IT sector IPOs in India are attracting significant investor interest due to the sector’s continuous growth in technology, digital services, and innovation. Staying informed about upcoming IPOs through financial news or brokerage platforms helps investors track opportunities in this rapidly expanding market.
Content:
- Overview of the IT Sector IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in IT Sector IPOs
- Disadvantages of Investing in IT Sector IPOs
- Role of IT Sector Industry in the Economy
- How to invest in IT Sector IPOs?
- Future outlook of IT Sector IPOs in India
- IT Sector IPOs in India – FAQ
Overview of the IT Sector IPOs in India
IPO Fundamental Analysis
Slone Infosystems Limited
Slone Infosystems Ltd’s financial results for FY24 show a significant growth in sales and profitability compared to FY23. The company’s sales rose to ₹61 crore in FY24, up from ₹30 crore in FY23. Net profit surged to ₹4 crore, reflecting a strong performance.
Revenue Trend: After a growth of 103% in sales: Slone Infosystems’ revenue rose from ₹30 crore in FY23 to ₹61 crore in FY24, reflecting robust market demand for its IT hardware solutions and services.
Equity and Liabilities: After increasing its equity capital from ₹2 crore in FY23 to ₹4 crore in FY24: Slone Infosystems saw total liabilities rise to ₹21 crore in FY24 from ₹12 crore in FY23, driven by higher reserves and borrowings.
Profitability: After recording an operating profit of ₹6 crore in FY24, compared to ₹1 crore in FY23: the company’s operating profit margin (OPM) rose significantly to 11% in FY24, up from 4% in FY23, reflecting improved operational efficiency.
Earnings Per Share (EPS): After a significant rise in earnings: Slone Infosystems’ EPS increased from ₹4.06 in FY23 to ₹10.83 in FY24, demonstrating the company’s enhanced profitability and positive market outlook.
Return on Net Worth (RoNW): After a sharp increase in profitability: Slone Infosystems achieved a high Return on Net Worth (RoNW) of 54.7% in FY24, up from FY23, indicating efficient use of equity capital and strong financial performance.
Financial Position: After a rise in assets from ₹12 crore in FY23 to ₹21 crore in FY24: driven by growth in reserves and other assets, Slone Infosystems maintains a healthy financial position, with improved profitability and rising equity.
TAC Infosec Limited
TAC Infosec Ltd’s financial results for FY24 show a strong performance, with sales increasing to ₹11.62 crore from ₹5.11 crore in FY22. The company’s net profit rose to ₹6.33 crore, demonstrating significant growth and improved profitability over the years.
Revenue Trend: After achieving a 129% increase in sales: TAC Infosec’s revenue grew from ₹5.11 crore in FY22 to ₹11.62 crore in FY24, reflecting higher demand for its cybersecurity services and solutions.
Equity and Liabilities: After a substantial increase in equity capital from ₹0.45 crore in FY23 to ₹7.65 crore in FY24: total liabilities grew to ₹17.66 crore in FY24 from ₹4.96 crore in FY22, driven by increasing reserves and borrowings.
Profitability: After achieving an operating profit of ₹6.53 crore in FY24, compared to ₹1.02 crore in FY22: TAC Infosec’s operating profit margin (OPM) rose to 56.20% in FY24, indicating significant operational efficiency improvement.
Earnings Per Share (EPS): After a strong rise in earnings: TAC Infosec’s EPS reached ₹8.27 in FY24, up from ₹13.56 in FY22, despite a decrease in the per-share value due to increased equity capital.
Return on Net Worth (RoNW): After a notable increase in profitability: TAC Infosec achieved a return on net worth (RoNW) of 58.1% in FY24, reflecting a sharp improvement from previous years and efficient capital utilization.
Financial Position: After a significant rise in assets from ₹4.96 crore in FY22 to ₹17.66 crore in FY24: TAC Infosec strengthened its financial position, with growth in reserves and other assets supporting its expansion and profitability.
Trust Fintech Limited
Trust Fintech Ltd’s financial results for FY24 show a strong performance, with sales increasing to ₹35 crore from ₹17 crore in FY22. Net profit also rose significantly, reaching ₹12 crore in FY24, compared to ₹1 crore in FY22.
Revenue Trend: After achieving a 106% increase in sales: Trust Fintech’s revenue grew from ₹17 crore in FY22 to ₹35 crore in FY24, driven by increased demand for its software and IT solutions for the BFSI sector.
Equity and Liabilities: After a rise in equity capital from ₹5 crore in FY23 to ₹18 crore in FY24: total liabilities grew to ₹52 crore in FY24 from ₹20 crore in FY22, reflecting increased reserves and asset growth.
