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Affle Limited IPO – Review, Allotment status, Subscription, GMP Price & more

Let’s have a detailed review of the company and analytics of the Affle Limited IPO release date, IPO offer price, subscription, Affle Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Affle Limited is a global technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements and transactions through relevant mobile advertising (the “Consumer Platform”).

Their Consumer Platform aims to enhance returns on marketing spend by delivering contextual mobile ads and reducing digital ad fraud, while proactively addressing consumer privacy expectations.


Affle Limited IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.8/10
Industry Ranking8.7/10
Company Background7.9/10
Company Reputation8.6/10
Competitive Edge7.7/10
Financial Statements7.8/10
Popularity Index8.7/10
Promoters Reputation7.7/10
Retail Appetite7.9/10
Top Brokers Review7.9/10
Overall Ratings7.9/10
Star Ratings★★★★☆

Summary of Affle Limited  IPO

Affle Limited IPOBanking on the resurgence of global majors and the continuing policy stimulus-driven growth in China, India and similar economies, the outlook for global GDP growth for 2018 is 3.7%. While the U.S. is expected to see a modest growth pick-up due to stronger business and consumer confidence, both Europe and Japan are forecast to have stronger and sustained momentum with diminished political uncertainty and growing private consumption respectively.

E-commerce comprised one-tenth of the total global retail sales at USD 2.29 trillion (Source: eMarketer 2017), with about a fifth of this contribution coming from the United States. The U.S. has over 200 million e-commerce users (comprising 74% of its Internet users) and generated about USD 460 billion in 2017. This market is expected to grow to 250 million by 2022, exceeding USD 640 billion in revenue.

India with its rapidly growing Internet user base has become an attractive destination for international ad tech vendors, including Criteo, Mobvista, FreakOut – who have set up recently, alongside existing companies such as Affle, RevX, InMobi, among others. However, India presents its unique set of challenges such as a disjointed demographic which is just getting habituated to digital applications (such as the use of e-commerce, digital payments, etc.).

Only 10% of Internet users are active (i.e., making a purchase at least once per month) e-commerce customers. Frost & Sullivan believes that this makes it a more challenging landscape for marketing tech to be able to discern the users who have the highest propensity to transact online.

The Promoter of this company is Anuj Khanna Sohum and Affle Holdings. The lead manager to the issue is ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and the Karvy Computershare Private Limited.

Affle Limited Restated Financial Statements

For Fiscals 2019 and 2018 on an unconsolidated basis, its revenue from contracts with customers was Rs. 1,177.94 million and Rs. 837.56 million, respectively, an increase of 40.6%, our Total Operating Expenses were Rs. 930.43 million and Rs. 669.91 million, respectively, an increase of 38.9%, and our EBITDA was Rs. 247.51 million and Rs. 167.65 million, respectively, an increase of 47.6%.

More importantly, Its revenue growth in India, which is a low CPCU market, did not impact their EBITDA margin on an unconsolidated basis, which was 21.0% in Fiscal 2019 and 20.0% in Fiscal 2018. As at March 31, 2019 and 2018 on an unconsolidated basis, its total assets were Rs. 935.85 million and Rs. 580.31 million, respectively, an increase of 61.3%.


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Affle Limited IPO Date

The opening and the closing date of Affle Limited IPO is Jul 29, 2019 – Jul 31, 2019.


Affle Limited IPO Subscription

Day / DateQIBNIIRIITotal Subscription
1st Day – July 290.27x0.05x0.67x0.28x
2nd Day – July 300.37x0.10x3.20x0.81x
3rd Day – July 3155.31x198.69x10.81x86.46x
Shares Offered or Net Issue1,835,713925,385616,9233,378,021

The shares subscribed by the public will be updated here.


Affle Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization5-Aug-19
Refunds Initiation8-Aug-19
Credit of Shares to Demat Account7-Aug-19
Share Listing Date8-Aug-19

Affle Limited IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is Rs 740 – Rs 745.


