Identixweb, an IT firm specializing in Software as a Service (SaaS)-based digital product solutions, is launching its initial public offering (IPO). The company offers services in E-commerce store development, web app development, UI/UX design, website development, and customized software development, with a primary focus on Shopify application development. The IPO is a Book Built Issue amounting to ₹ 16.63 Crores, consisting entirely of a fresh issue of 30.80 lakh shares.

Subscription and Listing Details

The subscription period for the Identixweb IPO will open on March 26, 2025 and close on March 28, 2025. The allotment will be finalized by April 1, 2025, and the shares are expected to be listed on the BSE SME platform on April 3, 2025. The price band for the IPO is set between ₹ 51 and ₹ 54 per equity share. The market capitalisation of Identixweb at the upper price band of ₹ 54 per share will be ₹ 56.38 Crores.

Lot Size and Investment Details

The lot size for the Identixweb IPO is 2,000 shares, meaning retail investors are required to invest a minimum of ₹ 1,08,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (4,000 shares), amounting to ₹ 2,16,000. The book running lead manager for the issue is Beeline Capital Advisors Private Limited, with Skyline Financial Services Private Limited acting as the registrar. The market maker for the IPO is Spread X Securities Private Limited.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Identixweb IPO is currently reported at ₹ 0, reflecting a neutral sentiment among investors. The GMP is based on the demand and supply dynamics in the unofficial market, which can vary and does not offer a reliable price discovery tool before listing.

Subscription Status and Performance

As of March 28, 2025, the live subscription status indicates that the IPO has been subscribed 24.40 times on its final day of the subscription period. This reflects strong investor interest in the IPO, particularly from institutional and HNI segments. The IPO Anchor Investors have raised ₹ 4.73 Crores at ₹ 54 per share, with a total of 8,76,000 equity shares allocated to them.

Financial Performance

Identixweb has shown consistent growth in its financials. For the period ended on September 30, 2024, the company reported revenues from operations of ₹ 626.57 Lakh, ₹ 666.25 Lakh for FY2024, and ₹ 478.73 Lakh for FY2023. The EBITDA for the same periods was ₹ 219.55 Lakh, ₹ 450.27 Lakh, and ₹ 306.39 Lakh, respectively. The Profit After Tax (PAT) for these periods was ₹ 134.67 Lakh, ₹ 269.63 Lakh, and ₹ 195.98 Lakh, demonstrating steady growth in profitability.

For FY2024, the pre-issue Earnings Per Share (EPS) is ₹ 3.76, while the post-issue EPS is projected at ₹ 2.65. The pre-issue Price-to-Earnings (P/E) ratio stands at 14.36x, and the post-issue P/E ratio is expected to be 20.37x. The company’s Return on Capital Employed (ROCE) for FY2024 is 57.25%, and the Return on Equity (ROE) is 37.70%, reflecting strong operational efficiency.

Objectives of the IPO

Identixweb intends to use the net proceeds from the IPO for the following objectives:

1. ₹ 250 Lakhs for investment in marketing to support growth in both India and international markets.

2. ₹ 420 Lakhs for investment in market research and product development, including talent hiring.

3. ₹ 415.80 Lakhs for investment in its subsidiary Munim ERP Private Limited for product development and talent acquisition.

4. The remaining funds will be used for general corporate purposes to enhance business operations.

Valuation and Investment Outlook

The company has demonstrated significant growth, driven by its strong management team and focus on Shopify and other e-commerce solutions. Despite this growth, the IPO valuation suggests the shares may be fully priced, with a PE ratio of 20.37x post-issue, which is considered to be a moderate valuation in the context of the industry.

The GMP of ₹ 0 indicates a lack of significant listing gains in the Grey Market, reflecting cautious investor sentiment. Based on the company’s financial metrics, market positioning, and the neutral GMP, we recommend avoiding the Identixweb IPO for both listing gains and long-term investment purposes. While the company’s growth story is promising, the IPO appears to be priced adequately, and the lack of a premium in the Grey Market further supports a cautious approach.

Conclusion

Investors considering the Identixweb IPO should assess their investment goals carefully. While the company has shown steady growth, the IPO pricing and valuation may not offer significant upside for listing gains, and the Grey Market Premium is not promising. Therefore, it is advisable to proceed with caution.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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