Profitability: After significant growth in operating profit: Trust Fintech’s operating profit reached ₹18 crore in FY24, up from ₹2 crore in FY22, with an improved operating profit margin (OPM) of 51% in FY24.
Earnings Per Share (EPS): After steady growth in EPS: Trust Fintech’s EPS was ₹7.13 in FY24, compared to ₹2.58 in FY22, reflecting improved profitability despite the increase in equity capital and market expansion.
Return on Net Worth (RoNW): After achieving strong profitability: Trust Fintech’s return on net worth (RoNW) reached 34.6% in FY24, highlighting improved capital efficiency and robust returns on shareholder equity compared to prior years.
Financial Position: After an increase in assets from ₹20 crore in FY22 to ₹52 crore in FY24: Trust Fintech strengthened its financial position, with growth in fixed assets, reserves, and other assets supporting its expansion and profitability.
IPO Financial Analysis
Slone Infosystems Limited
| FY 24 | FY 23 | |
| Sales | 61 | 30 |
| Expenses | 54 | 29 |
| Operating Profit | 6 | 1 |
| OPM % | 11% | 4% |
| Other Income | 0 | 1 |
| Interest | 0 | 0 |
| Depreciation | 1 | 1 |
| Profit before tax | 6 | 1 |
| Tax % | 25% | 13% |
| Net Profit | 4 | 1 |
| EPS in Rs | 10.83 | 4.06 |
*All values in ₹ Cr.
TAC Infosec Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 11.62 | 10 | 5.11 |
| Expenses | 5.09 | 4.71 | 4.09 |
| Operating Profit | 6.53 | 5.29 | 1.02 |
| OPM % | 56.20% | 52.90% | 19.96% |
| Other Income | 0.23 | 0.14 | 0.13 |
| Interest | 0.16 | 0.09 | 0.1 |
| Depreciation | 0.25 | 0.25 | 0.19 |
| Profit before tax | 6.35 | 5.09 | 0.86 |
| Tax % | 0.16% | 0.39% | 29.07% |
| Net Profit | 6.33 | 5.07 | 0.61 |
| EPS in Rs | 8.27 | 112.67 | 13.56 |
*All values in ₹ Cr.
Trust Fintech Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 35 | 23 | 17 |
| Expenses | 17 | 17 | 16 |
| Operating Profit | 18 | 6 | 2 |
| OPM % | 51% | 26% | 11% |
| Other Income | 0 | 0 | 0 |
| Interest | 0 | 0 | 0 |
| Depreciation | 1 | 0 | 0 |
| Profit before tax | 17 | 5 | 2 |
| Tax % | 25% | 26% | 25% |
| Net Profit | 12 | 4 | 1 |
| EPS in Rs | 7.13 | 7.75 | 2.58 |
*All values in ₹ Cr.
About the Company
Slone Infosystems Limited
Slone Infosystems Limited, incorporated in December 2022, provides IT hardware solutions including laptops, desktops, servers, and workstations. The company also offers IT service solutions, managing cloud servers and servicing IT equipment for corporate clients.
Slone Infosystems is ISO certified for Occupational Health and Safety, Information Security, Environmental Management, and Quality Management Systems. The company operates through four key business segments: the sale of IT equipment, IT services, rental services, and the sale of other IT-related products.
TAC Infosec Limited
TAC Infosec Limited, founded in 2016, provides risk-based solutions in vulnerability management, cyber security quantification, and penetration testing. The company operates on a SaaS model, offering services to clients in various sectors, including banking, finance, and government.
TAC Infosec’s notable clients include HDFC, Bandhan Bank, BSE, and the National Payments Corporation of India, among others. The company serves large enterprises and financial institutions, helping them strengthen cybersecurity measures and manage digital risks through its comprehensive security solutions.
Trust Fintech Limited
Trust Fintech Limited, founded in 1998, specializes in software development for the BFSI sector, offering Core Banking Software, ERP implementation, and customized IT solutions. Its flagship product, TrustBankCBS, is a web-based platform providing core banking services.
The company serves clients globally, with a footprint in over 25 countries, including India, Sri Lanka, Nepal, and several African nations. Trust Fintech’s diverse product portfolio includes solutions for loan origination, GST compliance, mobile banking, and anti-money laundering, catering to commercial, cooperative banks, and financial institutions.
Advantages of Investing in IT Sector IPOs
The main advantages of investing in IT sector IPOs include high growth potential, innovation-driven returns, diversification benefits, and long-term stability. As the IT sector continues to expand, investors can benefit from technological advancements and market demand.
- High Growth Potential: IT sector IPOs offer strong growth opportunities, driven by digital transformation and increasing reliance on technology in various industries. Investing early in these companies can yield significant returns as they scale.
