Enser Communications coming with IPO to raise Rs 16.17 crore

Enser Communications 

• Enser Communications is coming out with an initial public offering (IPO) of 23,10,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 70 per equity share. 
• The issue will open for subscription on March 15, 2024 and will close on March 19, 2024.
• The shares will be listed on NSE SME Platform.
• The share is priced at 7.00 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Fast Track Finsec.
• Compliance Officer for the issue is Ms. Muskan.

Profile of the company

The company was incorporated with the main objects to carry on activities in the communications field with regards to call centers, outsourcing, database management, web services, information systems, software and hardware selling and maintenance & knowledge based projects in the communications field; and to carry on the activities in the field of trading, exporting, importing, processing, buying, selling, marketing of various types communication equipment’s or instruments or products or to provide facilitate of networking, mobiles services, computer programming, data processing, business outsourcing, e-commerce facilities, web site, portal, internet service units, systems analyzing and to provide services of establishing Management Information Systems, maintenance and applications, customer contract development resources, training and certification of any products and design and to provide training and education facilities for employees or to customers and others.

Enser Communications was established and commenced its business in May 2008, Enser is in the business of the ‘Business Process Management Platform’. Enser’s BPM technology enabled platform that integrates with voice, chat, email, IVRS, and other social media engagements for customer acquisition as well as customer service strategies, specializing in Client Interaction Management. Enser provides and facilitates to its clients, thereby fostering mutual growth. Enser’s comprehensive service offerings span across Business Analytics, Customer Relationship Management (CRM), Interactive Voice Response Systems (IVRS), and Customer Interaction Management solutions. Enser helps its clients manage their Customer Life cycle using its Business Process Management Platform. Enser facilitate rich consumer engagement and understanding by crafting end-to-end consumer interaction solutions that are flexible and customized to deliver for its client’s business objectives. The company take keen interest in its client's business context and conceptualize and implement a customer interaction program that will fit in with their objectives.

Proceed is being used for:

• Setting up of new service unit.
• Meeting out the Working Capital requirements of the Company.
• Meeting out the General Corporate Purposes.
• Meeting out the Issue Expenses.

Industry overview

The Indian Information Technology/ Software industry is a global powerhouse today, and its impact on India has been incomparable. It has contributed immensely in positioning the country as a preferred investment destination amongst global investors and creating hug job opportunities in India, as well as in the USA, Europe and other parts of the world. In the last decade, the industry has grown many folds in revenue terms, and relative share to India’s GDP is around 7.5 percent in FY2022-23. India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Indian IT/Software industry offers cost-effectiveness, great quality, high reliability, speedy deliveries and, above all, the use of state-of-the-art technologies globally. The Indian IT/ ITeS industry has a leading position globally and has been progressively contributing to the growth of exports and creation of employment opportunities. India’s IT-BPM industry (excluding e-commerce) is expected to grew by 7.9% to reach at $245 billion, including exports of $194 Billion in FY2022-23 (E). The IT/ITeS has also created large employment opportunities and is estimated to employ 5.4 million professionals, an addition of 2,90,000 people over FY 2021-2022 (E). Women employees account for 36% share in total industry employee base.

The IT staffing industry is a crucial part of the IT sector in India. It provides a platform for skilled professionals to find job opportunities in the field of technology. With the rise of new technologies such as artificial intelligence, machine learning, and blockchain, the demand for skilled IT professionals is expected to grow in the coming years. This demand will create significant opportunities for the IT staffing industry in India. In the next five years, the IT staffing industry in India is expected to witness significant growth. The industry is expected to grow at a CAGR of 10% during this period, driven by factors such as the rise of new technologies, increased demand for skilled IT professionals, and the growing reliance on data driven work. One of the significant drivers of growth in the IT staffing industry is the rise of new technologies. As organizations continue to adopt new technologies, they will require skilled professionals to implement and manage these technologies. 

Pros and strengths

Blue chip companies and Innovative customers: The company, dedicated to offering solutions for Customer Acquisition and Interaction Management, has forged strategic partnerships with an array of distinguished brands. These valued partnerships underscore its commitment to delivering excellence in customer acquisition and interaction management solutions. They enable it to leverage the expertise and reputation of renowned brands to enhance its services and provide even greater value to its clients. Its strategic alliances are a testament to its dedication to continually expand its reach and capabilities in the industry.

