Computers Software IPOs in India offer investors opportunities to capitalize on the growing demand for IT solutions, cloud computing and digital transformation. These IPOs represent companies driving technological innovation and global competitiveness in a sector pivotal to India’s economic growth.
Content:
- Overview of Computer Software IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Computers Software Sector IPOs
- Disadvantages of Investing in Computers Software Sector IPOs
- Role of the Computer Software Industry in the Economy
- How to invest in computer software IPOs?
- Future Outlook of Computer Software IPOs in India
- Computers Software IPOs in India – FAQ
Overview of Computer Software IPOs in India
The software industry in India is a key driver of exports and technological advancement. IPOs in this sector provide investors with access to companies catering to global markets with cutting-edge software solutions and robust business models.
India’s IT and software services sector continues to thrive, fueled by increasing digital adoption across industries. Software IPOs reflect this growth, offering opportunities for investors to participate in companies poised to benefit from global technology trends and innovation.
IPO Fundamental Analysis
Latent View Analytics Ltd
Latent View Analytics Ltd has demonstrated consistent growth in recent years, with strong increases in revenue and profitability. While its profitability metrics experienced some fluctuations, the company remains well-positioned for further expansion, driven by increasing demand for data analytics solutions.
Revenue Trend
Latent View Analytics Ltd showed solid revenue growth, increasing from ₹407.82 Crores in FY22 to ₹538.76 Crores in FY23 and further rising to ₹640.68 Crores in FY24. This steady rise indicates the company’s strong market position and growing demand for data analytics services.
Equity and Liabilities
The company’s equity capital grew marginally to ₹20.59 Crores in FY24 from ₹20.49 Crores in FY23 and ₹20.04 Crores in FY22. Total liabilities also increased to ₹1,456 Crores in FY24 from ₹1,263 Crores in FY23, reflecting the company’s continued growth and expansion.
Profitability
Latent View’s operating profit margin (OPM) decreased to 19.04% in FY24 from 24.4% in FY23 but remains strong compared to 28.42% in FY22. This suggests that while profitability has slightly declined, the company continues to effectively manage costs.
Earnings per Share (EPS)
EPS showed steady improvement, increasing to ₹7.7 in FY24 from ₹7.59 in FY23 and ₹6.46 in FY22. This steady rise in EPS reflects the company’s ability to generate consistent profits despite the fluctuations in profitability metrics.
Return on Net Worth (RoNW)
RoNW for Latent View decreased slightly to 10.27% in FY24 from 11.91% in FY23 but remained stronger than 8.86% in FY22. The company’s RoNW reflects strong returns on equity and a healthy capital structure.
Financial Position
Latent View’s total assets matched its total liabilities, both rising to ₹1,456 Crores in FY24, demonstrating a balanced financial position. The company’s financial stability supports its growth trajectory and continued investment in expansion and innovation.
Ganesh Green Bharat Ltd
Ganesh Green Bharat Ltd has shown impressive growth, marked by significant increases in revenue, equity and profitability in recent years. Despite some fluctuations in profitability metrics, the company’s financial position highlights strong operational progress and strategic expansion.
Revenue Trend
Ganesh Green Bharat Ltd saw substantial revenue growth, increasing from ₹366.59 Crores in FY22 to ₹565.13 Crores in FY23 and further rising to ₹957.03 Crores in FY24. This growth indicates a strong market presence and a positive shift in operational dynamics.
Equity and Liabilities
The company’s equity capital grew from ₹10.73 Crores in FY22 to ₹10.83 Crores in FY23, reaching ₹11.78 Crores in FY24. Total liabilities rose to ₹1,731 Crores in FY24, up from ₹945.28 Crores in FY23, reflecting the company’s expanded operations and increased financial leverage.
Profitability
Ganesh Green Bharat Ltd’s operating profit margin (OPM) improved to 19% in FY24 from 14.47% in FY23, compared to 7.98% in FY22. This positive trend signals enhanced cost efficiency and improved profitability despite expanding operations.
Earnings per Share (EPS)
EPS increased sharply to ₹12.34 in FY24, up from ₹6.31 in FY23 and ₹0.78 in FY22. This significant rise reflects the company’s growth in profit generation and indicates a robust recovery from previous financial challenges.
Return on Net Worth (RoNW)
RoNW for Ganesh Green Bharat Ltd improved significantly to 3.39% in FY24, up from 0.87% in FY23 and 0.28% in FY22. This growth demonstrates strong returns on equity, even as the company expands and increases its liabilities.
Financial Position
Ganesh Green Bharat Ltd’s total assets reached ₹1,731 Crores in FY24, matching the rise in total liabilities. This balance reflects the company’s ability to support its growth through effective asset management and capital utilization. The financial position indicates a healthy, expanding operation.
Happiest Minds Technologies Ltd
Happiest Minds Technologies Ltd has shown consistent growth in revenue and profitability, with a solid performance trajectory over the past few years. The company’s financials indicate strong operational efficiency and a positive market outlook.
