Cogent E-Services Ltd. has filed preliminary papers with SEBI in order to generate funds through an initial public offering (IPO). The initial share sale consists of a new issue of equity shares worth up to Rs. 150 crore and a promoter offer to sell up to 994.68 lakh equity shares. The corporation may pursue a private placement of equity shares for up to Rs. 30 crore, which would reduce the amount of the initial issuance.
DAM Capital Advisors and IIFL Securities are the issue’s book running lead managers.
Cogent is a provider of end-to-end customer experience (CX) solutions, providing omnichannel solutions across a wide range of customer engagement touchpoints, including customer sales and support via voice and non-voice channels, back-office solutions, transformative services, and digital marketing. The company is based in Noida and has offices in seven cities across India (Noida, Vadodara, Bengaluru, Mangaluru, Meerut, Bareilly, and Thane), with 9,022 full-time equivalent (“FTE“) Customer Service
employees and 7,609 seats spread over 14 sites. The company’s geographical distribution allows it to serve customers in more than ten languages, including English, Hindi, and regional languages like Gujarati, Marathi, Tamil, Telugu, Kannada, Malayalam, Punjabi, and Bangla. Banking and financial services, e-commerce, direct-to-home television, telecommunications (including internet service providers), consumer goods, fast-moving consumer goods and retail, education, travel and hospitality, logistics, and automotive are among the company’s clients.
Axis Bank Limited, Bajaj Finance Limited, Resilient Innovations Private Limited, CreditMantri Finserve Private Limited, Tata Business Hub Limited, Zomato Limited, Snapdeal Limited, One97 Communication Limited (Paytm), Lenskart Solutions Private Limited, Bigfoot Retail Solutions Pvt. Ltd., Dish Infra Services Private Limited, Bharti Airtel Limited, Tata Sky Broadband Private Limited, Vodafone Idea Limited, Fusionnet Limited
Objective of the Issue
The proceeds from the issues will be used in the following manner:
- Funding investment in IT assets for expansion and existing IT infrastructure of the company,
- Support working capital requirements
- General corporate purposes
Cogent E-Services Ltd IPO Financials
| Particulars (in Rs. Crores) | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|
| Revenue | 273.9 | 248.1 | 159.4 |
| EBITDA | 50.4 | 30.8 | 17.4 |
| PAT | 20.1 | 8.9 | 4.6 |
| Total Assets | 144 | 151.1 | 107.9 |
| Share Capital | 1 | 0.8 | 0.8 |
| Total Borrowings | 15.4 | 31.6 | 34.5 |
Cogent E-Services Ltd IPO Key Points
Strengths
- End-to-end CX solutions provider with omnichannel capabilities providing customized solutions to the clients
- Domain intelligence across industry verticals in the Indian market enabling the company to be agile in the processes
- Integration across geographies and sites reduces the time to market
Risks
- Operates in a highly competitive environment, and any failure to compete effectively against current and future competitors could adversely affect the revenue
- Failure in developing and innovating its CXM tools, platforms and processes, the business, financial performance and prospects may be materially affected.
- If it cannot adapt the service offerings to changes in technology and market expectations, its ability to grow
- Revenues are dependent on a limited number of industry verticals, and any decrease in demand for services in these industry verticals could reduce the revenues
Cogent E-Services Ltd Peer Comparison
| Competitor | Conneqt | Altruist CM | Teleperformance | Concentrix |
|---|---|---|---|---|
| Total Revenue of India Entity (In Cr) | 897.9 | 181.4 | 2620.9 | 446.7 |
| Revenue (Within India (In Cr)) | 840.2 | ΝΑ | 948.7 | 250.5 |
| Year-on-Year Growth | -9% | -11.50% | -0.50% | 0.30% |
| Revenue CAGR (2 Yr.) | 2.20% | -6.70% | 4.10% | -4.60% |
| Return on Equity (ROE) | 43% | 10% | 38% | 12% |
| Return on Capital Employed (ROCE) | 14% | 15% | 28% | 16% |
| EBITDA Margin,% | 19.60% | 19.60% | 16.60% | 22.10% |
Cogent E-Services Ltd IPO FAQs :
Q1. What is Cogent E-Services Ltd’s Initial Public Offering?
Ans. Cogent E-Services Ltd has filed its preliminary papers with SEBI to raise funds through an initial public offering (IPO). The initial share sale comprises a fresh issue of equity shares aggregating up to Rs. 150 crores and an offer for sale of up to 994.68 lakh equity shares by promoters.
Q2. When will allotments for the Cogent E-Service Limited IPO become available?
Ans. Details are not available.
Q3. What will the IPO lot size for Cogent E-Services Ltd be?
Ans. Details are not available.
Q4. When will Cogent E-Services Ltd IPO be available to buy?
Ans. Details are not available.
Q5. What is Cogent E-Service Limited’s smallest lot size available to retail investors?
Ans. Details are not available.
Q6. Which exchanges will Cogent E-Service Limited list on?
Ans. Cogent E-Service Limited shares will be listed on both BSE as well as the National Stock Exchange (NSE).
Q7. What is the IPO size of Cogent E-Service Limited?
Ans. The IPO size of Cogent E-Service Limited is Rs 150 crore.
Q8. How will I get my Cogent E-Service Limited stock?
Ans. Following allotment, the Cogent E-Service Limited shares will be credited to the Demat account.
Q9. Can I use one PAN to submit multiple applications for the public issue of Cogent E-Service Limited?
Ans. No, you cannot use the same PAN to make multiple applications for this Cogent E-Service Limited IPO or any other public offering.
Q10. Is it necessary to give immediate approval to a UPI mandate request?
Ans. Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.
Q11. Who owns Cogent E-Service Limited?
Ans. Mr Gaurav Abrol is the current owner of Cogent E-Service Limited.
Q12. What are the expected listing gains for Cogent E-Service Limited?
Ans. It is difficult to anticipate the listing gains of each IPO, however, there are a few factors that have a significant impact:
- Market movement on the day of the listing.
- Cogent E-Service Limited stock market supply and demand from investors and dealers.
- The interest of HNI investors in particular.
