The issue includes a fresh issue of up to 17,20,000 Equity Shares of the Company aggregating to INR 27.52 crores in total. The company intends to use the funds raised to meet its working capital requirement, capital expenditure, repayment of borrowings of the company.
Kody Technolab Limited IPO – Important Details
| Kody Technolab IPO Date | 15Th September-20Th September 2023 |
| Kody Technolab IPO Listing Date | 28st September 2023 |
| Kody Technolab IPO Price | INR 160 per share |
| Kody Technolab IPO Lot Size | 800 Shares |
| Kody Technolab IPO Total Issue Size | INR 27.52 Crores |
| Kody Technolab IPO Basis of Allotment | 25Th September 2023 |
| Kody Technolab IPO Initiation of Refunds | 26Th September 2023 |
| Kody Technolab IPO Credit of Shares to Demat | 27Th September 2023 |
| Kody Technolab IPO Issue Type | Fixed Price IPO |
| Kody Technolab IPO Listing At | NSE SME |
Kody Technolab Ltd IPO – Company Profile
Incorporated in 2017, the company is in the business of software development services to diverse set of industries. The company specializes in helping businesses undergo Digital Transformation by leveraging the latest technologies and trends.
The Company has presence in USA, Canada and UK through its sales representative in that country from where it markets the services and solutions. The Company offers a wide range of services that include custom development, AI Consultation & Implementation, IOT Services, and IT consulting services.
The Chairman and Managing Director, Mr. Manav Subhashchandra Patel has 7 years of experience in IT industry thus vast experience of the Promoter has been instrumental in determining the vision and growth strategies for the Company.
Kody Technolab IPO Objective
Kody Technolab’s IPO aims to fuel its expansion plans, including the establishment of a development center in GIFT city (INR 2.73 crores), satisfying working capital requirements (INR 12.50 crores), and reducing outstanding borrowings (approximately INR 5.80 crores).
1. Setting a development center at GIFT city- Gandhinagar: The company is strategically expanding its presence in GIFT city. GIFT city’s status as a thriving technology hub in Gujarat makes it an ideal location for the company to establish its operations. As this move also presents the opportunity to benefit from tax incentives as a part of the Special Economic Zone (SEZ) unit. The company aims to utilise INR 2.73 crores for the said purpose.
2. Funding working capital requirement: The Business of the Company is working capital intensive; hence it will meet the requirement to the extent of ₹12.50 crores from the net proceeds of the issue.
3. Repayment of borrowings: The Company has entered into financial arrangements from time to time, with banks and financial institutions. The outstanding loan facilities entered into by the Company include borrowing in the form of Loan against Property. The Company propose to utilise an estimated amount of ₹5.80 crores from the Gross Proceeds towards part or full repayment of borrowings.
Kody Technolab Limited IPO Risks And Challenges
Kody Technolab Limited’s IPO is accompanied by certain risks: Adapting to technological changes, foreign exchange rate fluctuations, and revenue dependence on specific customers could impact business and profits.
- The business will suffer if it fails to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes in technology.
- Fluctuations in the exchange rates may affect the company to the extent of sales. The company may enter into certain contracts to hedge exchange rate fluctuations which may or may not adequately cover the potential loss that may arise as a result of such foreign exchange transactions.
- Majority of the company’s revenue is concentrated from particular segment of service i.e., custom software development. Any loss of the large customer of this segment may affect the revenues and profitability.
