Fourth Dimension Solutions - IPO

 

Fourth Dimension Solutions Ltd (FDSL) is an information technology (IT) infrastructure, technical support services and operations outsourcing company having CMMI level 5 accreditation. It provides value to its customers by innovation, accomplishment, trust and long-term relationship through  unique service portfolio and expertise. FDSL provides range of information technology and consultancy services, including infrastructure services, end user IT support, IT asset life cycle, and integrated solutions. FDSL enables large and medium enterprises, Government organization and institutes to reduce their total cost of ownership using an onsite and on-call services, deliver strategic, personalized, full-service Technical Support services solutions with quality, value and commitment to total customer satisfaction. Its service assignments are mostly tender based contracts awarded to us by Local/State/Central Government bodies. 

Company provides services in following sectors.
1. Project Consultancy.
2. IT- Products & Services.
3. Printing Solutions.
4. Document Management.

Company had successfully completed the Projects in Government, Corporate & Defense sectors.

It intends to use issue proceeds for working capital requirements.

On performance front, the company has posted average EPS of Rs. 74.15 and RoNW at 77.21% for last three fiscals. The company's consolidated profit for the year ended March 2015 stood at Rs. 13 crore against Rs 0.4 crore in previous year. Revenue during the same period increased significantly to Rs. 652.5 crore from rs. 136.6 crore.

For first six months of the current fiscal, it has earned net profit of Rs. 5.88 crore on a turnover of Rs. 320.83 crore. If we annualize these earnings and attribute to the post IPO equity then EPS will stand around Rs. 10.80 and thus asking price is at around 3 P/E against peers P/E ranging from 8 to 67.

IPO Details:

1.      Issue Type: Fixed Price Issue IPO

2.     Issue Size: 2,892,000 Equity Shares of Rs. 10

3.     Issue Size: Rs. 8.68 Crore

4.     Face Value: Rs. 10 Per Equity Share

5.     Issue Price: Rs. 30 Per Equity Share

6.     Market Lot: 4000 Shares

7.     Minimum Order Quantity: 4000 Shares

8.     Listing At: NSE SME

IPO Opening Date:

1.      Issue Opening date is: 30 Dec, 2015.

2.     Issue Closing Date is: 7 Jan, 2015.

Considering reasonable pricing of the IPO, investors may consider long term investment, as most of SME IPOs have given some rewards post listings in the process.