Course5 Intelligence IPO - 7 Things to Know

Course5 Intelligence Ltd, is a pure play data insights and data analytics company that has filed its draft red herring prospectus (DRHP) with SEBI in the second week of Jan-22. The Course5 Intelligence IPO will be combination of a fresh issue and an offer for sale.

7 Important Things to Know About Course5 Intelligence IPO

1) Course5 Intelligence Ltd has filed for a Rs.600 crore IPO with SEBI which comprises of a fresh issue of Rs.300 crore and an offer for sale of Rs.300 crore. Thus there will be dilution of equity as well as change in ownership of promoters and early investors who will look to monetize part of their holdings in the company.

Course5 Intelligence is a pure data insights and analytics focused company on the same industry lines of Latent View Analytics that had a successful IPO late last year.

2) The DRHP has been filed in January so the approval, which normally talks 2 to 3 months, should come in either by end of March or in April 2022. It is not yet clear if the company would want to do the issue in the current fiscal year or the next fiscal year.

However, considering that March is likely to be dominated by the Rs.70,000 crore LIC IPO, Course5 Intelligence Ltd may prefer to put off its IPO to the next financial year. 

3) As part of the offer for sale, the promoter entities comprising of Ashwin Ramesh Mittal, Riddhymic Technologies, Riddhymic Technoserve LLP and AM Family Private Trust will offer part of their shares in the OFS. In addition, early shareholder Kumar Kantilal Mehta, will also offload shares in the OFS.

The company is also simultaneously exploring the possibility of a pre-IPO placement of Rs.60 crore. If this pre-IPO placement is successful, then the company will reduce the IPO size proportionately. The pre-IPO placement is different from the anchor allocation in that the pre-IPO placement can be done at a discount or premium to issue price and also entails a longer lock-in period. 

4) The company essentially helps organisations to drive total digital transformation. They heavily leverage on artificial intelligence (AI), analytics and insights.

The focus of Course5 Intelligence is on digital, marketing and customer analytics and helps customers use customer insights to enhance their omnichannel customer interface offering.

Some of its major clients include Lenovo, Colgate-Palmolive Company, American Regent Inc and National Bank of Fujairah. It employees 902 persons across 17 cities.

5) Course5 Intelligence Ltd proposes to utilise the proceeds of the fresh issue component of Rs.300 crore towards funding inorganic growth initiatives. It will look to acquire or merge niche players in analytics and artificial intelligence domain.

It will also use these funds partially for working capital needs, supporting product and IP initiatives, expanding geographical footprint etc. The big market opportunity for the company stems from the fact that data and analytics is estimated to account for 14% of estimated overall digital spend of $2.4 trillion by 2024.

6) Course5 Intelligence Ltd reported revenues of Rs.143 crore for H1-FY22, which exhibits a 28% rise in top line YoY. During the same period, the net profits of the company have more than doubled to Rs.27 crore. Course5 Intelligence (an independent analytics and digital insights company) is likely to benefit from the shifting global trend.

Companies are increasingly willing to bet on niche capabilities developed by pure analytics players. Hence pure-play analytics firms like Course5 will see good growth traction as the market is likely to expand at a CAGR of over 30% in the next 5 years.

7) The IPO of Course5 Intelligence Ltd will be lead managed by Axis Capital and JM Financial. They will act as the book running lead managers or BRLMs to the issue.

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