Pelatro Limited, a global leader in customer engagement solutions, is set to launch its Initial Public Offering (IPO) to raise INR 55.98 crores through a fresh issue of 27.99 lakh shares. Founded in 2013, Pelatro has established itself as a prominent player in the telecom and BFSI (banking, financial services, and insurance) sectors, providing cutting-edge solutions that help enterprises enhance customer engagement. Their flagship product, mViva, is a Customer Engagement Platform that enables businesses to better understand consumer behaviour and optimise marketing operations through data-driven insights.
Operating across 30 countries with a robust clientele in telecom and financial services, Pelatro’s technology processes nearly one billion consumer interactions daily. With a growing demand for customer-centric solutions, Pelatro aims to leverage its IPO to further strengthen its technology infrastructure, expand into new markets, and enhance its global footprint. This article delves into the key aspects of Pelatro’s IPO, its financial performance, industry outlook, and potential investment opportunities.
Pelatro IPO: Key Details to Know
Before diving deeper into Pelatro’s financials and business profile, here’s a quick snapshot of the IPO’s essential details:
| Key Details of the Pelatro IPO | Information |
| IPO Size | INR 55.98 crores |
| Price Band | INR 190-200 per share |
| Lot Size | 600 shares |
| Total Shares | 27,99,000 shares |
| Minimum Investment | INR 1,14,000 |
| Allocation | 50% QIB, 15% NII, 35% RII |
| Bidding Dates | September 16-19, 2024 |
| Allotment Date | September 20, 2024 |
| Refund Initiation | September 20, 2024 |
| Demat Transfer | September 23, 2024 |
| Listing Date | September 24, 2024 |
| Listing Platform | NSE SME |
Pelatro Limited: A Look Into the Company
Pelatro Limited is a global leader in customer engagement solutions, operating through its flagship product, mViva, a robust Customer Engagement Platform. This platform enables businesses to better understand consumer behaviour, enhancing engagement and streamlining marketing operations. By analysing vast datasets, mViva provides insights that improve the efficiency and effectiveness of marketing strategies.
Global Reach
As of May 2024, mViva has been successfully deployed or is in the process of being implemented in 38 telecom networks across 30 countries, including India, Asia, Africa, the Middle East, Europe, and the Caribbean. This international presence highlights Pelatro’s strong position in the global market.
Pelatro’s customers primarily include large telecom networks, but the company has recently expanded its focus to the banking and financial services sector, tapping into the high-growth potential of this industry.
Product Portfolio
Pelatro offers a range of products alongside mViva, including:
- Campaign Management Solutions
- Loyalty Management Solutions
- Lead Management Solutions
- Data Monetisation Solutions
These offerings allow companies to not only manage customer interactions but also monetise data, enhance loyalty, and increase lead conversions, making Pelatro a key player in the digital transformation of customer engagement.
Financial Performance: Pelatro’s Strengths and Challenges
Pelatro’s financial track record shows both strengths and challenges. Here’s an overview of key financial metrics from 2022 to 2024:
| Key Financial Highlights | FY 2022 (in lakhs) | FY 2023 (in lakhs) | FY 2024 (in lakhs) |
| Revenue | 4,075.47 | 4,898.23 | 5,880.82 |
| Profit After Tax (PAT) | 357.03 | 463.89 | 541.46 |
| Diluted EPS (₹) | 10.2 | 13.25 | 14.26 |
| Return on Net Worth (RoNW) | 41.71% | 35.02% | 27.86% |
| Debt-Equity Ratio | 0.6 | 1.02 | 1.55 |
| Current Ratio | 7.37 | 10.11 | 1.04 |
Revenue Growth
Pelatro has shown consistent revenue growth, from ₹4,075.47 lakhs in FY22 to ₹5,880.82 lakhs in FY24, marking an increase of around 44%. This growth reflects the increasing adoption of its customer engagement solutions across multiple markets.
Profitability and Earnings Per Share
The company’s profit after tax (PAT) has increased from ₹357.03 lakhs in FY22 to ₹541.46 lakhs in FY24, showcasing Pelatro’s improving profitability. Additionally, the diluted EPS has risen from ₹10.20 in FY22 to ₹14.26 in FY24, providing investors with higher earnings per share.
