Identixweb is a prominent IT firm that provides Software as a Service (SAAS) based digital product solutions, specializing in e-commerce store development, web app development, UI/UX design, and custom software development. With a primary focus on Shopify application development, the company offers end-to-end digital solutions to businesses looking to establish or enhance their online presence.

The Identixweb IPO is a Book Built Issue amounting to ₹16.63 Crores, entirely consisting of a Fresh Issue of 30.80 Lakh shares. The subscription for the Identixweb IPO will open on March 26, 2025, and close on March 28, 2025. The allotment is expected to be finalized by April 1, 2025, with a tentative listing date on the BSE SME scheduled for April 3, 2025.

The IPO price band is set between ₹51 to ₹54 per equity share. At the upper price band of ₹54 per share, Identixweb will have a market capitalization of ₹56.38 Crores. The lot size is 2,000 shares, with a minimum investment requirement of ₹1,08,000 for retail investors and ₹2,16,000 for High-Net-Worth Individuals (HNIs).

Beeline Capital Advisors Private Limited is the book running lead manager for the IPO, while Skyline Financial Services Private Limited serves as the registrar. Spread X Securities Private Limited is the designated market maker for the issue.

Financial Performance
Identixweb has demonstrated steady growth in its financial performance. For the fiscal year 2024, the company reported revenues of ₹666.25 Lakh, compared to ₹478.73 Lakh in FY2023. The EBITDA for FY2024 was ₹450.27 Lakh, an increase from ₹306.39 Lakh in the previous year. The Profit After Tax (PAT) stood at ₹269.63 Lakh for FY2024, indicating strong profitability.

The key financial ratios for Identixweb include a pre-issue Earnings Per Share (EPS) of ₹3.76, with a post-issue EPS of ₹2.65 for FY24. The pre-issue Price to Earnings (P/E) ratio is 14.36x, while the post-issue P/E ratio is 20.37x. The Return on Capital Employed (ROCE) stands at 57.25%, while Return on Equity (ROE) is 37.70%, and Return on Net Worth (RoNW) is 27.39%. These metrics suggest that Identixweb is a profitable entity with a solid track record, though the post-issue P/E ratio may suggest a fully priced offering.

Grey Market Premium (GMP)
As of now, the Grey Market Premium (GMP) of Identixweb IPO is ₹0, indicating no price expectation in the grey market. The GMP reflects the demand-supply dynamics in the unregulated market and is subject to change once the IPO officially opens. However, it is important to note that GMP is speculative and should not be relied upon for making investment decisions.

IPO Objectives
The net proceeds from the IPO will be utilized for the following purposes:

1. ₹250.00 Lakhs – Investment in marketing to support the organization’s growth plans both in India and internationally.

2. ₹420.00 Lakhs – Investment in market research and product development, including talent hiring.

3. ₹415.80 Lakhs – Investment in the subsidiary, Munim ERP Private Limited, for product development and talent acquisition.

4. General corporate purposes.

These investments reflect Identixweb’s strategy to enhance its digital offerings and expand its market presence.

IPO Allotment Status
The allotment of shares for Identixweb IPO will be finalized on April 1, 2025, with the status available online via the registrar's website. Investors can check their allotment status by entering the application number, PAN, or DP Client ID.

IPO Review and Recommendations
Identixweb operates in a competitive IT sector and has established itself with a focus on Shopify app development, a rapidly growing field. The company's financials show consistent growth, with solid profitability and a focus on scaling through talent acquisition and product development.

However, the post-issue P/E ratio of 20.37x may imply that the IPO is fully priced. Given the lack of significant Grey Market Premium and the valuation of the IPO, it is advisable for investors to exercise caution before considering this IPO for listing gains or long-term investment.

Disclaimer
This article is intended for informational purposes only and does not constitute investment advice. Investors should carefully consider their investment objectives and consult with financial advisors before making any decisions regarding the Identixweb IPO.

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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