Inspira Enterprise India IPO: Cybersecurity firm files draft papers, to raise Rs 800 crore

Cybersecurity and digital transformation services provider Inspira Enterprise India has filed draft papers with the capital markets regulator SEBI on August 13 to launch its initial public offering (IPO).

The company plans to raise Rs 800 crore through a public offer that comprises a fresh issue of Rs 300 crore and an offer for sale of Rs 500 crore by promoters Prakash Jain, Manjula Jain Family Trust and Prakash Jain Family Trust.

Prakash Jain is going to offload equity shares up to Rs 131.08 crore, Manjula Jain Family Trust will sell up to Rs 91.77 crore, and the remaining shares of Rs 277.15 crore will be sold by Prakash Jain Family Trust.

The offer will also include a reservation of shares for employees of the company.

The company in consultation with merchant bankers may consider a pre-IPO placement of Rs 75 crore. If completed, the fresh issue size will be reduced accordingly, as per the DRHP filed with the SEBI.

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The net proceeds from the fresh issue will be utilised working capital requirements (Rs 109.63 crore), repayment of debt (Rs 115.37 crore) and general corporate purposes.

Inspira Enterprise India is a leading digital transformation company in India with a focus on cybersecurity. It has a global presence across several verticals which are fully owned by promoters. As of March 2021, it has operations across India, the US, Southeast Asia, the Middle East and Africa.

The company classifies its business into cybersecurity, digital solutions, and integrated enterprise solutions which contributed 44.16 percent, 28.18 percent, and 27.66 percent, respectively, to total revenue for the financial year ended March 2021.

The profit of Rs 36.15 crore grew at a CAGR of 191.27 percent and revenue of Rs 802.76 crore increased at a CAGR of 13.35 percent during FY19-FY21, said the company, adding earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 52.2 crore grew at a CAGR of 40.93 percent in the same period.

In FY21, Inspira had 235 active clients, of which it engaged with 69 clients in each of the last three fiscals. Revenue from these 69 clients was Rs 511.62 crore, representing 63.73 percent of revenue from contracts with customers in FY21, reflecting a high degree of client retention, said the company.

Given the IT services sector, Inspira Enterprise can be compared with listed peers including HCL Technologies, Happiest Minds Technologies, Birlasoft, Mindtree, Tech Mahindra, Wipro, TCS, L&T Infotech, Coforge, Cyient, and Zensar Technologies.

Axis Capital, JM Financial, Nomura Financial Advisory and Securities (India), SBI Capital Markets, and YES Securities are appointed as book running lead managers to the issue.