Exploring the potential of emerging businesses, I’ve got my eye on the HRH Next Services IPO, a significant event that’s piqued the interest of savvy investors looking for fresh opportunities. With its upcoming listing on January 3, 2024, this IPO promises to be a noteworthy entry into the market.
As an investor myself, I understand the importance of staying ahead of the curve. That’s why I’m diving into the details of the HRH Next Services IPO, from how to apply to the allotment date set for January 1, 2024. Whether you’re considering investing through traditional means or via platforms like Zerodha, I’ve got the insights you need.
HRH Next Services IPO Details
When looking for potential investments, HRH Next Services IPO stands out, slated to go public at the end of December 2023. The IPO window opens on December 27 and will remain accessible until December 29, leaving a narrow timeframe for investors to partake.
In delving into the specifics of the offering, every share is pegged at a face value of ₹10, yet the market prices each at ₹36. Investors need to grasp the lot size, which is set at 3,000 shares, making it essential to assess one’s investment capabilities before diving in.
Here’s a breakdown of the IPO’s total issue size and shareholder implications before and after the listing:
|Pre-Issue Share Holding
|Post-Issue Share Holding
|Total Issue Size
|Market Maker Portion
This IPO is particularly noteworthy as it’s a Fixed Price Issue IPO, aggregating up to ₹9.57 Cr exclusively through fresh issue. Investors eyeing more manageable ventures might find this appealing, given its listing at the NSE SME, a platform that supports smaller, up-and-coming businesses.
Adopting a strategic approach when considering HRH Next Services IPO is paramount. With a dedicated Market Maker portion of 135,000 shares, one acknowledges the measures in place to ensure liquidity and stability for the IPO. The hike in shareholding post-issue—from over 6.5 million to more than 9.2 million—signals the company’s anticipated growth trajectory and the scaling of its market presence.
Gearing up for this issuance involves a mindful analysis of investment strategies and the potential of the company to suit one’s portfolio. Whether it’s a first-time foray into SME IPOs or an addition to a well-diversified investment plan, staying informed and ready to act within the stipulated window is crucial for those looking to secure a stake in HRH Next Services.
HRH Next Services IPO Timeline
As the IPO market heats up, the HRH Next Services IPO is a hot topic among investors. I’ve been closely monitoring the timeline for this notable event to keep you in the loop.
Key dates you should mark on your calendar include the IPO opening on Wednesday, December 27, 2023, and the closing date just a few days later on Friday, December 29, 2023. It’s a narrow window of opportunity, underscoring the need for prompt decision-making.
|SME IPO Activity
|IPO Open Date
|December 27, 2023
|IPO Close Date
|December 29, 2023
|Basis of Allotment Date
|January 1, 2024
|Refunds Initiation Date
|January 2, 2024
|Credit of Shares to Demat
|January 2, 2024
|SME IPO Listing Date
|January 3, 2024
After the close of the IPO, the Basis of Allotment will be determined on Monday, January 1, 2024. If you’re not allotted shares, you won’t be left hanging for long as the Initiation of Refunds happens swiftly afterward on Tuesday, January 2, 2024. Luckily for successful investors, shares are also credited to Demat accounts on the same day, which means no time wasted.
Finally, the much-anticipated Listing Date is set for Wednesday, January 3, 2024. This is when HRH Next Services will officially hit the market, and shares will be available for trading. Remember, if you’re using UPI, the cut-off time for mandate confirmation is 5 PM on December 29, 2023. Missing this deadline could result in a failed investment transaction.
Interested parties must approach these dates strategically. Carefully planning your approach to the HRH Next Services IPO can mean the difference between seizing an opportunity and missing out. Keep an eye on the clock and ensure your investments are aligned with these critical milestones in the HRH Next Services IPO saga.
HRH Next Services IPO Lot Size
Understanding the lot size of an IPO is critical for investors looking to partake in the new stock offering. HRH Next Services has specified its lot size for the recent IPO, which I’ll dissect to ensure clarity in your potential investment decisions.
Retail investors are presented with an opportunity to apply for the IPO in fixed lot sizes. According to the official offer document, a single lot consists of 3,000 shares, which aligns with the broader approach taken by SMEs to make the IPO accessible to a larger audience. The IPO’s structured lot size facilitates easy computation for investors, simplifying the application process.
The pricing per share has been locked in at ₹36, making the minimum investment a retail investor can commit to ₹108,000. The table below summarizes the lot size and corresponding amounts for both retail and high net-worth individual (HNI) investors:
This information is especially important for retail investors who seek to participate within their financial means. The investment threshold for HRH Next Services’ IPO is consistent for all retail applicants, whether at a minimum or maximum lot size. Considering the SME-driven nature of the IPO, these figures provide a clear overview of what’s expected financially when partaking in this market event.
