Meta Infotech IPO: A Comprehensive Guide for Investors

Meta Infotech Limited is set to launch its ₹80.18 crore IPO on India’s BSE SME platform. This IPO combines a fresh issue and an offer for sale, giving investors a chance to invest in an Indian cybersecurity leader.

Here’s a detailed, easy-to-understand guide to help you evaluate whether this IPO fits your portfolio.

IPO Details and Structure

The Meta Infotech IPO will open for subscription on 4 July 2025 and close on 8 July 2025.

Key Features:

• IPO Type: Bookbuilding (Fresh Issue + Offer for Sale)

• Total Issue Size: ₹80.18 crore

  • Fresh Issue: ₹20.04 crore (12.45 lakh shares)

  • Offer for Sale: ₹60.13 crore (37.35 lakh shares)

• Price Band: ₹153–161 per share

• Face Value: ₹10 per share

• Lot Size: 800 shares

• Listing: BSE SME platform

• Tentative Allotment Date: 9 July 2025

• Tentative Listing Date: 11 July 2025

Market Maker: Hem Finlease Private Limited

Lead Manager: Hem Securities Limited

Registrar: Kfin Technologies Limited

Note: Investors are encouraged to bid at the cutoff price to avoid rejection in case of oversubscription.

Lot Size and Minimum Investment

Retail investors can apply for one lot of 800 shares:

• Retail Minimum Investment: ~₹1,28,800 at upper band.

• HNI Minimum Investment: 2 lots (1,600 shares) ~₹2,57,600.

Important Tip: SME IPOs typically have larger lot sizes than mainboard IPOs. Always plan your funds accordingly.

Reservation Breakdown

Meta Infotech IPO ensures participation across investor categories:

• Market Maker: 2,52,000 shares (5.11%)

• QIB (Qualified Institutional Buyers): 23,37,600 shares

• NII (Non-Institutional Investors): 7,02,400 shares (14.25%)

• Retail Individual Investors: 16,37,600 shares (33.22%)

This reservation structure aligns with SEBI SME guidelines, promoting balanced allocation.

Promoter and Shareholding Structure

Promoter: Venu Gopal Peruri

Pre-Issue Shareholding: 94.94%
Post-Issue Shareholding: 68.90%

Key Point: The shareholding dilution comes primarily from the Offer for Sale, where existing shareholders sell part of their stake, and the fresh issue, which brings new capital into the company.

Use of IPO Proceeds

Meta Infotech plans to use the net proceeds from the fresh issue as follows:

1. Repayment of Borrowings: ₹16.70 crore

2. Capital Expenditure for New Office: ₹1.20 crore

3. Setup of Interactive Experience Centre: ₹0.91 crore

4. General Corporate Purposes

Key Highlight: Debt repayment will strengthen the balance sheet, reducing interest costs.

Company Overview

Incorporated in 1998, Meta Infotech Limited is a cybersecurity solutions provider serving banking, IT, insurance, and manufacturing sectors.

It offers end-to-end cybersecurity services, from consulting and implementation to sustenance and support.

Service Portfolio

Cybersecurity Solutions:

• Secure Access Service Edge (SASE)

• Database Security

• Endpoint Detection and Response

• Data Protection

• Application Security

• Cloud Security

• Identity Management

• Network Security

• Email Security

Services:

• 24/7 Managed Security

• Professional Consulting

• Implementation and AMC

• In-house Cybersecurity Training

Key Point: Meta Infotech is an authorized reseller of cybersecurity products from global OEMs.

Client Industries

Meta Infotech serves:

• Banks and Financial Institutions

• Insurance Companies

• IT and ITeS Firms

• Manufacturing Industries

Benefit: Diversified client base reduces dependency on any one industry.

Competitive Strengths

Meta Infotech highlights the following advantages:

• "One Stop Shop" for cybersecurity needs.

• Experienced Management Team and skilled workforce of ~265 employees.

• Strong relationships with global cybersecurity OEMs.

• Repeat business from a marquee customer base.

• Comprehensive service offering supporting long-term contracts.

Important: In cybersecurity, trust and expertise are essential for winning and retaining clients.

Financial Performance

Meta Infotech has shown robust financial growth:

Financial Summary (₹ Crore)

Key Financial Growth:

• Revenue: Up 44% YoY (FY24–FY25).

• PAT: Up 38% YoY.

• EBITDA: Up 42% YoY.

Key Performance Indicators (KPI)

• ROE: 42.38%

• ROCE: 48.43%

• Debt/Equity: 0.03 (post-IPO expected to decline)

• RoNW: 34.97%

• PAT Margin: 6.91%

• EBITDA Margin: 10.31%

• Price-to-Book Value: 9.45

Highlight: High ROE and ROCE suggest efficient capital use.

Pre and Post IPO EPS and P/E

• Pre-IPO EPS: ₹5.96

• Post-IPO EPS: ₹12.13

• Pre-IPO P/E: 27.02x

• Post-IPO P/E: 13.27x

Important: Lower post-IPO P/E signals potential value for new investors.

Industry Outlook

Cybersecurity is a high-growth sector:

• Increasing digitalisation across industries.

• Regulatory requirements pushing companies to improve security.

• Surge in cyber threats creating demand for advanced solutions.

India’s cybersecurity spending is growing at double-digit CAGR, creating opportunities for firms like Meta Infotech.

Employee Strength

As of March 2025, Meta Infotech has ~265 employees, including:

• Certified cybersecurity professionals

• Technical engineers

• Management experts

• Customer support teams

Benefit: Large, qualified team to manage complex projects.

Risks to Consider

• Competitive Market: Multiple global and domestic players.

• Technology Changes: Need for continuous innovation.

• Customer Concentration: Risk if large clients reduce spending.

• SME Listing: Lower liquidity compared to mainboard.

Why Invest in Meta Infotech IPO?

• Strong Revenue and Profit Growth – 44% revenue rise, 38% PAT rise YoY.

• Debt Repayment improves balance sheet.

• High ROE and ROCE indicate efficient use of capital.

• Diverse Client Base reduces sector risk.

• Strategic Expansion Plans – new offices and experience centres.

• Critical Industry Need – cybersecurity demand rising rapidly.

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  Disclaimer:
  This article is prepared purely for educational and informational purposes and does not constitute investment advice. Investors are encouraged to perform their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Investing in securities is subject to market risks.

  The Upcoming IPOs in this week and coming weeks are Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Travel Food Services, Cryogenic, Crizac.

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  The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

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