Canarys Automations
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2023 – 03 Oct 2023
- Listing date
- 11 Oct 2023
- Face value
- ₹2 per share
- Issue price
- ₹31 per share
- Lot size
- 4,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹47.03 Cr
- Market cap at offer price
- ₹174 Cr
- Promoter holding
- 77.49% → 56.57% pre-issue → post-issue
- ISIN
- INE0QG301017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Indorient Financial Services Ltd.
- Registered office
- No.566 & 567, 2nd Floor, 30th Main, Attimabbe Road, Banagirinagara, Banashankari 3rd Stage, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 32,32,000 | — | — |
| Market maker | 7,60,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹31
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,24,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,48,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,92,000 |
| B-HNI (min) | 9 | 36,000 | ₹11,16,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.92 | — |
| P/E (×) | 7.91 | — |
| Market cap | — | ₹174 Cr |
Key performance indicators
- Return on net worth
- 31.64%
- PAT margin
- 11.44%
- NAV per share
- ₹12.44
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Canarys Automations
Canarys Automations Limited ('Canarys'), formerly Canarys Automations Private Limited, was originally incorporated as a private limited company on July 1, 1991 in Bengaluru, Karnataka and was most recently converted into a public limited company with effect from June 27, 2023. Started in 1991, Canarys describes itself as a leading IT solutions provider with over 30 years of existence, whose expertise lies in enabling digital transformation through software solutions in the space of Digitalization, Modernization, Automation and Intelligence; its business operates across two verticals — Technology Solutions and Water Resource Management Solutions. It earns revenue primarily under time-and-materials and fixed-price service contracts (fixed-price contracts were 39% of revenue from contracts with customers in Fiscal 2023) from enterprise clients concentrated in verticals such as BFSI, healthcare, manufacturing, pharmaceuticals and insurance, and from designing, integrating and commissioning real-time automated hydrology/meteorology measurement and data-transmission systems for Central and State government authorities, whose water resource management business contributed 37% of total revenue in Fiscal 2023. Customer concentration is notable: the top 10 clients contributed approximately 50.54% of revenue from operations in Fiscal 2023, US-located customers contributed 23.52%, and repeat customers 69.71%. Per the Restated Consolidated Financial Statements, revenue from operations grew from ₹2,561.72 lakh in FY2021 to ₹7,451.94 lakh in FY2023, with profit after tax of ₹852.51 lakh in FY2023; the company had a team of 350+ employees and an order book of ₹5,793.00 lakh as of August 31, 2023 (Technology Solutions ₹3,617.00 lakh; Water Resource Management Solutions ₹2,176.00 lakh).
Company Analysis
from RHPCanarys Automations Limited is a Bengaluru-based IT solutions provider that enables digital transformation for businesses through software services and also executes water resource management projects, spanning the information technology services and water resource management (hydrology/meteorology) industries.
Canarys Automations Limited ('Canarys'), formerly Canarys Automations Private Limited, was originally incorporated as a private limited company on July 1, 1991 in Bengaluru, Karnataka and was most recently converted into a public limited company with effect from June 27, 2023. Started in 1991, Canarys describes itself as a leading IT solutions provider with over 30 years of existence, whose expertise lies in enabling digital transformation through software solutions in the space of Digitalization, Modernization, Automation and Intelligence; its business operates across two verticals — Technology Solutions and Water Resource Management Solutions. It earns revenue primarily under time-and-materials and fixed-price service contracts (fixed-price contracts were 39% of revenue from contracts with customers in Fiscal 2023) from enterprise clients concentrated in verticals such as BFSI, healthcare, manufacturing, pharmaceuticals and insurance, and from designing, integrating and commissioning real-time automated hydrology/meteorology measurement and data-transmission systems for Central and State government authorities, whose water resource management business contributed 37% of total revenue in Fiscal 2023. Customer concentration is notable: the top 10 clients contributed approximately 50.54% of revenue from operations in Fiscal 2023, US-located customers contributed 23.52%, and repeat customers 69.71%. Per the Restated Consolidated Financial Statements, revenue from operations grew from ₹2,561.72 lakh in FY2021 to ₹7,451.94 lakh in FY2023, with profit after tax of ₹852.51 lakh in FY2023; the company had a team of 350+ employees and an order book of ₹5,793.00 lakh as of August 31, 2023 (Technology Solutions ₹3,617.00 lakh; Water Resource Management Solutions ₹2,176.00 lakh).
Objects of the Issue
- Funding of expenditure relating to solutions development for digital transformation and water resources management solutions ₹ 1,100.00 Lakh p.121
- Creation of new delivery centre including infrastructure thereof and upgrading existing facilities ₹ 894.00 Lakh p.122
- Funding working capital requirements of our Company ₹ 1,500.00 Lakh p.123
- General corporate purposes [●] p.128
Issue Structure
- Total Issue
- Up to ₹ [●] Lakhs (up to 1,51,72,000 Equity Shares)
- Fresh Issue
- Up to 1,51,72,000 Equity Shares of the face value of ₹ 2/- each aggregating up to ₹ [●] Lakhs
- Offer for Sale
- Nil
- Price Band
- Floor Price ₹ 29 per Equity Share (14.5 times of the face value); Cap Price ₹ 31 per Equity Share (15.5 times of the face value)
- Lot Size
- Minimum Bid Lot is 4,000 Equity Shares and in multiples of 4,000 Equity Shares thereafter
- Face Value
- ₹ 2/- each
Business Model
Canarys earns revenue by delivering IT services and software solutions (digitalization, modernization, DevOps, cloud migration/automation, application development and maintenance) mainly under time-and-materials contracts priced at hourly/daily manpower rates and fixed-price contracts (39% of revenue from contracts with customers in Fiscal 2023), and by executing turnkey water resource management projects — supply, installation, testing and commissioning of automated hydrology/meteorology stations plus multi-year operation/maintenance — awarded by Central and State government authorities through competitive bidding, typically with milestone-linked payments (e.g., percentages on supply, installation/commissioning, and semi-annual maintenance payments).
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Metikurke Ramaswamy Raman Subbarao | Promoter | 24.59% | — |
| Danavadi Krishnamurthy Arun | Promoter | 17.52% | — |
| Raghu Chandrashekhariah | Promoter | 18.24% | — |
| Sheshadri Yedavanahalli Srinivas | Promoter | 5.73% | — |
| Pushparaj Shetty | Promoter | 6.37% | — |
| Nagaraju Vineeth | Promoter | 1.49% | — |
Leadership
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