Vinsys IT Services India Limited IPO -Review, Valuation, Date & GMP

Vinsys IT Services India Limited  - Complete Overview

Vinsys IT Services India Limited, founded in 2008, is specializing in IT skill development, training, certification, digital learning, and project management.

Headquartered in Pune, Maharashtra, it is a part of the esteemed Vinsys group, consisting of eight business entities operating in India, the USA, and Middle Eastern countries.

The company has earned a reputation as a trusted partner for renowned global organizations, including CompTIA, Hybris Software, EC-Council, Red Hat, Oracle, CISCO, IBM, PECB, Autodesk, Skillsoft, AWS, PMI, PRINCE2, ISACA, ITIL, PeopleCert, Citrix, and Microsoft, operating in over 30 countries.

With an impressive portfolio of 326 courses spanning 17 domains, Vinsys IT Services offers a wide array of certifications and training programs.

Additionally, the company excels in providing comprehensive digital learning solutions, boasting an OTS library of over 100,000 titles compatible with all major LMS and LXP platforms. Their software service offerings include ERP solutions, DevOps practices, architectural consulting, integration, and middleware services.

Catering to professionals across diverse industries and domains, Vinsys IT Services also collaborates with organizations to develop effective learning and development strategies.

The company has set up state-of-the-art infra-ready labs with a capacity of 2,400 delegates, facilitating hands-on learning experiences for participants worldwide.

 

What does the company do?

The company offers a range of services that encompass IT skill development, training and certification, digital learning, project management, and technology training.

 

 

IPO Overview

Vinsys IT Services India Limited's upcoming IPO is set to be listed on the NSE SME on August 14, 2023, with an issue price range of Vinsys IPO Rs. 121 to Rs. 128 per share. 

The IPO bidding will be open from August 1 to August 4, 2023. A single lot of the IPO comprises 1000 shares, priced at Rs.128,000.

Regarding share allocation, 50% of the total shares are reserved for institutional investors, 15% for non-institutional investors, and the remaining 35% for retail investors. 

 

Vinsys IT Services India Limited IPO timetable

EVENTS	DATE
IPO Opening Date	1 August 2023
IPO Closing Date	4 August 2023
IPO Allotment Date	9 August 2023
Refund initiation	10 August 2023
IPO Listing Date	14 August 2023

 

Vinsys IT Services India Limited IPO Details

IPO Opening & Closing Date	1 August to 4 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 121 to Rs. 128 per share
Lot Size	1000 Shares
Price of 1 Lot	Rs. 128,000
Issue Size	3,894,000 shares (aggregating up to Rs. 49.84 Cr)
Offer for Sale	NA
Fresh Issue	3,894,000 shares (aggregating up to Rs. 49.84 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Vinsys IT Services India Limited IPO Lot Details

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

 

Vinsys IT Services India Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	2739.97	3493.16	7293.60
Total Revenue	2041.04	3202.69	9632.25
Net Profit	34.78	-51.61	1501.38
Net Worth	773.51	716.07	2472.51
Reserve & Surplus	673.51	616.07	1472.51
Total Borrowings	1427.08	2050.32	2310.80

 

Revenue Bifurcation of Vinsys IT Services India Limited

Amount in Lakhs

Particulars	FY 23	FY 22	FY 21
Exports	739.81	148.08	166.45
Domestic	4,892.95	2,952.16	1,843.83
Sales from overseas operations	3,852.25	84.48	23.55
Total Sales	9,485.01	3,184.72	2,033.83

 

Segment Wise Revenue of Vinsys IT Services India Limited

Amount in Lakhs

Particulars	FY 23	FY 22	FY 21
Training & Certifications	5,641.14	2,636.59	1,414.12
Digital Learning	1,213.42	23.02	0.00
IT Development Services	894.40	368.03	441.45
Foreign Language Services	243.91	157.08	178.26
Manpower Supply	1,492.13	0.00	0.00
Total Sales	9,485.01	3,184.72	2,033.83

 

Objective of the Issue

The funds raised will be utilized for the following objectives:

• Meeting working capital requirements.
• Providing loans to subsidiaries or repaying loans from subsidiaries.
• Catering to general corporate purposes.
• Covering public issue expenses.

 

Promoters and Management of Vinsys IT Services India Limited

The company's promoter comprises Mr Vikrant Shivajirao Patil, aged 53, serving as the Chairman and MD. With over 14 years of expertise in corporate training and development, he plays a key role in the company. Additionally, Mrs Vinaya Vikrant Patil, aged 50, holds the position of Whole Time Director. Boasting more than 14 years of experience in financial reporting and taxation, she contributes significantly to the company's operations.

Pre-issue Promoters Holding	92.74%
Post-issue Promoters Holding	68.13%

 

Peer Comparison

As per the DRHP, the company's listed peers include the following:

Company Name	EPS (Rs.)	P/E Ratio	Revenue from operations (Rs. in Lakhs)
Vinsys IT Services India Limited	15.01	-	9485.01
NIIT Limited	0.23	1418.91	34,125.00
Aptech Limited	16.32	20.90	45,691.68

 

IPO's Valuations

The share's issue price is currently fluctuating within the range of Rs. 121 to Rs. 128 per share, while the EPS stands at Rs. 15.01 as per Vinsys IT Services DRHP. Although the company does not specify the P/E ratio, yet by calculating the provided data of IPO valuation, the estimated P/E ratio is approximately 8.

 

Dividend Policy

The company currently lacks a formal dividend policy and has not distributed any dividends in previous years. The decision regarding future dividend payments will be contingent on various factors, including the company's financial performance, expenses, earnings, and other relevant factors.

 

IPO's Strengths

• Proficient Promoters and Management Team.
• Extensive Service Portfolio.
• Global Reach.
• Emphasis on Quality Assurance.

 

IPO Weaknesses

• Legal proceedings against the promoters of the company.
• Dependency on a limited number of customers for revenues and profitability.
• Part of the Issue proceeds will be utilized for Loan to a subsidiary.
• The Restated Financial Statements of the company are reviewed and signed by Peer Review Auditors, who are not the Statutory Auditors of the Company, as required under the provisions of ICDR.
• The company typically conducts business with customers on a work-order basis and does not enter into long-term contracts with most of them.
• Discrepancies and non-compliances were observed in some corporate records relating to forms filed with the Registrar of Companies.
• Exposure to foreign currency exchange rate fluctuations.
• The company need to obtain and/or renew any approvals or licenses.
• Experiencing negative cash flow from operating activities in recent fiscal years.
• Facing competition from organized and unorganized players.
• Inadequate insurance coverage. 

 

 

IPO GMP

As of July 27, 2023, Vinsys  IT Services India GMP stands at Rs. 30, offering investors an estimated gain of 23.44%.

 

Conclusion

Vinsys IT Services Ltd has experienced fluctuations in its financials and profits, making it less suitable for long-term investment. Despite this, the company might still offer listing gains due to its satisfactory performance in the grey market. Nevertheless, it is crucial to thoroughly understand the company's fundamentals, carefully evaluate the associated risks, and take into account your investment horizon before making any investment decisions. 

 

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

 

 

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