Credent Connect IPO

About this issue

Credent Connect is an SME issue priced at ₹189 a share. One lot is 600 shares, which costs ₹1,13,400. The book is 5.22 times subscribed overall. The grey market premium is +₹75 (+39.7%), which is an informal figure and not a quoted price. Our call is Risky, on 67% of our checks.

Segment

SME

Price

₹189

Lot size

600 shares

One lot costs

₹1,13,400

Issue size

₹89 Cr

Grey market premium

+₹75 (+39.7%)

Subscribed

5.22x

Our call

Risky

What we checked

• Profitable in the latest yearPAT ₹2.25 Cr
• Profit grew year on yearPAT -15%
• Revenue grew year on yearRevenue +3%
• Margin not collapsingPAT margin 2.9% vs 8.6%
• Borrowing under half of net worthDebt/net worth 0.47
• Return on net worth above 15%RoNW 14.1%
• Post-issue P/E under 40P/E 18.7
• Price to book under 6P/B 12.1
• Majority is fresh capital100% fresh issue
• Promoters keep at least half63.8% held post-issue
• Anchor investors participatedAnchor book placed
• Institutions subscribed over 10×QIB 4.5× subscribed
• Overall book more than 10× covered5.2× overall
• Institutions wanted it more than retailQIB 4.5× vs retail 6.5×
• Lead manager above segment medianHem Securities Ltd.: 93 past issues, +41% avg vs +8% segment median