The Hyderabad-based BPO service provider firm HRH Next Services Limited is bringing its Initial Public Offering (IPO) on December 27 2023 for public subscription. The ₹9.57 crore IPO is a fixed price issue comprising of a fresh issue of 26.58 lakh shares of face value at ₹10 each. The price band is fixed at ₹36 per share. The NSE SME IPO aims for a listing on January 03, 2024. The company aims to utilise the net proceeds from the issue towards expansion and meeting general corporate expenses.
About Company
HRH Next Services Limited is one of the leading Business Process Outsourcing (BPO) service providers. The company is based in Hyderabad, Telangana, and was incorporated on February 2, 2007. It has an authorized share capital of ₹10.00 crore and a paid-up capital of ₹6.55 crore.
The company helps businesses thrive with engaging conversations across multiple platforms in more than 12 regional languages. It mainly focuses on voice processes including inbound call service and outbound call service along with various other services such as backend support, chat support, live chat, documents & KYC, and email support.
With the help of state-of-the-art analytics tools, HRH Next Services Limited provides insights that enable businesses to make sustainable and intelligent decisions. It serves clients in sectors such as autotech, banking, e-commerce, fintech, education, healthcare, food-tech, government, and telecom.
IPO details at a glance
The book-running lead manager of the HRH Next Services IPO is Finshore Management Services Limited and the issue registrar is Cameo Corporate Services Limited. Nikunj Stock Brokers is the market maker.
| IPO Application Date | December 27 to 29, 2023 |
| Listing Date | January 03, 2024 |
| Listing On | NSE SME |
| Issue Type | Fixed Price IPO |
| Face Value | ₹10 per share |
| Price Range | ₹36 per share fixed |
| Lot Size | 3,000 shares |
| Total number of issues | 26,58,000 shares aggregating up to ₹9.57 crore |
| Fresh Issue | 26,58,000 shares aggregating up to ₹9.57 crore |
| Holdings before issue | 65,47,438 Shares |
| Holdings after issue | 92,05,438 Shares |
| Market Maker Reservation | 1,35,000 Shares (Nikunj Stock Brokers) |
| Net Public Issues | 90,70,438 Shares (excluding market maker reservation) |
| Retail Investor Quota | Minimum 50% of net offering |
| QIB Investor Quota | Up to 50% of the net offering to all other investors combined |
| NII (HNI) Investor Quota |
The retail investors can bid only for 1 lot i.e., 3,000 shares whereas HNIs have to bid with a minimum of 2 lots. The investment per lot totals to ₹1,08,000.
Important dates
The dates are given as per the tentative timetable mentioned in the official RHP document.
| IPO opening date | December 27, 2023 |
| IPO closing date | December 29, 2023 |
| UPI mandate confirmation cut-off time | 5 PM of December 29, 2023 |
| Finalization of allotment basis | January 01, 2024 |
| Allotment initiation to Demat / Refunds / Unblocking of Funds | January 02, 2024 |
| IPO Listing Date | January 03, 2024 |
| Mandate end | January 13, 2024 |
Company’s financials
HRH Next Services Limited, the company, recorded a 15.73% growth in revenue and 273.85% rise in profit after tax (PAT) in the financial year ending in 2023 over FY2022.
| Financial Period (ending in) | 30 Sep’23 | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 1320.71 | 1044.79 | 697.00 | 603.97 |
| Assets | 3113.86 | 2882.29 | 1864.85 | 1298.26 |
| Revenue from operations | 2139.16 | 5113.63 | 4415.23 | 2416.24 |
| EBITDA | 367.17 | 685.11 | 279.07 | 157.07 |
| EBITDA Margin | 17.16% | 13.40% | 6.32% | 6.50% |
| Profit After Tax (PAT) | 150.84 | 347.79 | 93.03 | 25.18 |
| PAT Margin | 7.05% | 6.80% | 2.11% | 1.04% |
| Net cash flow from operations | -185.52 | 772.00 | 206.13 | 224.23 |
| Debt-Equity (D/E) Ratio | 8.18% | 12.90% | 11.00% | 6.74% |
| Reserves & Surplus | 665.96 | 1,024.79 | 677.00 | 583.97 |
| Total Borrowing | 1,083.77 | 990.57 | 442.58 | 401.88 |
| Amount in ₹ Lakhs | ||||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Market Cap | 33.14 Cr |
| P/E | 6.42 |
| Debt-Equity | 0.12 |
| ROE | 39.94% |
| ROCE | 6.80% |
| EPS | ₹5.61 |
| RoNW | 33.29% |
Mr Ankit Sanjay Shah, Mr Parikshit Pankaj Shah and Mrs Tara Sanjay Shah are the promoters of the company. The promoters’ share holding post issue will come down to 69.61% from 97.88% pre issue.
Read the full official RHP document for more details.
The HRH Next Services IPO is among the 7 SME IPOs opening this week. Read details of more IPOs here.