Kody Technolab Ltd IPO Peer Comparison
Kody Technolab Limited exhibits a reasonable P/E ratio and EPS. However, it stands out with a remarkable RoNW of 67.81%, indicating strong financial health, while competitors like Ksolves India and Sigma Solves show higher P/E ratios and lower RoNW percentages
| Company | Face Value per Equity Share (₹) | P/E | EPS (₹) | RoNW(%) | NAV per Equity Share (Basic) (₹) |
| Kody Technolab Limited | 10 | 22.66 | 7.06 | 67.81% | 13.59 |
| Ksolves India Limited | 10 | 42.18 | 20.98 | 109.34% | 18.97 |
| Sigma Solves Limited | 10 | 161.55 | 1.86 | 8.92% | 11.95 |
Kody Technolab Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 248.15 | 384.01 | 1095.24 |
| Equity (₹ in lakhs) | (171.16) | (109.03) | 469.35 |
| Expenses (₹ in lakhs) | 259.59 | 325.50 | 673.13 |
| Profit and Loss After Tax (₹ in lakhs) | -10.80 | 62.13 | 318.09 |
| RoNW (%) | (6.31)% | (56.98)% | 67.77% |
| Diluted EPS only (₹) | (4.01) | 23.05 | 7.06 |
| NAV per Equity Share (₹) | (1711.56) | (1090.28) | 13.59 |
| Total Assets (in lakhs) | 115.14 | 238.04 | 1,452.55 |
| Total Liabilities (in lakhs) | 286.30 | 347.07 | 983.20 |
Kody Technolab IPO – Fundamental Analysis
Revenue Growth:
Kody Technolab has displayed remarkable revenue growth, with revenue surging from ₹248.15 lakhs in 2021 to ₹1,095.24 lakhs in 2023, indicating a positive trajectory.
Profitability:
The company’s profitability has shown a significant improvement, shifting from a loss of ₹10.80 lakhs in 2021 to a profit of ₹318.09 lakhs in 2023.
Return on Net Worth (RoNW):
RoNW has experienced a remarkable turnaround, going from (6.31)% in 2021 to a strong 67.77% in 2023.
Earnings Per Share (EPS):
Diluted EPS has improved substantially, reaching ₹7.06 in 2023.
Net Asset Value (NAV) per Equity Share:
The NAV per Equity Share has shown a positive trend, rising to ₹13.59 in 2023.
Asset and Liability Management:
Total Assets have seen significant growth, expanding from ₹115.14 lakhs in 2021 to ₹1,452.55 lakhs in 2023, reflecting improved asset management.
Summary:
Kody Technolab has made substantial progress, turning losses into profits and demonstrating impressive revenue and RoNW growth. While its financials have improved, investors should assess the IPO pricing and market conditions carefully before investing. Consulting financial experts is advisable.
Kody Technolab IPO – Industry & Market Potential
The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025.
As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the internet.
The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 88.94 billion between April 2000-June 2022. The sector ranked second in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT). Computer software and hardware make up 14.70% of the cumulative FDI inflows.
Kody Technolab IPO – Type of Offer
The issue includes a fresh issue of up to 17,20,000 Equity Shares of the Company aggregating to INR 27.52 crores in total. The company intends to use the funds raised to meet its working capital requirement, capital expenditure, repayment of borrowings of the company.
Kody Technolab Limited IPO Offer Size
The issue includes a fresh issue of up to 17,20,000 Equity Shares of the Company aggregating to INR 27.52 crores in total. The price per share issued is INR 160.
Kody Technolab Limited IPO Allotment Structure
Kody Technolab Limited’s IPO allotment structure includes allocations for Retail Individual Investors (RII) with application values below INR 2 lakhs, and other investors with values exceeding INR 2 lakhs. Market Makers have a reservation of 5.02%.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs .
Market Maker Reservation: Total of 86,400 equity shares are reserved for market makers. This forms 5.02% of the total issue
How to apply for a Kody Technolab IPO through Alice Blue?
To apply for the Kody Technolab’s 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 Kody Technolab 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 Kody Technolab’s IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post 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 Kody Technolab 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 Kody Technolab 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 Kody Technolab 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 Kody Technolab IPO:
● Registrar’s Website: Visit the website of Kfin Technologies Limited the registrar of the Kody Technolab IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number 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.
Kody Technolab Limited IPO Offer Registrar
The registrar for the Kody Technolab Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Kfin Technologies Limited
Selenium Tower-B, Plot No. 31-32,
Gachibowli, Financial District,
Hyderabad, Telangana – 500 032.
Tel. No.: +91-40-6716-2222
Email: [email protected]
Website: www.kfintech.com
Kody Technolab Limited IPO FAQs
The allotment date is 25th September 2023.
The issue price per equity share is INR 160.
The issue includes a fresh issue of up to 17,20,000 Equity Shares of the Company aggregating to INR 27.52 crores in total
The listing date is 28th September 2023
