DelaPlex Limited IPO

DelaPlex Limited IPO

DelaPlex Limited’s IPO consists of fresh shares and an offer to sell 6 lakh shares. The shares are issued and offered at a price band of INR 186-192. The company plans to utilize it to meet its working capital requirement, advertisement expenses, purchase of laptops, etc. 

DelaPlex Ltd IPO – Important Details

DelaPlex IPO DateJanuary 25, 2024 to January 30, 2024
DelaPlex IPO Listing DateFebruary 2, 2024
DelaPlex IPO PriceINR 186-192
DelaPlex IPO Lot Size600 shares
DelaPlex IPO Total Issue SizeINR 46.08 crores.
DelaPlex IPO Basis of AllotmentJanuary 31, 2024
DelaPlex IPO Initiation of RefundsFebruary 1, 2024
DelaPlex IPO Credit of Shares to DematFebruary 1, 2024
DelaPlex IPO Issue TypeBook Built Issue IPO
DelaPlex IPO Listing AtNSE SME

DelaPlex Ltd IPO – Company Profile

DelaPlex Limited is a technology and software development solution and consulting provider, helping client companies achieve growth, revenue, and marketplace value. The company has developed expertise and partnerships with various industry players that provide the latest technology, tools, and software development solutions. 

The Company is a global technology partner in Supply Chain Consulting, Custom Software Development, Cloud Services, and Data Science. Further, the Company offers various tech solutions encompassing software-defined data centers, integrated infrastructure,

cloud technologies, DevOps, security solutions, data analytics, and artificial intelligence. Built for the channel partners and end users, it creates next-gen solutions to address IT problems.

DelaPlex Limited (dpl) is a subsidiary of DelaPlex INC., a U.S.- based enterprise, where DelaPlex INC. holds 51% of the company’s shares.

DelaPlex Ltd IPO – Fundamental Analysis

DelaPlex Ltd’s IPO shows consistent revenue growth, controlled expenses, and rising profits. Despite a slight decline in RoNW, it remains healthy at 33.65%. Enhanced NAV per Equity Share and improved Diluted EPS indicate consistent earnings growth, while a strong current ratio ensures short-term liquidity.

Revenue Growth:

The company exhibits consistent revenue growth, from ₹3,622.38 lakhs in 2021 to ₹5,400.46 lakhs in 2023, indicating a healthy expansion trajectory.

Expense Management:

Expenses have also increased but are proportionate to revenue growth, signifying efficient cost control and sustainable profitability.

Profitability:

DelaPlex’s profitability steadily improved from ₹404.00 lakhs in 2021 to ₹790.72 lakhs in 2023, reflecting sound operational performance.

Return on Net Worth (RoNW):

Although RoNW declined from 42.64% to 33.65%, it remains healthy, demonstrating the company’s ability to generate returns on equity.

Net Asset Value (NAV) and Equity:

NAV per Equity Share surged from ₹12.96 to ₹32.15, indicating enhanced intrinsic value per share and strong equity growth.

Earnings per Share (EPS):

Diluted EPS rose from ₹5.53 to ₹10.82, demonstrating consistent earnings growth.

Current Ratio:

The current ratio consistently remains above 20, showcasing robust short-term liquidity.

DelaPlex IPO Financial Information

ParticularAs at 31 March 2021As at 31 March 2022As at 31 March 2023
Revenue(₹in lakhs)3,622.384,974.375,400.46
Equity(₹ in lakhs)947.451,559.322,350.05
Expenses (₹in lakhs)3,118.164,232.264,460.88
Profit and Loss After Tax (₹ in lakhs)404.00611.87790.72
RoNW (%)42.64%39.24%33.65%
Diluted EPS only (₹)5.538.3710.82
NAV per Equity Share (₹)12.9621.3332.15
Total Assets (in lakhs)1,100.771,790.902,638.33
Total Liabilities (in lakhs)288.29231.57153.31
Current Ratio34.5122.1523.49

DelaPlex IPO Peer Comparison

DelaPlex Limited’s IPO stands out with a competitive P/E ratio and EPS of ₹10.82. Its strong RoNW (33.65%) and NAV per Equity Share (₹32.15) indicate financial stability. Compared to peers, it offers an attractive investment opportunity.

CompanyFace Value per Equity Share (₹)P/EEPS (Basic and Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Delaplex Limited10NA10.8233.65%32.15
Ksolves India Limited1065.0620.98110.55%18.98
Micropro Software Solutions Limited1010.295.5934.79%658.96
Sigma Solve Limited10255.661.8815.15%12.44

DelaPlex Limited IPO Objective

The main objectives of DelaPlex IPO include enhancing awareness through APAC initiatives, focusing on customer acquisition and brand awareness. It also plans to invest in advanced laptops to meet increased demand and allocate funds for incremental working capital and general corporate purposes.

  1. APAC – Advertisement, Sales, and Marketing expenses towards enhancing the awareness: Marketing and sales initiatives to acquire new customers, grow deeper relations with current customers, and expand brand awareness is one of our core components of the overall fundraising. The company plans to utilize INR 4.16 crores for the said. 
  2. Purchase of office laptops: The acquisition of advanced laptops is particularly geared towards catering to the additional demand expected from our forthcoming sales. The company plans to utilize INR 65 lakhs for the said. 
  1. To meet the working capital requirement: The company requires incremental working capital to meet its increasing expansion strategies. The company plans to utilise INR 13.34 crores from the issue for the said purpose.
  2. General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including funding organic and inorganic growth, strengthening marketing and brand building, capital expenditure for operational maintenance, investing in subsidiaries, and addressing ongoing corporate contingencies.

