Fidel Softech Limited is a new age Technology company. It is a LangTech based Consulting company. The company provides technological services in lieu with local language user interfaces. The headquarters of Fidel Softech Limited are in Pune. It was established in 2003. Let’s delve deep into understanding some key elements about the Fidel Softech IPO.
Fidel Softech has a diversified portfolio. The company is engaged in Software development, Localization including translation, Infrastructure & Cloud support and multilingual data creation. It is also engaged in interpretation, software localization and Cloud infrastructure support services.
Fidel Softech Limited has also started new business vertical. The company has entered in Multilingual data creation, Annotation for training AI engines and Video subtitling. The company is making base for Data engineering and tooling services. Fidel Softech Limited has a large customer base. The company has associated clients in across 20 countries. The company has a presence in many technology hub countries.
The competitive strengths of the company are as follows:
- Fidel Softech Limited offers a highly innovative technology service solution. It provides its service with the sync in UI/ UX.
- The company has a diversified service portfolio.
- Fidel Softech Limited has widespread Client base.
- The company is known for its Quality assurance.
- The promoter and management of the company is managed by qualified individuals.
However, the company also has some threats. It is as follows:
- The company operates in a highly competitive sector.
- The work operation of the company is very staggered and fragmented.
- The company holds as issue in Cash surplus and accruals.
OBJECTS OF THE IPO ISSUE:
- Prepayment of all the company’s loans is availed on a consolidated basis.
- To meet corporate targets.
- To fund the working capital requirement.
FIDEL SOFTECH LIMITED IPO DETAILS:
Fidel Softech Limited recently got approval from SEBI. The company is set to launch its IPO in the market. The company stated that it would raise around Rs. 13.51 crores from the IPO. It is a purely an issue of fresh equity of the company. Fidel Softech Limited’s IPO is of 3,650,000 equity shares of the company. There is no such OFS offer in the IPO. The issue of fresh equity is of full 3,650,000 equity shares of the company.
The company also stated that it would utilize around Rs. 9.43 crores for the working capital of the company. It also stated that it would utilize another Rs. 2.70 crores for corporate purposes. At the same time, remaining fund will be used for the repayment of loans. The IPO offer of the company is a fixed price issue type IPO that has been priced at Rs. 37 per equity share. Post allotment, the company’s shares will be listed on the NSE SME Emerge platform. The company also stated that the issue constitutes 26.53 % of the company’s post-issue fully paid-up equity capital base.
Post-IPO, the company’s current fully paid-up equity capital base will enhance to Rs. 13.75 crores. Earlier it was Rs. 10.10 crores. Based on the valuations of the IPO, the company aims to achieve a market capitalization of Rs. 50.88 crores.
|Fidel Softech Limited IPO Open Date||May 30, 2022|
|Fidel Softech Limited IPO Close Date||June 2, 2022|
|Issue Type||Fixed Price Issue type IPO|
|Fidel Softech Limited IPO Face Value||Rs. 10 per equity share|
|Fidel Softech Limited IPO Price||Rs. 37 per equity share|
|Fidel Softech Limited IPO Lot Size||One lot of 3000 equity shares of the company|
|Minimum Order Quantity||3000 equity shares of the company|
|Minimum Order Price||Rs. 111,000|
|Maximum Order Quantity||3000 equity shares of the company|
|Maximum Order Price||Rs. 111,000|
|Issue Size||3,650,000 equity shares of the company aggregate to a sum of Rs. 13.51 Crores|
|Fresh Issue||3,650,000 equity shares of the company aggregate to a sum of Rs. 13.51 Crores|
|Offer for Sale||NIL|
|Listing At||NSE SME|
|Retail Shares Offered||50% of the net offer|
|NII (HNI) Shares Offered||50% of the net offer|
|Company Promoters||Sunil Sudhakar Kulkarni Prachi Sunil Kulkarni|
|Basis of Allotment||June 7, 2022|
|Initiation of Refunds||June 8, 2022|
|The Credit of Shares to Demat||June 9, 2022|
|Fidel Softech Limited IPO Listing Date||June 10, 2022|
Also Read : List of Upcoming SME IPO’s in India.
FINANCIAL TRENDS OF FIDEL SOFTECH IPO:
|Particulars||For the year ending with the amount as in Rs. in Lakhs|
|30 March 22||31 March 21||31 March 20|
|Profit After Tax||456.50||345.01||314.75|
|PARAMETER||MARCH 21||MARCH 20||YoY %|
|Earnings Per Share (Rs)||4.52||136.58||-96.69|
|Book NAV/Share (Rs)||14.73||408.43||-96.39|
|Tax Rate (%)||27.43||24.84||10.45|
|Core EBITDA Margin (%)||23.42||16.96||38.05|
|EBIT Margin (%)||24.83||18.31||35.64|
|Pre-Tax Margin (%)||23.91||17.85||33.93|
|PAT Margin (%)||17.35||13.42||29.30|
|Cash Profit Margin (%)||18.04||13.99||28.98|
|Asset Turnover (x)||1.45||1.96||-25.87|
|Sales/Fixed Asset (x)||26.17||13.33||96.30|
|Working Capital/Sales (x)||2.44||5.03||-51.45|
|Fixed Capital/Sales (x)||0.04||0.08||-49.06|
|EV/Net Sales (x)||0.34||-0.05||786.33|
|EV/Core EBITDA (x)||1.35||-0.27||607.60|
|M Cap / Sales||0.00||0.00||0.00|
|Net Sales Growth (%)||2.33||14.92||-84.37|
|Core EBITDA Growth (%)||38.36||-7.29||625.88|
|EBIT Growth (%)||38.80||5.41||616.70|
|PAT Growth (%)||32.32||9.61||236.25|
|EPS Growth (%)||-96.69||9.61||-1106.10|
|Total Debt/Equity (x)||0.11||0.07||57.60|
|Current Ratio (x)||3.64||1.79||103.67|
|Quick Ratio (x)||3.64||1.79||103.67|
|Interest Cover (x)||26.79||40.00||-33.0|
|Particulars as in Lakhs||March 22||March 21||March 20|
|Cost of Service||717||753||771|
|Employee Benefits Expense||1,166||1,195||848|
|Profit before tax||629||459||431|
|Total Tax Exps||173||114||116|
|EPS in Rs||4.52||3.42||3.12|
COMPARISON WITH PEERS:
As per the RHP been submitted by the company there is no peer of the company.
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PROMOTERS OF FIDEL SOFTECH IPO:
The promoters of the company are as follows
· Sunil Sudhakar Kulkarni
· Prachi Sunil Kulkarni
|Pre-Issue Share Holding||98.98%|
|Post Issue Share Holding||72.72%|
FIDEL SOFTECH COMPANY ADDRESS:
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
FIDEL SOFTECH IPO LEAD MANAGERS
- Shreni Shares Private Limited