Service Care Limited IPO - Review, Date, GMP & Valuation

Service Care Limited - Complete Overview

Service Care LTD was established in 2011 with the primary goal of offering Workspace Administration Services and Workforce Administration Services to businesses in various domains. 

The Workspace Administration services provided encompass Integrated Facility Management and Business Services. Conversely, the Workforce Administration services cover staffing solutions, outsourced recruitment processes, and payroll management.

With over 23 years of experience, Service Care Limited has built a strong reputation among its customers and partners throughout the country. 

The company currently has a team of 5,800+ associates, which includes both permanent and contractual employees. 

Service Care LTD caters to clients in diverse sectors such as Manufacturing, Engineering, Infrastructure, Information Technology, Government & Banking, Healthcare, Staffing & Recruitment, Food, Education, and FMCG.

 

What does the company do?

The company's service offerings encompass Workforce Administration Services and Management, which include HR & Compliance solutions, Contract Staffing, and Recruitment Services. Additionally, they provide Workspace Administration Services and Management, which involve Building Maintenance, Traditional Services, Hospitality Services, and Administrative Services.

 

 

IPO Overview

The upcoming IPO of Service Care Limited is an SME IPO and is scheduled to be listed on the NSE SME from July 14th to July 18th, 2023. The IPO will be listed at an issue price ranging from Rs. 63 to Rs. 67 per share, with a face value of Rs. 10 per share.
In terms of lot size, one lot of the IPO consists of 2,000 shares. Retail investors are allowed to bid for a maximum of 1 lot, which amounts to Rs. 134,000. The total issue size of the IPO is 3,086,000 shares, aggregating up to Rs. 20.68 Crores.
35% of the shares out of the total issue size are allocated to retail investors, 15% to non-institutional investors, and 50% to institutional investors. Read on to know the complete SME IPO details.

 

Service Care Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	14 JULY 2023
IPO Closing Date	18 JULY 2023
IPO Allotment Date	21 JULY 2023
Refund initiation	24 JULY 2023
IPO Listing Date	26 JULY 2023

 

Service Care Limited IPO Details

IPO Opening & Closing Date	14 July 2023 to 18 July 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 63 to Rs. 67 Per Share
Lot Size	2000 Shares
Price of 1 Lot	Rs 134,000
Issue Size	3,086,000 Shares  (aggregating up to Rs. 20.68 Cr)
Offer for Sale	NA
Fresh Issue	3,086,000 Shares  (aggregating up to Rs. 20.68 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Integrated Registry Management Services Pvt. Ltd.

 

Service Care Limited IPO Lot Details

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

 

Service Care Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	2019.92	2430.89	3181.30
Total Revenue	8933.38	11501.64	13217.29
Net Profit	23.46	174.48	302.34
Net Worth	457.84	632.32	1134.66
Reserve & Surplus	456.84	631.32	1133.41
Total Borrowings	314.56	341.47	--

 

Segment-wise Revenue of the Service Care Limited

Amount in Lakhs

Segment	Revenue as of 31st January 2023	Revenue as of 31st March 2022	Revenue as of 31st March 2021
WorkSpace Administration Services	1,523.40	1,605.60	1,309.96
Workforce Administration Services	11,684.65	9,889.56	7,616.27
Total	13,208.05	11,495.16	8,926.23

 

Service-wise Revenue of Service Care Limited

Amount in Lakhs

Service Offered	Revenue as of 31st January 2023	Revenue as of 31st March 2022	Revenue as of 31st March 2021
Manpower Service Contract Receipts	1,1678.12	9887.10	7,615.05
Service Contract Receipts	1354.81	1481.25	1,237.28
Cafeteria Sale	115.59	124.35	53.73
Consultancy Service Receipts	53.00	-	-
One Time Placement Receipts	6.53	2.46	1.22
ORC Commission	-	-	-
Business Support Services	-	-	18.95
Total	13,208.05	11,495.16	8,926.22

