SA Tech Software India Limited is launching an IPO with a fresh issue of 39,00,000 shares worth INR 23.01 crores. The company aims to prepay borrowings, fund working capital, and cover general corporate purposes.
SA Tech Software IPO – Important Dates
| SA Tech Software India Limited IPO Date | July 26, 2024 to July 30, 2024 |
| SA Tech Software India Limited IPO Listing Date | August 2, 2024 |
| SA Tech Software India Limited IPO Price | INR 56-59 per share |
| SA Tech Software India Limited IPO Lot Size | 2000 shares |
| SA Tech Software India Limited IPO Total Issue Size | INR 23.01 crores |
| SA Tech Software India Limited IPO Basis of Allotment | July 31, 2024 |
| SA Tech Software India Limited IPO Initiation of Refunds | August 1, 2024 |
| SA Tech Software India Limited IPO Credit of Shares to Demat | August 1, 2024 |
| SA Tech Software India Limited IPO Issue Type | Book Built Issue IPO |
| SA Tech Software India Limited IPO Listing At | NSE SME |
SA Tech Software India IPO – Company Profile
SA Tech Software India Limited, an AI-driven IT consulting subsidiary of SA Technologies Inc., offers scalable IT outsourcing solutions and Global Development Centers. It serves diverse clients globally and focuses on innovation, cost-efficiency, and quality.
In a rapidly evolving tech landscape, the company leverages global onshore-offshore capabilities to support digital transformation with expertise in application development, cloud infrastructure, AI, and more, backed by CMMI Level 5 certification.
Leveraging global onshore-offshore capabilities and deep IT expertise, they offer development, mobile apps, cloud infrastructure, AI, and more. They have also formed a Service Partnership with SA Technologies Inc., USA, enhancing service delivery.
SA Tech Software IPO Fundamental Analysis
SA Tech Software India Limited Technologies’ financial analysis reveals a mixed performance. Revenue growth, increased equity, and improved profitability reflect solid financial performance, with reduced debt reliance and higher EPS and RoNW, boosting investor confidence.
- Revenue Trend: The revenue increased from ₹1,106.11 lakhs in March 2022 to ₹5,639.11 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 7,188 22 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹(548.25) lakhs in March 2022 to ₹368.86 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹(6.07) in March 2022 to ₹4.06 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from (82.58)% to 31.63%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
SA Tech Software IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 1,106.11 | 5,639.11 | 7,188 22 |
| Equity (₹ in lakhs) | 663.89 | 772.48 | 1,166.35 |
| Expenses (₹ in lakhs) | 4,844.66 | 5,498.91 | 6,712.42 |
| Profit and Loss After Tax (₹ in lakhs) | (548.25) | 108.59 | 368.86 |
| Diluted EPS only (₹) | (6.07) | 1.20 | 4.06 |
| Return on Net Worth (%) | (82.58) | 14.06 | 31.63 |
| NAV per Equity Share (₹) | 7.36 | 8.56 | 12.74 |
| Total Assets (in lakhs) | 3,229.19 | 3.465.95 | 3,706.06 |
| Total Liabilities (in lakhs) | 2,565.3 | 2,693.47 | 2,539.71 |
| Debt Equity Ratio | 2.95 | 1.89 | 1.10 |
SA Tech Software India IPO Peer Comparison
SA Tech Software India Limited has a competitive market with notable performance metrics. Compared to peers, its profitability, share values, and market cap metrics indicate varied financial health and growth levels.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| S A Tech Software India Limited | 5,673.05 | 10 | – | 1.19 | 1.19 | 13.96 | 178.63 |
| ASM Technologies Limited | 14,963.50 | 10 | 55.14 | 15.06 | 15.06 | 13.31 | 67.05 |
| Moschip Technologies Ltd | 17,565.90 | 2 | 165.18 | 0.32 | 0.30 | 5.46 | 6.8 |
| Infobeans Technologies Ltd | 24,835.00 | 10 | 30.34 | 15.18 | 15.09 | 13.24 | 111.98 |
| Onward Technologies Ltd | 32,461.84 | 10 | 55.77 | 7.34 | 7.16 | 6.60 | 77.94 |
| 3i Infotech Ltd | 39,120.00 | 10 | 343.13 | 3.10 | 3.05 | 0.21 | 38.16 |
SA Tech Software IPO Objective
The main objective of SA Tech Software India is to prepay or repay outstanding borrowings and fund working capital requirements.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by their company: The company intends to utilize INR 9.18 crores from Net Proceeds for prepayment or repayment of borrowings, reducing debt, improving the debt-equity ratio, and enabling internal accruals for business growth and expansion.
