Course5 Intelligence Files DRHP for an IPO

Course5 Intelligence has filed its draft red herring prospectus (DRHP) with SEBI for a proposed Rs.600 crore IPO. Course5 Intelligence is an artificial intelligence (AI) based data analytics and data insights company. This is the first data analytics IPO after Latent View Analytics, which had enjoyed a stellar response and listing.

The Course5 Intelligence IPO will comprise of Rs.300 crore of fresh issue of shares and Rs.300 crore by way of offer for sale. The purpose of the OFS component is to give an exit route to the promoters to partially monetize their stake and for early investors.

The major participants in the offer for sale include AM Family Private Trust (Rs.112.50 crore), Kumar Kantilal Mehta (Rs.75 crore), Riddhymic Technologies (Rs.40 crore), Riddhymic Technoserve (Rs.40 crore) and Ashwin Ramesh Mittal (Rs.32.50 crore).

The fresh proceeds of Rs.300 crore will be largely used for funding inorganic growth of the company as also investing in product and IP as well as expanding its geographical footprint. The company will also use part of the fresh funds towards working capital needs.

Its financials have seen robust growth in the last fiscal year. The net profit for FY21 was up 75.5% at Rs.29.72 crore. However, revenues did fall marginally to Rs.247.19 crore, largely due to the demand situation getting impacted by the lag effect of the pandemic. For FY22, the company has already earned full year FY21 profits in the first 6 months of FY22 itself.

The basic purpose of Course5 Intelligence is to leverage AI based insights for digital transformation. It finds extensive application and has built expertise in direct to consumer and in omni channel models, including supply chain management, enterprise AI, social media analytics, social media insights and integration, dynamic customer segmentation etc.

AI and data analytics has become the latest preferred option for companies to substantially scale up their operations without adding too much cost. Better customer and process insights allow these companies to add value to their clients in enhancing their revenue and profit per customer through better data mining and data understanding.

Some of the sectors that find extensive applications for the solutions offered by Course5 Intelligence include telecom, media, technology, pharmaceuticals, consumer goods etc. The issue will be lead managed by Axis Capital and JM Financial.

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