Revenue Trend
Happiest Minds Technologies Ltd demonstrated strong revenue growth, increasing from ₹1,094 Crores in FY22 to ₹1,429 Crores in FY23 and further rising to ₹1,625 Crores in FY24. This reflects the growing demand for its technology services and solutions.
Equity and Liabilities
The company’s equity capital increased to ₹29.87 Crores in FY24, up from ₹28.54 Crores in FY22. Total liabilities also rose to ₹2,248 Crores in FY24, compared to ₹1,641 Crores in FY23, driven by strategic investments and expansion plans.
Profitability
Happiest Minds Technologies Ltd maintained strong profitability, with its operating profit margin (OPM) decreasing slightly to 19.64% in FY24 from 24.74% in FY23, still higher than 22.79% in FY22. This indicates strong cost management despite increased investments.
Earnings per Share (EPS)
EPS for Happiest Minds Technologies Ltd saw a steady increase, rising to ₹16.63 in FY24, compared to ₹16.13 in FY23 and ₹12.71 in FY22. This consistent growth highlights the company’s ability to generate profits and rewards for shareholders.
Return on Net Worth (RoNW)
RoNW for the company decreased to 16.67% in FY24 from 26.19% in FY23 and 27.84% in FY22. Although the RoNW has declined, it still reflects a healthy return on equity, showing effective capital utilization.
Financial Position
Happiest Minds Technologies Ltd’s total assets grew in line with its liabilities, reaching ₹2,248 Crores in FY24. This balanced increase signals the company’s ability to effectively manage its growth while maintaining financial stability.
IPO Financial Analysis
Latent View Analytics Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 640.68 | 538.76 | 407.82 |
| Expenses | 504.65 | 393.71 | 285.97 |
| Operating Profit | 136.03 | 145.05 | 121.85 |
| OPM % | 19.04 | 24.4 | 28.42 |
| Other Income | 73.7 | 55.77 | 43.59 |
| EBITDA | 209.73 | 200.82 | 142.82 |
| Interest | 3.05 | 2.64 | 3.12 |
| Depreciation | 9.66 | 8.82 | 8.16 |
| Profit Before Tax | 197.03 | 189.36 | 154.17 |
| Tax % | 19.48 | 17.92 | 15.99 |
| Net Profit | 158.64 | 155.43 | 129.51 |
| EPS | 7.7 | 7.59 | 6.46 |
| Dividend Payout % | 0 | 0 | 0 |
All values in ₹ Cr.
RateGain Travel Technologies Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 957.03 | 565.13 | 366.59 |
| Expenses | 767.31 | 480.48 | 336.04 |
| Operating Profit | 189.73 | 84.65 | 30.56 |
| OPM % | 19 | 14.47 | 7.98 |
| Other Income | 41.56 | 19.93 | 15.58 |
| EBITDA | 231.28 | 104.58 | 47.08 |
| Interest | 1.37 | 1.51 | 5.23 |
| Depreciation | 41.04 | 35.81 | 30.06 |
| Profit Before Tax | 188.87 | 67.26 | 10.84 |
| Tax % | 23.02 | -1.7 | 22.31 |
| Net Profit | 145.39 | 68.4 | 8.42 |
| EPS | 12.34 | 6.31 | 0.78 |
| Dividend Payout % | 0 | 0 | 0 |
All values in ₹ Cr.
Happiest Minds Technologies Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,625 | 1,429 | 1,094 |
| Expenses | 1,289 | 1,070 | 835.98 |
| Operating Profit | 335.85 | 358.86 | 257.67 |
| OPM % | 19.64 | 24.74 | 22.79 |
| Other Income | 99.39 | 14.77 | 31.01 |
| EBITDA | 421.22 | 379.97 | 294.77 |
| Interest | 42.27 | 21.86 | 9.95 |
| Depreciation | 58.29 | 41.91 | 32.88 |
| Profit Before Tax | 334.68 | 309.86 | 245.85 |
| Tax % | 25.78 | 25.45 | 26.3 |
| Net Profit | 248.39 | 230.99 | 181.2 |
| EPS | 16.63 | 16.13 | 12.71 |
| Dividend Payout % | 34.58 | 33.48 | 29.5 |
All values in ₹ Cr.
About the Company
Latent View Analytics Ltd
Latent View Analytics Ltd is a leading player in the analytics and data science space. The company offers data-driven solutions to clients across various industries, including banking, insurance and retail. Its advanced analytics services help businesses make informed decisions, enhancing operational efficiency and customer experience.
In FY24, Latent View Analytics showed robust performance, increasing its revenue and profitability. The company’s IPO in 2021 received strong investor interest, reflecting its growth potential and market demand. Latent View’s strong customer base and expanding footprint position it for future growth, especially in data analytics and AI-driven solutions.
RateGain Travel Technologies Ltd
RateGain Travel Technologies Ltd specializes in providing software solutions for the travel and hospitality industry. The company offers a suite of products, including pricing, revenue management and distribution services. RateGain helps clients in travel, airlines and hotels optimize their pricing strategies, improving overall profitability.
