Cogent E-Services Ltd IPO 

Last Updated on October 17, 2023 by BFSLTeam BFSLTeam

Cogent E-Services Ltd IPO will include an Offer for Sale of up to 9,468,297 shares and fresh issues of equity shares totalling up to Rs. 150 crore. The company has filed its initial papers with the market regulator to launch its IPO and got its approval. The IPO is expected to launch soon.

Cogent E-Services Ltd is an integrated omnichannel customer experience service provider. It helps brands and businesses to connect with their customers, improve response time, and transform customer experience, and business outcomes.

Learn more about the company and its financials to make a sound investment choice. 

About Cogent E-Services Ltd.

Founded in 2004, Cogent E-Services Ltd has rapidly expanded its operations across India, growing from 7 to 16 cities by 30 November 2021, including locations in Mangalore and Thane. With 9,022 customer service associates and 7,609 seats in 16 locations, the Noida-based company offers multilingual services in over 10 languages.

As a leading provider of omnichannel CX solutions, the company optimises enterprise CX management through customised strategies and leverages extensive data insights. Its services cover sales, support, voice and non-voice channels, back office solutions, transformation services and digital marketing. 

The company utilises data analytics, automation and AI and ML-based solutions to provide industry-standard services in customer experience management. It offers end-to-end CX solutions, including back-office support, digital marketing and both voice/non-voice customer support and sales assistance. 

Company Financials 

Potential investors will find the following table essential for informed decision as it includes the necessary details of Cogent E-Services Ltd financial statements:

Parameters as Per the Year Ending On	March 31 2021	March 31 2020	March 31 2019
Total Assets	1,440.18	1,511.27	1,078.90
Total Liabilities	793.16	1,060.09	719.97
Total Expenses	2475.30	2364.51	1536.21
Total Revenue	2751.07	2484.21	1597.78
Profit After Tax	201.16	88.95	46.36
EBITDA	504.23	308.08	173.58
Earnings Per Share (EPS) (Basic & Diluted) *	6.22	2.75	1.43

*Values in Rs. millions except EPS 

Also Read: How does an IPO work?

Strengths of Cogent E-Services Ltd.

Here are some unique facts about Cogent E-Services Ltd that have been their reasons for success: 

• The company has leveraged industry expertise to support clients in its CX journey. Its offerings include integrated solutions across sales, support, voice, non-voice channels, back office and digital marketing.
• CX Lab analyses call flows and touchpoints across industries, geographies and time frames using advanced algorithms. By studying the behaviour of clients, customers and employees, it provides agile services that adapt in real-time to changing requirements, such as dynamic scheduling and increasing capacity to increase call volumes.
• In financial years 2019, 2020 and 2021, as well as in the 6 months ending September 30, 2021, the company posted recurring returns of 87.2%, 81.0%, 95.3% and 97.8%, respectively. In addition, its net income retention rates for the same periods were 103%, 128%, 107% and 131%.
• With over 1 billion transactions processed since 2016, Cogent E-Services has become a trusted CXM partner. Surpassing industry norms, it achieved a 31% revenue growth between fiscal years 2019-21 despite the Indian CXM market growing at a 7-9% CAGR.
• As of September 30, 2021, the company had operations in seven cities in India such as Noida, Vadodara, Bengaluru, Mangalore, Meerut, Bareilly and Thane with 9,022 FTE CSAs and 7,609 seats across 14 locations. By 30 November 2021, its operations expanded to 16 locations, including Mangalore and Thane.
• The company’s pan-India presence offers it access to a diverse talent pool capable of communicating in more than 10 languages, including English, Hindi, Gujarati, Marathi, Tamil, Telugu, Kannada, Malayalam, Punjabi and Bangla, enhancing its ability to effectively serve customers.

Cogent E-Services Ltd IPO share price, subscription date, lot size, and other details are yet to be announced. We will keep updating the information here as soon as they are available.

Risks Involved 

Along with the strengths, some underlying risks pose threats to the company’s financials and growth. Some of the notable risks are:

• Failure to develop and innovate its CXM tools and processes could materially and adversely affect its financial performance and future prospects. 
• Failure to adapt services to changes in existing technology and market trends will likely affect its growth prospects and operating results.
• The company’s sector is an extremely competitive environment where an inability to compete with existing and future peers could deteriorate its revenues and profitability. 
• Its business is heavily reliant on a few clients for a substantial portion of its revenue. The loss of one or more of these clients could adversely affect the business and finances of Cogent E-Services.

Also Read: Benefits of Investing in IPO

Summary 

The company will use proceeds worth Rs. 30 crore from Cogent E-Services Ltd IPO will be used for investing in its expansion and improving existing IT assets. The rest of the funds (around Rs. 75 crore) will be utilised for working capital needs and other corporate purposes. The company may also offer a pre-IPO placement. 

Frequently Asked Questions