CRP Technologies India IPO Review
CRP Technologies (India) is a Risk Mitigation Consulting and Human Resource Solution Provider in India. They are planning for an IPO. Company has filed a draft red hearing prospectus with the market regulator SEBI. They are going to issue 50 Lakh equity shares of Rs 10 (face value) each. They are diluting 48% stake. The IPO amount will be used for the expansion of business activities (Rs 14.6 Cr), proposed acquisitions (Rs 15 Cr) and working capital (Rs 15 Cr). Company is equipped in the business of providing customized people, process risk mitigation and human resource solutions for corporate clients. Company reported a net income of Rs 23.82 Cr and a net profit of Rs 2.49 Cr in the FY 2011.
Human capital is the most important investment for any company. There is huge risk while recruiting a candidate or hiring him for any job. There are many limitations for the companies to check the credibility of candidates. We can find the involvement of corporate personnel in many crimes. The concept of background screening was introduced in India before 7 years. The 11/9 terrorist attack in US changed many security concepts in the world.
The Indian insurance sector is valued US$ 40 billion. It is the fifth largest insurance sector in the world. The sector is growing at an annual rate of 32-34%. There are numerous insurance players in the country. They are giving almost same kind of products to the customers. They are compelled to give quality services to the customers. Insurance companies are trying for claim outsourcing to improve their services. This will beneficial for CRP Technologies (India). Company is providing the services like Risk/Fraud Verification, Claims Investigation, and Claims Settlement.
Company is incorporated in 2000. Company is giving services like Background Screening of employees, Recruitment Process Outsourcing etc. The sector may be unfamiliar for common investors. If we compare background screening sector of India with US, it can be seen that the Indian sector is in the primarily stage. Massive sales growth can be expected in the particular sector. Company will be a beneficiary of such circumstances. As far as the investors are concerned, the issue price is very important. Detailed study must be done before investment. The IPO price band will be available soon.