Trident Techlabs LTD IPO-Review, Valuation, Date & Today GMP

Trident Techlabs Limited IPO - Complete Overview

Established in 2000, Trident Techlabs Limited evolved from pre-packaged computer software suppliers to a knowledge-based, technology-driven company. With a diverse portfolio, including technical education, custom-built electronics, and power engineering, the company has expanded its reach with offices in Delhi, Bangalore, Kolkata, Hyderabad, Dehradun, and Pune. This geographical footprint positions Trident Techlabs for business growth, allowing access to new markets and diversification of revenue streams.

The company currently operates through two equally significant product divisions. The Power Solutions division provides advisory services to enhance electrical power delivery systems and develops customer and asset information systems. Meanwhile, the Engineering Solutions division serves as a knowledge-based solution and service provider in technical education, offering training and education on application usage. Additionally, Trident Techlabs is a knowledge-based solution provider in electronics design, offering off-the-shelf design verification tools and custom-built electronic hardware.

 

Trident Techlabs Limited IPO Overview

Trident Techlabs Limited IPO date is slated to be open for subscription from December 21, 2023, to December 26, 2023. This NSE SME IPO follows a Book Built Issue IPO.

Trident Techlabs Limited IPO price is fixed at Rs. 33 to Rs. 35 per share.The upcoming NSE SME IPO will be listed on December 29, 2023.

The Total Issue size of this IPO amounts to Rs. 16.03 CR. Within this total issue 50% is issued to the QIB investors, 35% is issued to retail investors, and 15% is issued to other investors.

Trident Techlabs Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 December 2023
IPO Closing Date	26 December 2023
IPO Allotment Date	27 December 2023
Refund initiation	28 December 2023
IPO Listing Date	29 December 2023

 

 

 

Trident Techlabs Limited IPO Details

IPO opening & closing date	21 December to 26 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 33 to Rs. 35 per share
Lot Size	4000  Shares
Price of 1 lot	Rs. 1,40,000
Total Issue Size	4,580,000 shares (aggregating up to Rs. 16.03 CR)
Offer for sale	shares (aggregating up to Rs. CR)
Fresh issue	4,580,000 shares (aggregating up to Rs. 16.03 CR)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

 

Trident Techlabs Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 Lot	4,000
Maximum Lot Investment (Retail)	1 Lot	4,000
Minimum Lot Investment (HNI)	2 Lot	8,000

 

Trident Techlabs Limited IPO Reservation

QIB Shares Offered	50%
Retail Shares Offered	35%
Other Shares Offered	15%

 

Company Financial

In FY 23, Trident Techlabs demonstrated substantial growth in total assets compared to FY 22. The financial snapshot also reflects a significant increase in total revenue, net worth, and reserve & surplus in FY 23.

(Amount in Lakhs)

Period	Oct 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	6,144.08	4,981.46	5,544.66
Total Revenue	2,114.33	6,824.16	2,987.80
PAT	266.13	554.81	64.49
Net worth	2,470.68	1,653.73	1,383.57
Reserve & Surplus	1,200.57	1,609.86	1,055.05
Total Borrowings	2,532.47	2,299.60	2,959.99

Geographical Revenue Bifurcation

In FY 23, Trident Techlabs exhibited a substantial increase in revenue from India, reaching a notable level compared to FY 22. The total geographical revenue, including both India and international sources, reached a significant figure in FY 23.

(amount in Lakhs) 

Particulars	Oct 31 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from India	20,75,43,576.00	67,20,08,698.07	19,04,88,023.18
Revenue outside India	26,49,985.00	14,20,673.00	8,63,15,028.33
Total	21,01,93,561.00	67,34,29,371.07	27,68,03,051.51

Revenue By operations

In FY 23, Trident Techlabs witnessed substantial revenue growth in operations compared to FY 22, with total revenue reaching a significant level.

(amount in Lakhs)

Particulars	Oct 31 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	2,101.92	6,734.71	2,974.34
Other Operating Income	12.41	89.45	13.46
Total Revenue from operations	2,114.33	6,824.16	2,987.80

 

 

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Securing funds for the company's operational capital needs 

• General corporate purposes.

 

Promoters and Management of Trident Techlabs Limited IPO

1. Mr Sukesh Chandra Naithani.

2. Mr. Praveen Kapoor.

Pre-issue Promoter Shareholding	92.48%
Post-issue Promoter Shareholding

 

Trident Techlabs Limited IPO Lead Managers

• GYR Capital Advisors Private Limited
  
  

Peers of Trident Techlabs Limited IPO

There are no listed companies in India that engage in a business similar to that of Trident Techlabs Limited. Hence, providing an industry comparison is not possible.

 

Evaluation

The IPO is priced in the range of Rs 33 to Rs. 35 per share.

 

Evaluation of P/E Ratio

- Considering the FY23 EPS of Rs 4.72 from the last year, the resulting P/E ratio is 7.42x.

- Taking into account the weighted EPS of Rs 3.24 for the last three years, the P/E ratio amounts to 10.81x.

Consequently, the IPO Price range at a P/E of 7.42x to 10.81x is slightly overvalued.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

1.Diverse Product Portfolio: The company excels with a wide array of customised products and services, maintaining a technological edge through continuous innovation in Engineering and Power System Solutions.

2.Robust Client Relationships: With a strong client base of over 300 organisations in Engineering Solutions and 150 in Power Systems Solutions, the company exhibits effective client retention and consistent repeat business.

3.Customer-Centric Support: Tailored support services, including bespoke training, short-term handholding, and post-sales assistance, underscore the company's commitment to customer satisfaction.

4.Comprehensive Industry Knowledge: Possessing in-depth experience in aerospace, defence, automotive, and more, the company navigates diverse industry requirements by providing skilled manpower for specific sub-parts.

5.Experienced Leadership:Led by founders Sukesh Naithani and Praveen Kapoor, the company benefits from over three decades of cumulative experience, ensuring strategic vision for effective management and growth.

 

 

 

IPO's Weaknesses

1.Innovation and Tech Risk: Failure to innovate and adopt new technologies may impact our business. Ongoing investment in tech and partnerships is crucial for competitiveness.

2.Expansion Risk: Expanding into new markets poses challenges like legal risks and hiring difficulties. Failure could adversely affect our business and profitability.

3.Client Dependency Risk: Their revenues heavily rely on a few key clients. The absence of long-term contracts and project-specific services expose us to potential revenue loss if clients choose competitors or face disputes.

 4.Development and Compatibility: Success depends on timely development of solutions compatible with industry standards. Inability may result in client loss, impacting operations.

 5.Regulatory Compliance Risk: Lapses in statutory filings may lead to penalties. Non-filing instances pose uncertainties, impacting the company's financial standing.

 

IPO GMP Today

The last GMP of Trident Techlabs Limited IPO was Rs.40.

 

Conclusion

This IPO provides an opportunity to invest in a company operating in technical education, electronics design, and power engineering. While the company showcases strengths in client relationships, comprehensive industry knowledge, and experienced leadership, potential weaknesses include innovation and tech risks, expansion challenges, client dependency, development compatibility, and regulatory compliance. Investors should carefully evaluate these aspects before considering participation in the IPO.

 

 

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.

 

 

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