Xelpmoc Design IPO Opens Today, Should you Invest?

Xelpmoc Design & Tech Ltd, a small-sized tech company, that provides the medium to pay through the Unified Payments Interface (UPI) to the retail investors. Xelpmoc Design IPO plans to raise about INR 23 Cr.

The company has planned to offer a discount of about INR 3 on the issue price to Retail Individual Bidders. This will be offered by the company in consultation with the BRLM.

ITI Capital Ltd is the book running lead manager (BRLM) to this issue. The registrar to Xelpmoc Design IPO is Karvy Fintech Private Ltd.

Business Profile

The company offers a wide range of services, that comprise of the mobile and web application development, prototype development, thematic product development and data science and analytics assistance. The company also possesses data science capabilities and provides designing, architecture and development of modern lake infrastructure.

Xelpmoc Design and Tech Ltd plans to leverage their existing business model in India to enter newer geographies such as Middle East and North Africa (MENA), Australia, United Kingdom, Asia Pacific and the United States.

The company plans to expand the volume of business from clients with a global presence by moving from being a services provider to an integrated enterprise-wide solutions provider.

The company’s clients range from entrepreneurs and start-up enterprises to established companies, that are engaged in e-commerce, transportation and logistics, recruitment, financial services, social networking, and various other industries. As of June 30, 2018, Xelpmoc Design has serviced a client base of over 23 clients across four states in India.

Xelpmoc Design IPO Details

The objects of the IPO are:

The company plans to use the proceeds for purchase of IT hardware and network equipment. This is for the development centers in Kolkata and Hyderabad – INR 5.49 crore, Purchase of fit outs for new development centers in Kolkata and Hyderabad – INR 4.09 crore unding the working capital requirements – INR 6 crore

• Issue Open: January 23rd, 2019 – January 25th, 2019
• Issue Type: Book Built Issue IPO
• Issue Size: [] Equity Shares of Rs 10 aggregating up to Rs 23 Cr
• Issue Price: Rs 62-Rs 66 Per Equity Share
• Market Lot: 200 Shares
• Minimum Order Quantity: 200 Shares
• Retail Allocation:10%
• Listing At: BSE & NSE
• Listing Date: February 4th, 2019

Should you Invest?

For FY 18, the company has delivered the revenue of INR 5.53 Cr and loss of INR 3.43 Cr. For 1H 2019, the company has reported INR 3.77 Cr & loss of INR 2.24 Cr

There are no listed peers in India which are engaged in a similar line of business or whose business is comparable with that of Xelpmoc Design & Tech’s  business.

The investors that are risk averse should only “subscribe” to Xelpmoc Design & Tech IPO.