The Pune-based software consulting firm has fixed the issue price at Rs 84 per share and the minimum units one needs to buy is 1,600 shares, requiring a minimum investment of Rs 1,33,400. Overall, 7.36 lakh shares are on the block, worth Rs 6.18 crore.
At the offer price, the scrip is available at 7.82 times FY19 earnings per share.
The company has interests across segments such as mobile app development, web application development, business intelligence and data analytics. In the past, it offered services to the US government, Merck India, Payback Card and several other companies across India, Australia, US and the UK.
Its listed peers included Xelpmoc Design, which had a tepid listing in February this year. Info Beans Technologies and Industry Composite are two other listed entities that the company calls its peers.
The pre-issue net worth of the IT company stood at Rs 2.22 crore as per restated balance sheet for FY19. The book value as per the restated balance sheet stood at Rs 162.95 for the year. Total debt stood at Rs 1.21 crore.
The company’s net profit more than doubled in FY19, which helped it report 40 per cent compounded annual growth rate in last 4 years.
That said, the IT firm had a negative cash flow in the recent years.
Managing Director, Anshu Goel says the company plans to expand into new clientele and expand the team in order to leverage various organic and inorganic opportunities.
The company lists Middle East, North Africa, Europe and Latin America as target geographies.
At $137 billion in 2018-19, export revenue from the digital segment forms about 20 per cent of the industry’s total export revenues.
India’s IT sector is one of the largest in the world and the domestic industry enjoys a huge cost advantage by being 5-6 times less expensive than the US.