Return on Net Worth (RoNW)
However, there’s a decline in Pelatro’s RoNW, which dropped from 41.71% in FY22 to 27.86% in FY24. This indicates a decrease in the company’s ability to generate returns on shareholder equity.
Liquidity and Debt
Pelatro’s debt-equity ratio has increased to 1.55 in FY24, indicating a rising reliance on debt financing. The current ratio has also dropped to 1.04, suggesting potential short-term liquidity challenges. While these figures indicate that the company has increased its liabilities, it’s important to note that this is likely to support growth and international expansion.
Pelatro IPO Objectives: Where Will the Money Go?
Pelatro intends to use the proceeds from the IPO for the following purposes:
1. Capital Expenditure for IT Infrastructure
The company plans to allocate INR 10.12 crores towards purchasing IT equipment, servers, computer hardware, and ancillary infrastructure. These investments will enhance the development and testing environment, allowing Pelatro to handle large datasets and improve service delivery.
2. Investment in Subsidiary
Pelatro will invest INR 10 crores in its Singapore-based subsidiary, Pelatro Pte. Ltd., to expand its sales and marketing capabilities. This will enable the company to increase its global footprint, particularly in regions with significant growth potential.
3. Working Capital Requirements
Around INR 15 crores will be used to meet the company’s working capital needs, which are critical for sustaining operations and ensuring smooth business functioning.
4. General Corporate Purposes
The remaining funds will be deployed for general corporate purposes, including business development initiatives, covering operational expenses, and driving further international growth.
Risks and Challenges
Like any company, Pelatro faces several risks that investors should consider before investing:
1. Scalability Issues
Pelatro will need to allocate significant resources to scale its platform as customer demand grows. This will require continuous upgrades, integration, and maintenance, which could place financial strain on the company.
2. Dependence on Subscriptions
Pelatro’s revenue model heavily relies on subscriptions. While the company has a loyal customer base, any shifts in market dynamics or changes in subscription preferences could impact revenue growth.
3. Platform Defects and Errors
As a technology company, Pelatro is exposed to the risk of platform defects or data errors. These issues could lead to service disruptions, customer dissatisfaction, and potential revenue losses.
Industry and Market Potential: Tapping into a Growing Sector
| Industry and Market Potential | Details |
| Global Market for Customer Engagement Solutions | Valued at $7.03 billion in 2023, projected to reach $16.13 billion by 2033 |
| CAGR for Customer Engagement Market | 8.4% (2024-2033) |
| Indian IT Spending Growth | Projected to grow by 11.1%, reaching $138.6 billion by 2024 |
| Cloud Services Market in India | Expected to create 14 million jobs by 2026 |
| Contribution to India’s GDP from Cloud Services | Estimated to add $380 billion by 2026 |
| India’s Tech Industry Revenue | Aiming to double to $500 billion by 2030 |
| Telecommunication & BFSI Sector Growth | Projected market size of $19.93 billion by 2025 |
The global market for telecommunication and BFSI customer engagement solutions is growing rapidly. Valued at $7 billion in 2023, it is projected to reach $16.1 billion by 2033, exhibiting a CAGR of 8.4%. Pelatro is well-positioned to capitalise on this growing demand, particularly in emerging markets.
India’s IT industry is also set to experience significant growth, aiming to double its revenue to $500 billion by 2030. The country is becoming a major hub for technology outsourcing, with IT spending expected to grow by 11.1% to $138.6 billion in 2024. This favourable environment provides a strong growth outlook for Pelatro, particularly as the company expands its presence in financial services.
Conclusion: Should You Invest in Pelatro’s IPO?
Pelatro Limited offers an exciting opportunity for investors looking to tap into the fast-growing customer engagement solutions market. With its advanced technology, solid global presence, and improving financial performance, Pelatro appears poised for future growth.
However, potential investors should also consider the risks associated with the company’s rising debt levels, decreasing RoNW, and reliance on subscription-based revenue models. The funds raised through this IPO will be crucial in addressing these challenges and driving further growth.
Ultimately, Pelatro’s IPO offers both opportunities and risks, making it suitable for investors who understand the dynamics of the tech industry and are willing to invest in a company with significant growth potential.
