What you must know about the Infollion Research Services IPO

Infollion Research Services IPO, is an SME IPO on the NSE which is opening for subscription on 29th May 2023. The company was incorporated in 2009 and offers a very technology driven consulting market place. A lot of companies today need contingent hiring with the solutions pigeonholed to their needs and also relatively economical. That is where Infollion Research Services plays a catalytic role. The company operates in the B2B Human Cloud segment and have empanelled senior management talent, subject matter experts, and even seasoned independent professionals.

To paraphrase the key role of Infollion Research Services, they are into providing a platform for workers or knowledge providers (popularly called gig workers) on the one side and potential employers or hirers on the other side. The idea is to arrive at synergistic outcome that is also economical and quick on delivery with actionable output. Infollion Research Services has a client base including top-tier consulting firms, hedge funds, private equity funds, and mid-tier Corporates. Broadly, Infollion offers 4 modes of engagement viz. calls, sit-ins, tours and pexpanel. The IPO funds will be used to expand in the US and Europe as well as expanding visibility and technology development.

Key terms of the Infollion Research Services SME IPO

Here are some of the highlights of the Infollion Research Services IPO on the SME segment of the National Stock Exchange (NSE).

• The issue opens for subscription on 29th May 2023 and closes for subscription on 31st May 2023; both days inclusive.
   
• The company has a face value of ₹10 per share and the issue price for the book built issue is het to be finalized. Hence the total size of the issue in value terms is not yet known, but the announcement of the price band is expected shortly.
   
• The IPO of Infollion Research Services Ltd will comprise of a fresh issue and an offer for sale (OFS). The promoters will be partially hiving off their holding through the OFS component.
   
• On the fresh issue portion of the IPO, Infollion Research Services Ltd will issue a total of 22,24,000 shares. However, the price band for the IPO is yet to be fixed and hence we do not currently know the size of the fresh component.
   
• On the offer for sale (OFS) portion of the IPO, Infollion Research Services Ltd will issue a total of 3,92,000 shares. However, the price band for the IPO is yet to be fixed and hence we do not currently know the size of the offer for sale component now in value terms.
   
• On the total aggregate size of the IPO, Infollion Research Services Ltd will issue a total of 26,16,000 shares. However, the price band for the IPO is yet to be fixed and hence we do not currently know the size of the aggregate issue of the company.
   
• The company has allocated not more than 48.65% of the issue size for the QIB investor, a minimum of 16.30% for the HIN / NII investor and at least 35.05% for the retail investors in the IPO.
   
• The minimum lot size for the IPO investment will be only announced once the price is announced for the book building. Once the price band is announced, then the upper price band is normally taken as the benchmark rate for this purpose.
   
• Like every SME IPO, this issue also has a marketing making portion with a market maker portion allocation of 132,800 shares. Holani Consultants will act as the market maker to the issue providing two-way quotes to ensure liquidity on the counter.
   
• The company has been promoted by Gaurav Munjal, who is a first generation entrepreneur. The total outstanding shares will increase by the fresh issue portion since the OFS is just a transfer of ownership internally.
   
• While Holani Consultants Private Limited will also be the lead manager to the issue, Link Intime India Private Limited will be the registrar to the issue.
   

Infollion Research Services SME IPO Dates

Infollion Research Services SME IPO opens on Monday, May 29th, 2023 and closes on Wednesday May 31st, 2023. The Infollion Research Services Ltd IPO bid date is from May 29th, 2023 10.00 AM to May 31st, 2023 5.00 PM. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day; which is the 31st of May 2023.

It must be noted that in ASBA applications, there is no refund concept. The total application amount is blocked under the ASBA (applications supported by blocked amounts) system. Once the allotment is finalized, only the amount is debited to the extent of the allotment made and the lien on the balance amount is automatically released in the bank account.

Financial highlights of Infollion Research Services Ltd

The table below captures the key financials of Infollion Research Services Ltd for the last 3 completed financial years.

Data Source: Company DRHP filed with SEBI

The profit margins have been fairly robust in this business and the sales growth has been strong. Double digit margins are always a good sign. However, the company has an established knowledge intermediation model with a fast and qualitatively growing market. However, investors must remember that this is a highly competitive business where high net margins may be tough to sustain once there are more players with deeper pockets and willing to invest in state of the art technology. That could be an overhang on valuations. While we have to await the pricing, the business proposition is quite unique.