Featured IPOs - Quess Corp Ltd

Quess Corp Ltd is a business services provider, established in 2007, that operates across four different verticals — 

• People services (including general and IT staffing) and logistics, 
• Global technology solutions, 
• Integrated facilities management and 
• Industrial asset management.

 Ajit Isaac, CEO and MD of Quess Corp, has built a business services supermarket to address to back-office needs of Indian companies which has performed well during its last 7 years of existence. Quess offers services across many sectors like F&B sector, skill development training, general staffing, HR solutions, engineering services, IT and ITES staffing, managing facilities, etc. The company was earlier known as IKYA Group.

Quess Corp Ltd has over the years pursued an aggressive inorganic growth strategy. Quess’s search for acquisitions began in 2009 with Avon, a facility management company. Since their acquisition, Avon’s revenues have grown 26 times to Rs 302 crore in FY2015. Its operating profit jumped 10 times in the same period to Rs 20.7 crore. 

In 2010 company acquired another IT staffing company called Magna Infotech . Magna’s turnover has almost tripled since it was bought by Quess Corp Ltd to Rs 545 crore and its operating profit has grown six times to Rs 63.7 crore.

In 2014, company made three aquisitions. In June 2014, it acquired Chennai-based industrial asset management firm Hofincons Infotech and Industrial Services Pvt. Ltd. In September, the company acquired the Canadian IT and engineering professional staffing firm Brainhunter Companies Llc. 

Then company had entered into an agreement with Fairfax Financial Holdings to buy a 49% stake in Fairfax’s subsidiary MFXchange Holdings Inc. Thomas Cook is a subsidiary of Fairfax.

Issue Detail of Quess Corp Ltd

• Issue Opens: Jun 29, 2016
• Issue Closes: Jul 1, 2016
• Issue Size: Equity Shares of Rs 10 aggregating up to Rs 400.00 Cr
• Face Value: Rs 10 Per Equity Share
• Issue Price: Rs. 310 - Rs. 317 Per Equity Share
• Market Lot: 45 Shares
• Minimum Order Quantity: 45 Shares
• Minimun Investment Amount: Rs.14265 on Upper Band
• Listing At: BSE, NSE 

 Quess Corp Ltd - Allotment Dates

• 28-Jun-16 – Participation by Anchor Investors
• 29-Jun-16 – Bid-Offer Opening Date
• 01-July-16 – Bid-Offer Closing Date
• 07-July-16 – Finalisation of Basis of Allotment
• 08-July-16 – Unblocking of Funds from ASBA Account
• 11-July-16 – Credit of Equity Shares to Demat Account
• 12-July-16 – Commencement of Trading on NSE/BSE

Objective of Issue
The company wants to raise around Rs 400 crore through the IPO by diluting a 10 percent stake in the company. If this happens, it will value Quess at Rs 4,000 crore. Company wants to use part of the money to retire some working capital debt and to create fund for further acquisitions.

Promoter’s Stake
Ajit Isaac and Thomas Cook (India) Ltd are the current promoters. Post-issue promoters stake will come down to 90% as they are planning to dilute 10% via IPO.

Financial Health of Quess Corp Ltd
The company closed the 15-month period ending March 2016 with revenues of Rs 2,573 crore and a net profit of Rs 68 crore, becoming the most profitable company in the Indian portfolio of Fairfax Financial Holdings, the investment firm led by Indian-origin Canadian investor Prem Watsa.

Between fiscal years of 2011 and 2015, Quess’s revenues have grown at a compound annual growth rate (CAGR) of 74.69 percent, with net profits at nearly 153 percent. In the fiscal year 2016, the company has so far clocked a turnover of Rs 1,535 crore and a net profit of Rs 35 crore.  Company is also the country’s largest player in IT staffing with over 1,300 clients across eight countries and 43 offices in India. 

Verdit
Betting on its promoter, Ajith Issac!!!. Go For it for a quick gain of 10-15%!!!.
You can read more about Ajth Issac here
Company Website here

Listing Gain/Loss
Watch this space. To be updated