As for HNIs, the minimum application stands at two lots, doubling the investment to ₹216,000, which is substantial yet offers a potential gateway to larger stakeholding. It’s essential to weigh the number of shares against the total investment and potential market performance post-IPO.
In my experience, keeping a close eye on the allotment date is crucial because it is the day you’ll know if you’ve successfully secured a piece of the pie. Following that, the initiation of refunds and credit of shares to demat accounts are sequential steps that investors should monitor. Remember, all these dates and figures play a pivotal role in strategizing your investment in HRH Next Services’ IPO.
HRH Next Services IPO Promoter Holding
When diving deeper into the upcoming HRH Next Services IPO, assessing the implications of promoter holding changes that occur post-issue is crucial. Promoter holding is a direct reflection of the company’s creators’ confidence in its long-term viability and success. Prior to the IPO, promoters Mr. Ankit Sanjay Shah, Mr. Parikshit Pankaj Shah, and Mrs. Tara Sanjay Shah held a substantial 97.88% of the company’s total equity.
However, after the IPO has been completed, the promoter holding will decrease to 69.61%. This change signifies a reallocation of the company’s equity structure to accommodate additional stakeholders and investors, broadening the shareholder base.
|Pre Issue (%)
|Post Issue (%)
The dilution of promoter holding can be perceived in different ways. Some investors might view this as a positive movement, suggesting the promoters’ willingness to share the future growth prospects with public investors. Others might approach with cautious optimism, attentive to how this decreased ownership affects the promoters’ decision-making and control over the company.
Nonetheless, it’s essential to consider that the promoters will retain the majority even after the IPO, with over two-thirds of the company’s shareholding. This ensures that they still have significant control and influence over the company’s strategic directions and operations.
I must highlight the fact that promoter confidence and involvement remain robust indicators of the company’s potential. With the Shah family keeping a majority stake, they demonstrate their ongoing commitment to HRH Next Services, suggesting that they foresee continued growth and profitability on the horizon. This aspect is definitely something I’ll keep a close eye on as the IPO progresses.
HRH Next Services Limited Financial Information
I’ve taken a close look at HRH Next Services Limited’s financial standing, and I’m impressed by the robust growth trajectory they’ve been on. Let’s dive into some key financial metrics to understand better where they stand.
Growth in Revenue and Profit
Significant growth is evident from the company’s financials, with a revenue increase of 15.73% and an astounding 273.85% surge in profit after tax when comparing FY 2022 to FY 2023. Such numbers indicate that HRH Next Services might be expanding market share and optimizing operational costs to improve its bottom line. Here’s a breakdown:
|30 Sep 2023
|31 Mar 2023
|31 Mar 2022
|31 Mar 2021
|Revenue (₹ Lakhs)
|Profit After Tax (₹ Lakhs)
Stable Capital Structure
HRH Next Services has consistently shown prudent financial management. With a Debt-Equity ratio of just 0.12, it’s clear that they rely minimally on external borrowing, favoring a stable capital structure. Plus, a P/E ratio of 6.42 strikes me as reasonable, presenting a potentially attractive valuation for investors.
Asset and Net Worth Analysis
The firm’s assets have shown an upward trend, which aligns with its business expansion goals. As of September 30, 2023, assets stood at ₹3,113.86 Lakhs, representing a significant increase from previous years. The net worth has also strengthened, reaching ₹1,320.71 Lakhs as of the last report. These figures underscore the company’s commitment to growth and resilience in its financial health.
|Assets (₹ Lakhs)
|Net Worth (₹ Lakhs)
|30 Sep 2023
HRH Next Services IPO Reservation
The excitement around HRH Next Services Limited’s initial public offering is undeniable, and smart investors are analyzing every aspect, including the reservation details. The reservation of shares is a key component I’ll dive into now. The company has made a strategic decision to split the share reservation evenly – this means the IPO will offer identical opportunities for retail investors and other categories, ensuring a wide participation base.
Retail investors are allocated a whopping 50% of the total shares available in the IPO. This demonstrates HRH Next Services Limited’s commitment to inclusive investor participation. Retail investors, who usually have less capital to invest than institutional players, will find this large allocation particularly enticing, as it gives them the chance to buy a substantial stake in the company’s future.
The other half of the IPO pie, another 50%, has been earmarked for various other investor classes, excluding the promoters. This inclusion allows high-net-worth individuals and other entities to take part in the IPO with a considerable allocation. It’s an open playing field, and the balanced distribution speaks volumes about HRH Next Services’ approach toward democratizing its ownership post-IPO.
On the financial front, the total issue size stands at a significant INR 95.7 crores, with each share priced at INR 36. Investors are keen to note the minimum lot size for retail investors is 3,000 shares, which amounts to an investment of INR 108,000. Meanwhile, high net-worth individuals are required to purchase at least two lots, which equals 6,000 shares, resulting in a minimum investment of INR 216,000. These investment thresholds are critical for those planning their entry strategy into this burgeoning enterprise.
|High-Net-Worth Individuals (HNI)
|6,000 Shares (2 lots)
This balanced reservation structure certainly adds an enticing dimension to the HRH Next Services IPO, and potential investors should take this opportunity to scrutinize the offer’s structure. Deeper insight into this aspect might well influence investment decisions and strategies, specifically in the context of the company’s growth trajectory and its financial robustness.
