Enfuse Solutions is coming up with an IPO worth INR 22.44 crores, consisting of a fresh issue of 23.37 lakh shares. The company plans to utilize the funds raised to repay the borrowings and to meet the working capital requirement.
Enfuse Solutions IPO – Important Details
| Enfuse Solutions IPO Date | March 15, 2024 to March 19, 2024 |
| Enfuse Solutions IPO Listing Date | March 22, 2024 |
| Enfuse Solutions IPO Price | INR 91 to 96 per share |
| Enfuse Solutions IPO Lot Size | 1200 Shares |
| Enfuse Solutions IPO Total Issue Size | INR 22.44 crores |
| Enfuse Solutions IPO Basis of Allotment | March 20, 2024 |
| Enfuse Solutions IPO Initiation of Refunds | March 21, 2024 |
| Enfuse Solutions IPO Credit of Shares to Demat | March 21, 2024 |
| Enfuse Solutions IPO Issue Type | Book Built Issue IPO |
| Enfuse Solutions IPO Listing At | NSE SME |
Enfuse Solutions Limited IPO- Company Profile
The company is engaged in the business of providing integrated Digital solutions across various domains including (i) In Data Management & Analytics (ii) E-commerce & Digital Services (iii) Machine Learning & Artificial intelligence (iv) Edtech & Technology Solutions. The company provides these service solutions by combining custom-designed data processes, delivery teams that include both generalists and domain specialists, and its in-house software to streamline and automate various processes.
The business operations encompass various domains (i) In Data Management & Analytics, the organize and analyze data, providing tailored insights for informed decision-making such as Master data Management, Product Information Management, etc. (ii) E-commerce & Digital Services form a core area where the company develops and optimizes digital platforms for seamless online experiences such as E-commerce platform management, content management, Digital marketing etc. (iii) Machine Learning & AI represent the capabilities in advanced technologies, offering innovative solutions such as tagging/labeling, Transcription, Annotation, etc. (iv) Edtech & Technology Solutions focus on leveraging technology to enhance educational experiences and overall technological solutions such as live Proctoring, Record and review, Student Counselling etc.
The company works as a consultant for the clients as per the terms of sub-contracting agreements entered with them. E.g., if the client is desirous of providing digitization services to one of its customers, then, as consultants will work on behalf of the client to provide said services to their customers.
Enfuse Solutions IPO – Fundamental Analysis
Enfuse Solutions Ltd’s IPO reveals steady revenue growth, substantial profitability, and equity increases, alongside higher leverage and fluctuating liquidity, positioning it as an attractive but cautiously considered investment in its evolving market sector.
Revenue Growth:
There’s a steady increase in revenue from ₹2,554.12 lakhs in FY2022 to ₹2,803.29 lakhs by December 2023, indicating consistent market demand for its services or products.
Equity Growth:
Equity has nearly tripled, showcasing strong investor confidence and potentially effective capital management to fuel expansion.
Profitability:
Profit after tax has significantly improved, underscoring the company’s operational efficiency and increasing profitability. The RoNW has impressively risen to 55.85%, highlighting efficient equity utilization.
Diluted EPS and NAV:
The EPS and NAV per equity share have shown parallel growth, which is positive for potential investors assessing the company’s per-share value.
Asset and Liability Management:
Total assets more than doubled, reflecting business expansion and asset accumulation. However, the liabilities have also seen a significant increase, influencing the debt-equity ratio, which suggests a return to higher leverage by December 2023.
Liquidity:
The current ratio experienced fluctuations, indicating varying levels of liquidity. A current ratio of 0.97 by December 2023 points to tighter liquidity compared to March 2023.
Enfuse Solutions Ltd IPO Financial Information
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 2,554.12 | 2,609.85 | 2,803.29 |
| Equity (₹ in lakhs) | 354.72 | 647.45 | 969.95 |
| Expenses (₹ in lakhs) | 2,287.78 | 2,213.66 | 2,371.56 |
| Profit and Loss After Tax (₹ in lakhs) | 198.11 | 292.73 | 322.50 |
| RoNW (%) | 33.25% | 45.21% | 55.85% |
| Diluted EPS only (₹) | 3.04 | 4.50 | 4.95 |
| NAV per Equity Share (₹) | 3.04 | 4.50 | 4.95 |
| Total Assets (in lakhs) | 889.80 | 1,164.71 | 2,547.23 |
| Total Liabilities (in lakhs) | 535.18 | 517.26 | 1,577.28 |
| Debt Equity Ratio (in times) | 0.66 | 0.37 | 0.93 |
| Current Ratio (in times) | 0.81 | 1.83 | 0.97 |
Enfuse Solutions Ltd IPO Peer Comparison
Enfuse Solutions Ltd shows robust performance with a RoNW of 45.21% and an EPS of 4.50 on revenue of ₹2610.42 lakhs, outpacing peers like Vertexplus Technologies and Systango Technologies in profitability and efficiency, while trailing eClerx Services in revenue but leading in RoNW.
