Identixweb, an IT firm specializing in Software as a Service (SAAS) solutions, is set to launch its Initial Public Offering (IPO) to raise ₹16.63 Crores. The company focuses on providing digital product solutions, particularly in the e-commerce sector, with services such as e-commerce store development, web app development, UI/UX design, and custom software development. The IPO consists of a fresh issue of 30.80 lakh shares, with a price band set between ₹51 to ₹54 per share.

Key Details of the IPO

• Issue Size: ₹16.63 Crores

• Share Price Band: ₹51 to ₹54 per equity share

• Market Capitalization: ₹56.38 Crores at the upper price band

• Lot Size: 2,000 shares (minimum investment ₹1,08,000 for retail investors)

• Subscription Period: March 26, 2025, to March 28, 2025

• Allotment Date: April 1, 2025

• Listing Date: April 3, 2025 (tentative)

• Registrar: Skyline Financial Services Private Limited

• Book Running Lead Manager: Beeline Capital Advisors Private Limited

• Market Maker: Spread X Securities Private Limited

Identixweb offers a comprehensive range of solutions with a primary focus on Shopify application development, which has helped the company maintain a competitive edge in the IT services market.

Identixweb IPO Subscription and GMP Status

As of March 28, 2025, the Identixweb IPO has received a healthy response, subscribing 24.40 times on the final day of the subscription period. However, the Grey Market Premium (GMP) for the IPO remains ₹0, reflecting limited trading activity and no significant demand signals prior to listing.

The GMP, which is an unorganized market metric, provides speculative insights into the possible listing price of the shares, but it is crucial to note that trading in the grey market is not recommended for investment decisions.

IPO Objectives and Use of Proceeds

The proceeds from the Identixweb IPO will be utilized for various growth-oriented objectives:

1. Marketing Investment: ₹2.5 Crores to enhance the company's presence and support growth plans both in India and internationally.

2. Research and Development: ₹4.2 Crores to strengthen market research and product development through talent acquisition.

3. Investment in Subsidiary: ₹4.16 Crores will be directed towards developing the Munim ERP Private Limited product.

4. General Corporate Purposes: Funds will also be used for general corporate requirements.

These objectives reflect Identixweb’s ambition to scale up operations and enhance product offerings, particularly through targeted hiring and development.

Financial Performance and Metrics

Identixweb's financials show steady growth, with revenues from operations increasing from ₹478.73 Lakh in FY2023 to ₹666.25 Lakh in FY2024. The company reported a profit after tax (PAT) of ₹269.63 Lakh for FY2024, which indicates a positive trajectory. The pre-issue earnings per share (EPS) stands at ₹3.76, with a post-issue EPS projected at ₹2.65. The pre-issue price-to-earnings (P/E) ratio is 14.36x, which is reasonable when compared to industry averages, while the post-issue P/E ratio rises to 20.37x.

With a Return on Capital Employed (ROCE) of 57.25%, Return on Equity (ROE) of 37.7%, and Return on Net Worth (RoNW) of 27.39%, Identixweb demonstrates strong profitability and efficient use of capital. However, with an annualized EPS of ₹5.44 and a PE ratio of 9.92x, the IPO appears to be priced on par with its financial performance, meaning there are no significant undervaluation opportunities.

IPO Review and Recommendation

Despite the company's impressive financial metrics and steady growth trajectory, the Identixweb IPO carries limited prospects for listing gains due to the stagnant Grey Market Premium. Furthermore, at the projected P/E ratio, the company is priced fully, and there is minimal scope for significant capital appreciation in the short term.

Based on these factors, potential investors may want to avoid this IPO for listing gains or long-term investment purposes. While Identixweb has demonstrated consistent growth and profitability, the current IPO price does not offer a compelling investment case when compared to market conditions and other opportunities.

Conclusion

In conclusion, while Identixweb's business model and financial performance reflect positive growth, the IPO appears to be fairly priced with no clear indications of listing gains. Retail investors and HNIs may want to exercise caution before participating in the IPO. Identixweb IPO presents a steady investment opportunity, but it may not be the best option for those seeking high short-term gains or aggressive capital appreciation.

The Current active IPO are 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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