Affle Limited IPO Size & Share Offering

Issue Size: 6,169,220 Equity Shares of Rs 10/- each, and aggregated to Rs 459.00 Crores.

Offer for Sale: 4,953,020 Eq Shares of Rs 10 and aggregating up to Rs [.] Crores

Fresh Issue: 1,216,200 Eq Shares of Rs 10 and aggregating up to Rs 90.00 Crores

Its a Book Built Issue IPO type, and the equity shares listed on both BSE and NSE.

The Minimum Order Quantity or Market Lot is 20 Shares.


Affle Limited – Company Overview

Banking on the resurgence of global majors and the continuing policy stimulus-driven growth in China, India and similar economies, the outlook for global GDP growth for 2018 is 3.7%.

While the U.S. is expected to see a modest growth pick-up due to stronger business and consumer confidence, both Europe and Japan are forecast to have stronger and sustained momentum with diminished political uncertainty and growing private consumption respectively.

Digitization, improvement in the labour force and stronger productivity can help sustain the growth momentum and provide a favourable environment for businesses to thrive. Companies, however, need to stay focused on strengthening their growth through an apt combination of technology, innovation and skills.

Business strategies of Affle Limited:

  • Enhance their revenue from existing and new customers in India and acquire new consumer profiles beyond Tier 1 cities
  • Expand their international business through local business development efforts and through referrals from their existing customers.
  • Drive further penetration in their top customers and deliver more converted users for large e-commerce companies, such as Amazon.
  • Continue to invest in and develop their technological capabilities.
  • Develop their award-winning fraudulent data detection and prevention platform.
  • Continue to selectively pursue acquisitions.
  • Get new customers for their Consumer Platform business through their Enterprise Business Solutions.

Affle Limited – Financial Statements

For Fiscals 2019 and 2018 on an unconsolidated basis, our revenue from contracts with customers was Rs 1,177.94 million and Rs 837.56 million, respectively.

An increase of 40.6%, our Total Operating Expenses were Rs 930.43 million and Rs 669.91 million, respectively, an increase of 38.9%, and our EBITDA was Rs 247.51 million and Rs 167.65 million, respectively, an increase of 47.6%. More importantly, our revenue growth in India, which is a low CPCU market, did not impact our EBITDA margin on an unconsolidated basis, which was 21.0% in Fiscal 2019 and 20.0% in Fiscal 2018.

As at March 31, 2019 and 2018 on an unconsolidated basis, our total assets were Rs 935.85 million and Rs 580.31 million, respectively, an increase of 61.3%. 

A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR Millions)
31-Mar-1931-Mar-1831-Mar-1731-Mar-16
Total Assets935.85580.31486.89539.05
*Total Revenue1,214.45848.78668888.51
Total Expense979.03712.828.00849.92
Profit After Tax166.7988.313.3023.94

Earnings per Equity Share (INR Millions)

31-Dec-1931-Dec-1831-Mar-1731-Mar-16
Basic 6.873.640.140.99
Diluted 6.873.640.140.99

Affle Limited IPO – Other Financial information

affle limited ipo Ebitda

From the above statements, one could find that the Affle Limited may perform well.


Affle Limited IPO – Promoters

The Promoter of this company are:

  1. Anuj Khanna Sohum and
  2. Affle Holdings

List of Related Parties (Key Managerial Personnel)

  • Arjun A Mehrotra/ Rishi Tiwari/ Nidhi Wangnoo
  • Chirag Shah / Srishti Tyagi
  • Murali Krishna

Interest in the promotion of the Company

Their Promoters are interested in their Company to the extent of their shareholding and the directorship/ employment of their individual Promoter in their Company, as well as any dividends, declared and remuneration and employment-related benefits paid by their Company to them, as applicable.

Promoters do not have any interest in any property acquired by their Company within two years preceding the date of this Draft Red Herring Prospectus or proposed to be acquired by their Company as on the date of this Draft Red Herring Prospectus or in any transaction for acquisition of land, construction of buildings and supply of machinery etc.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires the approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters have not shown any interest in acquiring the intellectual rights of the company.