- Funding the company’s working capital requirements: The company plans to utilize INR 10.80 crores from Net Proceeds to fund working capital requirements for Fiscal 2025, supporting future growth and supplementing existing financing facilities and internal accruals.
- General corporate purposes: The company will deploy the balance of funds towards general corporate purposes, including prepayment of borrowings, funding working capital, strategic initiatives, partnerships, acquisitions, growth opportunities, brand building, marketing, and ongoing corporate exigencies.
SA Tech Software IPO Risks And Challenges
SA Tech Software India Limited’s risks include leased branch office issues, potential penalties from past non-filing of statutory forms, and ongoing litigations, which could disrupt operations, impact financial stability, and harm reputation.
- Their Bangalore and Patna branch offices are leased, not owned. Any issues with property ownership or rent agreement breaches could disrupt operations and negatively impact their corporate affairs and profitability.
- There have been instances of non-filing statutory forms under the Companies Act, but no penalties have been imposed. Future non-fillings or fines could materially affect their operations and financial position.
- Their Company, Directors, Promoters, and Group Companies face pending litigations and claims. Adverse decisions could result in liabilities or penalties, potentially harming their reputation, business, and financial status.
SA Tech Software IPO – Industry & Market Potential
The IT Services market is projected to reach $1,241 billion in 2023, with IT Outsourcing leading at $460.10 billion. Expected annual growth of 7.37% will increase the market to $1,771 billion by 2028.
The IT & BPM sector is a significant growth driver for India, contributing 7.4% of GDP in FY22 and projected to reach 10% by 2025. India’s rapid digital adoption and improved Global Innovation Index ranking reflect this progress.
With the Indian IT industry reaching $227 billion in FY22 and an estimated $245 billion in FY23, IT spending is expected to hit $110.3 billion in 2023, with growth projected to $350 billion by 2026.
SA Tech Software India IPO – Type of Offer
SA Tech Software India Limited is launching an IPO with a fresh issue of 39,00,000 shares worth INR 23.01 crores. The company aims to prepay borrowings, fund working capital, and cover general corporate purposes.
SA Tech Software India IPO Offer Size
The offer size of SA Tech Software India Limited is INR 23.01 crores, consisting of a fresh issue of 39,00,000 shares. The company seeks funds to prepay borrowings, fund working capital, and cover general corporate purposes.
SA Tech Software India IPO Allotment Structure
SA Tech Software India 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. 284,000 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. 284,000 shares, are reserved for marker makers.
How to apply for a SA Tech Software India Limited IPO?
To apply for the SA Tech Software India Limited IPO through Alice Blue, you would typically 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.
- Check for IPO Details: Once your account is active, you can check for the SA Tech Software India Limited 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 the SA Tech Software India 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 SA Tech Software India Limited’s IPO Allotment Status?
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 SA Tech Software India 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 SA Tech Software India Limited 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 that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the SA Tech Software India Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the SA Tech Software India 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.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). 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.
SA Tech Software India Limited Ltd IPO Offer Registrar
The registrar for the SA Tech Software India Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. 56-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Center, Mahakali Caves Road,
Andheri East, Mumbai-400 093, Maharashtra, India.
Tel: +91 22 6263 8200 Fax: +91 22 6263 8299
Email: [email protected]
Website: www.bigshareonline.com
SA Tech Software India Limited Limited IPO – FAQs
1. What is SA Tech Software India Limited’s allotment date?
The allotment date of the SA Tech Software India Limited IPO is July 31, 2024.
2. What is the price band of the SA Tech Software India Limited IPO?
The price band of the issue is INR 56-59 per share.
3. What is the size of the SA Tech Software India Limited IPO?
The offer size of SA Tech Software India Limited is INR 23.01 crores, consisting of a fresh issue of 39,00,000 shares. The company seeks funds to prepay borrowings, fund working capital, and cover general corporate purposes.
4. What is the listing date of the SA Tech Software India Limited IPO?
The listing date of SA Tech Software India Limited’s IPO is August 2, 2024.
