IPO Update: Richa Info Systems IPO to Open Next Week; Check out the Details

IPO Update: Richa Info Systems IPO to Open Next Week; Check out the Details In this week, another IPO namely Richa Info Systems is lined up to open for subscription in the primary market. Richa Info Systems Limited has announced a public issue of 8,00,000 equity shares of face value of Rs 10 each for cash at a price of Rs 125 per equity share, including a share premium of Rs 115 per equity share.

Richa Info Systems Pvt. Ltd.:

Richa Info Systems is a Gujrat-based company that assembles unique goods and systems. It was founded in 2010. The firm is a multifunctional solution integrator for high-quality goods such as Interactive Flat Panels, Interactive Boards, Digital Podiums, Digital Kiosks, and CCTV Cameras. The company's entire outsourcing and in-house assembly ratio is 20:80. The company imports raw materials from China, then assembles semi-finished items and implements the necessary software according to the client's specifications. The company does all its product assembly and service sector work by hand because it lacks its own plant and machinery. Techno is a brand name of Richa Info systems Limited, which is working under the government's initiative to support "Vocal for Local," with a commitment to give government PSUs, educational institutes, and all organisations across the country a competitive advantage by making current operations efficient and cost effective. From FY2021-22, the company will include e-learning school content to its product range, with content designed for CBSE Board classes ranging from Standard 1 to Standard 12 (for science stream). The goal is to make video conversations, teaching, and surveillance more entertaining and accessible to the public.

When:

The Richa Info Systems IPO open date is Feb 9, 2022, and the close date is Feb 11, 2022. The issue may list on Feb 18, 2022.

• Fresh Issue: 800,000 Eq Shares of ₹10 (aggregating up to ₹10.00 Cr)
• Offer for sale: 800,000 Eq Shares of ₹10 (aggregating up to ₹10.00 Cr)
• Price band: Rs 125 per equity share.
• Market value at the upper end of the price band: ₹ crore
• Face value: Rs 10 apiece.
• Lot size: 1000 shares
• Listing: NSE
• Listing Date: The issue may list on Feb 18, 2022.
• Lead managers: Swastika Investmart Ltd
• Promoters: Tushar Dineshchandra Shah & Mrs. Hemaben Tushar Shah

Link Intime India Private Ltd is the registrar for the IPO.

Objectives of the IPO:

The company aims to utilize the funds for following purpose:

• To meet incremental working capital requirements
• To meet public issue expenses
• Meet general corporate purposes.

Summary of Financial Information:

Particulars	Total Assets (₹ in Millions)	Total revenue (₹ in Millions)	Profit after Tax (₹ in Millions)
31 Mar-2020	40.65	175.62	3.34
31 Mar-2021	88.38	201.13	7.22
30 Nov-2021	172.13	139.68	4.85

In terms of financial performance, the company has reported turnover/net profits of Rs. 15.04 crore / Rs. 0.20 crore (FY19), Rs. 17.56 crore / Rs. 0.33 crore (FY20), and Rs. 20.11 crore / Rs. 0.72 crore (FY21) (FY21). On a turnover of Rs. 13.97 crore, it achieved a net profit of Rs. 0.49 crore in the first eight months of FY22, which concluded on November 30, 2021. The company has had an average EPS of Rs. 4.18 and a RoNW of 51.16 percent over the last three fiscal years. Based on its NAV of Rs. 11.57 as of March 31, 2021, the issue is valued at a P/BV of 10.80, and at a P/BV of 2.53 based on its post-IPO NAV of Rs. 49.40. As of November 30, 2021, the company has not provided statistics on its NAV. The asking price is at a P/E of 41.67 if we annualize FY22 earnings and assign them to post-IPO fully diluted equity. As a result, the issue is overpriced. The issue is overpriced based on its financial performance.