I was researching a company named Varanium Cloud Limited which applied for an SME IPO opening on 16.09.22.
“The Company operates in the following key verticals:
- Provision of digital audio and video content streaming services to various content owners and telecom operators in India and internationally on a SaaS (Software As A Service) model such as Voice & Video over Internet Protocol solutions (VoIP) in the B2B and B2C segments;
- Online payment facilitation services (PayFac);
- Provision of low bandwidth digital education content platforms (EdTech) with complete Learning Management Systems (LMS) focused on non-urban areas under Edmission brand;
- Provision of information technology related services to startups and SMEs to help them transition their business to digital platforms and manage the relevant infrastructure on a IaaS (Infrastructure As A Service) model “
It sounded very vague but SaaS and EdTech by an SME lured me to this counter.
“The objects of the Net Proceeds of the Issue are:
- Setting up 3 Nos. Containerized Edge Data Centres;
- Rollout of 3 Edmission flagship Digital Learning Centres; and
- General Corporate Purpose.”
Again Data Centres intrigued me here.
RHP mentioned the previous name of the company as “Streamcast Cloud Private Limited”. I wondered why a company would change its name before IPO, so I checked the net for any link of fraud or scam with “Streamcast Cloud Private Limited” and found this article about Streamcast group and its promoter Harshawardhan Sabale.
The main point of the article is that this group said it would build an International Data Centre in Malta, nothing happened and they ran away. They announced forming Data Centres again in Maharashtra. Nothing happened here either. Now they will dupe the public with the same tactic. SME euphoria will sail this IPO also.
I will always check why a company changed its name from now on. Avoiding IPOs is also a good option. Staying within the circle of competence is of paramount importance to avoid landmines specially in small caps.