Since its IPO, RateGain has seen significant growth, driven by the increasing demand for tech-driven solutions in the travel sector. With a strong client base, including leading global hotel chains and airlines, the company is positioned to capitalize on the global travel recovery, offering innovative solutions to its customers.
Happiest Minds Technologies Ltd
Happiest Minds Technologies Ltd is a global digital transformation and IT services company. It provides end-to-end services in digital strategy, cloud, cybersecurity and IoT. The company specializes in helping businesses achieve growth by leveraging the power of emerging technologies for improved customer engagement and operational efficiency.
Happiest Minds has demonstrated strong growth, with its IPO receiving positive investor response due to its comprehensive offerings in digital transformation. The company’s client-centric approach, focus on emerging technologies and consistent revenue growth position it well in the rapidly evolving IT services market.
Advantages of Investing in Computers Software Sector IPOs
The main advantages of investing in computer software sector IPOs include high growth potential, global demand for IT solutions, scalability and innovative business models. These factors make the sector an attractive option for long-term investors.
- High Growth Potential: The increasing reliance on software and IT solutions across industries ensures sustained demand, driving long-term growth opportunities for companies in this sector.
- Global Demand: Indian software companies cater to global markets, benefiting from strong demand for cost-effective and innovative IT services.
- Scalability: Software businesses often operate with scalable models, allowing rapid growth without proportionate cost increases and enhancing profitability.
- Innovative Edge: Many software firms are at the forefront of emerging technologies like AI, cloud computing and cybersecurity, offering high-value investment opportunities.
Disadvantages of Investing in Computers Software Sector IPOs
The main disadvantages of investing in computer software sector IPOs include high competition, dependency on global markets, rapid technology changes and valuation risks. These factors require careful consideration before investing.
- High Competition: The software industry faces intense competition, leading to price wars and margin pressures, impacting profitability.
- Global Dependency: Many companies rely on international markets, making them vulnerable to geopolitical and economic uncertainties.
- Technology Changes: Rapid technological advancements can make existing solutions obsolete, posing risks to companies that fail to innovate.
- Valuation Risks: Software IPOs often come with high valuations, which may not align with the company’s current financial performance, posing risks for investors.
Role of the Computer Software Industry in the Economy
The computer software industry plays a vital role in India’s economy by driving exports, creating jobs and fostering innovation. It contributes significantly to GDP and positions India as a global leader in IT services and software development.
Additionally, the industry accelerates digital transformation across various sectors, enabling productivity and efficiency improvements. It supports the growth of allied industries like telecommunications and hardware, creating a multiplier effect on economic development.
How to invest in computer software IPOs?
To invest in computer software IPOs, open a demat account, track upcoming listings, research each IPO thoroughly, and apply through your bank or broker like Alice Blue.
- Research the Company: Evaluate the company’s financials, market position and growth prospects within the software sector.
- Review IPO Prospectus: Study the IPO prospectus for insights into business models, risk factors and valuation.
- Open a Demat Account: Open a Demat account with a trusted broker like Alice Blue to enable IPO applications.
- Apply Through ASBA/UPI: Use the ASBA facility or UPI on your broker’s platform to submit your IPO application.
- Monitor Allotment Status: Track the allotment status and plan your strategy based on post-listing market trends.
Future Outlook of Computer Software IPOs in India
The future of computer software IPOs in India looks promising as digital adoption accelerates across industries. Companies offering cloud computing, AI and cybersecurity solutions are expected to attract strong investor interest, fueled by technological advancements.
As businesses increasingly adopt software-driven solutions, the demand for innovative technologies will continue to grow. This creates long-term growth opportunities for well-positioned companies, making the software sector a key driver of economic and technological progress.
Computers Software IPOs in India – FAQ
A computer software IPO involves the public offering of shares by software companies to raise capital for expansion, innovation, or debt repayment.
Major software companies include Happiest Minds Technologies Ltd, Latent View Analytics Ltd and Newgen Software Technologies Ltd, which have launched successful IPOs in India.
Computers Software IPOs offer investors access to rapidly growing tech companies, contributing to the Indian tech sector’s growth and providing diversification for market portfolios.
The largest Computers Software IPO in India, in recent years, was the IPO of Happiest Minds Technologies Ltd, which attracted significant investor interest due to its strong growth potential.
Investing in Computer software requires a Demat and trading account with a registered stockbroker like Alice Blue. Investors can apply via IPO forms, online platforms, or through ASBA.
Yes, Computer software can be suitable for long-term investment due to the sector’s growth potential. However, they require careful analysis of company fundamentals and market conditions.
Computer software IPOs can be profitable, particularly if the company demonstrates strong growth potential. However, market conditions and sector performance can impact profitability, so thorough research is vital.
Yes, there are upcoming computer software IPOs in India. Keep an eye on stock exchange announcements and company filings for details about new IPO launches in the sector.
Detailed reviews and analysis of computer software IPOs can be found on financial websites, brokerage platforms like Alice Blue and through IPO research reports from experts and analysts.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
