Cogent E-Services Limited IPO Company Profile :
Cogent E-Services Limited is an end-to-end omnichannel customer experience (“CX”) solutions provider that enables businesses and brands to connect with their end customers, transform CX across all their touchpoints and channels, and improve response times, business outcomes, and performance. The company has emerged as one of the most trusted and dependable service partners for its clients to redefine CX management (“CXM”) in the digital age. Leveraging on its insights on customer behavior and preferences across industry verticals derived from the analysis of data collected from customer interactions over the years, together with the industry and technology expertise, the company helps evaluate, customize and execute CX strategies and programs for the clients to address the client’s needs at all stages of their CX journey.
As of September 30, 2022, we were present in seven cities in India (being, Noida, Vadodara, Bengaluru, Mangaluru, Meerut, Bareilly, and Thane) and had 12,127 full-time equivalents (“FTE”) Employees and 9,337 seats located across 16 sites. Subsequent to September 30, 2022, we expanded to include two additional sites at Nashik and Anantapur bringing our total number of sites to 18 as on November 15, 2022.
Cogent E-Services Limited IPO key offerings can be broadly categorized as follow:
- Contact center services:
Cogent E-Services Limited’s contact centers are staffed with trained CSA to provide outbound and inbound services. The services include handling customer complaints and inquiries, business analytics, customer lifecycle management, partner support and upselling. As of September 30, 2021, the company was present in seven cities in India being, Noida, Vadodara, Bengaluru, Meerut, Mangaluru, Bareilly, and Thane.
- Customer experience management and back end services:
The services include non-voice services and technology solutions such as chatbot, email-based responses, smart interactive consulting, voice responses, and documentation and backend solutions such as transaction processing and quality check.
- E-commerce services:
solutions for e-commerce and online sales including e-commerce analytics, conversion rate optimization, logistic management, catalogue management, loyalty programs as well as return and refund management
- Transformative services and digital marketing:
digital strategy and analysis and integrated marketing services such as pay-per-click marketing, social media marketing, search engine optimization, content marketing, email marketing, and online reputation management.
Cogent E-Services Limited’s top 10 clients based on a percentage of revenue contribution as of September 30, 2022, including their respective revenue contribution percentage:
| Name/description of client | Industry | Length of relationship with client
(At least) |
Revenue contribution (in %) | |||
| For the FY ended | Six months ended September 30,2022 | |||||
| 2020 | 2021 | 2022 | ||||
| Bajaj Finance Limited | NBFCs and fintech | 2.5 years | 0.00% | 3.29% | 14.09% | 18.99% |
| Axis Bank
Limited |
Banking and
insurance |
3 years | 14.38% | 17.73% | 18.72% | 16.26% |
| Tata Play Limited | Direct to home
television |
6 years | 18.21% | 15.23% | 10.73% | 8.14% |
| Vodafone Idea Limited | Telecommunications | 15 years | 8.14% | 7.75% | 8.03% | 7.80% |
| An Indian Educational
Technology Services Company |
Education | 0.75 years | 0.00% | 0.00%^ | 1.20% | 4.90% |
| An India-based online food delivery, dining & restaurant discovery platform | E-commerce | 4 years | 5.23% | 2.29% | 6.44% | 4.43% |
| Dish Infra | Direct to home
television |
9 years | 8.15% | 5.00% | 4.98% | 4.10% |
| Beverage manufacturer
in India |
Fast moving
consumer goods and retail |
2.5 years | 1.39% | 3.87% | 3.13% | 2.96% |
| Whirlpool of India
Limited |
Consumer goods | 3.5 years | 3.59% | 3.12% | 3.34% | 2.72% |
| Voltas Limited | Consumer goods | 3.5 years | 2.54% | 2.18% | 1.85% | 2.71% |
| Total | 61.63% | 60.46% | 72.51% | 73.02% | ||
Cogent E-Services Limited IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹2 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | Not Available |
| Fresh Issue | [●] shares
(aggregating up to ₹150.00 Cr) |
| Offer for Sale | 9,468,297 shares
(aggregating up to ₹[●]Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Promoters | Abhinav Singh, Arunabh Singh, Gaurav Abrol, Pranjal Kumar, Boomerang Technology LLP, and TSSR Technology LLP |
Cogent E-Services Limited IPO Financial Analysis:
| Particulars | 6M of FY-23 (in cr.) (Consolidated) | FY-22(in cr.)(Stanalone) | FY-21(in cr.) (Stanalone) | FY-20 (in cr.) (Stanalone) | CAGR(FY-20 to FY-22) |
| Revenue from sale | 204.11 | 363.13 | 273.94 | 248.13 | 13.5% |
| Other Income | 2.42 | 2.57 | 1.17 | 0.29 | |
| Employee Cost | 118.18 | 196.57 | 132.75 | 113.10 | |
| Other expenses | 40.76 | 90.15 | 91.94 | 104.51 | |
| EBITDA | 47.59 | 78.98 | 50.42 | 30.81 | 36.9% |
| EBITDA margin% | 23.32% | 21.75% | 18.41% | 12.42% | |
| Depreciation | 11.37 | 18.74 | 17.45 | 13.71 | |
| Interest | 2.85 | 5.36 | 5.39 | 5.13 | |
| PBT | 33.37 | 54.89 | 27.58 | 11.97 | 66.1% |
| Total tax | 8.01 | 12.63 | 7.46 | 3.08 | |
