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24 August 2023

Vinsys IT Services India Limited IPO: Empowering IT Skill Development and Training

Introduction:

Founded in 2008, Vinsys IT Services India Limited is a notable player in the IT skill development, training, and certification domain. As part of the Vinsys Group, the company focuses on providing a wide range of services to enhance IT expertise and foster workforce development. With a diverse portfolio of offerings and a strong presence across multiple geographies, Vinsys IT Services is committed to empowering individuals and organisations in the IT sector.

Diverse Service Offerings:

Vinsys IT Services offers a comprehensive suite of services, including:

1. Training and Certification: The company provides training programs and certification courses aimed at equipping individuals with valuable IT skills and knowledge.
2. IT Development Services: Vinsys IT Services delivers IT development solutions that cater to the evolving needs of businesses and organizations.
3. Digital Learning: The company offers digital learning platforms and tools to facilitate convenient and efficient skill enhancement.
4. Project Management: Vinsys IT Services specializes in project management training, enabling professionals to excel in managing complex IT projects.
5. Technology Training: The company covers a wide array of technology training areas, helping individuals stay updated with the latest trends and advancements.

Global Footprint and Accreditation:

Vinsys IT Services is part of the Vinsys Group, which comprises multiple entities operating in India, the USA, and Middle Eastern countries. The company holds ISO 9001:2015 certification, reflecting its commitment to delivering high-quality training and development services. Vinsys IT Services is also associated with renowned entities like Skillsoft, CompTIA, Oracle, PECB, EC-Council, AWS, Microsoft, and others, reinforcing its credibility and expertise in the industry.

Vinsys IT Services IPO Highlights:

The upcoming Vinsys IT Services IPO is a Book Built Issue with a total issue size of Rs 49.84 Crores. The IPO price range is set between ₹121 to ₹128 per share, and the listing is planned on the NSE SME platform. The IPO subscription period spans from August 1, 2023, to August 4, 2023.

IPO Details at a Glance:

IPO Open Date	1-Aug-2023
IPO Close Date	Aug 4, 2023
Face Value	₹10 per share
Price	₹121 to ₹128 per share
Lot Size	1000 Shares
Total Issue Size	3,894,000 shares
Fresh Issue	3,894,000 shares
Issue Type	Book Built Issue IPO
Listing At	NSE SME

Promoter Holding:

The company's promoters, Mr. Vikrant Shivajirao Patil and Mrs. Vinaya Vikrant Patil, are committed to driving Vinsys IT Services' growth and success. The pre-issue shareholding stands at 92.74%, which is expected to decrease to 68.13% post the IPO.

Financial Performance

Financial Information (Restated Consolidated):

Period Ended	31-Mar-2021 to 31-Mar-2023
Total Assets	₹2,739.97 Crores to ₹7,293.60 Crores
Total Revenue	₹2,041.04 Crores to ₹9,632.25 Crores
Profit After Tax	₹34.78 Crores to ₹1,501.38 Crores
Net Worth	₹773.51 Crores to ₹2,472.51 Crores
Total Borrowing	₹1,427.08 Crores to ₹2,310.80 Crores

Key Performance Indicators

P/E (x)	12.51
Market Cap	₹187.88 Cr.
ROE	94.17%
ROCE	51.46%
Debt/Equity	0.93
EPS (Rs)	15.01
RoNW	60.72%

Use of Proceeds:

The net proceeds from the IPO will be utilized for various purposes, including meeting working capital requirements, providing loans to subsidiaries, general corporate purposes, and covering public issue expenses.

Vinsys IT Services IPO Review:

The company's emphasis on IT skill development is commendable. However, the sudden surge in financial performance for FY23 raises concerns about its sustainability. Investors should carefully assess the competitive landscape and the potential for sustained growth. The IPO is reasonably priced based on recent earnings, making it suitable for well-informed investors with a medium-term perspective.

IPO Subscription Status (as of Aug 4, 2023):

The Vinsys IT Services IPO is witnessing robust demand, with a subscription of 44.52 times. Retail subscriptions lead at 72.42 times, NII at 28.42 times, and QIB at 7.80 times.

Conclusion:

The Vinsys IT Services India Limited IPO offers investors an opportunity to be part of a company focused on enhancing IT skills and knowledge. While the company's credentials and offerings are impressive, investors should carefully evaluate its financial performance and competitive dynamics before making an investment decision. The IPO's strong subscription indicates significant market interest, underlining the potential for growth in the IT training and certification sector.