What you must know about Enfuse Solutions IPO?

About Enfuse Solutions Ltd

Incorporated in 2017, Enfuse Solutions Limited specializes in providing integrated digital solutions across various sectors including data management & analytics, e-commerce & digital services, machine learning & artificial intelligence and edtech & technology solutions. The company operates in four distinct domains, in data management and analytics its focus areas include analyzing data for informed decision making, for e-commerce & Digital Services developing and optimizing digital platforms for seamless online experiences, offering innovative solutions in machine learning and AI and enhancing educational experiences through technological solutions.

Enfuse Solutions Limited operates from two delivery centers located in Thane, Maharashtra, and Vikhroli, Mumbai, Maharashtra. The company's revenue streams comprise both domestic operations within India and export services to countries such as the USA, Ireland, Netherlands, and Canada. As of 30 November 2023, the company has a workforce of 433 individuals including various roles and key members across different levels of the organization.

Highlights of the Enfuse Solutions IPO

Here are some of the highlights of the Enfuse Solutions IPO

•  Enfuse Solutions will be open from 15 March 2024 to 19 March 2024. Enfuse Solutions has a face value of ₹10 per share and the price band for the IPO has been set in the range of ₹91 to ₹96 per share.

•  The IPO of Enfuse Solutions Ltd has only a fresh issue component and no offer for sale (OFS) portion.

•  As part of the fresh issue portion of the IPO,  Enfuse Solutions will issue a total of 23.38 lakh shares, at the upper band of the IPO price of ₹96 per share to raise fresh funds of ₹22.44 crores.

•  Since there is no offer for sale (OFS) portion the total IPO size is equivalent to the fresh issue size of the IPO of ₹22.44 crores.

•  The company has been promoted by Imran Yasin Ansari, Mohammedk Lalmohammed Shaikh, Rahul Mahendra Gandhi and Zaynulabedin Mohmadbhai Mira. Currently, promoter holding in the company stands at 100%. However, post listing promoter equity holding will get diluted.

•  The raised funds will be used for repayment of certain Borrowings, meeting working capital needs and general corporate purposes.

•  Hem Securities will be the book running lead manager for the Enfuse Solutions IPO and Bigshare Services will act as the registrar for the issue.

Enfuse Solutions IPO Allocation 

The net offer will be distributed among retail investors, Qualified Institutional Buyers (QIBs), and High Net Worth Individuals (HNIs) / Non-Institutional Investors (NIIs). The allocation breakdown for the overall IPO of Enfuse Solutions Ltd is mentioned below.

Enfuse Solutions IPO Lot sizes 

The minimum lot size for Enfuse Solutions IPO investment is 1200 shares, equivalent to ₹115,200 (1,200 shares x ₹96 per share), which is also the maximum for retail investors. HNI/NII investors can invest in a minimum of 2 lots, totaling 2,400 shares with a minimum value of ₹2,30,400. There are no specified upper limits for Qualified Institutional Buyers and High Net Worth Individuals (HNI)/Non-Institutional Investors investors. Below is the breakdown of lot sizes for different categories.

Key dates for Enfuse Solutions IPO

Enfuse Solutions IPO will open on Friday, 15 March 2024 and conclude on Tuesday, 19 March 2024. Likewise, the bidding period for the Enfuse Solutions Ltd IPO will be from 15 March 2024, starting at 10:00 AM, until 19 March 2024, closing at 5:00 PM. The cut-off time for UPI Mandate confirmation is also set for 5:00 PM on the closing day of the issue, which falls on 19 March 2024.

In ASBA applications, the total application amount is blocked, meaning the funds are reserved but not deducted from the bank account. After the allotment process, only the allotted amount is debited from the blocked funds. The remaining amount is automatically released back to the bank account without any refund process.

Financial highlights of Enfuse Solutions IPO

The table below captures the key financials of Enfuse Solutions Ltd for the last 3 completed financial years.

Profit after Tax for Enfuse Solutions Limited has shown growth over the past three fiscal years. In FY21, the PAT stood at ₹155.43 Lakhs indicating a promising start. PAT increased in FY22 to ₹198.11 Lakhs reflecting an improvement in profitability. The most recent fiscal year, FY23, witnessed a surge in PAT reaching ₹292.73 Lakhs.

Enfuse Solutions Strength

1.    Enfuse Solutions benefits from diversified revenues originating from various regions.

2.    The presence of experienced promoters, along with a team of qualified employees, enhances the company's capabilities.

3.    A diverse customer base and multiple revenue streams contribute to the company's stability and growth.

4.    Enfuse Solutions offers a wide range of professional and technical services, catering to various needs and demands.

Enfuse Solutions Vs Peer Comparison

Compared to its competitors, Enfuse Solutions has the lowest EPS of 4.5, whereas its listed peer eClerx Services holds the highest EPS among its peers standing at 97.15. Generally, a higher EPS is seen as favorable.