Ksolves India IPO - Grey Market, GMP & Reviews

IPO Details

Issue Date 23/06 - 26/06
Issue Size ₹4.02 Cr
Issue Price ₹100
Market Lot 1200 Shares
Shares on Offer 402,000
Kostak N/A
Subject to Sauda N/A
Listing Date 05 Aug 2020
Listing Price ₹102.05
Listing Gain% 2.05

About Ksolves India Ltd

KSOLVES are passionate about new technologies and our developers crave innovation. Ode to the success of the company, Ksolves has its own story to narrate as our journey began with a handful of developers who continued to bulk up into a squad of professionals with vast experience in creating app and development solutions. With the potential to imagine and conceptualize a billion-dollar idea, our hand-picked coders think beyond everyone's imagination with an ultimate mastery in leading-edge IT technologies.

Their mission, at Ksolves has always been to be creative and productive. We strive to offer the best solutions for your unique requirements – enabling business growth, transformation, profitability and – Business Continuity.

They have always delivered a solution that not just transforms an idea but also scales it to an all-new level for the businesses.

They have always delivered a solution that not just transforms an idea but also scales it to an all-new level for the businesses.

They consider customer's problems as their problems. They won’t rest unless we find the best solution to your problems

They value their customers and hence, always stay by our words. We make sure to follow our commitments.

Employee Satisfaction is their great asset. They love their employees, support them in their needs and operate without hierarchy.

They are hungry for opportunities to SOLVE technological problems of both existing and potential clients.

They are consistent, fair, honest and always do what is right. We follow a culture internally and externally that incorporates transparency.

They protect the confidentiality of every information to which we have access in our business, in accordance with applicable contractual agreements.

Incorporated in 2014, Ksolves India Ltd is a software services and product company. It is engaged in providing enterprise solutions, software development, consulting, and Information Technology solutions for clients. The company works for different sectors such as Healthcare, Telecom, E-commerce, Real Estate, and Finance.

It provides digital solutions to client organizations to develop powerful applications, maintain software systems, and enhance the functionality of the software as per the business requirements. The applications created by the company include automation of routine business functions to make them accurate, faster, and easier and increase the channels for better functioning.

Ksolves has acquired Kartik Solutions Private Limited in 2019 and it has become the wholly-owned subsidiary of the company. Kartik Solutions provides IT and IT-enabled services including web, mobile, cloud, and e-commerce solutions.

The company along with its subsidiary has a presence over 30 countries and major sales (80%) from North America.

Company Promoters

Mr. Ratan Kumar Srivastava & Mrs. Deepali Verma are the promoters of the company.

Issue Details

To part finance its needs for working capital (Rs. 2.80 cr.) and general corpus fund needs (Rs. 0.82 cr.), KIL is coming out with a maiden IPO of 402000 shares of Rs. 10 each at a fixed price of Rs. 100 per share to mobilize Rs. 4.02 cr. The issue opens for subscription on 23.06.20 and will close on 26.06.20. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue constitutes 27.13% of the post issue paid-up capital of the company.

The issue is solely lead managed by Shreni Shares Pvt. Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Shreni Shares Pvt. Ltd. is also acting as a market maker for this IPO. KIL is spending Rs. 0.40 cr. for this IPO process. From the issue expenses point of view, this issue is fully structured with funding arrangements.

Post issue KIL's current paid-up equity capital of Rs. 1.08 cr. will stand enhanced to Rs. 1.48 cr. It mulls a market cap of Rs. 14.82 cr. post this issue.

Having issued initial equity at par, KIL has also issued rights equity shares at a fixed price of Rs. 101 per share in the ratio of 5 for 1 in April 2020 and has also issued bonus shares in the ratio of 8 for 1 in the same month. The average cost of acquisition of shares by the promoters is Rs. 9.78 per share.

Financia Performance

On the financial performance front, for the last three fiscals, KIL has on a standalone basis reported turnover/net profits of Rs. 3.41 cr. / Rs. 0.06 cr. (FY18), Rs. 5.43 cr. / Rs. 0.16 cr. (FY19) and Rs. 8.15 cr. / Rs. 0.67 cr. (FY20).

On a consolidated basis, KIL has earned a net profit of Rs. 0.68 cr. on a turnover of Rs. 10.14 cr. for the financial year 2019-20. For the last three fiscals, KIL has posted an average EPS of Rs. 8.16 and an average RoNW of 69.90% (on a weighted average basis).

The issue is priced at a P/BV of around 0.23 based on its NAV of Rs. 433.95 (Rs. 437.95 on a consolidated basis) as on 31.03.2020 and at a P/BV of around 3.03 on the basis of post-issue NAV of Rs. 32.98 (Rs. 33.04 on a consolidated basis). If we consider the latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of 21.8 making it aggressively priced offer. KIL has declared dividend at 778.9%for the financial year 2018-19.


As per offer documents, KIL has shown Dev Information Techno and Innovana Thinklabs as its listed peers that are currently trading at a P/Es of around 8.91 and 10.14 (as on 22.06.20). However, they are not strictly comparable on an apple to apple basis.

On merchant banker's front, this is the 2nd mandate from its stable in the last two fiscals including the ongoing one. The only listing that took place in FY 2019-20 opened at par to its offer price on the day of listing. Thus this lead managed has no impressive track records so far.

KIL's financial data is not in line with its asking price. With ongoing global scenario, it will be facing high competition and thus immediate future looks gloomy. Being aggressively priced IPO, investors may give it a miss.

Company Financials

Particulars 31-Mar-20 31-Mar-19 31-Mar-18
Total Assets (In ₹ Millions) 166.19 69.08 53.09
Total Revenue (In ₹ Millions) 814.51 542.62 340.85
Profit After Tax (PAT) (In ₹ Millions) 67.19 15.83 5.50

Ksolves India Ltd IPO Reviews

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Subscription Details

Date & Time QIB NII RII Total
Day 1 - 23 Jun 2020 0.79 0.00 0.40
Day 2 - 24 Jun 2020 1.94 0.15 0.90
Day 3 - 25 Jun 2020 2.20 0.33 1.26
Day 4 - 26 Jun 2020 2.22 0.62 1.42

Allotment Status

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IPO Allotment Status

Ksolves India Ltd IPO FAQs

  1. When will Ksolves India Ltd IPO open?

    Ksolves India Ltd IPO will open on 23/06 and close on 26/06.

  2. What is the listing date of Ksolves India Ltd IPO?

    Ksolves India Ltd IPO will list on 05 Aug 2020.

  3. What is the offer price of Ksolves India Ltd IPO?

    The offer price of Ksolves India Ltd IPO is ₹100.

  4. What is the lot size of Ksolves India Ltd IPO?

    The lot size of Ksolves India Ltd IPO is 1200.

  5. What is the Grey Market Premium (GMP) price of Ksolves India Ltd IPO?

    The Grey Market Premium (GMP) price of Ksolves India Ltd IPO is Not Available at the moment.

  6. What is the Kostak price of Ksolves India Ltd IPO?

    The Kostak price of Ksolves India Ltd IPO is Not Available at the moment.

  7. What is the Subject to Sauda price for Ksolves India Ltd IPO?

    The Subject to Sauda price for Ksolves India Ltd IPO is Not Available at the moment.

Ksolves India Ltd IPO Review/Comments

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