NSB BPO Solutions
- NSB BPO Solutions is coming out with an initial public offering (IPO) of 53,00,000 equity shares in a price band of Rs 140-147 per equity share.
- The issue will open on September 23, 2025 and will close on September 25, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 14.00 times of its face value on the lower side and 14.70 times on the higher side.
- Book running lead manager to the issue is Inventure Merchant Banker Services.
- Compliance Officer for the issue is Anjali Shukla.
Profile of the company
NSB BPO Solutions is engaged in the business of providing Business Process Outsourcing (BPO) services specializing in the area of support services solutions. It provides wide range of support services such as Customer Care and Customer help line Call Centre for clients, Tele-sales, Tele collections, Digitization of documents, Processing of application and KYC forms, warehousing and archival, Payroll management, etc. The company provides efficient and accurate services which is core value of the organization. Its focus is on achieving delivery standards and providing quality solutions using the latest technology and industry best practices. With a team of skilled professionals, it offers a diverse range of services to support various aspects of its clients' business operations for an ultimate end to end business solutions for need of the client business.
The company to achieve the delivery standards and providing the quality solutions using the latest technology like Artificial Intelligence, Speech Analytics, Data Analytics and such other technological tools, the company offers its services to its clients, with a team of trained professionals, so that all the delivery parameters and agreed terms of Service Level Agreement are met to the satisfaction of the client. The company provide continuous learning and development for its employees to ensure they possess the necessary knowledge to meet evolving client demands. Regular training sessions and upskilling programs equip its staff with the latest industry trends and best practices, enabling them to deliver superior services.
The company currently operates solely within the boundaries of India and does not have any business activities, subsidiaries, or operations in foreign countries. The company's focus remains on its domestic operations, ensuring efficient service delivery and customer satisfaction within the Indian market. The company maintains well-defined and established business agreements with all of its clients. These agreements outline the terms, scope, and responsibilities of both the company and its clients, ensuring clear expectations and a harmonious working relationship. Besides, providing Business Process Outsourcing (BPO) services to its clients, the company also involved in trading activity of FMCG and staples goods like Pulses, Sugar, Rice, dry fruits, fruits and vegetables etc. Due to its presence in various parts of the Country, it has geographical advantage in procurement of some FMCG and Staple items at an economical price and the same is supplied to various retailers as a B2B sales.
Proceed is being used for:
- Re-payment/pre-payment, in full or in part, of certain borrowings availed by the company
- Funding capital expenditure for new project
- Additional working capital requirements for its existing business
- Long-term working capital requirements for its new project
- General corporate purposes
Industry Overview
The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025. The Indian IT industry’s revenue touched $227 billion in FY22, a 15.5% YoY growth. IT spending in India is expected to increase to $101.8 billion in 2022 from an estimated $81.89 billion in 2021. Indian software product industry is expected to reach $100 billion by 2025. Indian companies are focusing on investing internationally to expand their global footprint and enhance their global delivery centres. The data annotation market in India stood at $250 million in FY20, of which the US market contributed 60% to the overall value. The market is expected to reach $7 billion by 2030 due to accelerated domestic demand for AI.
Exports from the Indian IT industry stood at $149 billion in FY21. Export of IT services has been the major contributor, accounting for more than 51% of total IT export (including hardware). BPM and engineering and R&D (ER&D) and software products export accounted for 20.78% each to total IT exports during FY21. The ER&D market is expected to grow to $42 billion by 2022. The IT industry added 4.45 lakh new employees in FY22, bringing the total employment in the sector to 50 lakh employees.
India is the topmost offshoring 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. The Indian IT & business services industry is expected to grow to $19.93 billion by 2025. Spending on information technology in India is expected to reach $144 billion in 2023. By 2026, widespread cloud utilisation can provide employment opportunities to 14 million people and add $380 billion to India's GDP. As per a survey by Amazon Web Services (2021), India is expected to have nine times more digitally skilled workers by 2025.
Pros and strengths
Quality service: The company provides quality and timely service to its customers. It has a set of standards for itself when it comes to timeliness and quality of services that it provides to its customers. The stringent systems ensure that all the services that it provides reach its customers on stipulated time and there are minimum errors to ensure reduced rejection. The company’s quality service for almost 20 years has earned it a goodwill from its customers, which has resulted in customer retention and order repetition. It has also helped it to add to its existing customer base. The company focuses on maintaining the level of consistently in its service, thereby building customer loyalty for its Brand.
