eClerx Services Limited IPO opens on December 4. Price band fixed between Rs 270-Rs 315 per equity share
eClerx Services Limited (the “Company” or “Issuer”), which provides data analytics and customised process solutions to global enterprise clients from its offshore delivery centres in India, is entering the capital market with its initial public offering (“IPO”) of equity shares of Rs. 10 each (“Equity Shares”) for cash, at a price to be decided through a 100% book building process (“Issue”) and aggregating to Rs. 1,010 million (the “Issue”). The Bid/ Issue will open on December 4, 2007, and will close on December 7, 2007. The Price Band has been fixed between Rs. 270 and Rs. 315 per Equity Share.
This Issue has been graded by CRISIL Limited and has been assigned the “IPO Grade 3/5” indicating average fundamentals, through its letter dated October 29, 2007. The IPO grading is assigned on a five point scale from 1 to 5 with an “IPO Grade 5” indicating strong fundamentals and an “IPO Grade 1” indicating poor fundamentals.
The Issue comprises a fresh issue of equity shares (“Fresh Issue”) and an Offer for Sale by Mr. P. D. Mundhra, Mr. Anjan Malik and Burwood Ventures Limited (being the existing shareholders of the Company) of 890,000 equity shares (“Offer for Sale”).
The Equity Shares, offered through this IPO, are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and the Bombay Stock Exchange Limited (“BSE”).
At least 60% of the Net Issue will be allocated to Qualified Institutional Buyers (“QIBs”) on a proportionate basis out of which 5% will be available for allocation on a proportionate basis to Mutual Funds only. Further, up to 10% of the Net Issue will be allocated to Non-Institutional Bidders and up to 30% of the Net Issue will be allocated to Retail Individual Bidders on a proportionate basis, subject to valid Bids being received from them at or above the Issue Price. In accordance with Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, a minimum of two million securities are being offered to the public and the size of the Issue shall aggregate to at least Rs. 1,000 million.
The proceeds of the Issue will be used, inter alia, to fund acquisitions; make infrastructure investments; set up additional facilities and avail of listing benefits.
The Company’s portfolio of services comprises data analytics, operations management, data audits, metrics management and reporting services. It provides service solutions using a mix of custom designed data processes with the assistance of delivery teams comprising generalists and domain specialists, and in-house software to automate processes. It currently offers its services to clients in the financial services, retail and manufacturing industries. Some of its largest clients in terms of revenue contribution include leading global corporations with whom it has multi-year partnerships. It was featured as one of the “Top 20 companies to watch” by Business Today magazine in the last three years, amongst a list that included some of the largest Indian companies. In their annual report of 2004, AT Kearney mentioned the Company as “Best of the Breed” under the Indian BPO segment. The Yankee Group in July, 2005 included the Company as “Best of the Breed” under the segment of ‘Analytics Providers’. It is an active member of industry bodies such as the PPS, Internet Retailer and ISDA.
The Company utilises its understanding of specific industries and clients to design and implement end-to-end process solutions to meet specific client business needs. It has developed particular skills in managing typically complex and multi-year client programmes across businesses, which require a high level of management involvement, an efficient delivery structure and ability to scale effectively. It has developed deep understanding and specialization in several industries such as retail, manufacturing and financial services, where it is engaged by some of the world’s largest companies to increase revenues, reduce operating costs and boost profits, across a variety of business functions including marketing, pricing, manufacturing and supply chain management. Its clients include more than fifteen “Fortune 500” companies and it is reputed for its service delivery. The Company recently acquired the Igentica Group, which introduced it to a client base of global corporations in the travel and hospitality industry. As of Fiscal 2007, the Company had 1,021 employees with operations in India, the U.K., the U.S. and Ireland.
The Company’s unconsolidated revenues grew to Rs. 862.3 million in Fiscal 2007 from Rs. 477.5 million in Fiscal 2006 and Rs. 266.4 million in Fiscal 2005, growing at a compound annual growth rate of 79.9 % over 2005-2007. The Company’s unconsolidated profit after tax grew to Rs. 405.2 million in Fiscal 2007 from Rs. 240.4 million in Fiscal 2006 and Rs. 112.2 million in Fiscal 2005. For the six months ended September 30, 2007, its unconsolidated revenues were Rs. 514.4 million while the profit after tax was Rs. 164.7 million. For the six months ended September 30, 2007, the consolidated revenues were Rs. 526.6 million and the net profit was Rs. 169. 5 million.
The Book Running Lead Managers (“BRLMs”) to the Issue are: JM Financial Consultants Private Limited and Edelweiss Capital Limited.
Sourced From: Adfactors Public Relations Pvt Ltd
CRISIL stock price
On November 24, 2014, CRISIL closed at Rs 1860.35, down Rs 23.85, or 1.27 percent. The 52-week high of the share was Rs 2258.00 and the 52-week low was Rs 1010.00.
The company's trailing 12-month (TTM) EPS was at Rs 30.09 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 61.83. The latest book value of the company is Rs 85.33 per share. At current value, the price-to-book value of the company is 21.80.
READ MORE ON eClerx Services, data analytics, process solutions , offshore delivery centres , IPO, equity shares , CRISIL, P. D. Mundhra, Anjan Malik , Burwood Ventures , QIBs, Mutual Funds , revenues, net profit , JM Financial Consultants, Edelweiss Capital Limited
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