagement models to facilitate the ease of doing business. Its customer list includes Bharti Airtel Limited, Videocon d2h Limited, Baroda Pioneer Asset Management Company Limited, Dish Infra Services Pvt Ltd, LIC Mutual Fund Asset Management Limited, Shop CJ Network India Private Limited, Wonderchef Home Appliances Private Limited.
To part finance its repayment of debt, working capital and general corpus fund needs, OPO is coming out with a maiden IPO of 6624000 equity shares of Rs. 10 each via book building route with a price band of Rs. 65 – Rs. 67 to mobilize Rs. 43.06 to Rs. 44.38 crore (based on lower and upper price bands). Issue opens for subscription on 13.12.15 and will close on 15.12.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Pantomath Capital Advisors Pvt. Ltd. and Link Intime India Pvt. Ltd. is the registrar to the issue. Issue constitutes 39.60% of the post issue paid up capital of the company. The average cost of acquisition per equity share by promoters ranging from Rs. 1 to Rs. 10. Having issued equity shares at par from inception to March 2015, it raised further equity at a price ranging from Rs. 65 to Rs. 100 between March 2017 and November 2017. It has also issued bonus shares in the ratio of 9 shares for every 1 share held in August 2017. Post issue, its current paid up equity capital of Rs. 10.09 crore will stand enhanced to Rs. 16.72 crore.
On performance front, OPO has posted total revenue/net profit of Rs. 64.06 cr. / Rs. 2.34 cr. (FY15), Rs. 84.17 cr. / Rs. 3.31 cr. (FY16) and Rs. 90.51 cr. / Rs. 4.62 cr. (FY17). For Q1 of current fiscal it has reported total revenue of Rs. 25.63 crore with a net profit of Rs. 1.19 crore. For last three fiscals on standalone basis it has posted an average EPS of Rs. 4.03 and average RoNW of 46.30% on an equity base of Rs. 1 crore. Issue is priced at a P/BV of 4.25 to Rs. 3.84 on its NAV as at 31.03.17 on standalone and on consolidated basis. Since March 2017 its equity has risen by nearly nine times and that will further rise to around 16.7 times post issue. If we annualize its latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 23 plus against industry average of around 21. Thus issue is fully priced.
On merchant banker's front, this is 54th mandate from its stable in the past three years and last 10 listings marked openings at a premium of 0.01% to 20% on the day of listings.
Conclusion: Risk savvy cash surplus investors may consider investment for long term.
Review By Dilip Davda on December 5, 2017
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of One Point One Solutions Ltd offers an early investment opportunity in One Point One Solutions Ltd. A stock market investor can buy One Point One Solutions IPO shares by applying in IPO before One Point One Solutions Ltd shares get listed at the stock exchanges. An investor could invest in One Point One Solutions IPO for short term listing gain or a long term.
Read the One Point One Solutions IPO recommendations by the leading analyst and leading stock brokers.
One Point One Solutions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the One Point One Solutions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for One Point One Solutions IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the One Point One Solutions IPO.
The One Point One Solutions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit One Point One Solutions IPO allotment status to check.
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