Identixweb is coming up with an IPO with a fresh issue of 30,80,000 shares worth INR 16.63 crores. The company aims to fund the investment in marketing, market research and product development and meet general corporate purposes. 

Identixweb IPO – Important Dates

Identixweb Limited IPO – Company Profile 

Incorporated in 2017, the company, as an IT firm, is involved in providing Software as a service (SAAS) – based digital product solutions. The company offers E-Commerce Store Development, Web App Development, UI/UX Design, Website development, Customize Software Development, support and maintenance with a primary focus on Shopify application development.

The Company has two subsidiaries named Munim ERP Private Limited and Identixweb LLC*. Munim ERP Private Limited, located in Surat, India, is a company specialising in accounting and GST compliance software, particularly focused on ERP (Enterprise Resource Planning) solutions for various industries. Established to transform business management through technology.

Identixweb Ltd IPO Fundamental Analysis  

• Revenue Trend: The revenue increased from ₹622.11 lakhs in March 2023 to ₹632.90 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 418.95 lakh. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) increased from ₹137.67 lakh in March 2023 to ₹283.90 lakh in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹197.72 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹2.20 in March 2023 to ₹3.86 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹ 2.69. 
• Return on Net Worth (RoNW): The RoNW has decreased from 29.32% to 27.39%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

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Identixweb IPO Financial Analysis

Identixweb Limited IPO Peer Comparison

Identixweb Limited reported revenue of ₹632.90 lakhs, an EPS of ₹3.86, and a RoNW of 27.39%. In comparison, Kody Technolab Limited posted ₹2,245.70 lakhs in revenue, an EPS of ₹3.84, and a RoNW of 13.17%.

Identixweb Ltd IPO Objective

Identixweb plans to invest INR 2.50 crores in marketing, INR 4.20 crores in market research and product development, INR 4.15 crores in subsidiary Munim ERP for product development, and the remaining funds for general corporate purposes.

1. Investment in marketing to support the organisation’s growth plans in India or Outside India: The company intends to invest INR 2.50 crores out of the Net Proceeds for trade shows, supporting sales personnel and their relationship management activities, advertising and social media marketing, etc. 

2. Investment into market research and product development: Market research and product development is at the core of the business model with a focus on in-house product innovation. The company intends to invest INR 4.20 crores out of the Net Proceeds for the said purpose. 

3. Investment in the Subsidiary, i.e., Munim ERP Private Limited for Product Development and Talent Hiring: The company will invest INR 4.15 crores from the total net issue proceeds allocated for Investment in Munim ERP Private Limited for Product Development through Talent Hiring.

4. General Corporate Purpose: The company will deploy the remaining amount for general corporate purposes, including strategic initiatives, partnerships, acquisitions, branding, marketing, facility upgrades, client referrals, and other business needs

Identixweb IPO Risks And Challenges

Identixweb heavily relies on Shopify Inc. for revenue, making it vulnerable to adverse developments. Future negative cash flows may impact operations and growth. Failure to anticipate market needs could affect competitiveness and business sustainability.

1. The majority of the revenues are generated from a single customer, Shopify Inc. Any adverse development affecting the operations in this region could have an adverse impact on the business.

2. Any negative cash flows in the future would adversely affect the cash flow requirements, which may adversely affect the ability to operate the business and implement the growth plans, thereby affecting the financial condition.

3. If the company does not successfully anticipate market needs or develop and introduce new solutions that meet users’ needs on time, they may not be able to compete effectively. 

Identixweb Ltd IPO – Industry & Market Potential

India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. IT spending in India is estimated to record double-digit growth of 11.1% in 2024, totalling US$ 138.6 billion, up from US$ 124.7 billion last year.

By 2026, widespread cloud utilisation can provide employment opportunities to 14 million people and add US$ 380 billion to India’s GDP. As per a survey by Amazon Web Services (2021), India is expected to have nine times more digitally skilled workers by 2025.

Identixweb Limited IPO – Type of Offer

Identixweb is launching an IPO with a fresh issue of 30,80,000 shares worth INR 16.63 crores. The company plans to invest in marketing, market research, product development, and support general corporate purposes.

Identixweb IPO Offer Size

The offer size is INR 16.63 crores, consisting of a fresh issue of 30,80,000 shares. Identixweb plans to invest in marketing, market research, product development, and support general corporate purposes.

Identixweb Limited IPO Allotment Structure

Identixweb Limited’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) according to SEBI regulations. 1,54,000 shares are reserved for 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: A portion of shares, i.e. 1,54,000 shares, are reserved for market makers. 

How to apply for the Identixweb Limited IPO?

To apply for the Identixweb Limited IPO through Alice Blue, follow these steps:

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

1. Check for IPO Details: Once your account is active, you can check for the Identixweb Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Identixweb Limited 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 do you check Identixweb Limited IPO Allotment Status?

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

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. 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.
3. 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.
4. Select the Identixweb Limited 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 Identixweb Limited IPO.
5. 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Identixweb Limited IPO:

● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Identixweb Limited 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. 

● BSE SME: You can also check the allotment status on the official websites of the Bombay stock Exchange’s (NSE) Small Medium Exchange (SME) Platform. You would need your application number and PAN to check the status. 

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

Identixweb Limited Ltd IPO Offer Registrar

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

Contact information for the registrar: 

Skyline Financial Services Private Limited

D-153A, 1st Floor, Phase-I, Okhla Industrial Area, Delhi – 110020. 

Email Id: Ipo@skylinerta.com 

Website: www.skylinerta.com

Identixweb Limited SME IPO – FAQs