Enfuse Solutions Ltd. IPO: Review, Valuation, Date & GMP

Enfuse Solutions Limited IPO  - Complete Overview

Established in 2017, Enfuse Solutions Limited is engaged in the business of providing integrated digital solutions across various domains including (i) Data Management & Analytics (ii) E-commerce & Digital Services (iii) machine Learning & Artificial Intelligence (iv) Edtech & Technology Solutions. 

The business operations of the company encompass various domains: 

(i) In Data Management & Analytics, the company organizes and analyzes data, providing tailored insights for informed decision-making. 

(ii) E-commerce & Digital Services form a core area where the company develops and optimizes digital platforms. 

(iii) Machine Learning & AI represent the capabilities of the company in advanced technologies, offering innovative solutions. 

(iv) Edtech & Technology Solutions focus on leveraging technology to enhance educational experiences and overall technological solutions. 

The company has served entrepreneurs ranging from start-up enterprises to established companies, primarily consisting of blue-chip companies operating in sectors such as Technology, BFSI (Banking, Financial Services, and Insurance), Retail, Financial Services (FinTech), Media and Entertainment, Health, Education, and various other industries. 

The company commenced its operations with two Delivery Centre in Mumbai, Maharashtra, one in Thane, Maharashtra, and the second in Vikroli, Mumbai, Maharashtra. 

The company generated its revenue from a combination of domestic operations within India and exports of services to countries like the USA, Ireland, the Netherlands, Canada, etc. 

As of 31 December 2023, the company has generated revenue of 2,803.09 lakhs.

 

 

Enfuse Solutions Limited IPO Overview

Enfuse Solutions Limited IPO date is slated to be open for subscription from March 15, 2024, to March 19, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Enfuse Solutions Limited IPO price is fixed in the range of Rs.91 to Rs.96 per share. 

The total issue size of this IPO amounts to Rs.22.44 Cr. The company has reserved 35% for retail investors, 50% for institutional and 15% for non-instituional investors.

 

Company Financial

Compared to the previous financial year, Enfuse Solutions Limited has seen growth in total assets, total revenue, and net worth. The profit after tax has increased while the total borrowing has also increased.

(Amount in Lakhs)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	2,547.23	1,164.71	889.80
Total Revenue	2,805.28	2,610.42	2,556.64
PAT	322.50	292.73	198.11
Net worth	969.95	646.45	353.72
Reserve & Surplus	318.95
Total Borrowings	905.75	242.09	234.08

Geography-wise Revenue Breakup

(Amount in Lakhs)

Geographical Areas	31 Dec 2023	31 Mar 2023	31 Mar 2022
India	900.69	431.32	569.01
USA	788.36	843.66	1,851.96
Netherland	512.27	696.72	133.15
Ireland	369.22	58.36	-
Canada	207.21	567.55	-
Italy	15.93	12.25	-
Israel	8.45	-	-
UK	1.16	-	-
Total	2803.29	2,609.85	2,554.12

Service-wise Revenue Breakup

(Amount in Lakhs)

Services	31 Dec 2023	31 Mar 2023	31 Mar 2022
Data Management & Analytics	1330.82	912.65	1,851.96
E-Commerce & Digital Services	624.57	575.91	-
Edtech & Technology Solution	512.27	696.72	133.15
Machine Learning & AI	335.63	424.58	569.01
Total	2803.29	2,609.85	2,554.12

 

 

The Objective of the Issue

The company plans to utilize the proceeds from the fresh issue for the following purposes:

1. Repayment of specific borrowings obtained by the company.

2. Meeting working capital needs.

3. General corporate purposes.

 

Peers of Enfuse Solutions Limited IPO

Name of the company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Enfuse Solutions Limited	10	4.50	-
Vertexplus Technologies Limited	10	4.71	36.43
eClerx Services Limited	10	97.15	25.06
Systango Technologies Limited	10	12.76	26.76

 

Evaluation

The IPO is priced within the range of Rs.91 to Rs.96 per share.

 

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 4.5 from the last year, the resulting P/E ratio is 21.35x.

• Taking into account the weighted EPS of Rs 3.66 for the last three years, the P/E ratio amounts to 26.22x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 29.41x.

As a result, the IPO price range, with a P/E ratio ranging from 21.35x to 26.22x, seems fully priced to the industry average of 29.41x.

 

 

IPO's Strengths 

• Revenue diversified across multiple geographic regions

• Experienced promoters supported by a qualified employee base

• Client base and revenue sources diversified

• Offering a broad spectrum of professional and technical services
  
  

IPO weaknesses 

• A significant portion of the company's revenues relies on a small number of customers.

• Pricing may be impacted by intense competition in the technology services market.

• Potential coding or configuration errors in the company's services could damage its reputation.

• Global operations subject the company to various and occasionally conflicting legal and regulatory obligations.

• Approval or licensing may be necessary for the company's routine operations.

• The company depends on third-party data centres and cloud computing providers.
  
  

IPO GMP Today 

The latest GMP of AVP Infracon Limited is Rs.40.

 

Enfuse Solutions Limited IPO timetable (Tentative)

Enfuse Solutions Limited IPO is scheduled from March 15 to March 19, 2024, with allotment on March 20, refund initiation on March 21, and listing on March 22, 2024.

Events	Date
IPO Opening Date	March 15, 2024
IPO Closing Date	March 19, 2024
IPO Allotment Date	March 20, 2024
Refund initiation	March 21, 2024
IPO Listing Date	March 22, 2024

 

Enfuse Solutions Limited IPO Details 

Enfuse Solutions Limited IPO, with a face value of Rs.10 per share, opens on March 15 and closes on March 19, 2024, offering 2,337,600 shares at Rs.91 to Rs.96 per share, with a lot size of 1200 shares, aiming to raise Rs.22.44 Cr, and will be listed on NSE SME.

IPO opening & closing date	March 15, 2024 to March 19, 2024
Face value	₹10 per share
Issue Price	₹91 to ₹96 per share
Lot Size	1200 Shares
Price of 1 lot	₹115,200
Issue Size	2,337,600 shares (aggregating up to ₹22.44 Cr)
Fresh issue	2,337,600 shares (aggregating up to ₹22.44 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Enfuse Solutions Limited IPO Lot Details 

For Enfuse Solutions Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.115,200 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.230,400.

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

Enfuse Solutions Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

 

Promoters and Management of Enfuse Solutions Limited

• Imran Yasin Ansari

• Mohammedk Lalmohammed Shaikh

• Rahul Mahendra Gandhi 

• Zaynulabedin Mohmadbhai Mira

• Farheen Imran Ansari

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding	73.58%

 

Enfuse Solutions Limited IPO Lead Managers:

• Hem Securities Limited

Dividend Policy

The company has not paid any dividends in the past financial years, and the potential for future dividend payments is contingent upon the company's future performance.

Conclusion

Enfuse Solutions Limited presents an intriguing opportunity for investors to consider investing in the upcoming IPO. The company's financial performance has been showing improvement every year. Additionally, the issue price appears to be fully priced. Therefore, investors may consider applying for the IPO after conducting a thorough analysis for optimal results.

 

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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