Things to know about Affle India IPO before launch – Review, Date, Subscription & many more

affle-india-ipo-review

Affle India Limited IPO Issue Details:

IPO date:                   29 July – 31 July 2019
Issue Size:                459 Cr
Offer Price:              Rs 740 – Rs 745 Per Equity Share
Market Lot:              20 Shares & multiples
Exchange Listing:   BSE, NSE

Affle India IPO Timelines (tentative dates):

Allotment & refund:    06 August
Credit to Demat:           07 August
Listing on Exchange:   08 August

Company Promoters: Mr. Anuj Khanna Sohum and Affle Holdings

Objective of the Issue: Offer For Sale (OFS) & Fresh issue for funding working capital requirement.

IPO Registrar: Karvy computershare pvt. ltd.

Company Overview:

  • Founded in 2005, Affle is a global mobile advertising technology company with a proprietary consumer intelligence platform that delivers consumer engagements, acquisitions and transactions. The platform aims to enhance returns on marketing investment through contextual mobile ads and also by reducing digital ad fraud.
  • Affle International, Singapore-based parent of Affle India & is a consumer intelligence company backed by Microsoft.
  • Focus on “Consumer Acceptable Advertising”
  • Company website: https://affle.com/

Business Operation:

  • The Consumer Platform primarily provides the following services:

            1. New consumer conversions (acquisitions, engagements and transactions) through relevant mobile advertising.
            2. Re-targeting existing consumers to complete transactions for e-commerce companies through relevant mobile advertising.
            3. an online to offline(o2o) platform that converts online consumer engagement into in-store walk-ins.

  • The Enterprise Platform primarily provides end-to-end solutions for enterprises to enhance their engagement with mobile users.
  • The company earns revenue from a cost per converted user (CPCU) basis. The conversion can be based on the transaction (purchase a product or service) and consumer acquisition model (acquire a new consumer).

Affle holding Investors:

  • Microsoft, D2C, ITOCHU, Centurion, Bennett – Coleman & Co.

Affle India Ltd IPO Analysis:

Financial Performance:

affle-india-ipo-financials

Consolidated valuations as on 31st Mar 2019:
1. Earning per share (EPS): 19.15
2. Price to Earning ratio (P/E): 39

Company category:  fast-grower

Company Strength:

  • Low cost scale-able mobile-ad platform.
  • Global presence with more focus on emerging markets.
  • Various acquisitions and continuous hunger for more such acquisitions.
  • Hugh scope as mobile advertising is taking space of printing media.
  • High CAGR of 32% since past few years.
  • Debt free company

Company Risks:

  • Intense Competition from Global Giants such as Google and Facebook along many other similar companies.
  • Business is concentrated around key customers.
  • Change in technology and regulatory norms including privacy breach clauses can significantly affect the manner of business and financials of the company.

Peer Comparison: 

No direct listed peer to compare.

Analysis Conclusion:

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  • Low cost scale-able consumer intelligence driven mobile marketing company with series of continuous acquisitions, focus on emerging markets, debt free company with high CAGR growth & Hugh scope for mobile advertising are plus to the company.
  • At price band, price to earning (P/E) ratio is around 39 which is fully priced but grey market premium (GMP) is positive as of 28th July 2019.
  • Considering all the factors, my personal view is ‘positive’ to the affle india ipo for listing gain but considering the current volatility in the market, I recommend you to watch subscription figures for first 2 days of opening (till 30th July) & based on figures take the decision. I will try to make another video after 2nd day for same.

BullRun IPO Ratings:  3 stars out of 5 stars

Analysis video link: https://youtu.be/1Q2kpzg-kY4

Affle India Ltd IPO subscription status:

affle-india-ipo-subscription-last-day

Abbreviations:

EPS – Earning per share
o2o – online to offline
B2B- Business to Business
OFS – Offer for Sale
P/E – Price to Earning
RoE – Return on Equity
QIB – Qualified Institutional Buyer
NII – Non-Institutional Investors
RII – Retail Individual Investor
CAGR – Compounded Annual Growth Rate

Disclaimer & Conflict of Interest:

The above analysis is based on my understanding of the company and RHP of Affle India Ltd IPO. You should research more and consult your financial adviser before taking any decision.

Analysis by –  NISM Certified Research Analyst & Investment Advisor.

2 comments

  1. Affle IPO news day 1

    Total subscription: 0.28x
    Grey market premium (GMP): 150+

    Looks good start of day 1. Hoping similar on day 2. #AwaitingDay2

    Like

  2. Affle IPO news 31st july (3rd day):

    Outstanding subscription figures on last day
    QIB NII RII Total
    55.31x 198.69x 10.94x 86.48x

    Total subscribed 86 times despite of volatile market.
    Awaiting the allotment on 6th august & hoping strong listing on 8th August.

    Like

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