DelaPlex Ltd IPO Risks And Challenges

DelaPlex IPO risk includes a revenue concentration from a few key customers, including DelaPlex INC and Xperity LLC. The top five customers constituted 99.37% of revenue. Dependency on the U.S. market poses risks, and failure to innovate may impact business adversely.

  1. A substantial portion of the revenue significantly depends on a few key customers. The key customers also include the holding company, i.e., delaPlex INC, and one of the group companies, Xperity LLC. For instance, the top five customers accounted for 99.37% for the period ended September 30, 2023.
  1. The revenues from operations are highly dependent on customers located in the United States. Worsening economic conditions or factors that negatively affect the economic conditions of the United States could materially adversely affect the business, financial condition and results of operations.
  1. If the company fails to innovate in response to changing customer needs and, adopt and develop new technologies, or adapt to evolving industry standards, our business, financial condition, and results of operations could be adversely affected.

DelaPlex IPO – Industry & Market Potential

In the face of a global economic slowdown marked by recession, trade wars, and geopolitical tensions, the Indian IT industryis facing an uncertain demand environment, which is also visible with the changes in headcount numbers of leading ITcompanies. However, while the cutback in discretionary spending in client sectors presents challenges, it also points tomore outsourcing opportunities that the industry can tap. India’s IT industry is expected to generate US$ 245 billion inrevenue in FY23 at 8.4% y-o-y growth and is expected to reach US$ 500 billion by 2025.

While the leading IT firms have seen double-digit/high single-digit growth in numbers, they admit to an uncertain demand environment. India’s largest IT firm TCS reported y-o-y increase in net profits by 16.8%. It experienced the slowest sequential growth in the previous 12 quarters, growing by 0.4%. Wipro’s net profit on the other hand increased by 12% yoy.

In order to create a more agile organisation, the company is investing in people and technology. HCL Tech’s profit also increased by nearly 8% y-o-y. However, its net profit fell by 11% sequentially. The company’s revenue and personnel strength have sequentially moderated in line with the demand environment, with headcount falling by 2,506.

DelaPlex Ltd IPO – Type of Offer

DelaPlex IPO includes fresh issue of 18 lakhs shares and an offer to sell 6 lakh shares by the existing shareholders. 

  1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 34.56 crores. The company intends to meet its working capital requirement, advertisement and marketing expense, purchase of laptops, etc.
  2. Offer for sale: DelaPlex is offering to sell 6 lakh existing shares. The following are the details of the existing shareholder who is also the promoter selling the shares:
Name of the promoter selling shareholderMaximum number of offered shares for sale (in million)
M/s delaPlex INC6,00,000

DelaPlex Limited IPO Offer Size

The offer size of DelaPlex’s IPO is INR 46.08 crores. The offer includes a fresh issue worth INR 34.56 crores and an offer to sell existing shares for INR 11.52 crores.

DelaPlex Ltd IPO Allotment Structure

DelaPlex IPO’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the market makers.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

Market Maker Reservation Portion: A portion of the issue- 5.10% is reserved for the market makers.

How to apply for DelaPlex IPO?

To apply for the DelaPlex IPO through Alice Blue, you would typically follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

Check for IPO Details: Once your account is active, you can check for the DelaPlex IPO details in the IPO section of the Alice Blue platform.

Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

Submit the Application: Confirm all your details and submit your application.

You can apply for DelaPlex’s IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.  Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check DelaPlex IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

Select the DelaPlex IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the DelaPlex IPO.

 Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here. If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance. Apart from Alice Blue, there are other ways to check the allotment status of the DelaPlex IPO:

●   Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the DelaPlex IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter

your PAN, application, or Demat account number to check your allotment status.

Click on the ‘Submit’ button to view your IPO allotment status.

●  NSE SME: You can also check the allotment status on the official websites

of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform.

You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

DelaPlex IPO Offer Registrar

The registrar for the DelaPlex Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

BIGSHARE SERVICES PRIVATE LIMITED

Office No. S6-2, 6th Floor, Pinnacle Business Park,

Next to Ahura Centre, Mahakali CavesRoad, Andheri East,

Mumbai – 400 093, Maharashtra, India

Tel: 022 – 6263 8200

E-mail: [email protected]

Website: www.bigshareonline.com

DelaPlex IPO FAQs

1. What is the allotment date of the DelaPlex IPO? 

The allotment date of the DelaPlex IPO is January 31, 2024.

2. What is the price band of the DelaPlex IPO? 

The DelaPlex IPO company will issue shares at INR 186-192 per share.

3. What is the size of the DelaPlexIPO?

The offer size of DelaPlex’s IPO is INR 46.08 crores. The offer includes a fresh issue worth INR 34.56 crores and an offer to sell existing shares for INR 11.52 crores.

4. What is the listing date of the DelaPlex IPO?

The listing date of the DelaPlex IPO is February 2, 2024.

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