NSB BPO Solutions Makes Modest Debut with 5.37% Premium, Lists at ₹127.50 Against Extremely Weak Subscription

NSB BPO Solutions Limited, a Business Process Outsourcing company specializing in customer care, telesales, document digitization, and payroll management with a workforce of 2,439 employees also engaged in FMCG trading, made a modest debut on BSE SME on October 10, 2025. After closing its IPO bidding between September 23-October 7, 2025, the company commenced trading with a 0.37% premium opening at ₹121.45 and rose to ₹127.50 with gains of 5.37%.

NSB BPO Solutions Listing Details

NSB BPO Solutions Limited launched its IPO at ₹121 per share (revised down from the original ₹140-147 price band) with a minimum investment of 2,000 shares costing ₹2,42,000. The IPO received a weak response with a subscription of just 0.76 times - individual investors at disastrous 0.21 times, NII at 0.79 times, though QIB showed 25.49 times subscription.

First-Day Trading Performance Outlook

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• Listing Price: NSB BPO Solutions share price opened at ₹121.45, representing a premium of 0.37% from the issue price of ₹121, and rose to ₹127.50, delivering modest gains of 5.37% for investors, reflecting cautious market sentiment towards the BPO sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Service Portfolio: Comprehensive BPO offerings including voice business call centers (inbound/outbound), back-office outsourcing (document management, warehousing, archival, digital support), payroll management, etc.
• Multi-Sector Client Base: Serving diverse sectors including telecommunications, banking, financial services, insurance, e-retail, food delivery, hospitality, government, healthcare, and education with a quality service focus and an experienced management team.
• Strong PAT Growth: Impressive PAT growth of 64% to ₹11.05 crore in FY25, low debt-to-equity ratio of 0.17, moderate EBITDA margin of 13.62%, and conservative price-to-book value of 1.47, demonstrating operational improvements.

Challenges:

• Revenue Inconsistency Concerns: Top line posted significant inconsistency, declining from ₹285.15 crore in FY23 to ₹128.27 crore in FY24 before modest recovery to ₹138.54 crore in FY25, raising serious questions about business stability and predictability.
• Greedy Valuation Metrics: Post-issue P/E of 25.31x appearing greedily priced despite price band reduction, modest ROE of 7.92%, low PAT margin of 7.98%, representing a "High Risk/Low Return" proposition in a competitive and fragmented BPO segment.

Utilisation of IPO Proceeds

• Debt Reduction: ₹25.82 crore for debt repayment, improving financial leverage from a 0.17x debt-to-equity ratio and reducing interest burden.
• Business Expansion: ₹13.38 crore for capital expenditure for a new project, and ₹20.00 crore for long-term working capital requirements for the new project supporting business diversification.
• Working Capital: ₹9.02 crore for additional working capital requirements supporting existing business operations and service delivery.
• General Corporate Purposes: Supporting business operations and strategic initiatives for sustained growth in the competitive BPO sector.

Financial Performance of NSB BPO Solutions

• Revenue: ₹138.54 crore for FY25, showing modest growth of 8% from ₹128.27 crore in FY24, though revenue had declined significantly from ₹285.15 crore in FY23, raising serious inconsistency concerns.
• Net Profit: ₹11.05 crore in FY25, representing impressive growth of 64% from ₹6.73 crore in FY24, indicating operational improvements and margin expansion despite top-line inconsistency challenges.
• Financial Metrics: Modest ROE of 7.92%, moderate ROCE of 9.42%, low debt-to-equity ratio of 0.17, modest PAT margin of 7.98%, moderate EBITDA margin of 13.62%, conservative price-to-book value of 1.47, and an estimated market capitalisation of ₹254.65 crore.