Benchmark Computer Solutions IPO: Review, Valuation & GMP

Benchmark Computer Solutions IPO - Complete Overview

Established in 1995,Benchmark Computer Solutions Limited is a leading IT infrastructure solutions and technology consulting company. Using their capabilities of cognitive computing, automation, cloud services, analytics, and emerging technologies, they assist their clients in navigating the digital landscape and achieving success. With a distinguished reputation for our comprehensive product portfolio, robust relationships, and exceptional customer service, they stand out in the industry.

The technology products and services are the result of 25 years of innovation, fostered by a culture of invention and an unwavering commitment to customer relationships. Companies llong-standing heritage equips us with real-world expertise, enabling us to effectively address the most intricate IT challenges faced by enterprises across diverse industries.

They guarantee the highest caliber and dependability in their products as an approved partner of numerous OEMs, including HP (under the HP Amplify Membership Program), SafeAeon (SafeAeon Partner Ecosystem Program), Veeam, Vertiv, Lenovo, Konika Minolta Business Solutions, and Dell Technologies. Further evidence of their dedication comes from certifications like ISO 9001:2015 and ISO 27001:2013 from SN Registrars (Holdings) Limited, UK, as well as Quality Control Certification, UK, which attest to capability in hardware installation for IT-related products and in providing services that are customized to meet the needs of their clients.

Benchmark Computer Solutions IPO Overview

Benchmark Computer Solutions IPO date is slated to be open for subscription from December 14 , 2023, to December 18, 2023. This BSE SME IPO follows a Fixed Price Issue IPO.

Benchmark Computer Solutions IPO price is fixed at Rs. 66 per share. The upcoming BSE SME IPO will be listed on December 21, 2023.

The total issue size of this IPO amounts to Rs. 12.24 CR. Within this total issue, 47.46% is issued to retail investors, and 47.46% is issued to other investors.

 

 

Benchmark Computer Solutions IPO timetable (Tentative)

Events	Date
IPO Opening Date	14 December 2023
IPO Closing Date	18 December 2023
IPO Allotment Date	19 December 2023
Refund initiation	20 December 2023
IPO Listing Date	21 December 2023

 

Benchmark Computer Solutions IPO Details

Benchmark Computer Solutions IPO is open from December 14 to December 18, 2023, with a face value of Rs.10 per share and an issue price of Rs. 66 per share. The total issue size is 1,854,000 shares, aggregating up to Rs.12.24 Cr, and the listing will be on BSE SME.

IPO opening & closing date	14 December to 18 December 2023
Face value	Rs. 10  per share
Issue Price	Rs. 66 per share
Lot Size	2000  Shares
Price of 1 lot	Rs. 132,000
Total Issue Size	1,854,000 shares (aggregating up to Rs.12.24 Cr)
Offer for sale	shares (aggregating up to Rs. Cr)
Fresh issue	1,854,000 shares (aggregating up to ₹12.24 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

Benchmark Computer Solutions IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2000
Maximum Lot Investment (Retail)	1 lot	2000
Minimum Lot Investment (HNI)	2lot	4000

 

Benchmark Computer Solutions IPO Reservation

Market Maker Shares Offered	5.18%
Retail Shares Offered	47.36%
Other Shares Offered	47.46%
Total	100%

 

 

 

Company Financial

As of September 30, FY23, the company reported total assets of 2,273.87 Lakhs, total revenue of 1,322.52 Lakhs, and a PAT of 95.67 Lakhs. The net worth stands at 1,385.18 Lakhs, with reserves & surplus at 884.18 Lakhs and total borrowings at 524.84 Lakhs.

(Amount in Lakhs)

Period	Sep 30  FY 23	Mar 31 FY 23	Mar 31 FY 22
Total Assets	2,273.87	2,443.78	1,797.39
Total Revenue	1,322.52	3,241.49	1,904.38
PAT	95.67	202.87	82.66
Net worth	1,385.18	1,289.51	1,086.64
Reserve & Surplus	884.18	1,288.51	1,085.64
Total Borrowings	524.84	553.07	434.68

Revenue Distribution  Geographical  Wise

As of September 30, FY23, companies  revenue distribution shows 93.94% from domestic operations and 6.06% from exports. The trend is consistent with the figures for the fiscal years ending March 31, FY23, and March 31, FY22.