Affle Limited IPO Offer Details or Issue Details 

OfferUp to * Equity Shares aggregating up to Rs *million
Of which
Fresh IssueUp to [•] Equity Shares aggregating up to Rs. 900 million
Offer for SaleUp to * Equity Shares aggregating up to Rs. [●] million
 of which
Offer for sale by promotersUp to * Equity Shares aggregating up to Rs.  [●] million
Of which:
– Available for allocation to Mutual Funds only (5% of the QIB Category (excluding the Anchor Investor Portion))Up to * Equity Shares
Pre and post-Offer Equity Shares
Equity Shares outstanding as of the date of this Draft* Equity Shares
*Equity Shares outstanding prior to the Offer24,288,314 Equity Shares
Equity Shares outstanding after to the offer* Equity Shares
Use of Offer ProceedsAs the Offer comprises an Offer for Sale, their Company will not receive any proceeds from the Offer.

Affle Limited IPO Issue Object

  • Monitoring of Utilization of Funds and
  • General corporate purposes.

Affle Limited IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

The relevant qualitative factors are:

  • Leading position in India; a high growth market with substantial barriers to entry.
  • Proven international track record.
  • Profitable, low-cost business model built on an asset light, automated and scalable platform.
  • Approximately 1.18 billion consumer profiles with over 140 billion data points, giving us a deep data-driven
    understanding of consumer intent and behaviour.
  • Growth drove, global customer base.
  • Addressing digital fraud and data safety issues that are prevalent in the industry.
  • Experienced and dedicated Key Management Personnel, who are ably supported by their other employees.

The relevant quantitative factors are:

Basic & Diluted EPSRONW (%)NAV (Rs.)
31-Mar-183.6429.312.42
31-Mar-170.141.6
31-Mar-160.9911.9
  • Industry P/E Ratio:
ParticularsP/E ratio
Average
Highest
Lowest
  • Competitive Peers:

There are no comparable listed companies in India engaged substantially in the same line of business as their Company, hence the comparison with industry peers is not applicable.

  • Promoter’s Holding
Pre-Issue Share Holding92.17%
Post-Issue Share HoldingNA

Affle Limited  IPO Lead Managers

Lead Managers
ICICI Securities Limited

Nomura Financial Advisory and Securities (India) Private Limited

Affle Limited IPO Registrar to the Offer

Registrar to the Offer
Karvy Computershare Private Limited
Karvy Selenium Tower B Plot 31-32, Gachibowli
Financial District, Nanakramguda
Hyderabad 500 032, India
Tel: +91 40 6716 2222, Fax: +91 40 2343 1551
E-mail:
Investor Grievance E-mail:
Website: https://karisma.karvy.com
Contact Person: Murali Krishna
SEBI Registration No.: INR000000221

Other Details:

  • Statutory Auditor – S. R. Batliboi & Associates LLP, Chartered Accountants
  • Bankers to the Company –  HDFC Bank Limited

Affle Limited IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.7/107.7/107.8/107.3/107.7/10
Sharekhan7.4/107.4/107.5/107.7/107.8/10
Kotak Securities7.7/107.4/107.3/107.8/107.5/10
ICICI Direct7.8/107.7/107.5/107.5/107.7/10
IIFL7.5/107.8/107.3/107.7/107.5/10
Edelweiss7.3/107.5/107.7/107.3/107.3/10
Zerodha7.7/107.3/107.7/107.5/107.7/10
5Paisa7.9/107.5/107.8/107.3/107.3/10
Karvy7.7/107.3/107.5/107.5/107.7/10
Motilal Oswal7.9/107.7/107.3/107.3/107.7/10

The ratings would be updated once the financials and the other details of the IPO are released.


Affle Limited IPO Grey Market Premium

The Affle Limited IPO Grey Market Premium price is Rs 160-165, the Kostak rate is Rs 250 and the Subject to Sauda is Rs 2000. 


Subscribe to Affle Limited IPO

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Affle Limited IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

New 2 – Affle IPO RHP Prospectus Download

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