Can you tell me about the proposed IPO of Course5 Intelligence? What business is the company into and when is the IPO expected?

Course5 Intelligence has just filed its draft red herring prospectus (DRHP) with SEBI for the proposed Rs.600 crore IPO. Normally, the regulator takes anywhere between 2 and 3 months if there are no other major objections, to approve the DRHP, after which the IPO process starts. So, ideally, this IPO can happen around April, which is most likely. This will be the first data analytics company to hit the IPO market since Latent View Analytics.

First a background of Course5 Intelligence. It is an artificial intelligence (AI) based data analytics and data insights company. Course5 Intelligence looks to effectively leverage AI based insights for digital transformation. It applies its AI based models to direct to consumer and omni channel models, including supply chain management, enterprise AI, social media analytics, social media insights, dynamic customer segmentation and many more.

The overall IPO of Course5 Intelligence will be worth Rs.600 crore which will comprise of Rs.300 crore of fresh issue of shares and Rs.300 crore by way of offer for sale. Let us look at the OFS part first. It will involve sale of shares by AM Family Private Trust (Rs.112.50 crore), Kumar Mehta (Rs.75 crore), Riddhymic Technologies (Rs.40 crore), Riddhymic Technoserve (Rs.40 crore) as well as Ashwin Ramesh Mittal (Rs.32.50 crore).

What about the fresh proceeds of the issue. The fresh proceeds of Rs.300 crore will be predominantly applied to bankroll the inorganic growth of the company, which entails growth via the mergers and the acquisitions route. The company will also use the funds to invest in product and IP as also to enhance its geographical footprint. A small part of the new issue proceeds will also be used to fund working capital needs.

For FY21, the company saw profits grow 75% at Rs.29.72 crore. However, in the first 6 months of FY22, the company has already earned equivalent to the full year FY21 profits. AI is the first port of call for companies to expand their business quotient without adding costs too much. Course5 products find applications across sectors like telecom, media, technology, pharmaceuticals and consumer goods.