| PAT | 25.36 | 42.25 | 20.12 | 8.90 | 68.1% |
| PAT margin% | 12.42% | 11.64% | 7.34% | 3.58% | |
| Dep./revenue% | 5.57% | 5.16% | 6.37% | 5.53% | |
| Int./revenue% | 1.40% | 1.48% | 1.97% | 2.07% |
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | No. of Equity Shares
held |
Percentage of the pre-Offer paid
Up equity share capital (%) |
| 1. | Abhinav Singh | 7,888,675 | 16.26% |
| 2. | Arunabh Singh | 7,889,000 | 16.26% |
| 3. | Pranjal Kumar | 7,889,000 | 16.26% |
| 4. | Gaurav Abrol | 7,889,000 | 16.26% |
| 5. | Boomerang Technology LLP | 9,427,015 | 19.43% |
| 6. | TSSR Technology LLP | 7,541,985 | 15.53% |
| Total | 48,524,675 | 100.00% | |
| Other Shareholders (Promoters & Promoter Group) | |||
| 1. | Tanushree Khanna | 325 | Negligible |
| Total | 48,525,000 | 100.00% | |
Cogent E-Services Limited IPO Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Number of Equity Shares
being offered in the Offer for Sale (Up to) |
| 1. | Abhinav Singh | 1,539,318 Equity Shares |
| 2. | Arunabh Singh | 1,539,318 Equity Shares |
| 3. | Pranjal Kumar | 1,539,318 Equity Shares |
| 4. | Gaurav Abrol | 1,539,318 Equity Shares |
| 5. | Boomerang Technology LLP | 1,839,418 Equity Shares |
| 6. | TSSR Technology LLP | 1,471,607 Equity Shares |
Cogent E-Services Limited IPO Strengths:
-
Cogent E-Services Limited has emerged as one of the most trusted and dependable service partners for its clients to redefine CXM in the digital age. While the India CXM addressed market grew by approximately 7% CAGR (2018-20) and is expected to grow at 9% CAGR (2020-24), the company witnessed revenue growth of approximately 31% between Fiscals 2019-21, beating the industry growth rate during this period.
-
Through Cogent E-Services Limited’s geographic spread in various cities in India and the connectedness of the delivery centers as well as the ability to manage and engage the workforce across locations, the company is able to more efficiently roll-out its strategies as it is able to breakdown implementation into smaller segments spread across its locations. The clients experience faster ramps-ups which help to enhance the brand image. In addition, the geographical spread of the company also allows it to help its clients make use of cost-effective locations and flexibly provide its services wherever they are needed
-
Cogent E-Services Limited has an experienced management team with an understanding of the industry it operates in and its clients’ needs. Each of the co-founders Promoters and Directors, Abhinav Singh, Gaurav Abrol, and Pranjal Kumar, has experience in the field of CXM and have been instrumental in the growth of the business since its inception. the co-founders and Promoters of the company are supported by an experienced board and management team with experience across key functional areas
-
India’s CXM market is highly underpenetrated, and only 23.6% of the spending is outsourced as of 2020. Indian CXM outsourcing is expected to reach 27% of the total spending by 2024. Leveraging the vernacular capabilities and the ability to deliver omnichannel CX solutions, the company intends to focus on capturing growth opportunities in Tier 2 and Tier 3 cities by helping local brands develop CX programs, in particular, new economy businesses in the e-commerce industry.
Cogent E-Services Limited IPO Risk Factors:
-
The customer experience management (“CXM”) market is highly competitive. As of 2020, India has one of the largest concentrations of CXM service providers with over 2,500 firms, both organized and unorganized. The company’s future performance is largely dependent on its ability to compete successfully in the markets it currently operates in while expanding into newer domestic markets.
-
Cogent E-Services Limited is dependent upon a limited number of clients for a substantial portion of its revenue and the loss of one or more of these clients may adversely affect the business, financial condition, and results of operations of the company.
-
Cogent E-Services Limited’s 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 and materially adversely affect the business, results of operations, financial condition, and cash flows of the company.
-
Cybersecurity breaches, attacks and frauds, and unauthorized information disclosure could harm the reputation, result in liability, and service outages, any of which could adversely affect the business and results of operations of the company.
Objects of the Offer:
Cogent E-Services Limited proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Funding investment in IT assets for expansion and existing IT infrastructure of the Company;
- Funding working capital requirements of the Company; and
- General corporate purposes.
Cogent E-Services Limited IPO Prospectus:
- Cogent E-Services Limited IPO DRHP –
- Cogent E-Services Limited IPO RHP –
Registrar to the offer:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: cogent.ipo@linkintime.co.in
Website: www.linkintime.co.in
Cogent E-Services IPO FAQ
Ans. Cogent E-Services IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Cogent E-Services IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.