Meta Infotech Limited, a homegrown cybersecurity solutions provider catering to a diverse clientele across India, has opened its Initial Public Offering (IPO) for subscription on July 4, 2025, which will remain open until July 8, 2025. The IPO is a Book Built Issue of ₹80.18 Crores, comprising a Fresh Issue of 12.45 lakh shares aggregating to ₹20.04 Crores and an Offer for Sale (OFS) of 37.35 lakh shares aggregating to ₹60.13 Crores.

The shares will be listed on the BSE SME platform, with the tentative listing date scheduled for July 11, 2025. The price band for the IPO is fixed between ₹153 to ₹161 per equity share, and the lot size is 800 shares, translating to a minimum investment of ₹1,28,800 for retail investors and ₹2,57,600 for HNIs (2 lots).

Company Overview

Meta Infotech Limited is engaged in providing comprehensive cybersecurity solutions tailored to protect and maintain the integrity of digital infrastructure across multiple industries. Its client base includes sectors such as Banking, Capital Market, NBFC, IT/ITES, Automobile, Insurance, Pharmaceutical, FMCG, Real Estate, Hospitality, and Manufacturing.

The company specializes in protecting enterprise systems and confidential data through a broad suite of cybersecurity services, including endpoint protection, firewall solutions, vulnerability assessments, network security protocols, threat intelligence, and more.

Headquartered in Mumbai, Meta Infotech is led by an experienced management team:

• Mr. Venu Gopal Peruri, Promoter and MD with 25+ years of experience.

• Mr. Mohammed Laeek Abdul Kader Golandaz, Whole-Time Director with 15 years’ experience in IT.

• Mr. Rama Krishna Kishore Achuthani, Whole-Time Director with 23 years’ experience in IT security.

• Dr. Gaurav Vinod Sharma, Technical Lead with a PhD in Technology and 15 years of experience.

Financial Performance

Meta Infotech has shown consistent growth in revenue and profitability over the last three financial years.

Key performance ratios for FY2024 include:

• ROCE: 37.81%

• ROE: 38.88%

• RoNW: 32.55%

• Pre-Issue EPS: ₹8.22

• Post-Issue EPS: ₹7.68

• P/E Ratio (Post-Issue): 20.96x vs Industry Average P/E of 167x

These numbers reflect strong operational efficiency, financial discipline, and a significant year-on-year increase in revenue and profitability.

IPO Objectives

The proceeds from the fresh issue will be utilized for the following objectives:

1. ₹1,670.00 Lakhs – Repayment or prepayment of outstanding borrowings.

2. ₹120.42 Lakhs – Capital expenditure for establishing a new office in Andheri East, Mumbai.

3. ₹90.80 Lakhs – Setting up an interactive experience centre at the company’s registered office.

4. Balance funds – For General Corporate Purposes to support operational expansion and working capital needs.

Anchor Investor Participation

Meta Infotech successfully raised ₹22.57 Crores through anchor investors ahead of the IPO, allocating 14,02,400 shares at ₹161 each, reflecting a healthy institutional interest. The anchor book was finalized in consultation with Hem Securities Limited, the Book Running Lead Manager (BRLM).

Registrar & Market Maker

• Registrar: KFIN TECHNOLOGIES LIMITED

• Market Maker: Hem Finlease Private Limited

Grey Market Premium (GMP)

As of June 30, 2025, the Grey Market Premium (GMP) is ₹0, indicating no premium or discount in unofficial market activity. GMP can fluctuate based on demand-supply dynamics and does not always reflect the listing price. Hence, investors should not rely solely on GMP while making investment decisions.

Subscription Status

As of 11:00 AM on July 4, 2025, the IPO has been subscribed 0.09 times, indicating moderate early participation. The IPO is expected to gain momentum over the next few days, particularly as retail and institutional investors analyze the fundamentals more deeply.

Risks and Concerns

Despite the company’s strong financial growth, there are key risk factors to consider:

1. Client Concentration: A large portion of revenue comes from a limited number of clients, making the company vulnerable to client attrition or reduction in orders.

2. Sector Dependence: While cybersecurity demand is growing, the industry is subject to rapid technological changes and compliance standards, requiring continuous innovation.

3. GMP Absence: The absence of a GMP indicates uncertainty about listing gains, especially in volatile SME markets.

4. Valuation: At a post-issue P/E of 20.96x, the IPO is fairly priced, offering limited upside on listing based on current sentiment.

Expert Recommendation: Cautious Approach

Given Meta Infotech’s strong financials, industry relevance, and focused growth strategy, the company holds long-term investment potential. However, due to the flat GMP and fully priced valuation, it may not offer significant listing gains.

Recommendation:

• For listing gains: Avoid (due to ₹0 GMP and fair valuation).

• For long-term investment: Consider, if you have a high-risk appetite and belief in cybersecurity sector growth.

Conclusion

Meta Infotech’s IPO brings forward a company that’s firmly positioned in the high-potential cybersecurity domain, with impressive growth figures and industry-wide clientele. The IPO is being closely watched by both institutional and retail investors, particularly in light of India's increasing emphasis on data security and digital infrastructure.

While listing gains may not materialize, the company's sustained revenue growth, high ROE, and expansion plans may appeal to long-term investors. As cybersecurity becomes a national priority, Meta Infotech’s proven capabilities could help it scale new heights in the digital economy era.

The Upcoming IPOs in this week and coming weeks are Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Crizac, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.