Kore Digital Limited, established in 2009, is a telecommunications infrastructure provider that specialises in delivering advanced communication solutions to corporate clients and telecom network operators. The company’s primary operations are focused in Maharashtra, India. Theyoffer a range of services, including the installation and commissioning of poles, towers, and optical fibre cable (OFC) systems throughout Maharashtra.
In 2009, Kore Digital obtained the Infrastructure Provider (IP)-I License from the Department of Telecommunications (DoT). This licence enables the company to establish and maintain assets such as dark fibres, right-of-way, duct space, and towers. These assets can be leased, rented, or sold to licensees of telecom network operators, broadband service providers, and internet service providers (ISPs).
The company has a strong customer profile and some of their significant customers include Telecom Operators like Bharti Airtel Ltd, Vodafone Idea Limited, Reliance Jio Infocomm, Tata Teleservices (Maharashtra) Ltd and Corporate like SIFY Technologies Limited, and Power Grid Corp.
Kore Digital Limited IPO Details
It is a 100% fresh IPO worth Rs. 18 crore. The issue comprises 10,00,000 shares and is priced at Rs. 180 apiece. Retail investors can bid for the Kore Digital Limited IPO that will open on 2nd June 2023. Kore Digital Limited’s IPO will list on the NSE exchange on 15th June 2023.
Kore Digital Limited IPO Objective
The objectives of Kore Digital Limited's IPO are listed below.
- To meet the working capital requirements.
- Investment in strategic acquisition / joint venture.
- General corporate expenses.
- To meet the expenses of the Issue.
Should you invest in Kore Digital Limited?
Here are a few important reasons to consider before investing in the IPO:
- As of 2023, Kore Digital Limited has significant customers like Reliance Jio, Vodafone Idea Ltd, Tata Teleservices and Bharti Airtel and laid fibre of around 450 kms.
- The company is well-positioned to benefit from the growing demand for telecom infrastructure in India.
Competitive Peers
Suyog Telematics Limited is a peer listed in India engaged in the same business line. However, considering the nature, range of products/services, turnover and size of the company's business, the peer is not strictly comparable.
Highlights of Kore Digital Ltd.
- Kore Digital Ltd is a well-managed company with a strong track record of growth.
- It has already laid fibre of around 450 Kms for its Telecom Network Operators which include some of the marquee industry names like Vodafone Idea, Bharti Airtel, Reliance Jio, and Tata Teleservices.
Kore Digital Ltd Company Financials
| Particulars | Year ending on 31st December 2022 (Rs. lakhs) | Year ending on 31st March 2022 |
|---|---|---|
| Revenue from Operations | 1,195.71 | 1,693.92 |
| Profit After Tax (PAT) | 253.92 | 217.97 |
| PAT Margin | 21.24 | 12.86 |
| EBITDA | 345.57 | 312.53 |
| EBITDA Margin | 28.90 | 18.44 |
| Debt-to-Equity Ratio | 0.36 | 0.45 |
| EPS | 10.08 | 2179.72 |
| ROE | 50.18 | 86.46 |
Know before investing
Strengths
3The company is engaged in providing high-end communication solutions.
The company is almost debt free, which means that it has a strong financial position.
The company is expanding into new markets, which will help to increase its revenue and profits.
Risks
3The issue is aggressively priced based on the financial performance till now.
The company's stock price is volatile, which means that it can fluctuate significantly in price.
The company is not as well-known as larger companies, which could make it more difficult for it to raise capital in the future.
