AAA Technologies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2020 – 05 Oct 2020
- Listing date
- 13 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹42 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹10.23 Cr
- Promoter holding
- 100.00% → 71.51% pre-issue → post-issue
- ISIN
- INE0D0U01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Chartered Finance Management Pvt.Ltd.
- Registered office
- 278-280, F Wing, Solaris 1, Saki Vihar Road, Opp. L&T Gate No. 6, Powai, Andheri East,, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,23,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹42
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 21,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|
About AAA Technologies SME
AAA Technologies Limited was incorporated in October 2000 and is headquartered in Mumbai with a branch office in Delhi. It is an ISO 9001:2015 and ISO 27001:2013 certified company that primarily provides Information Security Auditing and Consulting services covering Information Systems Audit, Information Security, Cyber Security, IT Assurance & Compliance, and IT Governance. The company operates in the regulated cybersecurity and information technology sectors under the Ministry of Electronics and Information Technology of the Government of India. Its business model focuses on providing audit and consulting services through a competitive bidding process, primarily to government organizations, statutory bodies, PSUs, and municipalities, with revenue largely diversified across all industry sectors though concentrated among a limited number of repeat clients.
Company Analysis
from RHPAAA Technologies Limited is an Information Security Auditing and Consulting Company offering IT audit, cybersecurity, and IT governance services to government, statutory bodies, and private sector clients.
AAA Technologies Limited was incorporated in October 2000 and is headquartered in Mumbai with a branch office in Delhi. It is an ISO 9001:2015 and ISO 27001:2013 certified company that primarily provides Information Security Auditing and Consulting services covering Information Systems Audit, Information Security, Cyber Security, IT Assurance & Compliance, and IT Governance. The company operates in the regulated cybersecurity and information technology sectors under the Ministry of Electronics and Information Technology of the Government of India. Its business model focuses on providing audit and consulting services through a competitive bidding process, primarily to government organizations, statutory bodies, PSUs, and municipalities, with revenue largely diversified across all industry sectors though concentrated among a limited number of repeat clients.
Objects of the Issue
- Expansion and development of business operations across various cities in India ₹554.30 Lakhs p.17
- Working Capital Requirements (including Bank Guarantee) ₹392.77 Lakhs p.17
- Issue-related expenses ₹69.97 Lakhs p.17
- General Corporate purposes ₹6.08 Lakhs p.17
- Expansion and development of business operations across various cities in India ₹554.30 lakhs p.67
- Working Capital Requirements (including Bank Guarantee) ₹392.77 lakhs p.67
- General Corporate purposes ₹6.08 lakhs p.67
Issue Structure
- Total Issue
- ₹1023.12 Lakhs (24,36,000 Equity Shares of ₹10 each at ₹42 per share)
- Fresh Issue
- 24,36,000 Equity Shares of face value of ₹10 each
- Price Band
- ₹42 per Equity Share (Fixed Price)
- Lot Size
- 3000 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue through Information Security Auditing and Consulting services provided to government organizations, statutory bodies, PSUs, and municipalities through a competitive tender and bidding process. Clients select service providers based on pre-qualification criteria including experience, performance, and CERT-In empanelment, with price competitiveness being the most important selection criteria. The business model relies on obtaining new orders through tenders, completing work within scheduled timeframes, receiving completion certificates, and realizing funds from clients.
