3C IT Solutions & Telecoms (India) Ltd IPO: Review & GMP

3C IT Solutions & Telecoms (India) Limited IPO - Complete Overview

Established in 2015, 3C IT Solutions & Telecoms (India) Limited is a prominent IT systems integration company headquartered in Pune, Maharashtra. 

Over the past eight years, the company has provided a wide range of IT products and services, categorized into three main segments: Infrastructure Solutions, Digital Business Solutions, and Consulting Solutions. 

The company's service offerings include 

• Data storage management.

• Server infrastructure solutions designed to maximize IT investment and deliver high performance.

• Customized network design and implementation

• Security consolidation and optimization.

Their product and service portfolio encompasses

Infrastructure Solutions – End Users and Devices, Computer Accessories, Networking Solutions, IT Security Solutions, Audio Video Solutions, and more.

Digital Business Solutions – MDM (Mobile Device Management), Business Software, Cloud Services, Project Management Tools, Collaboration Software, Video Conferencing Tools, Sales Enablement Software, Intranet Software, and more.

Consulting Solutions – Facility Management System (FMS) Solutions, IT Infrastructure Renting Solutions, IT Managed Services, Remote Infrastructure Management, and Multibrand Hardware Break-Fix Service [Annual Maintenance Contract (AMC)].

 

 

3C IT Solutions & Telecoms (India) Limited IPO Overview

3C IT Solutions & Telecoms (India) Limited IPO date is slated to be open for subscription from June 4, 2024, to June 7, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

3C IT Solutions & Telecoms (India) Limited IPO price is fixed at Rs.52 per share. 

The total issue size of this IPO amounts to Rs.11.44 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

Company Financial

Compared to the financial years ending March 31, 2023, and March 31, 2022, 3C IT Solutions & Telecoms (India) Limited has seen growth in net worth but a decrease in total revenue and total assets. Profit after tax and total borrowing have increased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,898.43	2,886.14	3,465.47
Total Revenue	2,355.66	6,293.48	6,694.11
PAT	50.52	113.62	110.90
Net worth	460.26	409.73	260.65
Reserve & Surplus	244.26	373.73	259.65
Total Borrowings	592.43	1,339.76	1,040.20

 

 

Segment-wise Revenue Breakup

(Amount in Lakhs)

Particulars	31st December 2023	F.Y 2022-23	F.Y 2021-22
Infrastructure Solutions	1956.16	5674.54	6220.80
Digital Business Solutions	24.72	24.83	22.83
Consulting Solutions	337.52	493.99	441.83
Total Revenue from operations	2318.40	6193.36	6685.46

 

Revenue-wise Break up

(Amount in lakhs)

Particulars	31st December 2023	F.Y 2022-23	F.Y 2021-22
Infrastructure Solutions
End User & Devices	1288.59	5411.83	6077.09
Computer Accessories	341.28	55.24	59.79
Networking Solutions	17.19	19.38	48.94
IT Security Solutions	22.03	28.75	8.28
Audio Video Solutions	241.97	148.97	21.15
Power Solutions	45.09	10.36	5.55
Total Revenue	1956.15	5674.54	6220.80

 

Particulars	31st December 2023	F.Y 2022-23	F.Y 2021-22
Digital Business Solutions
MDM- Mobile Device Management	0.27	4.70	0.66
Business Software	5.27	20.13	22.17
Cloud Services	19.18	-	-
Total Revenue	24.72	24.83	22.83

 

 

Particulars	31st December 2023	F.Y 2022-23	F.Y 2021-22
Consulting Solutions
FMS Solutions	3.52	11.47	4.34
IT Infrastructure Renting Solutions	222.91	206.89	430.63
IT Managed Services	3.02	19.74	0.06
Remote Infrastructure Management	4.95	2.72	0.97
Multibrand Hardware Break-Fix service (AMC)	103.12	253.17	5.83
Total Revenue	337.52	493.99	441.83

 

Geography-wise Revenue Breakup

(Amount in Lakhs)

Particular	For the period 1st April 2023 to December 31, 2023
Assam	1.64
Bihar	0.60
Delhi	3.89
DNH & DD	1.33
Goa	0.62
Gujarat	21.93
Haryana	0.83
Hyderabad	0.59
Jammu	1.06
Karnataka	60.88
Madhya Pradesh	0.59
Maharashtra	2197.07
Odisha	2.04
Punjab	1.35
Rajasthan	4.57
Tamil Nadu	4.33
Telangana	11.03
Uttar Pradesh	1.97
Uttarakhand	1.02
West Bengal	1.06
Total	2318.40

