ipo note - karvy onlinecontent.karvyonline.com/contents/content_2016625134822.pdf · ipo note issue...
TRANSCRIPT
Quess Corp Limited Call Toll Free 1800-425-8282
IPO NOTE
Issue Highlights:
Issuer: Quess Corp Limited
Issue Type: 100% Book Built Issue IPO
Issue Open: Wednesday, June 29, 2016
Issue Close: Friday, July 01, 2016
Issue Size (Rs): Rs. 400 Crores
Face Value: Rs.10 per Equity Share
Price Band: Rs.310 - Rs.317 per Equity Share
Minimum Order Quantity Retail: 45 Shares
Maximum Bid amount for Retail: Rs. 2 Lakhs
Listing: BSE, NSE
Issue Size and Investor Category Allocation
Total Issue Size: 1,29,03,226 Equity Shares.
QIB: 75% of the Issue Size (96,77,419 Shares)
Non Institutional Bidders:
15% of the issue size (19,35,484 Shares)
Retail Individual Bidders:
10% of the issue size (12,90,323 Shares)
Book Running Lead Managers:
ICICI Securities, Axis Capital, IIFL and Yes Securities
Registrar:
Link Intime India Pvt Ltd
Key Strengths:
Leading integrated business services provider in
diversified business segments, industries and geographies
Track record of successful inorganic growth with improved
financial performance
Improved operating efficiencies and margins through
business cycles
Experienced management team and strong equity
sponsorship
Key Business Strategies:
Expand our service portfolio and our operations globally
through strategic acquisitions
Continue to improve operating margins
Capitalize on the rapid growth of e-commerce in India and
pursue other B2C opportunities
Focus on domain depth and operational excellence
Objects of the Issue:
Repayment of debt availed by the Company
Funding capital expenditure requirements of the Company
and its Subsidiary, MFX US
Funding incremental working capital requirement
Acquisitions and other strategic initiatives
Public issue of 1,29,03,226 equity shares of Rs. 10/- each (“equity
shares”) of Quess Corp Limited (Company or Issuer).
About the Issuer:
It is one of India’s leading integrated business services
providers focused on emerging as the preferred partner for
handling end-to-end business functions of our clients. They
offer comprehensive solutions including recruitment, temporary
staffing, technology staffing, IT products and solutions, skill
development, payroll, compliance management, integrated
facility management and industrial asset management services.
The Key Clients include some of the world’s largest, reputable
organizations, including 20 companies ranked in the 2015
Fortune Global 500 list.
The service and product offerings include four broad operational
segments: Global Technology Solutions (“GTS”), People and
Services (“P&S”), Integrated Facility Management (“IFM”) and
Industrial Asset Management (“IAM”). It has a pan-India
presence with 47 offices across 26 cities, as well as operations
in North America, the Middle East and South East Asia. As of
February 29, 2016, they have more than 1,20,000 employees,
including over 3,400 Core Employees and over 117,000
Associate Employees, i.e. employees placed with the clients.
As of March 31, 2016, company’s operations were spread
across India with 47 offices across 26 cities in India. They also
offer certain of their services in a number of jurisdictions in
North America, the Middle East and South East Asia.
