The Common Service Centres are physical outlets where the Government of India’s e-services to rural and remote locations are carried out. CSC, as it is commonly known, calls itself a government promoted company.
Let’s look into the necessary details as this organisation attempts to raise money in an IPO.
Key Highlights of Common Service Centre Contemplating An IPO
- This centre is responsible for generating around Rs. 6,000 crores worth of financial transactions each month. Interestingly, this includes settling the personal banking settlements.
- Moreover, Common Service Centre runs approximately 4.5 lakh digital-enablement, e-commerce, and retail shops in the remotest parts of India. CSC generated transactions around Rs. 59,000 crores and is likely to cross the Rs. 70,000 crores in this fiscal year.
- The fundraiser is likely to happen in March 2022. The CEO, Dinesh Tyagi, said that although they did no formal valuation of the company, it is highly likely to be a unicorn status company.
- Additionally, the CSC units are presently being accessed by the best banking and insurance companies. Some of these companies are HDFC, a shareholder, and others like:
What is a Common Service Centre?
The Common Service Centre has been around since 2006. The Ministry of Electronics and Information Technology founded this organisation that has about 4.5 lakh centres around India.
Common Service Centre initially started as an outlet responsible for the rollout of Government services across rural belts and small towns. Now, it is responsible for rolling out e-services, especially G2C, throughout the hinterlands of the country.
IPO fever seems to have caught the imagination of every organisation out there. Given LIC’s upcoming transition to a public company, it seems likely that other such organisations where the government has a stake are looking to raise funds from the stock markets.
Frequently Asked Questions
- Why is the Common Service Centre looking to go the IPO way?
Ans. CEO Dinesh Tyagi wants to enter the IPO to raise funds to help the organisation raise money for expansion, infrastructure, and setting up a corporate office.
- Who manages the Common Service Centre in a village?
Ans. Third-party non-government partners manage common Service Centres. They are known as village-level entrepreneurs or VLES.
- What is another name for the Common Service Centre?
Ans. Another name for the Common Service Centre is Digital Seva Kendra.