Identixweb, an IT firm offering Software as a Service (SAAS)-based digital product solutions, is set to launch its IPO, aiming to raise ₹16.63 Crores. The subscription period for the Identixweb IPO will begin on March 26, 2025, and close on March 28, 2025. The IPO consists entirely of a fresh issue of 30.80 Lakh shares, with a price band set between ₹51 to ₹54 per share. The expected listing date is on or around April 3, 2025, on the BSE SME.

Financial Overview:

The company's market capitalization at the upper price band of ₹54 per share is ₹56.38 Crores. Retail investors are required to invest a minimum of ₹1,08,000 for 2,000 shares, and High Net-Worth Individuals (HNIs) must invest at least ₹2,16,000 for 4,000 shares. The IPO is being managed by Beeline Capital Advisors Private Limited as the lead manager, with Skyline Financial Services Private Limited acting as the registrar. Spread X Securities Private Limited serves as the market maker for the IPO.

Grey Market Premium (GMP):

As of the latest update on March 21, 2025, the Grey Market Premium (GMP) for the Identixweb IPO stands at ₹0, indicating that there is no significant trading or price discovery happening in the unorganized market. The GMP remains largely dependent on demand and supply factors, and it is advised to focus on the fundamentals of the company rather than relying on GMP for investment decisions.

IPO Objectives:

Identixweb intends to utilize the net proceeds from the IPO for several strategic initiatives:

1. ₹250.00 Lakhs will be used for marketing investments to support the company's growth plans in India and abroad.

2. ₹420.00 Lakhs will be allocated towards market research and product development, including talent hiring.

3. ₹415.80 Lakhs will be invested in its subsidiary, Munim ERP Private Limited, to support product development through talent hiring.

4. General corporate purposes.

Financial Performance:

Identixweb has shown steady growth in its financials. For the period ending September 30, 2024, the company's revenue from operations was ₹626.57 Lakhs, with an EBITDA of ₹219.55 Lakhs and a Profit after Tax (PAT) of ₹134.67 Lakhs. This marks an improvement from the previous fiscal years, with consistent growth in both revenue and profitability. The company has a solid balance sheet and a focus on increasing its digital product portfolio, especially through its expertise in Shopify application development.

Valuation and IPO Review:

With a pre-issue EPS of ₹3.76 and post-issue EPS of ₹2.65 for FY24, the pre-issue P/E ratio stands at 14.36x, and the post-issue P/E ratio is 20.37x. Given these metrics, the IPO is priced fairly in line with industry standards. The company's Return on Capital Employed (ROCE) stands at 57.25%, while its Return on Equity (ROE) for FY24 is 37.70%, which are positive signs of the company’s efficiency and growth potential.

However, the Grey Market Premium of ₹0 suggests low investor interest in the IPO at present. With a reasonably priced valuation, the IPO may not offer substantial short-term listing gains, and long-term investors should consider other factors like market demand and product development before investing.

Subscription Details and Allotment Process:

Investors can participate in the Identixweb IPO starting March 26, 2025. After the subscription period ends on March 28, 2025, the IPO allotment will be finalized by April 1, 2025. A step-by-step guide for checking the allotment status will be available online, where applicants can enter their application number, PAN, or DP Client ID to track their status.

Conclusion:

While Identixweb's financials show steady growth, the lack of Grey Market Premium and the pricing suggest that this IPO may not be a high-gain opportunity in the short term. We recommend caution for investors looking for quick returns and suggest focusing on long-term growth potential if considering the IPO for portfolio diversification.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited,Identixweb Limited.

The Current active IPO are Rapid Fleet Management Services, Active Infrastructures Limited,Grand Continental Hotels.

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