- Innovation-Driven Returns: With constant innovation in software, digital services, and cloud technologies, IT sector IPOs often have the potential to deliver substantial profits. Early investments in such companies can capitalize on cutting-edge technologies.
- Diversification Benefits: Adding IT sector IPOs to a portfolio can provide diversification, as the sector tends to perform well even during economic downturns. The demand for technology services is continuously increasing, ensuring stability.
- Long-Term Stability: The IT sector is integral to modern economies, with consistent demand across industries such as finance, healthcare, and e-commerce. This long-term growth trajectory offers investors reliable returns over time.
Disadvantages of Investing in IT Sector IPOs
The main disadvantages of investing in IT sector IPOs include high volatility, competition, regulatory risks, and overvaluation. While these IPOs offer growth opportunities, the challenges involved can affect their short-term and long-term performance.
- High Volatility: IT sector IPOs can be highly volatile due to market fluctuations and changing investor sentiment. Stock prices may experience significant swings, making it a risky investment for those looking for stable returns.
- Intense Competition: The IT sector is highly competitive, with numerous established players. New IPOs may struggle to gain market share and face challenges in differentiating themselves, impacting their long-term profitability.
- Regulatory Risks: Companies in the IT sector are subject to changing regulations, especially in areas such as data privacy and cybersecurity. Stringent regulations can increase operational costs and limit growth potential, making it harder for IPOs to succeed.
- Overvaluation: Many IT sector IPOs are priced based on high growth expectations, leading to potential overvaluation. If the company fails to meet these expectations, stock prices may drop significantly, leading to financial losses for investors.
Role of IT Sector Industry in the Economy
The IT sector plays a crucial role in driving economic growth by providing innovative solutions, improving business efficiency, and contributing to GDP. It enables digital transformation across industries, fostering entrepreneurship, and creating employment opportunities, thereby strengthening the overall economy.
Additionally, the IT industry supports exports, enhances global competitiveness, and attracts foreign investments. As businesses increasingly rely on technology, the sector’s contributions to infrastructure development, education, and skill-building programs drive long-term economic progress, positioning the country as a global tech hub.
How to invest in IT Sector IPOs?
To invest in IT Sector IPOs, follow these steps:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
- Research IPO Details: Review the company’s prospectus, pricing, and performance.
- Place Your Bid: Log in to the brokerage account, select the IPO, and bid as per your preferences.
- Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
Future outlook of IT Sector IPOs in India
The future outlook for IT sector IPOs in India looks promising due to the increasing demand for digital services, software development, and cloud technologies. As businesses undergo digital transformations, IT companies are expected to offer lucrative investment opportunities in the public markets.
With India’s position as a global IT hub, more companies are likely to go public, attracting both domestic and international investors. Growing government initiatives, a favorable startup ecosystem, and robust technological advancements further support the optimistic outlook for IT sector IPOs, ensuring continued growth and innovation.
IT Sector IPOs in India – FAQ
An IT Sector IPO refers to the initial public offering of shares by companies in the information technology industry, including software development, digital services, cloud computing, and IT consulting. It allows investors to buy equity in these tech-driven businesses for the first time.
Major IT sector companies in India that have launched IPOs include Slone Infosystems Limited, TAC Infosec Limited, and Trust Fintech Limited. These companies provide diverse IT solutions, such as cybersecurity services, software development, and banking solutions.
IT sector IPOs play a crucial role in the Indian stock market by attracting investments, showcasing India’s technological growth, and providing companies with the capital needed for expansion. They reflect the sector’s strong potential and contribute to the country’s economic development.
One of the largest IT sector IPOs in India is Trust Fintech Limited, which has gained significant attention due to its strong presence in the fintech industry. The IPO raised substantial capital, highlighting the growing demand for technology-driven financial solutions in India.
To invest in IT Sector IPOs, open a trading account with a brokerage platform like Alice Blue, complete the KYC process, and apply for the IPO through their online platform. You can place bids and track the allotment status.
IT sector IPOs can be suitable for long-term investment, given the industry’s growth potential. However, the market’s volatility and individual company performance should be carefully analyzed before making long-term commitments.
IT sector IPOs have the potential to be profitable, especially if the companies show strong growth prospects, scalability, and innovation. However, profitability depends on the company’s performance post-listing and market conditions.
There are several upcoming IT sector IPOs in India, as the sector continues to show robust growth. It’s recommended to stay updated on market announcements and upcoming offerings through financial news or brokerage platforms.
Detailed reviews and analysis of IT sector IPOs can be found on various financial websites, news portals, and brokerage platforms like Alice Blue, which provide comprehensive insights, expert opinions, and IPO ratings for investors.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
