About the Company:
DU Digital Technologies Ltd is engaged in the business of providing Visa Processing Services to embassies of various countries.
Company started its operations in the year 2015 and since then has been in the business of providing Visa Processing Services to embassies of various countries.
Company manages human interface between the visa applicant and the technical visa processing unit of the embassy of the Country for which company is awarded the contract or subcontract.
Company is currently providing human interface of visa processing services for Greece and Malaysia in and for India.
What is Company’s role in Visa Processing?
The company’s role is administrative and nonjudgmental tasks related to visa application, digitalization, document verification and biometric data collection for its customers.
This in turn enables the respective government authorities to focus entirely on the critical task of assessment. DU Digital does not play any part in the decision-making process behind visa approvals being granted or denied.
Currently company is providing human interface of visa processing services for Greece and Malaysia in and for India by way of various sub-contracts awarded to Company and its subsidiaries.
The services under these contracts include:
- Accepting documents on behalf of the Ministry and facilitate the Ministry.
- Attestation services.
- Collection of finger prints, facial photo, retina scan, etc. with/without passport processing. Along with this, company also offers Value Added Services (VAS) to support applicants. These include but are not limited to: Premium Lounge, Prime time application, Mobile Biometrics, Form Filling, SMS alert, Courier services etc.
Company operates the Visa Application Centres (VAC) to facilitate Greece visa services.
Company has been awarded the exclusive sub-contract for providing technical assistance, logistics and back end support services for processing Greece Visa Applications in India. In this connection company operates the Visa Application Centres (VAC) to facilitate Greece visa services.
company operates own VACs in places like Delhi, Kolkata, Bangalore and Mumbai and has also partnered with VFS Global Services Limited (VFS) to provide back end processing/ support services for VACs run and operated by VFS in places like: Ahmedabad, Chandigarh, Chennai, Cochin, Hyderabad, Jalandhar, Pondicherry, Pune, Gurgaon, Jaipur and Goa.
Company operates visa processing services for Malaysian Visa in India.
DU Digital Technologies and OSC Global have entered into a MOU dated September 01, 2016 for jointly processing Malaysian Visa in India.
DU Digital’s scope in the allied services include operating Malaysia Visa Counter (VLN)) which involve providing services like digitalization, verification, onward submission, confirmation of acceptance or rejection of visa applications.
Revenue from Operations from different services.
Company’s Subsidiary:
Company’s wholly owned subsidiary, Dudigital Global LLC is incorporated on May 16, 2021 in Sharjah, UAE with an object to provide Immigration consultancy, Management consultancy activities and Office administrative and support services.company is looking forward to expand the visa processing services in Dubai, through Dudigital Global LLC.
Competition in the Business.
Some of the competitors operating in this segment are BLS international Services Limited, TLS Services Private Limited etc
Management Team:
- Mr. Rajinder Rai (Designation: Chairman & Managing Director)
- Mrs. Madhurima Rai (Designation: Whole-time Director)
Objectives of the Issue:
- To meet Working Capital requirements.
- To make investment in our Subsidiary Company, Dudigital Global LLC
- General Corporate Purpose.
- To meet issue expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 1.51 |
| To make investment in Subsidiary Company, Dudigital Global LLC. | 1.40 |
| General Corporate Purpose | 1.10 |
| Issue Expenses | 0.47 |
| Net Proceeds | 4.48 cr |
To make investment in Subsidiary Company, Dudigital Global LLC.
As a part of company’s strategy of increasing the geographical footprint and also increasing revenue by expanding into new geographies, company intends to expand the visa processing services to Dubai, through wholly owned subsidiary, Dudigital Global LLC.
Company therefore intends to utilize a part of the Net Proceeds amounting to Rs. 140 lakhs to make an investment in the form of equity shares in the Subsidiary Company, Dudigital Global LLC (DU LLC) incorpotaed in Sharjah, UAE.
DU LLC intends to utilize the Net Proceeds amount towards setting up of visa application centre in Dubai, which would involve expenditure for Rental Security, Computers, Server, Currency Counting Machine, Furniture, Money locker, Interior Work, Utilities and stationary, Uniform, Statutory Expenses, Health Insurance at visa and miscellaneous expenditure amounting to Rs 140 lakhs.
With the establishment of visa application center in Dubai company will be able to tap new customer base and believe this will also enable company to further integrate the operations and help company to enter into new geographies were the demand for these services are increasing.
Positives for the Company:
High Entry Barriers in Niche Industry.
- The visa outsourcing industry is very large with only few service providers globally engaged in the business of managing the visa applications.
- The high entry barrier in the industry like strict technical, financial qualifications and experience needed to procure the service contracts makes it difficult for other players to garner new service contracts.
Exclusive Service Agreements for visa processing services.
- Company has been outsourced the sub-contract of providing human interface along with technical and back end support services for processing of Greece and Malaysian Visa in and for India.
- The terms and conditions of the agreements, in partnership with VFS Global Services Private Limited, give us right to process all of Greece and Malaysian Visa from India
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 37.47 | 32.06 | 2.26 |
| Net Profit | 0.70 | (-0.23) | 0.11 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| DU Digital Technologies Ltd | 10 | 0.80 | 81.25 | 7.28% | 10.97 |
| BLS International Services Ltd | 1 | 4.90 | 26.15 | 10.95% | 44.88 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 12th August 2021 |
| Issue Closes on:. | 16th August 2021 |
| Issue Price | Rs.65 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs.1,30,000 |
| Issue Constitutes | 26.53% |
| Issue Size | Rs.4.48 cr |
| Market Cap | Rs.16.9 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 6,90,000 |
| Equity Shares Prior to the Issue | 19,10,000 |
| Equity Shares after the Issue | 26,00,000 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 20th August 2021 |
| Initiation of Refunds | on or Before 23rd August 2021 |
| Credit of Equity Shares: | on or Before 24th August 2021 |
| Listing Date: | on or Before 25th August 2021 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 0.80 | 81.25 | 7.28% | 10.97 |
| Company Contact Info: |
|---|
| DU Digital Technologies Limited C-4 SDA Community Centre Hauz Khas , New Delhi, 110016, Delhi, India Tel. No. 011-40450533 E-mail: cs@dudigitalglobal.com Website: www.dudigitalglobal.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Address:-1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400059 Tel No.:+91-022-62638200 Email:ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904,A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, India Tel. No.: +91- 022- 49060000 Fax No.: +91- 022- 22625991 Email: ib@hemsecurities.com Website: www.hemsecurities.com |
