IPO Alert: Inspira Enterprise files draft papers for a public issue

The Indian cybersecurity market is estimated to be valued at $2.3 billion in 2020, which is comparatively low due to the negative impact of the pandemic on the economy and spending. However, the industry is expected to reach $5.8 billion in approximately five years, growing at a combined annual rate of 17.7%.

Inspira Enterprise India Ltd has filed its DRHP with the Securities Exchange Board of India to raise ₹800 crores via an initial public offering. The IPO consists of a fresh issue of ₹3 billion and an offer for the sale of ₹500 crores by existing shareholders and promoters.

Inspira plans to utilize ₹1.09 billion from the net proceeds to fund its working capital requirements. The company will use ₹1.15 billion to pre-pay/repay loans and facilities availed by it. The remaining amount will be used for general corporate purposes.

Cybersecurity

Inspira, which is a digital transformation company with a focus on cybersecurity, has a global presence across several verticals. Through its wide range of offerings, the company possesses capabilities spanning the digital lifecycle of services, including consultation, architecture, solution design, implementation, monitoring, and providing managed services. It has executed large cybersecurity transformation, infrastructure, and digital transformation projects for various institutions in India.

The Mumbai-based company has a presence in six countries, including India, the USA, Southeast Asia, the Middle East, and Africa. In 2020, Inspira Enterprise found a place among the top 250 Managed Security Service Providers.

Financials

In fiscal 2021, the company’s total income stood at ₹8.13 billion, versus ₹7.68 billion a year ago. Net profit for the year was ₹361.5 million, against ₹197.1 million last year.

Inspira’s revenues are concentrated in the BFSI (banking, financial services, and insurance) and TMT (technology, media & entertainment, and telecommunications) verticals. In 2020 and 2021, revenue from these verticals represented 56.04% and 58.87%, respectively, of the total revenue from contracts with customers. Regulatory changes in any of these sectors could negatively affect revenues and profitability. External risks like pandemic could also adversely affect those businesses.