Client satisfaction and relationship: The company has earned reputation based upon which it has been successful in retaining its reputed customers. It constantly tries to address customer needs around services offered by it in field of back office processing, Call Centre and Payroll Management. Its existing customer relationships help it to get repeat business from its customers. This has helped the company to maintain customer satisfaction and long-term working relationship with its customers. The company’s existing relationship with its customers represents a competitive advantage in gaining new customers and increasing its business.
Diversified customer base and revenue sources: The company serves a diverse mix of end markets across several industry sectors such as BFSI, Insurance, Education, Travel & Hospitality, Healthcare, Government Business, Food & Beverages, Retails, E-Commerce & Logistics etc. In its business, it serves a number of customers with variety of services such as back office processing, Call Centre and Payroll Management. Since it caters to a diverse customer base, across industry having start up to mid-scale organisation to large scale giants, it has been able to maintain a growth track and with this strong launch pad the company can maintain its growth track record.
Risks and concerns
Maximum revenue comes from few customers: The company’s top five/ ten customers contribute to a substantial portion of its revenues from operations. The company has garnered 65.12%, 63.25% and 29.55% of its revenue from top 10 customers in FY25, FY24 and FY23 respectively. Any decline in its quality standards, growing competition and any change in the demand for its service by these customers may adversely affect its ability to retain them. It cannot assure that it shall generate the same quantum of business, or any business at all, from these customers, and loss of business from one or more of them may adversely affect its revenues and profitability.
Geographical constrain: The company provides services and sells its good only within India, specifically in two states, i.e. Madhya Pradesh and Uttar Pradesh. The company has garnered 82.07%, 71.35% and 83.54% of its revenue from Sale of Services (IT BPO Business) in Madhya Pradesh and Uttar Pradesh in FY25, FY24 and FY23 respectively. Any downturn and/ or any economic, regulatory, social and political change in any of these states in which it operates or seeks to operate may affect its market share and/ or may adversely affect its business, financial condition and results of operations.
Dependent upon few suppliers for the material requirements: The company’s top 10 suppliers together on basis of restated consolidated financial statement represented 46.12%, 40.51% and 30.59% respectively, of its other operating expenses including material purchases financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Further, it does not have definitive agreements or fixed terms of trade with most of its suppliers. Failure to successfully leverage its relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.
Outlook
NSB BPO Solutions Limited is a Business Process Outsourcing (BPO) company. The company specializes in support services, including customer care, telesales, tele-collections, document digitization, application processing, KYC form processing, warehousing, archival, and payroll management. The company has diversified customer base and revenue sources. On the concern side, the company derives a significant portion of its revenue from its IT BPO business. Therefore, factors that adversely affect the demand for such IT BPO services or its position and reputation as a provider of such IT BPO services may adversely affect its business and results of operations. Moreover, a significant portion of the company’s revenue is derived from Madhya Pradesh and Uttar Pradesh. Any downturn and/ or any economic, regulatory, social and political change in any of these states in which it operates or seeks to operate may affect its market share and/ or may adversely affect its business, financial condition and results of operations.
The company is coming out with a maiden IPO of 53,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 140-147 per equity share. The aggregate size of the offer is around Rs 74.20 crore to Rs 77.91 crore based on lower and upper price band respectively. On performance front, the revenue from operations for the FY 2025 is Rs 13,811.95 lakh as compared to Rs 12,802.73 lakh during the FY2024 showing an increase of 7.88%. The company has reported 64.04% rise in PAT at Rs 1104.68 lakh in FY25 as compared to Rs 673.43 lakh in FY24.
Expanding its customer base is a strategic priority and the company is focused on reaching clients across India and beyond. Its marketing efforts are tailored to target specific regions and industries with high demand for its services. Collaborations with local organizations and strategic alliances play a vital role in establishing its presence in new markets. It also intends to explore acquisition of businesses, entering into joint ventures in new geographies / verticals where considerable business opportunities would be available to grow it business strategic acquisitions targeted to increase product / services portfolio and penetrate newer markets will be the focus of the company going forward. By consistently following these strategies, it is confident in its ability to expand its services, attract new clients, and cultivate enduring business relationships that drive sustainable growth.
