NSB BPO Solutions Launches Rs 77.91 Crore IPO with Zero Grey Market Premium
NSB BPO Solutions opens its IPO to raise Rs 77.91 crore, offering shares at Rs 140-147. The IPO comprises 53 lakh shares, with allocations for retail investors, non-institutional investors, and qualified institutional buyers. The company plans to list on the BSE SME platform on September 30. NSB BPO reported strong financial growth with total income increasing to Rs 138.50 crore and profit after tax rising to Rs 8.50 crore. Funds will be used for repaying borrowings, setting up new projects, and meeting working capital needs. Post-issue market capitalization is estimated at Rs 293.60 crore, valuing the company at 34 times earnings. The grey market premium currently stands at zero.
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NSB BPO Solutions, a business process outsourcing company, has opened its initial public offering (IPO) to raise Rs 77.91 crore. The company is offering shares priced between Rs 140-147, with the subscription period closing on September 25.
IPO Details
The IPO comprises a total of 53 lakh shares, allocated as follows:
| Investor Category | Share Allocation |
|---|---|
| Retail Investors | 25.00 lakh shares |
| Non-Institutional Investors | 24.80 lakh shares |
| Qualified Institutional Buyers | 0.53 lakh shares |
The company is scheduled to list on the BSE SME platform on September 30. Notably, the grey market premium currently stands at zero, suggesting muted expectations for the listing.
Financial Performance
NSB BPO Solutions has reported strong financial growth:
| Financial Metric | Previous Period | Current Period | Growth |
|---|---|---|---|
| Total Income | Rs 128.30 crore | Rs 138.50 crore | 8.00% |
| Profit After Tax | Rs 4.80 crore | Rs 8.50 crore | 77.00% |
The company's profit after tax has increased significantly, demonstrating improvement in its bottom line.
Use of Proceeds
The funds raised through the IPO will be utilized as follows:
| Purpose | Amount (in Rs crore) |
|---|---|
| Repayment of Borrowings | 25.80 |
| Setting Up New Projects | 13.40 |
| Meeting Working Capital Needs | 29.00 |
Valuation
Post-issue, NSB BPO Solutions' market capitalization is estimated at Rs 293.60 crore. This values the company at 34 times its earnings, reflecting investor expectations for its future growth potential.
The IPO presents an opportunity for investors interested in the business process outsourcing sector, with NSB BPO Solutions demonstrating strong financial growth. However, the zero grey market premium suggests cautious market sentiment. Potential investors should carefully consider the company's financials, growth prospects, and the broader market conditions before making an investment decision.
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