Info Edge-backed enrolment automation firm NoPaperForms has roped in IIFL Capital and SBI Capital as their investment bankers for its initial public offering, estimated to be around Rs 500-600 crore, sources have told Moneycontrol.
The Gurugram-based company, which is eyeing a valuation of around Rs 2,000 crore, is expected to file the draft red herring prospectus (DRHP) in a couple of quarters, aiming to list by the end of this year.
“The market situation is volatile, especially for smallcap companies. While the promoters have a certain expectation, it remains to be seen what the market tells the bankers from the IPO size to the valuation,” a person aware of the discussions told Moneycontrol.
Benchmark indices the Sensex and the Nifty have fallen nearly 15 percent from their peaks in September, as geopolitical concerns and trade war worries have roiled the Indian market. The Nifty Smallcap100 has crashed more than over 25 percent to its highs and the Nifty Midcap100 21 percent.
NoPaperForms offers customer relationship manager (CRM) software to educational institutions that help them to enrol, communicate, collect fees, and help with placements and alumni meetings digitally under its Merrito brand.
Founded in 2017 by Naveen Goyal, Info Edge has invested around Rs 30 crore in NoPaperForms for a 48 percent stake. A Rs 2,000-crore valuation would mean a 30-fold return on capital.
Info Edge is unlikely to sell its stake, continuing its tradition of not exiting the companies it supports, sources said.
For FY24, the company reported a revenue of Rs 70 crore and a net profit of Rs 4 lakh, the company’s website says. In the first nine months of the current fiscal, it has recorded revenue of Rs 67.7 crore and a loss of Rs 50 lakh.
“The company is almost profitable and growing at 40 percent year-on-year and twenty times the topline for a tech startup is a decent expectation. But the final call will be taken by the investment bankers and the company is likely to follow their advice,” the source said.
NoPaperForms has more than 1,200 customers and is looking to expand its international presence.
“With the Indian education market projected to reach Rs 25,00,000 crore by FY28, Meritto is uniquely positioned to be the de-facto choice for institutions looking to optimise operations and revenue growth,” CEO Goyal said in a post while sharing the company’s nine-month financial results on the company website.
The government's push to increase the Gross Enrolment Ratio to 50 percent by 2035 also amplifies the need for robust technology solutions in education, he said.
This will be the third startup from the InfoEdge stable to go public. The consumer internet company, which runs Naukri, made early bets on Zomato and PB Fintech which paid handsomely when the companies went public. At the time of listing, Zomato delivered a thousand-fold return for Info Edge. Info Edge share price is also affected when Zomato and PB Fintech shares take a knock. Zomato and PB Fintech shares have corrected around 30 percent from their peaks, eroding the stake valuation for Info Edge over the month.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
