Identixweb Limited, an IT firm providing Software as a Service (SaaS)-based digital product solutions, is set to launch its IPO in 2025. With a strong focus on Shopify application development, the company also offers e-commerce store development, web app development, UI/UX design, website development, and customized software solutions. Established in 2019, Identixweb has been working towards enhancing digital product solutions, catering to a broad array of clients.

IPO Overview

The Identixweb IPO is a Book Built Issue amounting to ₹16.63 Crores, consisting entirely of a fresh issue of 30.80 Lakh shares. The subscription period begins on March 26, 2025, and ends on March 28, 2025. The allotment is expected to be finalized on or about April 01, 2025, and shares will be listed on the BSE SME on April 03, 2025.

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

• Market Capitalisation: At the upper end of the price band, ₹54 per share results in a market capitalization of ₹56.38 Crores.

• Lot Size: 2,000 shares

• Minimum Investment: ₹1,08,000 for retail investors; ₹2,16,000 for HNIs (2 lots)

Subscription Information

The Identixweb IPO has a Book Built Issue mechanism, where the price band is set between ₹51 and ₹54 per share. The IPO is expected to offer shares for a total of ₹16.63 Crores. Retail investors can invest a minimum of ₹1,08,000 for 2,000 shares, while High-Net-Worth Individuals (HNIs) can bid for 4,000 shares (₹2,16,000).

Allotment Process

The allotment for the Identixweb IPO is expected to be finalized by April 1, 2025. To check the allotment status, investors can visit the registrar's website, enter their application number, PAN, or DP Client ID, and track their allotment status.

Financial Performance and Key Metrics

Identixweb has shown consistent revenue growth:

• Revenue from Operations: ₹626.57 Lakh (FY24), ₹666.25 Lakh (FY23), ₹478.73 Lakh (FY22)

• EBITDA: ₹219.55 Lakh (FY24), ₹450.27 Lakh (FY23), ₹306.39 Lakh (FY22)

• Profit After Tax (PAT): ₹134.67 Lakh (FY24), ₹269.63 Lakh (FY23), ₹195.98 Lakh (FY22)

Key financial ratios include:

• Pre-Issue EPS: ₹3.76

• Post-Issue EPS: ₹2.65

• Pre-Issue P/E: 14.36x

• Post-Issue P/E: 20.37x

• ROCE: 57.25%

• ROE: 37.70%

• RoNW: 27.39%

The company's annualized EPS based on the latest data is ₹5.44, with a PE ratio of 9.92x. Given these figures, the IPO seems to be priced fairly, based on industry standards.

Identixweb IPO GMP and Market Outlook

As of March 21, 2025, the Grey Market Premium (GMP) for the Identixweb IPO is ₹0 (0.00%). The lack of GMP indicates that the market does not anticipate significant listing gains at the moment. This premium can fluctuate based on demand and supply but does not necessarily reflect the true valuation of the company. For educational purposes, the GMP is provided, but investors should be cautious before making investment decisions based solely on this metric.

Investment Review and Recommendations

With steady financial growth, strong management, and a focus on high-demand SaaS-based solutions, Identixweb represents a relatively stable player in the digital product space. However, given the pricing of the IPO and its current lack of GMP, we recommend avoiding the IPO for listing gains. The stock could potentially perform better in the long term, depending on the company's expansion into international markets and its ability to scale its offerings.

In conclusion, while Identixweb has promising growth potential in the digital product space, the IPO pricing appears to be fair, and short-term listing gains are unlikely. If you're considering the IPO, it may be better suited for long-term investment rather than expecting immediate listing gains.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Identixweb Limited, Retaggio Industries Limited, Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited, Rapid Fleet Management Services, Active Infrastructures Limited.

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