Sattrix Information Security Ltd IPO: Review, Valuation, Date & GMP

Sattrix Information Security Limited IPO  - Complete Overview

Established in 2013, Sattrix Information Security Limited develops customer-centric cybersecurity solutions. 

The company aims to deliver comprehensive cybersecurity services to enterprises in India, the USA, and the Middle East (UAE). They design and build data security solutions both on the cloud and on-premise, tailored to client requirements. 

Sattrix offers various services including:

Assessment Services: Vulnerability Assessment, Penetration Testing, Red Teaming, Anti-Phishing Solutions, and Application Security.

IT Infrastructure Management: Security services that provide extensive visibility across modern IT infrastructures, enabling better and faster threat detection, response, and prevention using suitable technologies.

Hybrid IT Services & Solutions: On-premise and cloud infrastructure services that meet diverse business needs, ensuring agility, compliance, and efficiency.

Managed Security Services (MSS): Vulnerability Management, SOC (Incident Response), Endpoint Detection & Response (Managed EDR), Help Desk/Tech Support, IT Infrastructure Security, and Cybersecurity Compliance Services.

As of December 2023, the company has generated revenue of Rs. 3,061.61 lakhs.

 

Sattrix Information Security Limited IPO Overview

Sattrix Information Security Limited IPO date is slated to be open for subscription from June 5, 2024, to June 7, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Sattrix Information Security Limited IPO price is fixed at Rs.121 per share. 

The total issue size of this IPO amounts to Rs.21.78 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Sattrix Information Security Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased while the total borrowing decreased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	2,462.28	2,567.06	1,449.07
Total Revenue	3,061.61	3,775.65	2,348.69
PAT	3,061.61	3,775.65	2,348.69
Net worth	1,446.96	1,194.02	776.51
Reserve & Surplus	946.96	1,193.02	775.51
Total Borrowings	384.77	194.55	235.88

 

Domestic and International Revenue Break up

(Amount in Lakhs)

Revenue as per Restated Financial Statements	31.12.2023	31.03.2023	31.03.2022
INDIA	2846.43	3147.18	1907.34
USA	41.43	271.42	186.48
UAE	148.02	240.66	199.75
Total Export(Out of Total Revenue)	230.95	512.08	386.23
Total	3035.88	3659.26	2293.57

 

Revenue From Top 10 Customers

(Amount in Lakhs)

Top Customer	April – December 2023	FY 2022-23	FY 2021-22
Concentrix Daksh Services India Pvt. Ltd.	145.34	146.16	200.27
National Payment Corporation of India	79.05	260.68	112.52
M.H. Alshaya Co. W.L.L.	101.24	118.39	267.93
Ramco System Ltd.	73.85	194.56	98.11
Niva Bupa Health Insurance Company Ltd.	49.06	48.68	346.82
Fullerton India Credit Company Ltd.	42.06	50.96	25.73
WNS Global Services Pvt. Ltd.	41.66	76.14	28.91
RSA Security and Risk Ireland Ltd.	32.55	85.24	63.23
NTT India Pvt. Ltd.	31.23	28.66	27.51
SBI Cards and Payment Services Ltd.	21.00	34.69	118.71
Total	617.04	1044.16	1289.74

 

The Objective of the Issue

The net proceeds from the issue will be used to raise funds for:

1. Capital Expenditure:

• Purchasing furniture, fixtures, and air conditioning for the new office in Ahmedabad.

• Acquiring and installing IT equipment, computer hardware, servers, SAN storage, CCTV cameras, video conferencing equipment, networking (LAN), and other equipment.

2. Business Expansion Costs:

• Developing new products and technology.

• Other business expansion expenses.

3. Additional Working Capital Requirements

4. General Corporate Purposes

 

Peers of Sattrix Information Security Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Sattrix Information Security Limited	10	8.00	15.12
Systango Technologies Limited	10	12.76	19.79
Dev Information Technology Ltd.	5	4.08	29.41
TAC Infosec Limited	10	6.63	71.70

 

Evaluation

The IPO is priced at Rs.121 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 8.00 from the last year, the resulting P/E ratio is 15.12x.

• Taking into account the weighted EPS of Rs 6.07 for the last three years, the P/E ratio amounts to 19.94x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 40.30x.

As a result, the IPO price range, with a P/E ratio ranging from 15.12x to 19.94x, seems fully priced to the industry average of 40.30x.

 

IPO's Strengths

• Qualified and experienced promoters and employees.

• Diversified client base.

• Proactive approach to providing cybersecurity solutions using modern technology, adaptable to changing client requirements.

• Geographical presence in growing markets such as the Middle East and North America.

 

IPO's Weaknesses 

• The company's business depends on a few key customers; losing these customers or seeing a significant reduction in their contracts could negatively impact the business.

• Major security breaches in software, data, and network infrastructure, as well as fraud, could adversely affect the business.

• The company could face liabilities under Service Level Agreements (SLAs) for defaults in service delivery, which may result in penalties, damage to its reputation, and loss of clients.

• The company has experienced negative operating cash flows in the past.

• Foreign exchange control regulations pose a currency risk to the company.

• The company must maintain certain approvals and licenses necessary for its regular operations.

• Operating in an evolving industry makes it challenging to assess future prospects and increases risk.

• The company has a long and unpredictable sales cycle.

 

IPO GMP Today 

The Latest GMP of Sattrix Information Security Limited is not yet started.

 

Sattrix Information Security Limited IPO timetable (Tentative)

Sattrix Information Security Limited IPO is scheduled from June 5 to  June 7, 2024, with allotment on  June 10, refund initiation on  June 11, and listing on  June 12, 2024.

Events	Date
IPO Opening Date	June 5, 2024
IPO Closing Date	June 7, 2024
IPO Allotment Date	June 10, 2024
Refund Initiation	June 11, 2024
IPO Listing Date	June 12, 2024

 

Sattrix Information Security Limited IPO Details 

Sattrix Information Security Limited IPO, with a face value of Rs.10 per share, opens on June 5 and closes on June 7, 2024, offering 1,800,000 shares at Rs.121 per share, with a lot size of 1000 shares, aiming to raise Rs.21.78 Cr, and will be listed on BSE SME.

IPO Opening & Closing Date	June 5, 2024 to June 7, 2024
Face Value	Rs.10 per share
Issue Price	Rs.121 per share
Lot Size	1000 shares
Price of 1 lot	Rs. 121,000
Issue Size	1,800,000 Shares (aggregating up to ₹21.78 Cr)
Offer for Sale	NA
Fresh Issue	1,800,000 Shares (aggregating up to ₹21.78 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Sattrix Information Security Limited IPO Lot Details 

For Sattrix Information Security Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.121,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs.242,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Sattrix Information Security Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Promoters and Management of Sattrix Information Security Limited

• Mr. Sachhin Kishorbhai Gajjaer 

• Mrs. Ronak Sachin Gajjar

 

Sattrix Information Security Limited IPO Lead Managers

• Isk Advisors Pvt Ltd 

 

Dividend Policy

The company has not paid any dividend in the last three financial years.

 

Conclusion

The company operates in the Information Security sector and boasts a strong global consumer base. The company is doing well financially, and the IPO seems reasonably priced. Investors may consider applying for the upcoming IPO to achieve optimal profit.

 

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.

 

 

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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