IPO Details
Bidding Dates
14 Jul '23 - 18 Jul '23
Minimum Investment
₹134,000 / 1 Lots (2000 Shares)
Price Range
₹63 - ₹67
Maximum Investment
₹134,000 / 1 Lots (2000 Shares)
Retail Discount
Not Applicable
Issue Size
₹20.68 Cr
Investor category and sub category
Qualified Institutional Buyers | Non-Institutional Investors | Retail Individual Investors |IPO Dates
Important dates with respect to IPO allotment and listing
IPO Opening Date
Jul 14, 2023
IPO Closing Date
Jul 18, 2023
Basis of Allotment
Jul 21, 2023
Initiation of Refunds
Jul 24, 2023
Credit of Shares to Demat Account
Jul 25, 2023
IPO Listing Date
Jul 26, 2023
UPI Mandate Expiry Date
Jul 18, 2023
IPO Subscription Details
| Date | QIB | NII | Retail | Total |
|---|---|---|---|---|
Day 1Jul 14, 2023 |
1.00 | 0.58 | 0.60 | 0.63 |
Day 2Jul 17, 2023 |
2.03 | 0.80 | 2.58 | 1.72 |
IPO Subscription Status Live
| Investor Category | Subscription (Times) |
|---|---|
| Qualified Institutions Buyers | 2.03 |
| Non-Institutional Buyers | 0.80 |
| Retail Investors | 2.58 |
| Total | 1.72 |
About Company
Service Care Ltd is a B2B business that offers administration services for developing both the workforce and workspace of its client companies across business domains. Workspace administration services cover the work of the physical facility. Workforce Administration services cover all kinds of staffing solutions and payroll management. It is a part of the growing service sector of India - but its offerings include a very wide range of services, including both digital and physical services.
They currently service clients from Manufacturing, Engineering, Infrastructure, Information Technology, Government & Banking, healthcare, Staffing & Recruitment, Food, Education, FMCG etc. However, Larsen and Toubro is their largest client and controls a huge majority of its revenue.
The staffing industry is their main revenue source and it has grown year-on-year. It holds promise in a future where employees change jobs more frequently than before. However, the company also expects facility management, as an industry in India, to grow by 14.84% per year to over 97 billion USD. They also expect more and more corporates to realise that it is better to outsource this service and focus on key operations only.
The company has experience of over 23 years in this domain. Hence they have a level of creditability in the market and with their partners, built over a long period of time. It was incorporated in 2011 and currently has over 5,800 employees (including contractual ones).
Service Care Ltd IPO Details
Service Care is a 100% fresh issue IPO comprising 30,86,000 shares. It is a book-building issue with a price range of Rs 63 to Rs 67 per share. Retail investors can bid for the Service Care IPO that will open on July 14th 2023. The IPO will list on the NSE exchange on July 26th 2023.
Service Care Ltd IPO Objectives
The objectives of Service Care Ltd IPO are listed below:
- To meet working capital requirements worth Rs 15 crores.
- Cover expenses related to general corporate purposes.
- Cover public issue-related expenses amounting to Rs 3.07 crores.
Peer Details
The competitors of Service Care Ltd include other companies which offer business services, such as Staffing Solutions, IT Staffing, Search and Recruitment, Skilling & Learning Solutions and International Skill Mobility services. Companies declared by Service Care Ltd itself as its competitors include -
- Quess Corp Limited
- IT Con E-Solutions Limited
- Integrated Personnel Services
Highlights of Service Care Ltd
- The main constituent of its total expenditure is ‘Employee Benefit Expenses’ which was Rs 12,576.34 Lakhs, i.e. almost 95.15% of the total revenue (Rs 13217.29 lakhs).
- The Restated Profit After Tax for the period April 01, 2022 to January 31st, 2023, was Rs 3.02 crores, only 2.29% of Total Revenue.
- As of January 31st 2023, Larsen & Toubro Ltd contributed a whopping 74.89% of their business as a client. The next biggest client was L&T Geostructure Pvt Ltd, covering 7.1% of the business.
- Its competition, Quess Corp. had total revenues of Rs 11,2933 lakhs and Rs 44,3680 lakhs for the quarter and year ended 31 March 2023 respectively.
Company Financials
| Particulars | Period Ending on 31st Jan’23 (Rs. lakhs) | Year ending on 31st Mar’22 (Rs. lakhs) | Year ending on 31st Mar’21 (Rs. lakhs) |
|---|---|---|---|
| Total Revenue | 13,217.29 | 11,501.64 | 8,933.38 |
| Profit After Tax (PAT) | 302.34 | 174.48 | 23.46 |
| Net Worth | 1,134.66 | 632.32 | 457.84 |
| Total Borrowings | 341.47 | 314.56 |
Know before investing
Strengths
3-
Their biggest strength is their long-standing credibility in the market, which can help them build a better brand. They also have ample experience in this domain. This gives them a competitive edge over others in terms of both sourcing clients as well as satisfying their needs.
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They have been giving adequate importance to adopting technology. They recognise the utility of the Internet of Things (IoT) as well as data analytics in the future of the facility management industry.
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They have been lately working with a more varied group of clients, albeit at a low scale, thus opening up their prospects in multiple industries.
Risks
3-
Their revenues are concentrated on a handful of clients, especially L&T. The revenue is also concentrated service-wise to manpower services, taking up over 85% of its revenue regularly. Moreover, around 70% of its income comes from the top 6 states where it operates in India.
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The industry that they are in is highly fragmented and has very low barriers to entry. Therefore their revenue and their key employees can be poached by other new or old competitors. Reduced quality of employees may affect performance. Their own clients may leave them without cause or much penalty.
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Manpower services as an industry is well-regulated. This exposes the company to claims and legal tussles with multiple recruits over disagreements.
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Service Care Ltd IPO FAQs
The Service Care Ltd IPO contains 100% fresh IPO worth almost Rs 20 crores. The issue comprises 30,86,000 shares and is priced at Rs 63 to Rs 67 per share. The listing will happen on July 26th 2023.
The Basis of Allotment will happen on Friday, July 21st 2023.
The IPO subscription window will open on Friday, July 14th 2023.
Retail investors can apply for a minimum of one lot, which consists of 2000 shares.
Service Care Ltd IPO will list on the NSE exchange on July 26th 2023.
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Validate with an OTP
- Enter your application number, DP ID, and PAN number into the app
- Click on ‘Submit’
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange, which is July 26th 2023, for Service Care Ltd.
Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