 

 

The Objective of the Issue

The Company proposes to utilize the Net Proceeds from the Fresh Offer for fulfilling the following objectives:

1. Funding Working Capital Requirements of the Company

2. Repayment/ Prepayment of Certain Borrowings availed by the Company

3. General corporate purposes

 

Peers of 3C IT Solutions & Telecoms (India) Limited IPO

Name of the Company	Face Value (Rs)	EPS (RS)	P/E Ratio
3C IT Solutions & Telecoms (India) Limited	5	8.87	5.86
Dev Information Technology Limited	5	3.95	36.73

 

Evaluation

The IPO is priced at Rs.52 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 8.87 from the last year, the resulting P/E ratio is 5.86x.

• Taking into account the weighted EPS of Rs 47.18 for the last three years, the P/E ratio amounts to 1.10x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 36.73x.

As a result, the IPO price range, with a P/E ratio ranging from 5.86x to 1.10x, seems aggressively priced to the industry average of 36.73x.

 

 

IPO's Strengths

• Customized IT Services.

• Skilled Management Team.

• High-Quality Services.

• Certifications, Awards, and Accreditations.

• Strong Customer Relationships.

 

IPO's Weaknesses 

• The company faces competition from both organized and unorganized players.

• Its revenue is entirely dependent on the domestic market, with no export revenue.

• The company relies heavily on procuring third-party products from a limited number of suppliers, based on customer demands and specifications.

• The promoters and certain directors may have interests in entities engaged in similar business lines.

• The company's inability to obtain, renew, or maintain necessary statutory and regulatory permits and approvals could materially and adversely affect its business.

• Actual results may differ from the estimates and projections used in its financial statements.

• Most of the company's operations are concentrated in Maharashtra, making its results and growth vulnerable to the economic and demographic conditions of the state.

• Out of the total debtors of Rs. 8.76 Crores, Rs. 2.068 Crores has been outstanding for more than one year.

• The company experienced a sharp reduction in sales in FY 2023-24.

 

IPO GMP Today

The Latest GMP of 3C IT Solutions & Telecoms (India) Limited is not yet available.

 

 

3C IT Solutions & Telecoms (India) Limited IPO timetable (Tentative)

3C IT Solutions & Telecoms (India) Limited IPO is scheduled from June 4 to June 7, 2024, with allotment on June 10, refund initiation on June 11, and listing on June 12, 2024.

Events	Date
IPO Opening Date	June 4, 2024
IPO Closing Date	June 7, 2024
IPO Allotment Date	June 10, 2024
Refund initiation	June 11, 2024
IPO Listing Date	June 12, 2024

 

3C IT Solutions & Telecoms (India) Limited IPO Details 

3C IT Solutions & Telecoms (India) Limited IPO, with a face value of Rs.5 per share, opens on June 4 and closes on June 7, 2024, offering 2,200,000 shares at Rs.52 per share, with a lot size of 2000 shares, aiming to raise Rs.11.44 Cr, and will be listed on BSE SME.

IPO Opening & Closing Date	June 4, 2024 to June 7, 2024
Face Value	Rs.5 per share
Issue Price	Rs.52 per share
Lot Size	2000 shares
Price of 1 lot	Rs.104,000
Issue Size	2,200,000 shares (aggregating up to Rs.11.44 Cr)
Offer for sale	500,000 shares of Rs.5 (aggregating up to Rs.2.60 Cr)
Fresh issue	1,700,000 shares (aggregating up to ₹8.84 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

3C IT Solutions & Telecoms (India) Limited IPO Lot Details 

For 3C IT Solutions & Telecoms (India) Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (2000 shares) at Rs.104,000, while for HNI investors, the minimum investment is 2 lots (4000 shares) at Rs.208,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

3C IT Solutions & Telecoms (India) Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Promoters and Management of 3C IT Solutions & Telecoms (India) Limited

• Mr. Ranjit Kulladhaja Mayengbam 

• Mrs. Gangarani Devi Mayengbam 

Pre-issue Promoter shareholding	72.00%
Post-issue Promoter shareholding	51.66%

 

 

3C IT Solutions & Telecoms (India) Limited IPO Lead Managers

• Kreo Capital Private Limited

 

Dividend Policy

There are no dividends declared by the Company on equity shares.

 

Conclusion

The company operates in a competitive industry, and its financial performance has been inconsistent. Experienced investors may consider applying for the upcoming IPO, while others might choose to avoid it.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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