Focus Business Solutions Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹19

Listed On

14 Jul 2021

Listing Price

₹29.35 (+54.47%)

Current Price LIVE

₹29.35 (+54.47%)

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Lot Size Calculator

Application	Lots	Shares	Amount
Retail	2	12,000	₹2,28,000
HNI Min	3	18,000	₹3,42,000

For Focus Business Solutions Limited, financials are almost static, RoNW is 7.09%, P/E is around 28 for FY20 and if we annualise FY21 earnings, then PE is around 16. So issue looks fully priced as per FY21 earnings, but sudden rise in bottom line raises doubts. Performance of BRLM is average. So we give AVOID rating to this SME IPO.

As on Date	Combined (QIB + NII)	RII	Total
Shares Offered / Reserved	3,00,000	3,00,000	6,00,000
Day 1 30-06-21	2,34,000 (0.78)	4,08,000 (1.36)	6,42,000 (0.21)
Day 2 01-07-21	3,24,000 (1.08)	8,46,000 (2.82)	11,70,000 (0.39)
Day 3 02-07-21	3,24,000 (1.08)	12,90,000 (4.3)	16,14,000 (0.54)
Day 5 05-07-21	9,66,000 (3.22)	30,30,000 (10.1)	39,96,000 (1.33)

Incorporated in 2006, Focus Business Solutions Limited is engaged in the business of debt collection and recovery services for banks, financial institutions, and NBFCs. It takes strategic actions on delinquent accounts to recover overdue payments of loans, credit cards, and other credit facilities from customers. The company follows a smart retail collection administrative programme (RCAP) to recover overdue payment on personal loans, business loans, vehicle loans, loan against properties, 2-wheeler loan, SME loans, gold loans, and others. It further has a well-equipped call center with 64 workstations to take regular follow-ups from defaulters on the due payments. On the financial performance front, FBSL reported turnover/net profits (loss) of Rs. 10.23 cr./ 0.10 cr. (FY18), Rs. 15.15 cr./ 0.09 cr. (FY19) and Rs. 10.73 cr. / Rs. 0.11 cr. (FY20). For upto Q3 FY21, company has posted 7.99 Cr total income and 0.19 Cr net profit. So company has shown almost static results with improvement in bottom-line. But sudden rise in bottom-line in FY21 raises doubts. For the last three years, company has posted average EPS of Rs. 2.48 and RoNW of 16.25%. The issue is priced at a P/BV of 1.18 based on its NAVs of Rs. 16.06 post issue. As per FY20 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 28 and if we annualise FY21 earnings, then P/E is around 16. So issue looks fully priced. As per RHP, there is no listed peers. On BRLM's front Navigant Corporate Advisors Ltd. has handled 10 IPOs in last three fiscals. From 10 IPOs, 1 is opened below and remaining are opened above issue price. As of now from 10 IPOs, 4 are trading below and remaining are trading above issue price . ( As on 26.06.2021 ) For Focus Business Solutions Limited, financials are almost static, RoNW is 7.09%, P/E is around 28 for FY20 and if we annualise FY21 earnings, then PE is around 16. So issue looks fully priced as per FY21 earnings, but sudden rise in bottom line raises doubts. Performance of BRLM is average. So we give AVOID rating to this SME IPO.

Fresh Issue

1
)To meet the expenses of the issue (Rs
2
02 C
3
)General corporate purposes ( Rs
4
To part Finance working capital requirements of the company (Rs 0.65 Cr.)
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General corporate purposes ( Rs 0.30 Cr. )
6
All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
7
Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
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With entry barriers, SEBI wants only well informed investors to participate is such SME offer
9
With crazy recent listings, SME IPOs have started drawing attention of investors across the boar
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However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own ris
11
Above information is based on information available as on date coupled with market perception

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

💬 Community Discussion

9 Comments

K
KIRAN G. DOSHI 15 Jul 2021, 13:38

10 p.c. discount, one can buy at 20% discount for medium term investment
N
nikunj 12 Jul 2021, 10:31

kitna open hua
A
aj 11 Jul 2021, 07:53

sir site par nam hi nahi dikha raha he allotment ka
K
Kaushik 02 Jul 2021, 09:15

SME ipos are unpredictable even if company is good just take an example of sarveswar foods its no where now
M
Mr.PATEL 29 Jun 2021, 19:37

can I apply it for listing gain
M
Mr.PATEL 29 Jun 2021, 19:37

guruji plz tell about this ipo
M
Mr.PATEL 29 Jun 2021, 19:37

Hii
M
Mr.PATEL 28 Jun 2021, 22:01

@guruji plz tell us about this ipo and guide about this ipo
M
Mr.PATEL 28 Jun 2021, 22:00

should we apply this for listing gain ?

Period	Total Income	Total Expenses	Profit After Tax (PAT)
Q3 FY21	7.99	7.74	0.19
FY20	10.90	10.69	0.15
FY19	10.73	10.56	0.11
FY18	10.23	10.08	0.10

Open Date	Jun 30, 2021
Close Date	Jul 05, 2021
Allotment Date	Jul 09, 2021
Listing Date	Jul 14, 2021
Face Value	₹ 10 Per Equity Share
Issue Price	₹ 19 Per Equity Share
Issue Size	Fresh Issue of Up to 6,42,000 with aggregating up to Rs 1.22/- Cr
Retail Min Lot	1 Lot (6,000 Shares - ₹ 1,14,000)
Lead Manager	Navigant Corporate Advisors Limited

Focus Business Solutions Limited

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