Plada Infotech Services LTD IPO - Review, Valuation & GMP Today

Plada Infotech Services Limited - Complete Overview

Established in 2010, Plada Infotech Services Limited specializes in delivering customized Business Process Outsourcing (BPO) services to meet the specific requirements of its clients. 

The company's operations extend across various regions in India, with a significant focus on business activities in Maharashtra and Tamil Nadu.

The company provide the following services:

Account Management: It encompasses activities like recruitment, training, skill development, merchant onboarding, relationship management, performance monitoring, risk management, cross-selling, and customer support.

Merchant Acquisition: It involves assisting businesses in identifying and onboarding new merchants using a bank referral model and open-market strategies.

Field Support: It provides comprehensive on-site assistance to clients, facilitating smooth operations and efficient issue resolution. In addition to problem-solving, the company offers marketing services, document collection (e.g., KYC and business entity proof), and audits of point-of-purchase (POP) materials.

E-commerce Solution: It includes services such as retailer identification, streamlined onboarding processes, order processing, inventory management, and strategic business consultation.

Business Correspondence services: It extends clients' reach by delivering services at locations beyond their premises.

Recruitment and Payroll Management Software: It streamlines employee recruitment and compensation processes. The software simplifies document storage, automates calculations, generates payslips, and ensures compliance with legal requirements.

Technology Development: The company remains dedicated to staying at the forefront of technology and industry trends. It continuously develops products and solutions that align with the evolving needs of clients, merchants, and retailers.

The company currently employs 1400 professionals nationwide and operates through 12 offices in 12 cities, with additional cities being serviced remotely.

 

 

What does the company do?

Plada Infotech Services Limited specializes in providing fully customized Business Process Outsourcing (BPO) services that are precisely tailored to meet the unique requirements of its clients.

 

IPO Overview 

The Plada Infotech Services Limited IPO date is slated to run from September 29, 2023, through October 4, 2023, with an expected listing date of October 12, 2023. 

The total issue size for this upcoming SME IPO amounts to Rs. 12.36 Crores. The Plada Infotech Services Limited IPO price is set at Rs. 48 per share, with a face value of Rs. 10 per share. 

Each lot of this SME IPO comprises 3000 shares, and retail investors have the option to bid for one lot.

 

Plada Infotech Services Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	29 September 2023
IPO Closing Date	4 October 2023
IPO Allotment Date	9 October 2023
Refund initiation	10 October 2023
IPO Listing Date	12 October 2023

 

Plada Infotech Services Limited IPO Details 

IPO Opening & Closing date	29 September to 4 October 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 48 per Share
Lot Size	3000 Shares
Price of 1 lot	Rs. 144,000
Issue Size	2,574,000 Shares (aggregating up to Rs. 12.36 Cr)
Offer for sale	NA
Fresh issue	2,574,000 Shares (aggregating up to Rs. 12.36 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Plada Infotech Services Limited IPO Lot Details 

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

 

Plada Infotech Services Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	2,760.03	2,720.30	2,811.09
Total Revenue	4,460.86	4,887.39	6,275.12
PAT	66.71	109.87	233.84
Net worth	408.44	518.10	752.70
Reserve & Surplus	407.44	498.10	552.70
Total Borrowings	1,952.59	1,771.67	1,654.13

 

Objective of the Issue

The net proceeds will be utilized by the company for the following purposes:

• Meeting working capital needs.
• Procuring laptops and IT development accessories.
• Repaying or partially/fully prepaying specific existing company loans.
• Addressing general corporate requirements.
• Covering the expenses associated with the issuance.

 

Promoters and Management of Plada Infotech Services Limited

Mr. Shailesh Kumar Damani and Mr. Anil Mahendra Kotak are the promoters of the company.

Pre-issue Promoter Shareholding	89.50%
Post-issue Promoter Shareholding	62.64%

 

Peer Comparison 

Below are the listed peers of Plada Infotech Services Limited

Company Name	Total income	EPS (Rs.) Diluted	PE  Diluted
Plada Infotech Services Limited	6275.12	3.90	12.31
Firstsource Solutions Limited	5,98,592.70	7.55	13.97
Eclerx Services Limited	2,71,384.80	97.15	13.28

 

IPO's Valuations

To assess the IPO valuation, we can leverage the data provided in DRHP. Plada Infotech Services Limited's IPO price is set at Rs. 48 per share, and the company's EPS is Rs. 3.90. With this issue price, the company's P/E ratio stands at 12.31.

 

IPO's Strengths 

• Ensuring customer contentment and fostering their loyalty
• Nurturing enduring connections with clientele
• Proficient promoters and a seasoned top-tier management squad
• Robust distribution infrastructure

 

IPO Weaknesses 

• The uncertainty regarding client commitment and the possibility of contract termination.
• The business is heavily regulated by government authorities.
• The company has not set aside funds for gratuity as per Accounting Standard 15.
• An ongoing legal dispute involving the company.
• The company has encountered negative cash flow in previous periods.
• Past instances of delayed GST return filings by the company.
• Past instances of delayed EPF return filings by the company.

 

 

IPO GMP Today

Latest GMP of Plada Infotech Services SME IPO is Rs. 20.

 

Conclusion

Plada Infotech Services Limited provides a wide range of services within the BPO sector and boasts a robust distribution network, along with a presence across India. Nevertheless, there have been cases of delayed GST and EPF filings. It is recommended for investors to consider this issue only after conducting a thorough evaluation.

 

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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