S A Tech Software India IPO: The aim of S A Tech Software India Limited’s Initial Public Offering (IPO) is to raise Rs 23.01 crores by issuing new shares. An excellent chance to join a rapidly expanding IT consulting business that specialises in software development, machine learning (ML), artificial intelligence (AI), and other areas is presented by this IPO. In order to assist prospective investors in making wise selections, we will examine the specifics of the IPO, the company’s history, financial performance, and offer a thorough analysis in this blog.
Table of Contents
About S A Tech Software India IPO
Company Overview
S A Tech Software India Limited, an IT consulting division of SA Technologies Inc., USA, was established in 2012. The business provides a variety of technical services, such as:
- Artificial Intelligence (AI) and Machine Learning (ML)
- Software Development and Engineering
- Digital Transformation and Automation
- Cloud and DevOps Services
- Quality Assurance and Testing
- Global Capability Centre (GCC) Services
These services assist Fortune 500 clients with product design, development, and delivery. Digital automation, robotic process automation, and Internet of Things (IoT) solutions are very important to the company.
Key Services
- Artificial Intelligence (AI) and Machine Learning (ML): Implementing intelligent algorithms to enhance decision-making processes.
- Data Science and Analytics: Leveraging data to extract actionable insights.
- Software Development and Engineering: Crafting custom software solutions.
- Digital Transformation and Automation: Streamlining business processes through automation.
- Cloud and DevOps Services: Ensuring efficient and scalable cloud infrastructure.
- Quality Assurance and Testing: Maintaining high standards of software quality.
- Global Capability Centre (GCC) Services: Optimising offshore delivery centres for enhanced business operations.
IPO Details
IPO Structure
- IPO Date: July 26, 2024 to July 30, 2024
- Listing Date: August 2, 2024 (tentative)
- Face Value: ₹10 per share
- Price Band: ₹56 to ₹59 per share
- Lot Size: 2000 Shares
- Total Issue Size: 3,900,000 shares (aggregating up to ₹23.01 Cr)
- Issue Type: Book Built Issue IPO
- Listing At: NSE SME
Reservation
- Anchor Investors: 1,082,000 shares (27.74%)
- Market Maker: 284,000 shares (7.28%)
- Qualified Institutional Buyers (QIB): 724,000 shares (18.56%)
- Non-Institutional Investors (NII): 544,000 shares (13.95%)
- Retail Investors: 1,266,000 shares (32.46%)
Investment Details
| Investor Category | Minimum Investment (₹) | Maximum Investment (₹) |
| Retail | 118,000 | 118,000 |
| HNI | 236,000 | No limit |
Timeline
- IPO Open Date: July 26, 2024
- IPO Close Date: July 30, 2024
- Basis of Allotment: July 31, 2024
- Initiation of Refunds: August 1, 2024
- Credit of Shares to Demat: August 1, 2024
- Listing Date: August 2, 2024
Financial Performance of S A Tech Software India IPO
S A Tech Software India IPO has shown a robust financial performance over the years, with significant growth in revenue and profit margins.
Financial Highlights
| Period Ended | Assets (₹ Lakhs) | Revenue (₹ Lakhs) | Profit After Tax (₹ Lakhs) | Net Worth (₹ Lakhs) | Reserves and Surplus (₹ Lakhs) | Total Borrowing (₹ Lakhs) |
| 30 Jun 2024 | 4,703.23 | 2,397.18 | 248.07 | 1,414.43 | 498.70 | 2,105.22 |
| 31 Mar 2024 | 3,706.06 | 7,238.12 | 368.86 | 1,166.35 | 250.62 | 1,288.12 |
| 31 Mar 2023 | 3,465.95 | 5,673.05 | 100.59 | 772.48 | 729.50 | 1,459.18 |
| 31 Mar 2022 | 3,229.19 | 4,154.37 | -548.25 | 663.89 | 620.91 | 1,959.34 |
Key Performance Indicators
- Market Capitalization: Rs 77.04 Cr (as of June 30, 2024)
- Return on Capital Employed (ROCE): 10.95%
- Debt/Equity Ratio: 1.49
- Return on Net Worth (RoNW): 17.54%
- Price-to-Book Value (P/BV): 3.82
- Profit After Tax (PAT) Margin: 10.38%
Earnings Per Share (EPS) and Price-to-Earnings (P/E)
| Metric | Pre IPO | Post IPO |
| EPS (₹) | 4.03 | 7.6 |
| P/E (x) | 14.65 | 7.76 |
Objectives of the IPO
The company aims to utilise the net proceeds from the IPO towards the following objectives:
- Prepayment or Repayment of Borrowings: Reducing the financial burden and improving the balance sheet.
- Funding Working Capital Requirements: Ensuring smooth business operations and supporting growth.
- General Corporate Purposes: Enhancing overall business capabilities and infrastructure.
Analysis and Review
Strengths
- Diverse Service Portfolio: S A Tech Software India Limited offers a broad range of services catering to various industries and clients.
- Growth Potential: With the increasing demand for digital transformation and AI/ML solutions, the company is well-positioned for future growth.
- Strong Financial Performance: Significant revenue growth and improved profit margins indicate robust business health.
Risks
- Market Competition: The IT consulting industry is highly competitive, with many established players.
- Dependency on Key Clients: A significant portion of revenue comes from a few key clients, posing a risk if any client decides to switch vendors.
- Economic Factors: Global economic downturns or technological disruptions could impact the company’s performance.
Investment Verdict
Recommendation: The S A Tech Programming India Initial public offering gives off an impression of being a promising venture and a potential open door, particularly for very much educated financial backers. The company’s strong service offerings and affiliation with SA Technologies Inc., USA, enhance its appeal. Nonetheless, potential financial backers ought to think about the cutthroat scene and monetary elements prior to settling on a choice.
FAQ
What is the price band for the S A Tech Software India IPO?
The price band for the IPO is set at ₹56 to ₹59 per share.
When will the S A Tech Software India IPO open and close for subscription?
The IPO will open on July 26, 2024, and close on July 30, 2024.
What is the minimum investment required for retail investors?
Retail investors need to invest a minimum of ₹118,000, which corresponds to one lot of 2000 shares.
When is the tentative listing date for the S A Tech Software India IPO?
The tentative listing date is August 2, 2024.
Who are S A Tech Software India Limited’s promoters?
The promoters of the company are SA Technologies Inc., USA, Mr. Manoj Joshi, and Mrs. Priyanka Joshi.
What is the company going to do with the IPO proceeds?
The proceeds will be used for prepayment or repayment of borrowings, funding working capital requirements, and general corporate purposes.
What is the lock-in period for anchor investors?
The lock-in period for 50% of the anchor investors’ shares is 30 days, ending on August 30, 2024, and for the remaining shares, it is 90 days, ending on October 29, 2024.
Conclusion
A great opportunity to participate in a rapidly expanding IT consulting company with a wide range of services and solid financial performance is presented by the S A Tech Software India IPO. Potential investors can make wise choices if they comprehend the specifics of the initial public offering (IPO), the company’s advantages and disadvantages, and its financial indicators. As always, before making an investment in any initial public offering (IPO), one should speak with financial consultants and assess their individual risk tolerance.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
