iCodex Publishing Solutions Limited, engaged in Software Product Development for Scholarly Publishing, has seen encouraging investor interest as its IPO subscription reached 1.53 times on the final day of the issue, August 13, 2025. The IPO, which opened on August 11 and closed on August 13, 2025, comprises a Book Built Issue of ₹42.03 crores, including a fresh issue of 33.96 lakh shares worth ₹34.63 crores and an offer for sale of 7.24 lakh shares worth ₹7.39 crores.

The price band for the issue has been set between ₹98 and ₹102 per equity share, with a market capitalisation at the upper price band of ₹159.50 crores. The lot size is 1,200 shares, and the minimum investment for retail investors is 2 lots, or 2,400 shares, amounting to ₹2,44,800. Indcap Advisors Private Limited is the book running lead manager, Cameo Corporate Services Limited is the registrar, and Giriraj Stock Broking Private Limited is the market maker.

The tentative allotment date for the IPO is Thursday, August 14, 2025, and shares are expected to list on the BSE SME platform on Tuesday, August 19, 2025. The Grey Market Premium (GMP) is currently around ₹13, indicating potential listing gains of approximately 12.31%. However, analysts caution that GMP is unofficial, unregulated, and based solely on market sentiment.

Company Profile and Business Model
Founded to support the publication of research papers, academic articles, and scholarly studies, iCodex Publishing Solutions specialises in end-to-end publishing software. Their products support every stage of the publishing process, from manuscript preparation to print and digital distribution. The company’s clients include researchers, academicians, and scholars, making it a niche player in the growing academic publishing technology sector.

Leadership and Experience
The company is led by Kamalakkannan Govindaraj, with over 20 years of experience in the publishing industry, and Chetan Shankarlal Soni, also with over 20 years of expertise in both the technology and publishing sectors. This experienced leadership team is seen as a strong driver of business growth and innovation.

Financial Performance
The company’s financial performance has been steadily improving. Revenue from operations rose from ₹971.76 lakh in FY 2023 to ₹1,098.62 lakh in FY 2024, and further to ₹2,207.88 lakh in FY 2025. EBITDA increased significantly from ₹212.90 lakh in FY 2023 to ₹484.62 lakh in FY 2024, reaching ₹1,363.13 lakh in FY 2025. Profit after tax also surged from ₹181.18 lakh in FY 2023 to ₹439.70 lakh in FY 2024, and ₹895.62 lakh in FY 2025.

Valuation and Ratios
The pre-issue EPS for FY 2024 stands at ₹7.32 and post-issue EPS at ₹5.73. The pre-issue P/E ratio is 13.93x, while the post-issue P/E ratio is 17.81x, compared to the industry P/E of 38x. The company has a ROCE of 59.17%, ROE of 64.81%, and RoNW of 47.02% for FY 2024, suggesting healthy returns.

IPO Objectives
The company plans to use the net proceeds from the IPO for:

1. Capital Expenditure – ₹1,669.64 lakh for purchase of new office premises and ₹111.79 lakh for purchase of hardware.

2. Working Capital Requirements – ₹520 lakh.

3. General Corporate Purposes – To strengthen its operational and growth capabilities.

GMP Trend
On August 8, 2025, the IPO GMP stood at ₹13, with the expected listing price at ₹115 against the issue price of ₹102. This reflects market optimism, though actual listing performance will depend on broader market conditions.

Analyst View
Given its strong revenue growth, experienced management, and reasonable valuation compared to the industry average, analysts believe the IPO may offer short-term listing gains. However, due to the SME platform listing and the relatively high investment requirement, it is recommended mainly for risk-tolerant investors.

Overall, the iCodex Publishing Solutions IPO presents an opportunity to invest in a niche, technology-driven business catering to the growing scholarly publishing sector, with potential for both capital appreciation and long-term value creation.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.