Synoptics Technologies Limited IPO - Review, Price, GMP & Valuation

Synoptics Technologies Limited - Complete Overview

Synoptics Technologies Limited was established in Mumbai in 2008 as a private limited company. However, following a shareholders' meeting in 2018, it was converted into a public limited company and subsequently renamed "Synoptics Technologies Limited."

The company specializes in providing comprehensive IT solutions, particularly in the areas of IT infrastructure. This includes offering connectivity solutions for branches, as well as supplying, implementing, and supporting network equipment such as routers and switches required for smooth IT operations.

In addition to IT infrastructure, Synoptics Technologies assists its clients with cloud-related services such as application migration and management. The company also offers IT security solutions, including firewall installation and management.

Synoptics Technologies caters to a diverse range of customers, including enterprises, small businesses, and government entities, assisting them in their digital transformation journeys. Presently, the company operates throughout India and boasts a workforce of approximately 600 employees.

The company has many prestigious clients such as TATA Communications Limited, BOB Financial Services, Blue Dart Express Limited, Lifestyle International Private Limited, Shoppers Stop Limited, Hennes & Mauritz Retail Private Limited (H&M), Fedbank Financial Services Limited, GIC Housing Finance Ltd, and the Government of Gujarat, among others.

Notably, Synoptics Technologies recently signed an agreement with BSNL, becoming their authorized Private LTE / Private 5G service partner nationwide, which highlights the company's commitment to expanding its services.

Synoptics Technologies has regional offices established across 16 different locations in India.

 

 

What does the company do?

The company offers its services in IT solutions, focusing on various areas such as IT infrastructure. This includes providing connectivity to branches, as well as supplying, implementing, and supporting the necessary network equipment like routers and switches for efficient IT setups. Additionally, they provide clients with cloud-related services. The company also specializes in IT security solutions, including firewall installation and management.

 

Company Products 

The company offers a wide range of services including business continuity services, managed security services, cloud services, managed IT services, and application modernization.

 

IPO Overview 

The Synoptics Technologies IPO is set to open on June 30, 2023, and close on July 5, 2023. This upcoming IPO is an SME IPO and will be listed on the NSE SME platform. SMEs with a minimum post-paid up capital of Rs. 1 crore can take advantage of the opportunity to launch their IPO for the first time and raise funds for their operational needs.

The IPO will have a price band of Rs 237 per share, with a face value of Rs 10 per share. A single lot will consist of 600 shares and retail investors can bid for a maximum of 1 lot.

Retail investors will have reserved shares, accounting for 50% of the total issue. The shares are scheduled to be listed on the stock market on July 13, 2023.

 

Synoptics Technologies Limited  IPO timetable 

Events	Dates
IPO Opening Date	30 June 2023
IPO Closing Date	05 July 2023
IPO Allotment Date	10 July 2023
Refund Initiation	11 July 2023
IPO Listing Date	13 July 2023

 

Synoptics Technologies Limited  IPO Details

IPO Opening & Closing Date	30 June 2023 to 05 July 2023
Face Value	Rs 10 per share
Issue Price	Rs 237 per share
Lot Size	600 Shares Per Lot
Price of 1 Lot	Rs 142,200
Issue Size	2,280,000 Shares
Offer for Sale	800,000 Shares
Fresh Issue	1,480,000 Shares
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Synoptics Technologies Limited  IPO Lot Details 

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

 

Synoptics Technologies Limited  IPO Reservation

Retail Portion	Minimum 50%
Corporate Bodies or Institutions	Remaining Left after Retail

 

Company Financial

Amount in Lakhs

Period	Mar - 21	Mar - 22	Dec - 22
Total Assets	3759.78	4279.80	5379.95
Total Revenue	3479.91	5097.07	3446.81
Net Profit	236.02	432.36	525.36
Net Worth	1444.49	1876.85	2402.21
Reserve & Surplus	744.49	1176.85	1702.21
Total Borrowing	1194.71	1410.03	1959.06

 

Objective of the Issue

The company intends to allocate the funds towards achieving specific objectives, including:

• Repaying certain borrowings.
• Meeting working capital requirements.
• Investing in strategic acquisitions or joint ventures.
• Addressing general corporate purposes.

 

Promoters and Management of Synoptics Technologies Limited

The company is supported by experienced promoters. The key promoters of the company included Mr Jagmohan Manilal Shah, aged 76, who serves as a Director of the Company. He plays a crucial role in the successful operations of the company and contributes to its efficient administration.

Mr Jatin Jagmohan Shah, aged 46, is a Promoter and Managing Director of the Company. With 27 years of experience in the Telecom and Communication Sector, he brings valuable expertise to the company.

Ms Janvi Jatin Shah, aged 46, is a Promoter and serves as the CFO of the Company. She is a certified Chartered Accountant from ICAI and has 12 years of experience in various domains such as auditing, accounting, finance, marketing & sales, business administration, and management.

 

Peer Comparison 

Synoptics Technologies operates within a competitive market, contending with both established and emerging competitors. Some key competitors of the company in this space include Dynacon Systems & Solutions Ltd, Ishan Infotech Limited, and Syndrome Technologies Pvt. Ltd. Moreover, the company also faces competition from global IT services providers like Hitachi Systems through their operations in India.

 

IPO's Valuations

Synoptics Technologies is set to launch its IPO with the aim of achieving multiple objectives. The company has a market capitalization of Rs 200.98 crores, a PE ratio of 25.32, an EPS of INR 4.65 per share, and a RoNW of 19.48%. The issue price for the shares is set at INR 237 per share, with a face value of INR 10 per share. The IPO will commence on June 30, 2023, and conclude on July 5, 2023.

 

Dividend Policy

The company has not paid any dividends since its incorporation. However, the decision to pay dividends is contingent upon unanimous agreement by the board of directors and is influenced by several factors, such as operational results, earnings, capital needs, and surplus, among others. If approved, the company will distribute dividends within 30 days.

 

IPO's Strengths 

• Team of highly experienced professionals.
• Proven track record of achieving strong financial performance.
• Providing high-quality services.
• The trust of reputable and trustworthy clients.
• Strong presence across India, with a nationwide reach.

 

IPO's Weaknesses

• The company's promoters are currently engaged in legal proceedings, and any unfavourable judgment can have a negative impact on the business.
• The company relies heavily on managed IT services, and a decrease in demand could adversely affect the business.
• Insufficient availability of IT equipment.
• Failing to maintain and renew approvals, permits, and licenses to operate smoothly.

 

 

IPO GMP

The Last GMP of this IPO was -1.

 

Conclusion 

The Synoptics Technologies IPO presents a promising opportunity for investors seeking to invest in the IT sector. However, it is important to note that the company operates in a highly competitive market, with several established players. This competitive landscape introduces a certain level of risk for investors. Nevertheless, the company's expansion plans and impressive order book provide positive indications for long-term investments. It is always recommended that investors conduct a thorough analysis before making any investments in the stock market.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP / Click Here to Download the RHP

 

 

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