Meta Infotech Limited has announced its ₹80.18 Crore IPO, comprising a fresh issue of 12.45 lakh shares worth ₹20.04 Crores and an Offer for Sale (OFS) of 37.35 lakh shares worth ₹60.13 Crores.

Subscription for the IPO opens on July 04, 2025 and closes on July 08, 2025. Allotment is expected by July 09, 2025, with listing on the BSE SME tentatively on July 11, 2025.

The price band is set at ₹153 to ₹161 per equity share, valuing the company at approximately ₹303.99 Crores at the upper end.

Lot size for retail investors is 800 shares, requiring a minimum investment of ₹1,28,800. HNIs need to apply for a minimum of 2 lots (1,600 shares) worth ₹2,57,600.

HEM SECURITIES LIMITED is the book running lead manager, KFIN TECHNOLOGIES LIMITED is the registrar, and Hem Finlease Private Limited acts as the market maker.

About the Company

Meta Infotech delivers comprehensive cybersecurity solutions to safeguard digital infrastructure for a wide range of industries, including:

• Banking

• Capital markets

• NBFCs

• IT/ITES

• Cybersecurity

• Automobile

• Insurance

• Pharmaceutical

• FMCG

• Real estate

• Hospitality

• Manufacturing

The company focuses on maintaining the integrity and protection of information and systems for its clients across India.

Experienced Management Team

The leadership team includes:

• Venu Gopal Peruri (Promoter and Managing Director) – over 25 years of industry experience

• Mohammed Laeek Abdul Kader Golandaz (Whole-Time Director) – approx. 15 years of experience

• Rama Krishna Kishore Achuthani (Whole-Time Director) – around 23 years of experience

• Gaurav Vinod Sharma (Technical Team Lead) – PhD in Technology with 15 years of experience

This experienced team ensures robust operational oversight and technical excellence.

Financial Performance

Meta Infotech has delivered steady growth in recent years:

• Revenue from Operations:

  • FY23: ₹10,954.33 Lakh

  • FY24: ₹15,304.66 Lakh

  • FY25: ₹22,001.78 Lakh

• EBITDA:

  • FY23: ₹1,049.70 Lakh

  • FY24: ₹1,689.66 Lakh

  • FY25: ₹2,354.69 Lakh

• Profit After Tax (PAT):

  • FY23: ₹654.32 Lakh

  • FY24: ₹1,050.78 Lakh

  • FY25: ₹1,450.14 Lakh

This growth trajectory underscores increasing demand for cybersecurity solutions and strong operational management.

Valuation and Key Metrics

• Pre-issue EPS (FY24): ₹8.22

• Post-issue EPS (FY24): ₹7.68

• Pre-issue P/E ratio: 19.58x

• Post-issue P/E ratio: 20.96x

• Industry P/E ratio: 167x

Profitability Indicators:

• ROCE (FY24): 37.81 percent

• ROE (FY24): 38.88 percent

• RoNW: 32.55 percent

While the company is profitable and growing, the valuation is considered fully priced relative to its peers.

Grey Market Premium (GMP) Analysis

Currently, the Grey Market Premium (GMP) for Meta Infotech IPO is expected at ₹0.

This suggests no significant listing gains are anticipated based on current demand in the unregulated grey market.

GMP remains unofficial and subject to change based on market interest before listing.

Use of IPO Proceeds

Proceeds from the fresh issue will be directed toward:

• Strengthening working capital

• Funding general corporate purposes

• Supporting future growth initiatives

This ensures operational flexibility and capacity to serve growing cybersecurity needs across India.

Competitive Advantages

Meta Infotech’s strengths include:

• Specialised cybersecurity expertise

• Broad industry coverage

• Experienced leadership and technical team

• Strong client relationships across key sectors

These factors help the company compete effectively in India’s rapidly growing cybersecurity market.

Risks and Considerations

Investors should note potential risks:

• Intense competition from global cybersecurity firms

• Evolving regulatory landscape

• Dependence on technology innovation and skilled workforce

• Challenges in scaling operations while maintaining quality

These risks highlight the need for long-term strategic planning.

Expert Recommendation

Given the steady financial performance, robust industry demand, but fully priced valuation, analysts recommend that investors avoid applying for short-term listing gains.

However, those with a long-term view may find value in the company’s cybersecurity niche and growth trajectory.

Conclusion

Meta Infotech Limited is a specialised cybersecurity solutions provider with strong revenue growth, an experienced management team, and broad industry reach.

While the IPO is fully priced and GMP suggests no immediate listing gains, the company’s position in a critical sector supports potential for long-term growth as India’s digital economy expands.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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.

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