( in % age)

Particulars	Sep 30 F.Y. 23	Mar 31 F.Y 23	Mar 31 F.Y 22
Domestic	93.94%	93.94%	93.74%
Export	6.06%	6.06%	6.26%
Total	100.00%	100.00%	100.00%

Revenue Distribution Service Wise     

As of September 30, 2023, most of their money comes from providing IT infrastructure solutions (88.57%). They also earn from making software and web applications (9.69%) and offering services like Annual Maintenance Contracts (AMC) and Facility Management (1.74%). This is a bit different from how they earned money in the past.
( % age) 

Particulars	Sep 30 F.Y. 23	Mar 31 F.Y 23	Mar 31 F.Y 22
IT Infrastructure Solutions	88.57%	81.51%	67.58%
Software and Web Based Application Development Services	9.69%	10.85%	10.75%
Annual Maintenance Contract (AMC) and Facility Management Services (FMS)	1.74%	7.64%	21.67%
Total	100.00%	100.00%	100.00%

 

Revenue By operations

As of September 30, 2023, the company makes money by selling products (756.40 Lakhs) and providing services (541.26 Lakhs), totaling 1,297.65 Lakhs. With extra income, their overall revenue is 1,322.52 Lakhs, which has been increasing over the past fiscal years

 (amount in Lakhs)

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• To meet Public Issue Expenses

• Capital Expenditure

• Working Capital Requirement

• General Corporate Purpose

 

Promoters and Management of Benchmark Computer Solutions IPO

1. Mr. Dhananjay Vrindawan Wakode

2. Mr. Hemant Muddanna Sanil

Pre-issue Promoter Shareholding	99%
Post-issue Promoter Shareholding	72.27%

 

Benchmark Computer Solutions IPO Lead Managers

•  Beeline Capital Advisors Pvt Ltd

 

Peers of Benchmark Computer Solutions IPO

Benchmark Computer Solutions has a moderate RoNW of 15.73% and a P/E ratio of 16.30%. In comparison, Dynacons Systems & Solutions stands out with a higher RoNW of 31.92% and a lower P/E ratio of 11.25%, while Silver Touch Technologies falls in between with a RoNW of 9.70% and a higher P/E ratio of 51.24%.

Name of the company	RoNW	P/ E	EPS (Basic) (₹)
Benchmark Computer Solutions Limited	15.73	16.30	4.05
Silver Touch Technologies Limited	9.70	51.24	7.14
Dynacons Systems & Solutions Limited	31.92	11.25	27.71

 

IPO's Valuations

To evaluate the Benchmark Computer Solutions IPO's valuation, we can utilise the information presented in the company's DRHP and RHP. Benchmark Computer Solutions IPO is fixed at Rs. 66 per share, with an EPS of Rs. 4.05. The company's P/E ratio is calculated at 16.3 based on the issue price.

 

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

1. Established Reputation: With a legacy of 25 years, Benchmark Computer Solutions has a solid reputation in the IT infrastructure solutions and technology consulting industry.

2. Diverse Product Portfolio: The company boasts a comprehensive product portfolio, leveraging cognitive computing, automation, cloud services, analytics, and emerging technologies to meet the diverse needs of clients.

3. Strategic Partnerships: Being an approved partner of major OEMs like HP, SafeAeon, Veeam, Vertiv, Lenovo, Konika Minolta Business Solutions, and Dell Technologies, the company enjoys strategic alliances that enhance its product offerings.

4. Certifications: The company holds certifications like ISO 9001:2015 and ISO 27001:2013, indicating a commitment to quality and security standards.

5. Financial Stability: As of September 30, FY23, Benchmark Computer Solutions reports a healthy financial position with total assets, revenue, and net worth reflecting stability.

 

IPO's Weaknesses

1. Dependency on Domestic Operations: The revenue distribution shows a significant reliance on domestic operations (93.94%), posing a risk if there are adverse economic conditions in the domestic market.

2. Limited International Exposure: With only 6.06% of revenue coming from exports, the company might be vulnerable to fluctuations in the domestic market.

3. Moderate RoNW and P/E Ratio: Compared to peers, Benchmark Computer Solutions has a moderate Return on Net Worth (RoNW) of 15.73% and a Price-to-Earnings (P/E) ratio of 16.30%.
   
   

IPO GMP Today

The latest Grey Market Premium(GMP) of Benchmark Computer Solutions is Rs. 35.

 

Conclusion

Benchmark Computer Solutions appears to be a well-established company with a robust track record and strategic partnerships. While it has strengths like a diverse product portfolio and established partnerships, there are weaknesses such as dependency on domestic operations. Investors should carefully assess these factors before making investment decisions.

 

 

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.

 

 

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