ADJIA Technologies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Mar 2021 – 05 Mar 2021
- Listing date
- 15 Mar 2021
- Face value
- ₹10 per share
- Issue price
- ₹74 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹2 Cr
- Market cap at offer price
- ₹6.51 Cr
- Promoter holding
- 94.10% → 65.20% pre-issue → post-issue
- ISIN
- INE0G0V01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- 102, Fairdeal House, Opp.Xaviers Ladies Hostel, Swastik Char Rasta, Navrangpura, Gujarat
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 | 14,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹74
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,18,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,36,800 |
| S-HNI (max) | 8 | 12,800 | ₹9,47,200 |
| B-HNI (min) | 9 | 14,400 | ₹10,65,600 |
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 |
|---|---|---|
| Market cap | — | ₹6.51 Cr |
About ADJIA Technologies SME
Adjia Technologies Limited was incorporated as 'Adjia Technologies Private Limited' on December 22, 2015 in Ahmedabad, Gujarat, commenced major operations in 2019, was recognized as a startup by DPIIT (Certificate No. DIPP71883, dated December 10, 2020), and was converted into a public limited company named 'Adjia Technologies Limited' in December 2020. The Company is engaged in the business of offering augmented reality and virtual reality related services to various customers electronically, and is also engaged in software consultancy services. Its business operations consist of Augmented Reality Services (developing mobile applications/computer software that display images in AR, with graphics creation and support for AR product demonstrations such as catalogues, videos and presentations, used in education, real estate, textile retail, e-commerce, automobile and entertainment industries), Virtual Reality Services (developing software that generates VR-compatible graphics with graphics creation and hardware support for VR product demonstrations, used in education, real estate, gaming and entertainment), and Software Maintenance and Advisory services for already-developed AR/VR offerings. It makes money through the sale of these services — customers pay after successful delivery of the service — booking its first revenues in fiscal 2020 (Rs. 10.45 lakhs), rising to Rs. 17.27 lakhs for the nine months ended December 31, 2020. Its top five customers contributed 80.07% of FY2020 revenues (55.59% for the period ended December 31, 2020), and the business operates from a rented registered office in Ahmedabad with 5 employees.
Company Analysis
from RHPAdjia Technologies Limited is an Ahmedabad-based, DPIIT-recognized startup that offers augmented reality (AR) and virtual reality (VR) related services to customers electronically, alongside software consultancy services, serving end-users in industries such as real estate, entertainment, education, gaming, e-commerce and automobiles.
Adjia Technologies Limited was incorporated as 'Adjia Technologies Private Limited' on December 22, 2015 in Ahmedabad, Gujarat, commenced major operations in 2019, was recognized as a startup by DPIIT (Certificate No. DIPP71883, dated December 10, 2020), and was converted into a public limited company named 'Adjia Technologies Limited' in December 2020. The Company is engaged in the business of offering augmented reality and virtual reality related services to various customers electronically, and is also engaged in software consultancy services. Its business operations consist of Augmented Reality Services (developing mobile applications/computer software that display images in AR, with graphics creation and support for AR product demonstrations such as catalogues, videos and presentations, used in education, real estate, textile retail, e-commerce, automobile and entertainment industries), Virtual Reality Services (developing software that generates VR-compatible graphics with graphics creation and hardware support for VR product demonstrations, used in education, real estate, gaming and entertainment), and Software Maintenance and Advisory services for already-developed AR/VR offerings. It makes money through the sale of these services — customers pay after successful delivery of the service — booking its first revenues in fiscal 2020 (Rs. 10.45 lakhs), rising to Rs. 17.27 lakhs for the nine months ended December 31, 2020. Its top five customers contributed 80.07% of FY2020 revenues (55.59% for the period ended December 31, 2020), and the business operates from a rented registered office in Ahmedabad with 5 employees.
Objects of the Issue
- Funding purchases of equipment (AR/VR hardware, headsets, software licenses etc.) Rs. 100.99 lakhs (63.68% of Net Proceeds) p.53
- Marketing initiatives Rs. 27.61 lakhs (17.41% of Net Proceeds) p.53
- General Corporate Purposes Rs. 30.00 lakhs (18.91% of Net Proceeds) p.54
Issue Structure
- Total Issue
- Public Issue of 2,70,400 Equity Shares of Rs. 10/- each for cash at a price of Rs. 74/- per Equity Share aggregating to Rs. 200.10/- lakhs (of which 14,400 Equity Shares are reserved for the Market Maker aggregating Rs. 10.66/- lakhs and the Net Issue to Public is 2,56,000 Equity Shares aggregating Rs. 189.44/- lakhs)
- Fresh Issue
- Fresh Issue of 2,70,400 Equity Shares of Rs. 10/- each at a price of Rs. 74/- per Equity Share aggregating to Rs. 200.10/- lakhs (the entire issue is a fresh issue)
- Price Band
- Rs. 74/- per Equity Share (Fixed Price Issue)
- Lot Size
- Market lot and trading lot of 1,600 Equity Shares, and in multiples of 1,600 thereafter
- Face Value
- Rs. 10/- per Equity Share
Business Model
The Company earns revenue from the sale of services delivered electronically: AR/VR solution development and related support, supplemented by software maintenance and advisory/consultancy services. Per the process flow described in the Prospectus, once services are delivered successfully 'the customer pays the full amount to the Company', and revenue is recognized under the percentage of completion method. The Company states that 'Of the above services AR/VR Services fetches majority of the Total Revenue.'
Business Segments
SWOT Analysis
- • Stringent quality-control process that wins repeat clients(p.71)
- • Positioned to serve India's high-growth economy and technological advances with new-age products(p.72)
- • Skilled and dedicated manpower with technical, operational and business development experience(p.72)
- • Strong customer relationships supporting retention and new client acquisition(p.72)
- • DPIIT-recognised startup status (Certificate DIPP71883)(p.1)
- • High customer concentration - top 5 customers contributed 80.07% of FY2020 revenue(p.23)
- • Limited operating history; first revenues booked only in fiscal 2020(p.23)
- • Loss-making since inception except the latest periods(p.26)
- • Young promoter (aged 22) with limited prior industry exposure(p.25)
- • Corporate name and logo not trademark-registered; no statutory IP protection(p.24)
- • History of delayed/incorrect statutory filings with the RoC(p.23)
- • Dependence on third-party equipment/service providers for delivering client output(p.25)
- • Large, fast-growing global AR and VR markets through 2025(p.17)
- • Stated strategy to capitalise on rapid AR/VR industry demand growth(p.72)
- • Expansion of network and entry into new geographies via marketing(p.72)
- • Improving functional efficiency and quality standards to gain a cost edge over peers(p.72)
- • APAC region, including India, expected to lead AR/VR market growth(p.69)
- • Rising demand for AR in architecture/construction applications(p.68)
- • Intense, fragmented competition with no entry barriers in the AR/VR industry(p.22)
- • Continuing uncertainty from the COVID-19 pandemic, including possible renewed lockdowns(p.21)
- • Heavy reliance on cyclical end-user industries (real estate, entertainment, education, gaming)(p.23)
- • Constantly changing AR/VR technology requiring continuous adaptation(p.26)
- • Adverse changes in laws, regulations and tax regime (including GST and GAAR)(p.32)
- • Global economic and political conditions beyond the company's control(p.33)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Roshan Kumar Rawal | Promoter | 94.10% | 65.20% |
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.