S A Tech Software India Ltd IPO: Review, Valuation, Date & GMP

S A Tech Software India Limited IPO-Complete Overview

S A Tech Software India Limited IPO is an SME book-built IPO of Rs.23.01 crores by S A Tech Software India Limited that was established in 2012 as an IT consultancy subsidiary of the foreign firm SA Technologies Inc., USA. The company specializes in application development, mobile app development, cloud infrastructure, software quality assurance, generative AI, machine learning, IoT solutions, data science, and analytics. S A Tech Software India offers the following products and services:

• IT Services: The firm assists Fortune 500 customers with product conceptualization, design, development, and delivery by offering technology and digital transformation services. These include AI and machine learning, software development and engineering, digital transformation and automation, cloud and DevOps services, quality assurance and testing, and the Global Capability Centre (GCC).
• AI and Machine Learning (ML)
• Data Science and Analytics
• Software development and Engineering
• Digital transformation and automation
• Cloud and DevOps services.
• Quality Assurance and Testing

On September 30, 2023, the company had 356 workers.

Dear readers, we are pleased to provide details about the approaching SME IPO. The company plans to launch its IPO on July 26, 2024. Let's take a closer look at the IPO's offerings below.

 

 

S A Tech Software India Limited IPO Overview

S A Tech Software India's IPO of Rs.23.01 crore comprises a wholly Fresh Issue of 39 lac Shares (amounting to Rs.23.01 crores) out of which 35% is allocated to retail investors, 50% to institutional investors, 15% to non-institutional-investors.

This SME IPO will be available to investors on July 26, 2024, and conclude on July 30, 2024. The anticipated listing date for the IPO is Friday, August 2, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.56 to Rs.59.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 27.59%, while profit after tax (PAT) increased by 266.7% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending June 30, 2024.

• The total revenue of the company is Rs.2,397.18 lac.

• The net worth of the company is Rs.1,414.43 lac.

• The company's EBITDA is Rs.413.93 lac.

• The total assets of the company are Rs.4,703.23 lac.
  
  

(Amount in Lac)

Period	30 Jun 2024	31 Mar 2024	31 Mar 2023
Total Assets	4,703.23	3,706.06	3,465.95
Total Revenue	2,397.18	7,238.12	5,673.05
PAT	248.07	368.86	100.59
Net Worth	1,414.43	1,166.35	772.48
Reserve & Surplus	498.70	250.62	729.50
Borrowing	2,105.22	1,288.12	1,459.18

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	For 3 Months concluded on Jun 30, 2024	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	-416.39	61.05	1,334.66
Net Cash Flow Investing Activities	-161.54	-138.58	-79.41
Net Cash Flow Financing Activities	758.06	-472.63	-766.34

Geography-wise Revenue Breakdown From Sales.

(Amount in Lac)

Particulars	For 3 Months concluded on Jun 30, 2024	31 Mar 2024	31 Mar 2023
Export	1,024.41	1,031.95	257.33
Domestic	1,364.46	6,156.27	5,381.98

 

 

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• The corporation may prepay or repay outstanding borrowings.

• Fund its working capital requirements.

• Corporate Purposes.

 

Peers Of S A Tech Software India Limited

(Figures as of March 31, 2023)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Asm Technologies Ltd.	10	15.06	55.14
Moschip Technologies Ltd	2	0.32	165.18
Infobeans Technologies Limited	10	15.18	30.34
Onward Technologies Ltd.	10	7.34	55.77
3i Infotech Limited	10	3.10	343.13

 

Evaluation

The price of this IPO is Rs.56 to Rs.59 for each Share.

Evaluation Of P/E Ratio

Considering the year that ended on 31 March 2024, with an EPS of Rs.4.06 from the last year, the resulting P/E ratio is 14.53x.

Considering the weighted EPS of Rs.1.42 for the last three years, the P/E ratio is 41.54x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 34.29x.

Particulars	P/E Ratio
Highest	34.29
Lowest	34.29
Average	34.29

In simple words, the P/E ratio of S A Tech Software India Limited-IPO (14.53x), compared with the industry’s average P/E of 34.29x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

 

 

IPO's Strengths

• An accomplished promoter and a skilled senior management group.

• Expandable Business Structure.

• Plan to expand the capabilities and capacity required to create and raise the business's value through development in a number of areas, such as enhancing its links with current clients and growing its embedded and digital engineering departments.

• The company has a global presence.
  
  
• The company consists of talented experts, both seasoned and young, with different knowledge.

IPO’s Weaknesses

• IT system breakdowns or lapses by its workers can cause business disruption, liability, and reputational loss.

• The business and operational outcomes might be negatively impacted by disruptions or issues related to its infrastructure and technology.

• During project execution, the company collects sensitive information and data to ensure project confidentiality. Failure to respect project confidentiality will negatively impact its operations and finances.

• The company had negative cash flow during recent fiscal years. Sustained negative cash flow might harm its business, financial situation, and operations.

• Failure to adapt to technology or industry trends can impact product and service performance, reducing customer appeal.

• The sales cycle is very variable and influenced by external events, leading to considerable changes in revenue.

IPO GMP Today

S A Tech Software India Limited IPO’s latest GMP is Rs.80.

S A Tech Software India Limited IPO Timetable (Tentative)

The IPO is scheduled from July 26 to July 30, 2024, with allotment on July 31, refund initiation on August 1, and listing on August 2, 2024.

Events	Date
IPO Opening Date	July 26, 2024
IPO Closing Date	July 30, 2024
IPO Allotment Date	July 31, 2024
Refund Initiation	August 1, 2024
IPO Listing Date	August 2, 2024

 

S A Tech Software India Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 26, close on 30 July, and offer a total issue size of 3,900,000 Shares (aggregating up to Rs.23.01 Cr) comprising a whole fresh issue size of 3,900,000 Shares (totaling up to Rs.23.01 Cr).

IPO Opening & Closing date	July 26, 2024 to July 30, 2024
Face Value	Rs.10 per Share
Issue Size	3,900,000 Shares (aggregating up to Rs.23.01 Cr)
Offer For Sale	NA
Fresh Issue	3,900,000 Shares (aggregating up to Rs.23.01 Cr)
Listing At	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

S A Tech Software India Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.118000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.236000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

S A Tech Software India Limited IPO Reservation

Institutional Portion	50%
Retail Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management Of S A Tech Software India Limited IPO

• SA Technologies Inc., USA,

• Mr. Manoj Joshi 

• Mrs. Priyanka Joshi 

Pre-Issue Promoter Shareholding	79.27%
Post-Issue Promoter Shareholding	-

 

S A Tech Software India Limited IPO Lead Managers

• GYR Capital Advisors Private Limited
  
  

Dividend Policy

The company has no formal dividend policy.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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