Business Segments
SWOT Analysis
- • ISO 9001:2015 and ISO 27001:2013 certified company with proven operational standards(p.17)
- • Established 20+ year history since 2000 with experienced promoters(p.17)
- • Diversified client base across government, PSUs, and private sector reducing dependence on single customer(p.25)
- • Strong revenue growth trajectory with PAT increasing from ₹99.97L (FY18) to ₹369.80L (FY20)(p.18)
- • Proven ability to retain repeat customers with many medium-term contractual arrangements(p.25)
- • ISO certifications for quality and information security(p.94)
- • Diversified service portfolio across multiple industries reducing dependency(p.94)
- • Low debt dependency and controlled overhead structure(p.94)
- • Strong profitability and cash flow track record(p.94)
- • Highly experienced and qualified promoter management team(p.92)
- • Long-term client relationships and repeat business(p.95)
- • Empanelment with key government agencies enabling business procurement(p.93)
- • Experienced promoter with established business network(p.161)
- • Profitable track record with strong balance sheet(p.161)
- • Low debt dependency and controlled overheads(p.161)
- • Asset-light business model(p.161)
- • Empanelment with CERT-In enables government tender participation(p.161)
- • Diversified service offerings across multiple industries(p.161)
- • Heavy dependence on top 10 clients comprising 83.22% of FY20 revenue(p.25)
- • Contingent liabilities in form of bank guarantees of ₹203.75L as of March 31, 2020(p.20)
- • Pending litigation involving promoters and independent director with SEBI show cause notice for insider trading(p.19)
- • Promoter litigation with three income tax appeals pending before Bombay High Court totaling ₹739L in dispute(p.24)
- • Delhi branch office is on leave and license basis expiring May 14, 2021 with termination risk(p.26)
- • High credit period requirement creates working capital stress(p.70)
- • Substantial revenue concentration among top customers(p.106)
- • Heavy reliance on tender-based procurement process(p.92)
- • Dependence on empanelment status for business generation(p.102)
- • High concentration of revenue from top clients(p.168)
- • Significant dependence on key regulatory empanelments(p.162)
- • Independent Director faces SEBI insider trading show cause notice(p.173)
- • Planned expansion across multiple Indian cities to grow geographic footprint and client base(p.17)
- • Growing cyber security and IT audit industry with government focus on information systems security(p.17)
- • Increasing demand from government bodies and PSUs for IT audit and compliance services(p.17)
- • Opportunity to leverage IPO proceeds for working capital to support business growth(p.17)
- • Significant growth potential in cybersecurity services industry at nascent stage(p.96)
- • Government digital transformation initiatives creating demand(p.83)
- • Expansion into new geographies with pan-India bidding(p.68)
- • Favorable regulatory environment driving cybersecurity adoption(p.84)
- • Expansion of service portfolio and complementary business segments(p.96)
- • Expansion of government digital initiatives(p.165)
- • Growing awareness and adoption of cyber security solutions(p.165)
- • Rising IoT and IT infrastructure requirements across industries(p.165)
- • NICSI empanelment enabling direct government business without competitive tendering(p.161)
- • Geographical expansion opportunities(p.165)
- • Dependence on CERT-In empanelment for government tenders; loss would eliminate major client access(p.23)
- • Government orders awarded through competitive bidding process creates order volume and timing uncertainty(p.25)
- • COVID-19 pandemic delays in government tender floats impacting growth and cash flows(p.26)
- • Rapid technology changes may render current tools and systems obsolete requiring significant capital investment(p.25)
- • Interest rate increases on variable rate bank borrowings may adversely impact profitability and cash flows(p.34)
- • Risk of empanelment cancellation with CERT-In and NICSI(p.96)
- • Competition from local and large players in IT audit market(p.96)
- • Rapid evolution and sophistication of cyber threats(p.90)
- • Regulatory compliance requirements becoming increasingly stringent(p.89)
- • Concentration of revenue in public sector creates policy risk(p.104)
- • Increasing competition from both organized and unorganized players(p.162)
- • Pandemic-related disruptions to operations(p.162)
- • Regulatory and legal changes affecting the industry(p.162)
- • Economic conditions and business cycle downturn risk(p.162)
- • Risk of loss of empanelments with key government bodies(p.162)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anjay Ratanlal Agarwal | Promoter | 27.55% | — |
| Venugopal Madanlal Dhoot | Promoter | 12.02% | — |
| Ruchi Anjay Agarwal | Promoter | 20.93% | — |
| Anjay Ratanlal Agarwal | Promoter | 27.55% | 19.71% |
| Venugopal Madanlal Dhoot | Promoter | 12.02% | 8.60% |
| Ruchi Anjay Agarwal | Promoter | 20.93% | 14.97% |
| Kanak Agarwal | Promoter Group | 1.72% | 1.23% |
| Archana Agarwal | Promoter Group | 1.72% | 1.23% |
| Shobha Dhoot | Promoter Group | 12.02% | 8.59% |
| Anirudh Dhoot | Promoter Group | 12.02% | 8.59% |
| Vineet Dhoot | Promoter Group | 12.02% | 8.59% |
| Mr. Anjay Agarwal | Promoter | 27.55% | — |
| Mr. Venugopal Dhoot | Promoter | 12.02% | — |
| Mrs. Ruchi Agarwal | Promoter | 20.93% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.