About Company’s Business:
The company, established in 2011, operates within the business-to-business-to-customer (B2B2C) segment, engaging with both its customers, primarily businesses, and end users, which are employees. It stands out in this domain as one of the select few entities offering a diverse range of fintech products and services. This includes a substantial portfolio of prepaid cards issued in collaboration with select banking partners, accounting for roughly 16.0% of India’s total prepaid transaction volume as of March 31, 2023. Additionally, the company boasts an array of Software as a Service (SaaS) solutions, encompassing tax and payroll software, and a widespread reach across various touchpoints, as attested by the Frost & Sullivan Report. The company has a strong presence in spend management, with over 50 million prepaid cards issued in partnership with banking institutions and serving more than 2.27 million users as of March 31, 2023. The company’s unique value proposition and diversified user base are highlighted in the Frost & Sullivan Report.
About the Industry:
In the broader industry context, India’s fintech ecosystem has experienced rapid growth, and market revenue is anticipated to reach an estimated ₹8,341.0 billion by Fiscal 2027. This growth is attributed to supportive government policies promoting a cashless society and increasing investments. India leads the global fintech adoption rate, registering 87.0% in Fiscal 2023, surpassing other countries. The country is also witnessing the world’s fastest-growing digital payments industry, with a remarkable five-fold surge in contactless payments from 2016 to 2021. Furthermore, the number of businesses accepting contactless payments has grown six-fold between 2018 and 2021. In Fiscal 2022, the Unified Payments Interface (UPI) was projected to account for 86.0% of all consumer payments, with digital payments from consumers to merchants expected to witness a staggering 1,575.0% growth. India’s digital payments industry is slated for a compound annual growth rate (CAGR) of approximately 22.0% from 2023 to 2027. The overall market for spend management software and services, including procurement management, expense management, and payroll management (both in-house and outsourced), was forecasted to exceed ₹200 billion by Fiscal 2027, with outsourced spend management comprising around 60.0% of the market during that period, according to the Frost & Sullivan Report.
Key Financial Information:
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| (A) Equity Share Capital (â‚ą million) | 92.22 | 1.80 | 1.80 |
| (B) Net Worth (â‚ą million) | 487.51 | (35.58) | (455.51) |
| (C) Revenue from Operations (â‚ą million) | 5,534.60 | 3,712.55 | 2,399.66 |
| (D) Restated Profit After Tax for the Year (â‚ą million) | 229.01 | 419.21 | 193.30 |
| (E) Basic Earnings Per Share(2) (â‚ą) | 2.48 | 4.57 | 2.11 |
| (F) Diluted Earnings Per Share(2) (â‚ą) | 2.46 | 4.57 | 2.11 |
| (G) NAV per Equity Share (â‚ą) | 5.29 | (0.39) | (4.94) |
| (H) Total Borrowings(1) (â‚ą million) | 1,210.73 | 644.72 | 690.84 |
Note: Values are in millions (â‚ą million) except for Basic and Diluted Earnings Per Share (â‚ą).
Objective of the Issue:
- Expenditure towards Customer acquisition and retention
- Expenditure towards development of technology and products
- Repayment/ pre-payment of certain borrowings, in full or part, availed by our Company
- General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Thursday, September 14, 2023 |
| Close Date | Monday, September 18, 2023 |
| Issue Size | â‚ą563.38 crores |
| Price | â‚ą156 to â‚ą164 per share |
| Lot Size | 90 Shares |
| Basis of Allotment | Friday, September 22, 2023 |
| Initiation of Refunds | Monday, September 25, 2023 |
| Credit of Shares to Demat | Tuesday, September 26, 2023 |
| Listing Date | Wednesday, September 27, 2023 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
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