TAC Infosec IPO

TAC Infosec Limited is coming up with an IPO worth INR 29.99 crores, consisting of a fresh issue of 6.80 lakh shares. The company plans to use the funds to acquire the shares of TAC Securiy Inc (Delaware, USA) and to invest in human resource and product development. 

TAC Infosec Ltd IPO – Important Dates

TAC Infosec IPO DateMarch 27, 2024 to April  2, 2024
TAC Infosec IPO Listing DateApril 5, 2024
TAC Infosec IPO PriceINR 100 to 106 per share
TAC Infosec IPO Lot Size1200 Shares
TAC Infosec IPO Total Issue SizeINR 29.99 crores
TAC Infosec IPO Basis of AllotmentApril 3, 2024
TAC Infosec IPO Initiation of RefundsApril 4, 2024
TAC Infosec IPO Credit of Shares to DematApril 4, 2024
TAC Infosec IPO Issue TypeBook Built Issue IPO
TAC Infosec IPO Listing AtNSE SME

TAC Infosec IPO – Company Profile

The company is engaged in the business of providing risk-based vulnerability management and assessment solutions, cybersecurity quantification and services of Penetration testing to organizations of any scale, size, and business through “SaaS model”.

Incorporated in 2016, the company has benefited from the extensive experience of the Promoters, Mr. Trishneet Arora and Mr. Charanjit Singh who have been associated with the company since its incorporation and have combined experience of more than 10 years in Cybersecurity and vulnerability management.

TAC Infosec’s flagship software product is ESOF (Enterprise Security in One Framework) which was launched in 2018. ESOF is a vulnerability management platform consisting of various product portfolios namely ESOF Appsec, ESOF VMP, ESOF VACA, ESOF PCI ASV, and ESOF CRQ.

TAC Infosec Limited IPO Review

ParticularAs of 31 March 2022As of 31 March 2023As of 30 September 2023
Revenue (₹ in lakhs)510.951,000.01502.06
Equity (₹ in lakhs)260.75768.05962.90
Expenses (₹ in lakhs)438.16505.25329.17
Profit and Loss After Tax (₹ in lakhs)60.75507.29194.85
Diluted EPS only (₹)0.796.632.55
Return on Net Worth (%)23.30%66.05%20.24%
NAV per Equity Share (₹)3.4110.0412.59
Total Assets (in lakhs)496.45977.651,213.02
Total Liabilities (in lakhs) 235.70209.61250.11
Debt Equity Ratio (in times) 0.340.050.03
Current Ratio (in times)

TAC Infosec IPO Fundamental Analysis

The financial overview of the company poised for an IPO depicts a mixed performance. While revenue has shown fluctuations, profitability metrics have improved notably. With a strengthening equity structure and reduced debt levels, the IPO presents an intriguing investment prospect warranting further evaluation.

  • 1. Revenue Growth: The company has shown fluctuating revenue, with a significant increase from ₹510.95 lakhs in March 2022 to ₹1,000.01 lakhs in March 2023, followed by a decline to ₹502.06 lakhs by September 2023. This fluctuation may raise concerns about revenue stability.
  • 2. Equity and Debt: The equity has increased steadily, indicating growth and investor confidence. The debt levels have decreased significantly, as seen from the debt equity ratio, which is a positive sign for financial health.
  • 3. Profitability: The company’s profitability has shown a strong improvement, with profit after tax rising from ₹60.75 lakhs in March 2022 to ₹507.29 lakhs in March 2023, although there was a slight decrease to ₹194.85 lakhs by September 2023. Overall, the profitability trend is positive.
  • 4. Earnings per Share (EPS): The diluted EPS has increased significantly, indicating enhanced earnings per share for investors. This growth in EPS is a positive indicator for potential investors.
  • 5. Return on Net Worth (RoNW): The RoNW has shown fluctuations but improved overall, indicating efficient utilization of equity capital to generate profits. However, the recent decrease in RoNW may require further investigation.
  • 6. Financial Position: The NAV per equity share has also increased, indicating a stronger underlying asset value per share. The current ratio has improved, reflecting better liquidity and ability to meet short-term obligations.

TAC Infosec Ltd IPO Peer Comparison

TAC Infosec Limited leads in RoNW (66.05%) and EPS (₹6.63) among peers, followed by Infobeans Technologies (RoNW: 15.38%, EPS: ₹15.19). Dev Information Technology and Sigma Solve show lower RoNW and EPS figures.

CompanyTotal Revenue (₹ in lakhs)Face Value (₹)EPS  (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
TAC Infosec Limited 1,000.01106.6366.05%10.04
Dev Information Technology Limited12,197.02103.9520.57%19.20
Infobeans Technologies Limited 24,283.001015.1915.38%98.74
Sigma Solve Limited1,775.68101.8815.15%12.38

TAC Infosec Limited IPO Objective

The main objective is to acquire TAC Security Inc (Delaware, USA) as a wholly owned subsidiary, enhancing global customer reach with INR 10 crores. Additionally, INR 18.65 crores will invest in human resources and product development.

  1. Acquisition of TAC Security Inc (Delaware, USA) and making it a wholly owned subsidiary: To facilitate the existing global customers and to streamline the onboarding process for new customers outside India, The Promoters and Executive Directors identified and acquired Tac Security Inc (Delaware, USA) hereinafter referred as “Target Company” to increase the global reach. The company plans to utilise INR 10 crores for the said purpose. 
  1. Investment in Human Resources and Product Development: The company intends to utilize INR18.65 crores for investment in human resources and Product Development in the following manner.
  1. General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including but not restricted to strategic initiatives, partnerships, joint ventures and strategic entity/business acquisitions, branding, marketing, and new client referral fees meeting exigencies.

TAC Infosec IPO Risks And Challenges

TAC Infosec’s risks include potential setbacks from not innovating or developing new products, licensing issues with third-party software, and heavy dependence on a single customer for revenue and profitability.

  1. The business will suffer if the company fails to anticipate and develop new products and services thereon and enhance its existing product portfolio to keep pace with rapid changes in technology.
  1. Any inability to license or incorporate software and technology rights held by third parties in the solutions may adversely impact the business, financial position, results of operations, and cash flows.
  1. The top customer of the company almost contributes 82% of the revenue of the company. The loss of any of these customers may affect revenues and profitability.

TAC Infosec 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 current emphasis is on the production of significant economic value and citizen empowerment, thanks to a solid foundation of digital infrastructure and enhanced digital access provided by the Digital India Programme. India is one of the countries with the quickest pace of digital adoption. 

India’s rankings improved six places to the 40th position in the 2022 edition of the Global Innovation Index (GII).

TAC Infosec Ltd IPO – Type of Offer

TAC Infosec Limited is launching an IPO valued at INR 29.99 crores, comprising 6.80 lakh new shares. The company intends to allocate the proceeds towards acquiring shares of TAC Security Inc (Delaware, USA) and investing in human resources and product development.

TAC Infosec Ltd IPO Offer Size

The offer size for TAC Infosec Limited’s IPO is INR 29.99 crores, with a fresh issue of 6.80 lakh shares. The company plans to use the funds to acquire shares of TAC Security Inc (Delaware, USA) and invest in human resources and product development.

TAC Infosec Ltd IPO Allotment Structure

TAC Infosec’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. A portion of the offer is 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 Makers Reservations: A portion of the issue, i.e., 1,41,600 shares are reserved for market makers.

How to apply for a TAC Infosec Limited IPO?

To apply for the TAC Infosec 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.

  1. Check for IPO Details: Once your account is active, you can check for the TAC Infosec 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 TAC Infosec 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 TAC Infosec’s 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 Blu