Customized IT Infrastructure and State of the art Management Information Systems: The company’s system is tailor-made to suit its specific needs, granting it a distinct advantage in the market. It boasts scalability, enabling it to efficiently manage high transaction volumes encompassing orders, customers, and products. Furthermore, it possesses the flexibility to adapt seamlessly to evolving business demands and furnishes real-time data to empower operational managers in making timely and precise decisions. This customized system not only enhances its competitive position but also ensures agility and informed decision-making within its organization.

Diverse Service Portfolio: The company has meticulously crafted an extensive array of services that adeptly cater to the evolving needs of its esteemed clients. Its service portfolio encompasses a wide spectrum, including Integrated Telephony Management, Customer Relationship Management, Sales Management, Order Booking Management, and IVR Solution Management and dynamic Client interaction Management solutions. Its all-encompassing suite of services empowers its clients to realize their business objectives efficiently. Furthermore, it positions it to not only expand its scope of work with existing clients but also to engage with a broader prospective client base. Its commitment to providing these comprehensive solutions underscores its dedication to client success and its eagerness to explore new avenues for growth in the ever-evolving landscape of business services. 

Risks and concerns

Depend on third parties for certain services: The company has majorly depended on the third-party suppliers for the services like the Power Backup, Internet and the telecommunication services which forms the major part of its business. Although, it has maintained stable relationships with these suppliers, it cannot assure that it would be able to source these services from alternative sources, at acceptable prices or at all. It expects it will continue to rely on such third-party providers as it expands its business. However, these third parties may undergo insolvency, file for bankruptcy, experience disruptions, provide lower quality service or increase the prices of their products or services for a number of reasons that are beyond its control. As a result, it cannot be certain that it will continue to receive satisfactory services or products on acceptable terms or at all.

Face substantial competition in BPM services business: The company faces significant competition from existing players and potential entrants in the BPM services business. It will face competition mainly from large vertically integrated and diversified companies as well as new companies. It competes with its competitor, in a variety of ways, including on cost, quality and speed of service, functionality, ease of use and performance of systems, the range of services offered to clients and technological innovation and reputation. Increased competition and fail to compete successfully, its business, financial condition and operations could result in price reductions, decreased sales, lower profit margins or losses in market share, any of which could have an adverse effect on its business, results of operations and financial condition.

Rely on third-party data centres and cloud computing providers: As the company grow and continue to add new third-party data centres and cloud computing providers and expand operations through its own and third-party data centres and cloud computing providers, it may move or transfer its data and its customers’ data. Despite precautions taken during this process, any unsuccessful data transfers may impair the delivery of its platform and products. Any damage to, or failure of, its systems, or those of its third-party data centres or cloud computing providers, could result in interruptions on its products platform or damage to, or loss or compromise of, its data and its customers’ data.

Outlook

Incorporated in 2008, Enser Communications offers Business Process Management (BPM) services to companies in the insurance, e-commerce, education and travel sectors. The company has 4 main business verticals: Customer Acquisition Services, Customer services, IT infrastructure management services and Data management services. The company’s primary focus encompasses industries such as Insurance, E- commerce, Edtech, Hospitality and Travel and among others, where it delivers tailor-made solutions to meet the unique requirements of its valued clients. It boasts of a specialized team of seasoned experts with extensive backgrounds in both management and telecommunications, affording it the capacity to operate proficiently across a spectrum of major regional languages.  On the concern side, the services the company provides to its clients require significant investment of resources and time by both its clients and the company. Its potential clients may require it to provide pilot studies to assess the feasibility of integrating with its systems. Besides, it requires a number of approvals, licenses, registrations and permits in ordinary course of its business. 

The company is coming out with an IPO of 23,10,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 70 per equity share to mobilize Rs 16.17 crore. On performance front, total income for the Financial Year 2022-23 stood at Rs 2590.97 lakh, whereas in Financial Year 2021- 22 it stood at Rs 1686.47 lakh representing an increase of 53.63%. The restated profit after tax for the Financial Year 2022-23 stood at Rs 160.06 lakh, whereas for the Financial Year 2021-22, it stood at 77.92 lakh, in line with the increase in scale of operations, increase in revenue. Meanwhile, the company plans to use its industry expertise, deep understanding of its target sectors, and strong client relationships to expand its current services and venture into new areas and industries. To achieve this, it will further develop its management teams embedded within client organizations, fostering closer ties and identifying fresh business prospects. It is looking to go behind new opportunities in technology that will help it increase not only the top line but double its bottom line numbers.