TAC Infosec LTD IPO: Review, Valuation, Date, Price & GMP

TAC Infosec Limited IPO - Complete Overview

Established in 2016, TAC Infosec Limited specializes in providing risk-based vulnerability management and assessment solutions, cybersecurity quantification, and penetration testing services to organizations worldwide through a SaaS model. 

The company delivers security software products and solutions both domestically in India and internationally.

Its clientele includes prominent entities such as banks and financial institutions, government regulatory bodies and departments, and large-scale enterprises like HDFC, Bandhan Bank, BSE, National Payments Corporation of India, DSP Investment Managers Private Limited, Motilal Oswal Financial Services Limited, NSDL e-Governance.

As of September 30, 2023, the company boasted a workforce of 56 employees, with 33 dedicated to its Operational and Product Development team.

 

TAC Infosec Limited IPO Overview

TAC Infosec Limited IPO date is slated to be open for subscription from March 27, 2024, to April 2, 2024. This NSE SME IPO follows a Book Built Issue IPO.

TAC Infosec Limited IPO price is fixed in the range of Rs.100 to Rs.106 per share. 

The total issue size of this IPO amounts to Rs.29.99 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-institutional investors.

 

 

Company Financial

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

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,213.02	977.65	496.45
Total Revenue	531.10	1,014.28	523.63
PAT	194.85	507.29	60.75
Net worth	962.90	768.05	260.75
Reserve & Surplus	917.90	723.05	215.75
Total Borrowings	27.68	35.93	89.06

 

Operation-wise Revenue Break-up

(Amount in Lakhs)

Particular	30 Sep 2023	31 Mar 2023	31 Mar 2022
Domestic	87.61	283.36	265.59
Export	414.44	716.65	245.36
Total Revenue from Operations	502.06	1,000.01	510.95

 

The Objective of the Issue

The Objectives of the Issue are:

1. Acquisition of TAC Security Inc (Delaware, USA) and making it a Wholly Owned Subsidiary thereon. 

2. Investment in Human resources and Product Development. 

3. General Corporate Purposes 

 

Peers of TAC Infosec Limited IPO 

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
TAC Infosec Limited	10.00	6.63	-
Dev Information Technology Limited	5.00	3.95	23.73
Infobeans Technologies Limited	10.00	15.19	29.63
Sigma Solve Limited	10.00	1.88	100.86

 

 

 

 

Evaluation

The IPO is priced within the range of Rs.100 to Rs.106 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 6.63 from the last year, the resulting P/E ratio is 15.98x.

• Taking into account the weighted EPS of Rs 3.71 for the last three years, the P/E ratio amounts to 28.57x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 51.40x.

As a result, the IPO price range, with a P/E ratio ranging from 15.98x to 28.57x, seems fully priced to the industry average of 51.40x.

 

IPO's Strengths

• The company is led by its founder and supported by a highly experienced and professional leadership team.

• Specializes in niche brand building.

• Offers easy-to-use and high-quality solutions.

• Demonstrates consistent growth and profitability.

 

IPO's Weaknesses 

• The company is facing outstanding litigation.

• Sales heavily rely on a small number of customers.

• Intense market competition for technology services may impact the company's pricing.

• The business needs to obtain specific licenses and approvals as part of its regular operations.

• The company faces competition from both domestic and international markets.

 

IPO GMP Today

The Latest GMP of TAC Infosec Limited is Rs.113.

 

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TAC Infosec Limited IPO Timetable (Tentative)

TAC Infosec Limited IPO is scheduled from March 27 to April 2, 2024, with allotment on April 3, refund initiation on April 4, and listing on April 5, 2024.

Events	Date
IPO Opening Date	March 27, 2024
IPO Closing Date	April 2, 2024
IPO Allotment Date	April 3, 2024
Refund initiation	April 4, 2024
IPO Listing Date	April 5, 2024

 

TAC Infosec Limited IPO Details 

TAC Infosec Limited IPO, with a face value of Rs.10 per share, opens on March 27 and closes on April 2, 2024, offering 2,829,600 shares at Rs.100 to Rs.106 per share, with a lot size of 1200 shares, aiming to raise Rs.29.99 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	March 27, 2024 to April 2, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.100 to Rs.106 per share
Lot Size	1200 Shares
Price of 1 lot	Rs.127,200
Issue Size	2,829,600 shares (aggregating up to Rs.29.99 Cr)
Fresh issue	2,829,600 shares (aggregating up to Rs.29.99 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

TAC Infosec Limited IPO Lot Details

For TAC Infosec Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.127,200 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.254,400.

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

 

 

 

TAC Infosec Limited IPO Reservation 

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

 

Promoters and Management of TAC Infosec Limited

• Mr. Trishneet Arora 

• Mr. Charanjit Singh