Please find enclosed the InGovern report on a case study of 3i Infotech Limited.
Market Price: Rs.40.10 (BSE) as of 29-Oct-2021
3i Infotech Limited got relisted on the stock exchanges on 22 Oct 2021. It is a case study of restructuring that shareholders got right by selling off the products business, restructuring the debt and paying off the debt, early redemption of FCCBs, reducing the share capital to write-off the accumulated losses, bringing in a new management team, setting new directions and thus laying a solid foundation for future business growth and profitability.
Highlights
1. The shares of 3i Infotech relisted on October 22, 2021 at Rs.29.55 after all regulatory approvals and reduced share capital.
2. This marks the beginning of a new avatar, called 3i 2.0, with the products business sold off and focus on the IT services business.
3. New management team, headed by a new Managing Director & CEO, Mr. Thompson P. Gnanam focused on growth.
4. Targets to reach Rs. 7,500 crore (USD 1 billion) revenues by FY2030.
5. Focus on new service offerings in specific domains like BFSI, telecom, media, healthcare, etc.
6. The management is focusing on Run, Grow and Build in the new avatar. It is trying to retain existing clients, aggressively acquire new clients and incubate startups to drive business growth.
7. With the new management, on business side 3i has entered in three new business segments Digital Business Services, Digital Transformation Consulting and NextGen Business Services including existing Enterprise Services business. On the operations side, created a new Marketing, Revenue Assurance and Strategy process.
8. Clean financial structure with no debt, low equity base.
9. Shareholders should expect profitable compounded growth from FY2021-22.
10. Part of the USD 180 billion IT services industry and the cloud growth story of over 20% per annum.
Good luck!