Focus Business Solution IPO Details

By Angel Broking | Published on 1st July 2021 | 505

Focus Business Solution IPO Details

Focus Business Solution IPO has hit the primary market on June 30 2021, and is all set to raise Rs. 1.22 crores through this initial public offering of 642000 equity shares. The said offer is a 100 percent fixed price issue.

Focus Business Solution is here for more than a decade now and has established itself as one of the pioneers offering debt collection and management services to financial institutions in the country.

So, what’s the primary objective of Focus Business Solution IPO?

As of now, those are –

  • Address working capital needs
  • Meet corporate purposes
  • Account for issue expenses

On that note, let us find out more about the ongoing IPO details for more clarity.

A quick overview of Focus Business Solution IPO

This IPO is a fixed price issue, and the shares of the company will be listed at BSE.

Check the other crucial detail below –

Initial Public Offering price Face Value Size of the Issue Lot Size Minimum Order Quantity
Rs. 19/share Rs. 10/share 642000 equity shares 6000 shares 6000 shares

Let’s take a look at the most important IPO dates to stay in the loop.

Upcoming IPO date of Focus Business Solution you should know!

The IPO opened for the public on June 30 2021, and it will close on July 5 2021.

The other important upcoming IPO dates and events are mentioned here –

Basis of the Allotment Date Initiation of the Refunds Credit of Equity Shares to the Demat Account
July 8 2021 July 9 2021 July 12 2021

Detailed view on Focus Business Solution IPO’s size of the lot

The market lot size of this upcoming IPO is 6000 shares. In addition, one retail investor can apply for a maximum of 1 lot, i.e., 6000 shares, amounting to Rs. 1,14,000

It is crucial to note that the pre-issue shareholding accounts for 100% of the IPO in the case of promoter holding. What about the 642000 shares specified at the beginning?

Here’s the break-up of the share reservation for easier understanding.

 Parameters Retail individual investor (RII) Non-institutional investor (NII) MMRP
 Reservation 50% 50%
 Total Shares 300000 300000 42000
 Amount Rs. 57 lakhs Rs. 57 lakhs Rs. 7.98 lakhs

About Focus Business Solution

Focus Business Solution was incorporated on November 10 2006, as – Focus Business Solution Private Limited at Surat, Gujarat. It started as a private limited company as per the Companies Act, 1956. Later, it was reformed into a public limited organisation.

This company is involved with the repossession of vehicles and other hypothecated assets on clients’ requests when borrowers cannot repay loans. In simpler words, it is engaged in debt collection on behalf of financial institutions.

Focus Business Solution has acted on more than 2 lakh customer databases. In addition, the company is indulged in category services that include pickup and recovery of debt for multiple financial products with a pool size of over Rs. 200 crores.

Competitive strength over peers

Focus Business Solution has the upper hand when it comes to –

  • A strong and scalable technological infrastructure
  • A robust electronic debt recovery system
  • Strong presence in Gujarat, especially in Rajkot, Anand, Ahmedabad, Vapi, and Palanpur, among others.

What exactly could this IPO do for the company?

Focus Business Solution has had a stagnant top-line and marginal growth in the bottom line. In addition, the company’s equity capital at present in unimpressive.

Resultantly, even after the Focus Business Solution IPO, moving on to the mainboard will be a long-drawn process.

Moreover, the segment in which this company operates is teeming with unorganised players. Adding to it, the “reasonable” issue price and annualised earnings raise concerns related to sustainability.

Most investors factor in a company’s financing standing and track record before subscribing to its IPO. This definitely makes it important for us to glance at Focus Business Solution’s financial report to gauge its probable standing.

A quick look at Focus Business Solution’s financial standings

This company’s top line has witnessed slow growth for the past three years and registered almost negligible growth.

Here’s a summed up financial report for quick analysis –

Fiscal Year  Revenue (in lakhs) Expense (in lakhs) Profit After Tax (in lakhs)
2017-18 Rs. 1023.76 Rs. 1008.35 Rs. 10.99
2018-19 Rs. 1073.97 Rs. 1056.69 Rs. 11.77
2019-20 Rs. 1090.73 Rs. 1069.57 Rs. 15.25

How can you subscribe to Focus Business Solution IPO?

Of course, you can! Here’s how to do it.

Investors intending to subscribe to Focus Business Solution IPO can choose any of the following options –

  1. Open a Demat account with Angel Broking to subscribe to the IPO.
  2. Go for the ASBA facility available against their savings or current accounts.
  • Choose the NSE or BSE route.

Frequently Asked Questions

  1. What exactly is Focus Business Solution IPO?

This IPO is a BSE SME initial public offering.

  1. What is the tentative date for Focus Business Solution IPO Listing?

The tentative date of IPO listing could be July 13, 2021.

  1. When will be the shares credit to my Demat Account?

You can expect allotted shares in your Demat Account by July 12 2021.