| Company | Total Revenue (₹ in lakhs) | EPS | Face Value (₹) | RoNW (%) |
| Enfuse Solutions Limited | 2610.42 | 4.50 | 10 | 45.21% |
| Vertexplus Technologies Limited | 2171.27 | 4.71 | 10 | 8.36% |
| eClerx Services Limited | 2,71,384.80 | 97.15 | 10 | 28.50% |
| Systango Technologies Limited | 5369.73 | 12.76 | 10 | 22.70% |
Enfuse Solutions Limited IPO Objective
The main objective is to repay company borrowings totaling INR 9.05 crores, utilizing approximately Rs. 3.83 crores from IPO proceeds. Additionally, INR 10.50 crores from IPO proceeds will address working capital needs.
- To repay the borrowings of the company: As of December 31, 2023, the total outstanding of the company is INR. 9.05 crores. The company proposes to utilise an estimated amount of Rs. 3.83 crores from the net proceeds to repay the borrowing availed by the Company.
- To meet working capital requirements: The business requires working capital majorly for investment in trade receivables, inventories, and payment to trade payables and funding day-to-day operations. The Company will meet the requirement to the extent of INR 10.50 crores from the net proceeds of the IPO and balance from borrowings at an appropriate time.
Enfuse Solutions Ltd IPO Risks And Challenges
Enfuse Solutions Limited’s IPO faces risks from reliance on US and Netherlands markets, susceptible to adverse developments. Exchange rate fluctuations could impact operations. Failure to innovate technologically may harm business. Success hinges on skilled workforce retention.
- The company derives a significant portion of its revenues from clients located in the United States of America and Netherlands and any adverse developments in these markets could adversely affect the business.
- Exchange rate fluctuations may adversely affect the results of operations as significant portion of the revenues and some portion of the expenditure is denominated in foreign currencies.
- The business will suffer if the company fails to anticipate and develop new services and enhance existing services to keep pace with rapid changes in technology.
- The company’s success depends largely upon its skilled professionals and its ability to attract and retain personnel. The industry where the company operates is a highly skilled and technical employee-intensive industry.
Enfuse Solutions IPO – Industry & Market Potential
The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025. As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the Internet.
The current emphasis is on the production of significant economic value and citizen empowerment, thanks to a solid foundation of digital infrastructure and enhanced digital access provided by the Digital India Programme. India is one of the countries with the quickest pace of digital adoption. This was accomplished through a mix of government action, commercial innovation and investment, and new digital applications that are already improving and permeating a variety of activities and different forms of work, thus having a positive impact on the daily lives of citizens. India’s rankings improved six places to the 40th position in the 2022 edition of the Global Innovation Index (GII).
India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India.
Enfuse Solutions IPO – Type of Offer
Enfuse Solutions is launching an IPO valued at INR 22.44 crores, comprising 23.37 lakh new shares. The company intends to use the proceeds to repay debts and address working capital needs.
Enfuse Solutions Ltd IPO Offer Size
The offer size of Enfuse Solutions Limited’s IPO is INR 22.44 crores. The net proceeds will be used to repay the borrowings and to meet working capital needs.
Enfuse Solutions IPO Allotment Structure
Enfuse Solutions’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Makers Reservation: A portion of the issue up to 1,20,000 shares is reserved for market makers.
How to apply for an Enfuse Solutions Limited IPO?
To apply for the Enfuse Solutions IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
1. Check for IPO Details: Once your account is active, you can check for the Enfuse Solutions IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.
You can apply for the Enfuse Solutions IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Enfuse Solutions’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Enfuse Solutions IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Enfuse Solutions IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Enfuse Solutions IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Enfuse Solutions IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Enfuse Solutions Ltd IPO Offer Registrar
The registrar for the Enfuse Solutions Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S-2, 6th Floor, Pinnacle Business Park,
Mahakali Caves Road,
Next to Ahura Centre, Andheri (East), Mumbai – 400093
Website: www.bigshareonline.com
Email: [email protected]
Enfuse Solutions IPO – FAQs
1. What is the allotment date of Enfuse Solutions Limited?
The allotment date of the Enfuse Solutions Limited IPO is March 20, 2024.
2. What is the price band of the Enfuse Solutions IPO?
The price band of the issue is INR 91-96 per share.
3. What is the size of the Enfuse Solutions IPO?
Enfuse Solutions is coming up with an IPO worth INR 22.44 crores, consisting of a fresh issue of 23.37 lakh shares. The company plans to utilize the funds raised to repay the borrowings and to meet the working capital requirement.
4. What is the listing date of the Enfuse Solutions IPO?
The listing date of Enfuse Solutions’s IPO is Mach 22, 2024.
