AccelerateBS India Ltd IPO : Review, Peer Comparison, Valuation, Dividend Policy & GMP

AccelerateBS India Limited - Complete Overview

Founded in 2022, AccelerateBS India Limited is a digital technology services company that specializes in providing boutique technology services to both B2B and B2C companies globally.

With 100% in-house capabilities, the company has developed expertise in DXP platforms such as Crownpeak, Optimizely, Contentful, and Strapi. 

The company also has full-spectrum capabilities across the platforms including Front-end, Middleware, Backend, DXP layers, and custom integrations with platforms like Salesforce, Marketo, and Brightcove.

The company offers a range of services including Digital Applications, DXP Implementations, Web Testing & Remediation Services, Custom Chatbots, Voice bots development, etc.

They have gained significant experience in regulated industries such as Insurance, Financial Services, Pharma, and Healthcare.

Additionally, the company has established partnerships with Crownpeak DXP, Contentful DXP, and Optimizely DXP. They are listed as solution partners on the respective websites, providing DXP Consulting and Implementation Services. Moreover, they are a part of the MAGNET Global Network, based in the USA.

The company relies on its top customers to generate most of its revenue, with external customers from the United States contributing 85.39%, 88.86%, 88.11%, 100.00%, and 100.00% to the company's revenue from operations, respectively.

 

What does the company do?

The company offers Digital Technology Services to both B2B and B2C companies globally.

 

 

Company Products 

The company offers services in various areas, including Digital Applications, DXP (Digital Experience Platforms) Implementations, Web and Mobile Apps development, Cloud Infrastructure services (Azure and AWS), QA & Test Automation, WCAG Accessibility Testing & Remediation services, and Custom Chatbots and Voice bots development.

 

IPO Overview

AccelerateBS India Limited, an SME IPO, is scheduled to be listed on the BSE SME exchange from July 6 to July 11, 2023. The share's issue price is set at Rs. 90, with a face value of Rs. 10 per share.

SME IPOs provide an opportunity for small and medium enterprises to raise funds from the market to meet their capital requirements. Eligibility for SME IPO requires a minimum post-paid-up capital of Rs. 1 crore.

A single lot of shares consists of 1600 shares and retail investors can bid for a maximum of one lot in the upcoming IPO. The listing on the share market is expected to occur on July 19, 2023.

The IPO's total issue size is 632,000 shares, amounting to Rs. 5.69 Cr. Retail investors are allocated 50% of the total issue, while the remaining portion is reserved for other investors.

 

AccelerateBS India Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	6 JULY 2023
IPO Closing Date	11 JULY 2023
IPO Allotment Date	14 JULY 2023
Refund initiation	17 JULY 2023
IPO Listing Date	19 JULY 2023

 

AccelerateBS India Limited IPO Details

IPO Opening & Closing Date	06 July 2023 to 11 July 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 90 Per share
Lot Size	1600 Shares
Price of 1 Lot	Rs 144,000
Issue Size	632,000 Shares  (aggregating up to Rs. 5.69 Cr)
Offer for Sale	443,200 Shares  (aggregating up to Rs. 3.99 Cr)
Fresh Issue	188,800 Shares  (aggregating up to Rs. 1.70 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

AccelerateBS India Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

AccelerateBS India Limited IPO Reservation

Retail Portion	50%
Other Share Portion	50%

 

Company Financial

Amount in Crores

Period	FY 21	FY 22	FY 23
Total Assets	180.95	200.65	283.25
Total Revenue	451.92	355.69	164.92
Net Profit	42.53	25.91	26.22
Net Worth	102.46	111.03	45.34
Total Borrowings	24.00	45.34	33.82

 

Key Performance Indicators of the Company

Amount in Lakhs

Key Financial Performance	For the period ended January 31, 2023	FY 22	FY 21	FY 20
Revenue from Operations	160.58	352.21	449.97	484.65
EBITDA	39.93	47.60	69.63	109.68
EBITDA Margin (%)	24.86%	13.51%	15.47%	22.63%
PAT	26.22	25.91	42.53	68.35
PAT Margin (%)	16.33%	7.36%	9.45%	14.10%

 

Objective of the Issue

The company intends to utilize the funds for meeting its long-term capital needs and for general corporate purposes.

 

Promoters and Management of AccelerateBS India Limited

The company's promoters included Mr Kunal Arvind Shah, aged 38, who holds the positions of Promoter, Chairman, and Managing Director and Mr Keyur Dipakkumar Shah, aged 37, who serves as the Promoter and Whole-time Director of the company.

Pre-issue Promoters Holding	100%
Post-issue Promoters Holding	70.59%

 

Peer Comparison

Company Name	LTP (Rs)	Basic EPS (Rs)	P/E Ratio (x)	RoNW (%)
AccelerateBS India Limited	90	2.57	35.02	23.33%
Happiest Minds Technologies Limited	919.40	13.21	69.60	27.84%
Persistent Systems Limited	5,135.80	89.74	57.23	20.67%
Kellton Tech Solutions Limited	62.46	1.16	53.84	7.72%
Saksoft Limited	237.50	25.89	9.17	17.99%
CG-Vak Software & Exports Limited	330.55	17.67	18.71	28.54%

 

IPO's Valuations

Before valuing the IPO, the company considered several factors. Some key factors of the company as of March 22 were an EPS of 2.57, a PE ratio of 35.02, a RoNW of 23.33%, and NAV of 11.02, as stated in the AccelerateBS India Limited DRHP.

 

Dividend Policy

The company currently lacks a formal dividend policy and has not distributed any dividends since its inception. However, the possibility of future dividend payments remains open, subject to factors such as the financial condition, operational results, capital needs, and surplus of the company.

 

IPO's Strengths

• Experienced promoters and a competent management team.
• Well-established relationships with a loyal customer base.
• Access to markets worldwide, enabling global reach.

 

IPO weaknesses

• Heavy reliance on customers based in the United States.
• Need to adhere to multiple laws and regulations in these countries to ensure compliance.
• Competition from other players in the market.

 

 

IPO GMP

The Current GMP of this IPO is Rs. 20.

 

Conclusion

AccelerateBS India Limited IPO is an SME IPO operating in a highly competitive market. The company's customer base is relatively small, and it heavily relies on a few top customers for its revenue. Additionally, there are concerns about the IPO being overpriced. While the GMP is currently unavailable, it would provide a clearer indication of the listing price and aid in making a more informed decision.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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