Veefin Solutions Limited’s Rs 46.73-crore initial public offering (IPO) opens for subscription on June 22, with the issue price set at Rs 82 a share. The 5,699,200-share issue, which closes on June 26, will be launched on the BSE as a small and medium enterprise (SME) IPO.
The company is offering a fresh issue of 2,849,600 shares aggregating up to Rs 23.37 crore.
The company is engaged in supply chain finance tech solutions and digital lending suite solutions segments. Veefin Solutions' client list includes banks, non-banking financial institutions, fintech and marketplaces. Corporates such as Yes Bank, IndusInd Bank, Indian Bank, Citi Bank, BRAC, VP Bank, Riyadh Bank, Aditya Birla Capital, Mintifi and Ambit Finvest are among its corporate clients.
The financials
Veefin’s revenue for FY23 increased 93 percent year-on-year to Rs 12.7 crore in January 2023. The fintech solution company’s net profit grew 400 percent year-on-year to Rs 3.5 crore for the same period.
The company does not have any direct peers. “There are no listed companies in India and abroad that are engaged in developing a similar line of product solution to that of our company,” Veefin said in its prospectus.
Veefin said its current expenditure is not fit to support the long and expensive process of software product development in a sufficient and timely manner. The SME also disclosed its directors and group companies as party to certain tax proceedings, which could potentially impact the company’s business, results of operations, and financial conditions.
"Our digital lending and supply chain finance technology product solutions may not be protected by all intellectual property laws and does not have any copyright," it said. The company also reported negative cash flows for two consecutive years in January 2023.
The proceeds from the IPO would be used for funding global sales and marketing expenditures, developing new products or enhancement and maintenance, upgrading or updating existing products, and general corporate purposes, reported Veefin.
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