Network People Services Technologies Limited

Incorporated in 2013, The Company is a banking technology service provider (TSP) and is engaged in providing software and mobility solutions to banking and finance sector primarily focusing on mobile banking applications, digital transaction solutions such as and smart transaction solutions. The company is equipped to provide end-to-end services related to payment platforms including mobile banking solutions and is currently rendering company's services to Canara Bank, Syndicate Bank, Kerala Gramin Bank, IBM India Bank, IBM India Private Limited and Cosmos Co-operative Bank. The company is also engaged engaged in rendering software services consisting of designing , consulting, development, quality and manpower provisioning under software SDCL. With a mission to create the largest network of technology enabled merchants / users, The Company has developed a digital ecosystem for the cashless economy through company's flagship application named and styled as TimePay®. The company is also registered as Third-Party Application Provider (TPAP) facilitating UPI payment services through TimePay. On the financial performance front, Network reported turnover/net profits (loss) of Rs. 18 cr./ 1.34 cr. (FY19), Rs. 15.24 cr./ 1.04 cr. (FY20) and Rs. 15.38 cr. / Rs. 1.06 cr. (FY21). So company has shown almost static financials. For the last three years, company has posted average EPS of Rs. 2.45 and RoNW of 18.94%. The issue is priced at a P/BV of 5.37 based on its NAVs of Rs. 14.89 as on 31.03.21. As per FY21 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 49. Comparison between listed peers is shown in above table. On BRLM's front, there are two BRLM are associated with this SME IPO, and have handled 3 IPOs in last three fiscals. From 3 IPOs, all are opened above issue price. As of now from 3 IPOs, 2 is trading below and 1 is trading above issue price . ( As on 24.07.21 ) For Network People Services Technologies Limited, financials are average, RoNW is 15.81%, P/E is around 49 for FY21. So issue looks aggressively priced. Sector in which company is operating, is very lucrative and if company may implement all plans properly, then we may see good value unlocking as digital transactions going to increase in multifold in coming years. Performance of BRLM is bad. So we give NEUTRAL rating to this SME IPO.

• 1 Deepak chand Thakur
• 2 Ashish Agarwal
• 3 Savita Vashist