Cogent E-Services IPO Details

About Cogent E-Services IPO

Cogent E-Services Limited has received approval for IPO from the Securities and Exchange Board of India (SEBI). The company filed for IPO on 9 February 2022, and SEBI issued the observation letter on 23 May 2022.

  • As per the Draft Red Herring Prospectus (DRHP) filed by Cogent E-Services Limited with SEBI, The IPO comprises a fresh issue of equity shares aggregating up to ₹150 crores and an Offer For Sale (OFS) of equity shares up to 9,468,297 shares.
  • Cogent E-Services may also consider a private placement of equity shares aggregating up to Rs 30 crore. If such pre-IPO placement is undertaken, the fresh issue size will be reduced.
  • The face value of the Equity Shares is ₹2.

For OFS, shareholders Abhinav Singh, Arunabh Singh, Gaurav Abrol and Pranjal Kumar will be selling 1,539,318 equity shares each. Boomerang Technology LLP will be selling 1,839,418 equity shares and TSSR Technology LLP will be selling 1,471,607 equity shares.

Objective of the Issue

Cogent E-Services Limited will utilise ₹35 crores to fund investment in existing IT assets and its expansion. It would utilise ₹75 crores for working capital requirements and rest of the amount for general corporate purposes.

  • Funding investment in IT assets for expansion and existing IT infrastructure of our Company
  • Support working capital requirements
  • General corporate purposes

About Company

Cogent is an end-to-end omnichannel customer experience solutions provider. That enables businesses and brands to connect with their end customers and transform CX across all their touchpoints and channels, to improve business outcomes and performance.

It offers omnichannel solutions for a variety of touchpoints along the customer interaction value chain from customer sales and supports through voice and non-voice channels, back office solutions and transformative services and digital marketing.  The company’s clients are diversified across more than 10 industry verticals, including banking and financial services and e-commerce.

Strength

  • experienced management team.
  • One stop shop CX solutions provider with omnichannel capabilities providing customized solutions to their clients.
  • Integration across geographies and sites reduces time to market.

Weakness

  • Operates in a highly competitive environment. and any failure to compete effectively against current and future competitors could adversely affect our revenue and profitability.
  •  Revenues are dependent on a limited number of industry verticals, and any decrease in demand for services in these industry verticals could reduce the revenues
  • The Company do not have binding long-term agreements with their clients. Their client may terminate contracts before completion and without cause or may choose not
    to renew contracts.
  • Retaining and recruiting employees: To provide services to its clients, the company depends significantly on their ability to recruit, train and retain its employees. (The Great Resignation may be an issue- A company has to fight  to keep employees engaged, happy and present)

Financial

FAQ

Q. Industry Peer Group P/E ratio

There are no listed companies in India that engage in a similar business as Cogent E-Services. Accordingly, it is not possible to provide an industry P/E ratio.