Quess Corp is among the industry leaders in each of their key
business services:
The Largest IT Staff Augmentation Provider in India
based on number of employees
The Third Largest General Staffing Company in India
based on number of employees
Among the Leading Industrial Asset Management
Service Providers in India
Among the Largest Integrated Facility Management
Service Providers in India and
Among the Largest Training and Skill Development
Partner for the Ministry of Rural Development based
on
approved project cost
Call Toll Free 1800-425-8282
IPO NOTE
Quess Corp Limited
Restated Statement of Assets and Liabilities of Quess Corp Limited
*For FY 2013-14, the company had reported numbers from Apr 13 – Dec 13 and for FY 2014-15 from Jan 14 – Mar 15
(` in million)
Particulars
As at
March 31,
2016
March 31,
2015
December 31,
2013
March 31,
2013
March 31,
2012
EQUITY AND LIABILITIES
Shareholders' funds
Share capital 1,133.35 257.74 961.76 299.89 299.89
Reserves and surplus 2,343.02 2,349.08 638.26 275.11 194.94
3,476.37 2,606.82 1,600.02 575.00 494.83
Non-current liabilities
Long-term borrowings 1.56 0.13 1.94 0.00 0.00
Other long-term liabilities 0.00 6.67 13.33 0.00 0.00
Long-term provisions 83.61 85.12 7.29 5.98 3.51
85.17 91.92 22.56 5.98 3.51
Current liabilities
Short-term borrowings 2,627.45 1,650.62 303.46 558.04 254.73
Trade payables 159.26 120.94 4.00 12.30 7.92
Other current liabilities 3,225.22 1,757.49 935.95 1,057.92 810.30
Short-term provisions 173.64 61.97 7.03 4.00 2.84
6,185.57 3,591.02 1,250.44 1,632.26 1,075.79
TOTAL EQUITY AND LIABILITIES 9,747.11 6,289.76 2,873.02 2,213.24 1,574.13
ASSETS
Non-current assets
Fixed Assets
- Tangible assets 162.42 131.90 17.56 9.09 6.95
- Intangible assets 869.69 937.55 6.98 4.68 1.84
- Intangible assets under development 8.56 0.00 0.00 0.00 0.00
1,040.67 1,069.45 24.54 13.77 8.79
Non-current investments 156.02 46.02 1,056.03 379.40 379.40
Deferred tax assets (net) 215.93 36.15 22.20 40.91 60.72
Long-term loans and advances 781.87 537.59 476.45 193.47 80.37
Other non-current assets 20.52 3.75 0.00 0.00 0.88
1,174.34 623.51 1,554.68 613.78 521.37
Current assets
Inventories 13.22 4.39 0.00 0.00 0.00
Trade receivables 3,462.32 2,155.62 449.08 825.52 506.76
Cash and bank balances 869.05 706.92 212.61 194.34 198.75
Short-term loans and advances 418.38 430.26 242.70 322.95 162.30
Other current assets 2,769.13 1,299.61 389.41 242.88 176.16
7,532.10 4,596.80 1,293.80 1,585.69 1,043.97
TOTAL ASSETS 9,747.11 6,289.76 2,873.02 2,213.24 1,574.13
Call Toll Free 1800-425-8282
IPO NOTE
Quess Corp Limited
Restated Summary Statement of Profit and Loss of Quess Corp Limited
*For FY 2013-14, the company had reported numbers from Apr 13 – Dec 13 and for FY 2014-15 from Jan 14 – Mar 15
Source for Note: RHP
IMPORTANT: Please read the Red Herring Prospectus of this issue carefully before investing in the same.
:: Research Desk :: Research Desk ::
PF/IPON/22062016/02
E-mail:
Disclaimer
The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information
contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the
accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss
incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors.
Investors must make their own investment decisions based on their specific investment objectives and financial position
and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned
in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any
associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this
document.
(` in million)
PARTICULARS
For the year
endedFor the period from For the year ended
March 31, 2016
January 1, 2014
to March 31,
2015
April 1, 2013 to
December 31,
2013
March 31, 2013 March 31, 2012
Income
Revenue from operations 29,181.77 23,732.82 6,164.28 6,175.55 3,606.49
Other income 75.45 53.95 8.25 18.62 15.04
Total income 29,257.22 23,786.77 6,172.53 6,194.17 3,621.53
Expenses
Cost of services 569.91 717.35 0.00 0.00 0.00
Employee benefits 25,873.27 20,812.89 5,931.95 5,855.60 3,403.65
Finance costs 270.86 209.27 53.10 111.23 57.68
Depreciation and amortisation 164.52 170.23 8.11 6.63 4.46
Other expenses 1,168.04 876.70 120.21 151.42 112.81
Total expenses 28,046.60 22,786.44 6,113.37 6,124.88 3,578.60
Restated net profit / (loss) before
tax for the periods / years1,210.62 1,000.33 59.16 69.29 42.93
Tax expense
- Current tax/ Minimum alternate
tax(611.01) (299.47) (12.43) (12.92) (37.08)
- Income tax credit for earlier year 64.56 0.00 0.00 0.00 0.00
- Minimum alternate tax credit
entitlement0.00 0.00 12.43 12.92 0.00
- Deferred tax credit / (charge) 179.78 (74.53) (18.71) (19.81) 23.69
Total tax expense (366.67) (374.00) (18.71) (19.81) (13.39)
Restated net profit after tax for
the periods / year 843.95 626.33 40.45 49.48 29.54
Direct Ph: 040 3321 7132