Fusion CX Files DRHP For Floating IPO- Check Details

Fusion CX received Securities and Exchange Board of India’s nod to float its public issue on July 22. The public issue will be conducted as a 100 per cent book-built offer.

The Kolkata based company plans to raise funds through a hybrid issue which has an offer-for-sale component along with a fresh issue component. Here is a look at the key aspects of the public issue and the company’s business.

Fusion CX IPO: Offer Size and Selling Shareholders

Fusion CX IPO comprises a fresh issue of equity shares aggregating up to Rs 600 crore and an OFS component of up to Rs 4,00 crore, bringing the total offer size to Rs 100 crore. Promoters of the company PNS Business Private and Rasish Consultants Private will sell equity shares worth up to Rs 200 crore each in the OFS. Prior to the issue the promoters of the company Pankaj Dhanuka, Kishore Saraogi, PNS Business Private, and Rasish Consultants Private Limited held a 99.28 per cent stake in the company.

Fusion CX IPO: Price Band, Lot Size, and GMP

The company has set the face value of its equity shares at Re 1 each. The price band, minimum bid lot size, and current Grey Market Premium (GMP) are currently unavailable as the official dates are yet to be finalised and announced

Fusion CX IPO: Key Financials

In the fiscal year ending March 31, 2024, Fusion CX’s total revenue from operations stood at Rs Rs 944.42 crore. The consolidated profit after tax of the company for the same period was Rs 47.24 crore. The net worth of the company stood at Rs 323.91 crore.

Fusion CX: Business Model

Fusion CX is a customer experience service provider that provides services across multiple channels, including voice, email, chat, social media, and messaging. The company services various verticals. Telecom and other utilities contributed 30.94 per cent of its revenue from operations in FY24. The High Tech Growth and Travel (HTT) sector contributed 23.34 per cent during the same period. The company's operations are globally distributed, with 76.22 per cent of revenue originating from outside India in FY24. 

Fusion CX: Competitors and Peer Group

Fusion CX operates in the Business Process Outsourcing (BPO) and Customer Experience (CX) market. The company faces competition from global and regional players. According to its (DRHP) and industry data, the company's key listed peers in the domestic market include eClerx Services, Alldigi Tech, Inventurus Knowledge Solutions, and Sagility India. On a broader, global scale, Fusion CX also competes with established technology and digital transformation providers such as Happiest Minds, Datamatics, UST, and Persistent Systems.

Fusion CX IPO: Strengths and Risks

Here’s a look at some of the strengths and risks associated with the company’s business:

Fusion CX IPO: Key Risks

• Fusion CX is dependent on its top 10 customers, which contributed 41.04 per cent of its total revenue from operations in FY24.

• As much as 76.22 per cent of the company’s revenue came from geographies outside India making the business exposed to legal and economic risks along with exchange rate fluctuations.

• The company’s business is dependent on both attracting and retaining a skilled workforce, along with key managerial personnel, to maintain operational quality.

Fusion CX IPO: Key Strengths

• The company claims to have developed domain knowledge across key verticals of its business such as telecom, HTT, BFSI, retail, and healthcare.

• The company offers an integrated, digital-first customer experience model that seeks to blend human interaction with proprietary AI tools.

Fusion CX IPO: Objective

The company intends to use funds raised from the fresh issue of shares for repayment or prepayment of its outstanding borrowings. It will also invest a portion of the proceeds in its step-down subsidiaries, Omind Technologies Inc. and Omind Technologies Private Ltd, for upgrading its IT tools Arya and MindVoice. The remaining proceeds will be used for acquisitions and general corporate purposes.