About HRH Next Services Limited
With its inception on February 2, 2007, HRH Next Services Limited has firmly established itself as a pivotal player in the BPO and KPO industry. From its early days as a private entity in Andhra Pradesh, the company’s evolution into a public limited enterprise marks a significant milestone. Staying true to its roots, it keeps its focus sharpened on various facets of customer support, including inbound, outbound, chat, and email services.
HRH Next Services serves diverse sectors—their client portfolio spans telecom, fintech, e-commerce, education, and several others, showcasing an adaptive and versatile operational capability. This adds to their prestige and reflects an impressive breadth of expertise. With an ISO 9001:2015 certification, the company meets rigorous quality management standards, which bolsters its reputation for excellence. Moreover, the ISO/IEC 27001:2022 certification affirms their commitment to information security, underpinning clients’ trust in their services.
In terms of financial performance, the upswing is noteworthy. A 15.73% increase in revenue coupled with a staggering 273.85% jump in profit after tax for the period ending September 30, 2023, as compared to the previous year, tells a story of robust growth and sound fiscal health. Such figures are vital indicators of the company’s potential and stability, pertinent for anyone considering an investment.
The upcoming IPO, set for the brisk window from December 27, 2023, to December 29, 2023, has been structured to reflect inclusivity in investment opportunities, a core principle that HRH Next Services advocates. The provision is a fresh issue with the issue priced at ₹36 per share and the total issue size pegged at ₹9.57 crore. The market awaits as the listing date approaches—January 3, 2024.
Interested individuals and institutional investors alike would do well to not only eye the lucrative aspects but also to give due diligence to the nuances of the company’s growth trajectory and financial rigor. It’s prudent to analyze these factors thoroughly before partaking in what promises to be a notable financial event on the horizon.
HRH Next Services IPO Review
In my review of HRH Next Services’ upcoming IPO, it’s critical to dive into the key components potential investors should weigh. HRH Next Services is not a new player in the field; the company’s foray into the BPO and KPO sector dates back to 2007, providing ample time to establish its presence and refine its service quality.
I find the IPO’s structure to be particularly interesting; with the price per share set at ₹36 and aiming to raise nearly ₹9.57 crore, it’s clear the company is gearing up for substantial growth. This total issue size translates to around 2.658 lakh shares up for grabs by investors looking for new opportunities in the SME segment.
A focal point in my analysis is the company’s financial robustness. The recent statistics pointing to a 15.73% increase in revenue and, even more striking, a 273.85% increase in profit after tax for the fiscal period ending September 30, 2023, can’t be overlooked.
|Profit After Tax (PAT)
I’m also paying attention to the ISO certifications HRH Next Services boasts. ISO 9001:2015 and ISO/IEC 27001:2022 accreditations signify a dedication to quality management and information security, which are paramount in the outsourcing industry. These certifications may instill greater confidence among investors regarding the company’s adherence to high operational standards.
However, it’s important to remind investors not to overly rely on the current absence of the Grey Market Premium (GMP) as an indicative measure of potential returns. Fluctuations in GMP can significantly alter pre-market perceptions and should only be one of many factors considered.
In considering an application for the IPO, investors might explore different methods such as ASBA and can even utilize platforms like Zerodha for a seamless subscription experience, using the Depository Participant (DP) information for a quick and efficient process.
HRH Next Services IPO Strengths and Weaknesses
As we look ahead to the HRH Next Services IPO, it’s clear that the company’s robust financial growth and commitment to quality are its main strengths. With a strong customer support foundation across various industries and a strategic share distribution, this IPO represents a unique opportunity for investors. While the absence of a Grey Market Premium shouldn’t be the sole factor in your decision-making, weighing all aspects of the company’s performance and market potential is essential. I recommend a thorough analysis of HRH Next Services’ growth trajectory and financial health as you consider this investment. Remember, a well-informed decision is the cornerstone of a successful investment strategy.
How to Apply for HRH Next Services IPO in Zerodha
To apply for the HRH Next Services IPO in Zerodha, follow these steps:
- Create a 5paisa account if you don’t have one already.
- Log in to your 5paisa account.
- Select the HRH Next Services IPO in the current IPO section.
- Enter the number of lots, price, and your UPI ID.
- Submit the application.
- Block funds in your UPI app by approving the mandate notification.
- Check the allotment status after the basis of the allotment is finalized.
- If you receive the allotment, the shares will be credited to your Demat account on the listing date, which is January 3, 2024, for the HRH Next Services IPO.