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16 March 2024

Enser Communications IPO

Enser Communications, a provider of Business Process Management (BPM) services, recently launched its Initial Public Offering (IPO) aiming to raise Rs 16.17 crores through the fresh issue of 23.1 lakh shares. The IPO, priced at ₹70 per share, was available for bidding from March 15, 2024, to March 19, 2024, and subsequently listed on the NSE SME platform on March 22, 2024.

IPO Overview

Detail	Description
IPO Opening Date	March 15, 2024
IPO Closing Date	March 19, 2024
Listing Date	March 22, 2024
Issue Type	Fixed Price Issue IPO
Price	₹70 per share
Lot Size	2000 Shares
Issue Size	2,310,000 shares (aggregating up to ₹16.17 Cr)
Listing At	NSE SME
Market Maker	B.N. Rathi Securities

Share Allocation Pre and Post-IPO

Pre-Issue Share Holding	6,406,059 shares
Post-Issue Share Holding	8,716,059 shares

IPO Reservation Details

The IPO offered 2,310,000 shares, divided among different categories of investors as follows

IPO Reservation Details

Market Maker Shares Offered	118,000 (5.11%)
NII (Non-Institutional Investors) Shares Offered	1,096,000 (47.45%)
Retail Shares Offered	1,096,000 (47.45%)

Subscription Details

The Enser Communications IPO was well-received, with a total subscription rate of 7.29 times by the closing date, March 19, 2024. The detailed subscription figures across various investor categories are

NII	3.64 times
Retail	10.92 times
Overall	7.29 times

Company Background

Established in 2008, Enser Communications Limited specializes in BPM services targeting sectors such as insurance, e-commerce, education, and travel. The company's services span across customer acquisition, customer services, IT infrastructure management, and data management services, offering a comprehensive suite of solutions including business analytics, customer relationship management (CRM), and more. Enser Communications boasts a client roster that includes notable names across various industries.

Financial Performance

For the period ending September 30, 2023, Enser Communications demonstrated significant growth, with its revenue and profit after tax (PAT) witnessing substantial increases. This financial growth underlines the company's expanding operations and profitability in its sector.

Objects of the Issue

The proceeds from the IPO are earmarked for several strategic initiatives, including:

1. Investment in IT Infrastructure.
2. Meeting Working Capital requirements.
3. General Corporate Purposes.
4. Covering the Issue Expenses.

IPO Review

Enser Communications operates in a competitive and fragmented communication services sector. The pricing of the IPO, based on FY24 earnings, suggests a fully priced valuation. However, the company's significant growth in revenue and PAT could present an appealing opportunity for well-informed investors or those with surplus cash looking for long-term investments in the BPM services sector.

FAQs for Enser Communications IPO

What is the Enser Communications IPO?

The Enser Communications IPO is a fixed price public offer aiming to raise Rs 16.17 crores through the issuance of 23.1 lakh shares, priced at ₹70 per share. It's an entirely fresh issue without any offer for sale component.
When did the Enser Communications IPO open and close for subscription?

The IPO opened for subscription on March 15, 2024, and closed on March 19, 2024.
What was the listing date for the Enser Communications IPO?

The shares were listed on the NSE SME platform on March 22, 2024.
What was the price of each share in the IPO?

Each share was priced at ₹70.
What was the minimum lot size for the IPO?

The minimum lot size for the IPO was 2000 shares.
What was the minimum investment required for retail investors?

Retail investors were required to invest a minimum of ₹140,000.
Who were the book running lead manager and the registrar for the IPO?

Fast Track Finsec Pvt Ltd served as the book running lead manager, and Skyline Financial Services Private Ltd was the registrar for the issue.
Who were the promoters of Enser Communications Limited?

The promoters include Mr. Harihara Subramanian Iyer, Mr. Rajnish Omprakash Sarna, Mrs. Gayatri Rajnish Sarna, and Mrs. Sindhu Saseedharan Nair.
How will the company use the funds raised from the IPO?

The proceeds will be utilized for investing in IT infrastructure, meeting working capital requirements, general corporate purposes, and covering the issue expenses.
How was the IPO subscription received by the public?

The IPO was subscribed 7.29 times over, with retail investors showing strong interest by subscribing 10.92 times.
What sectors does Enser Communications Limited serve?

The company provides Business Process Management (BPM) services across the insurance, e-commerce, education, and travel sectors, among others.
What kind of growth did Enser Communications Limited show in its financials?

As of the period ending September 30, 2023, the company showed a 53.63% increase in revenue and a 105.42% rise in profit after tax (PAT) compared to the previous financial year.
Where can I find more details about the IPO?

More detailed information can be found in the Enser Communications IPO Red Herring Prospectus (RHP) available on the SEBI website or through the book running lead manager's website.