HOV Services IPO
HOV Services IPO — date, price band, lot size & details 2006
HOV Services listed on 27 Sep 2006 at ₹204, 2% above the ₹200 issue price.
HOV Services is a Pune based business process outsourcing company whose US subsidiaries handle accounts receivable management and collections for American clients. Its standalone total income was Rs 4.65 crore in FY2006.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 04 Sep 2006
- Close 07 Sep 2006
- Allotment 19 Sep 2006
- Refund/credit TBA
- Listing 27 Sep 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 4 to 7 Sep, 2006 |
|---|---|
| Price Band | ₹200 – ₹240 |
| Face Value | ₹10 |
| Lot Size | 25 Shares |
| Issue Size | ₹81 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 5,000 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 25 shares at the ₹200 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 25 | ₹5,000 |
| Retail (max) | 40 | 1,000 | ₹2,00,000 |
| S-HNI (min) | 41 | 1,025 | ₹2,05,000 |
| S-HNI (max) | 200 | 5,000 | ₹10,00,000 |
| B-HNI (min) | 201 | 5,025 | ₹10,05,000 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01It had 455 employees at its Pune facilities as of 30 April 2006.
- 02Its clients included large companies in 4 industries: healthcare, telecom, banking and finance, and insurance.
- 03Standalone profit after tax rose from Rs 0.22 crore in FY2004 to Rs 2.61 crore in FY2006.
- 04Standalone net worth rose from Rs 3.00 crore in FY2005 to Rs 11.12 crore in FY2006.
Risks · 5
- 01Rs 65.53 crore of the issue went to its subsidiary to redeem Class B units, not to grow the business.
- 02Most of its business sat in US subsidiaries, so the standalone figures, with income of Rs 4.65 crore in FY2006, show only part of it.
- 03Collections work depends on US clients and US rules on debt collection; its 3 named US subsidiaries carried most of the business.
- 04The issue was priced at Rs 200, the bottom of its band.
- 05Promoter and promoter group holding fell from 81.7% before the issue to 55.3% after it.
Three years of numbers
All figures in ₹ crore, as reported in the HOV Services offer document.
| Metric | 31 Mar 2006 | 31 Mar 2005 | 31 Mar 2004 |
|---|---|---|---|
| Total Income | 4.65 | 4.86 | 1.96 |
| Profit After Tax | 2.61 | 2.57 | 0.22 |
| NET Worth | 11.12 | 3.00 | 0.43 |
| Reserves and Surplus | 2.61 | 2.91 | 0.11 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the HOV Services RHP.
Where the money goes
₹100.89 Cr of the issue is earmarked to named objects.
About the company
Through its US subsidiary HOV Services LLC and companies under it, such as Bay Area Credit Service and Imperial Collection Service, it provided accounts receivable management and related services.
Its clients included some of the largest companies in healthcare, telecommunications, banking and finance, and insurance, and it had 455 employees at its Pune facilities as of 30 April 2006.
The IPO was Rs 81 crore and was entirely a fresh issue at Rs 200, the bottom of the Rs 200 to Rs 240 band. Most of the money was to fund its subsidiary to redeem Class B units, with the rest for capital spending.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
HOV Services IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Bofa Securities India Limited
64 issues handledBest listing: Tata Technologies (+140.0%). Weakest: Puravankara Projects (-22.5%).
JM Morgan Stanley Pvt. Ltd
22 issues handledBest listing: Infrastructure Development Finance Co (+76.5%). Weakest: House of Pearl Fashions (-9.1%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of HOV Services?
The current Grey Market Premium is ₹0.
What is the HOV Services IPO price band?
₹200 to ₹240, on a face value of ₹10.
When is the allotment?
The basis of allotment is 19 September 2006, with listing on 27 September 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