 

Customer-wise Revenue of Service Care Limited

Amount in Lakhs

Name of Customer	Revenue as of 31st January 2023	Revenue as of 31st March 2022	Revenue as of 31st March 2021
Larsen & Toubro Limited	9,891.32	8,492.46	6,541.90
L & T Geostructure Private Limited	938.25	540.91	190.90
State Bank of India	598.92	673.62	650.97
Prosol IT	303.69	267.81	274.78
Omega Healthcare Management Service Private Limited	139.62	83.14	99.10
Andritz Separation & Pump Technologies India Private Limited	124.27	144.86	126.34
Think & Learn Private Limited	106.00	-	-
Ashok Leyland Limited	104.51	112.07	116.02
Birla Carbon India Private Limited	91.88	96.25	80.93
Laurus Bio Private Limited	85.97	113.31	-
J.K. Fenner (India) Limited	-	85.22	-
L & T Geostructure LLP	-	-	165.11
Mahindra Aerostructures Private Limited	-	-	82.93
Other	823.61	885.50	597.26
Total	13,208.05	11,495.16	8,926.23

 

Objective of the Issue

The company intends to utilise the funds for the following objectives:

• Meeting working capital requirements.
• Fulfilling general corporate objectives.
• Covering the expenses associated with a public issue.

 

Promoters and Management of Service Care Limited

Among the key promoters of the company are Mrs Shany Jalal, who serves as the managing director. Additionally, Mr Anil Kumar M and Mr Amit Kumar Rakhecha,  also contribute as key promoters. All three individuals possess significant expertise and have played instrumental roles in steering the company towards success.

Pre-issue Promoters Holding	100%
Post-issue Promoters Holding	73.16%

 

Peer Comparison

The company operates within a highly competitive and fragmented industry. Below are some of the leading competitors of the company as per the Service Care Limited DRHP.

Company Name	LTP	EPS (Rs.)	P/E Ratio	Revenue from operations (Rs. in Lakhs)
Service Care Limited	-	1,744.81	-	11,495.16
ITCon E Solution Limited	51.00	4.16	12.26	1,805.26
Integrated Personnel Limited	59.00	5.45	10.83	14,269.60
Quess Corp Limited	659.05	9.8	67.25	9,75,849.80

 

IPO's Valuations

The anticipated listing date for Service Care Limited's IPO on the stock market is July 26, 2023, with an issue price range of Rs. 63 to Rs. 67 per share. The valuation of the IPO is determined by several factors, including an EPS of Rs. 1,744.81, a RoNW of 26.65%, an ROE of 0.34%, a ROCE of 0.37%, and a NAV of Rs. 6,323.20.

 

Dividend Policy

The company has no formal dividend policy and has not distributed dividends over the past three financial years. The dividend may be paid after the board of directors' approval to establish a dividend policy in the future, considering factors such as shareholder interests, company earnings, capital requirements, and the financial condition of the company.

 

IPO's Strengths

• An experienced management team.
• Robust statutory compliance policies in place.
• The company has a strong reputation and trust among its customers.

 

IPO Weaknesses

• The company relies on top clients for a significant portion of its revenue.
• Operating within a highly competitive and fragmented industry.
• The necessity to adhere to extensive government regulations.

 

 

IPO GMP

As of July 12, 2023, Service Care Limited IPO GMP is recorded at Rs. 4. Assuming that the upper end of the band price for the IPO is Rs. 67 per share, the estimated listing price is expected to be around Rs. 71 per share.

 

Conclusion

The Service Care Limited IPO presents investors with another investment opportunity. However, it is important to note that the company operates in a highly competitive and fragmented sector. Despite this, the company has shown promising growth in its revenue. Investors may consider investing in this IPO, but it is advisable to conduct a thorough analysis and evaluation before making any investment decisions.

 

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To Read the Prospectus of the Company Click Here to Download the RHP

 

 

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