Delaplex
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Jan 2024 – 30 Jan 2024
- Listing date
- 02 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹192 per share
- Lot size
- 600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹46.08 Cr
- Market cap at offer price
- ₹175 Cr
- Promoter holding
- 100.00% → 73.66% pre-issue → post-issue
- ISIN
- INE0SK801018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- 554/31, Utkarsh Nagar, Near K.T Nagar, Katol Road, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 6,82,800 | — | — |
| Market maker | 1,22,400 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹192
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,15,200 |
| S-HNI (min) | 2 | 1,200 | ₹2,30,400 |
| S-HNI (max) | 8 | 4,800 | ₹9,21,600 |
| B-HNI (min) | 9 | 5,400 | ₹10,36,800 |
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 (₹) | 10.82 | 9.34 |
| P/E (×) | 17.74 | 20.56 |
| Price to book (×) | 0.00 | — |
| Market cap | — | ₹175 Cr |
Key performance indicators
- Return on net worth
- 56.73%
- ROCE
- 56.73%
- PAT margin
- 14.64%
- NAV per share
- ₹32.15
- Price to book
- 0.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Delaplex
delaPlex Limited (formerly Quality Management Concepts Private Limited, then Q M Computech Private Limited, then delaPlex Private Limited) was originally incorporated on February 12, 2004, and converted to a public limited company on November 17, 2023. The company provides technology solutions and software development services, generating revenue primarily through service delivery to customers located in the United States and other international markets. For the period ended September 30, 2023, the company generated ₹2,814.28 lakhs in total revenue from operations and other income. The company earns revenue from supply chain consulting, custom software development, cloud services, and data science offerings, with significant customer concentration among its body corporate promoter (delaPlex INC) and group companies. The company has established long-term relationships and exclusivity agreements with its holding company and related US entities.
Company Analysis
from DRHPdelaPlex Limited is a global technology and software development solutions consulting provider offering supply chain consulting, custom software development, cloud services, and data science across specialty IT services.
delaPlex Limited (formerly Quality Management Concepts Private Limited, then Q M Computech Private Limited, then delaPlex Private Limited) was originally incorporated on February 12, 2004, and converted to a public limited company on November 17, 2023. The company provides technology solutions and software development services, generating revenue primarily through service delivery to customers located in the United States and other international markets. For the period ended September 30, 2023, the company generated ₹2,814.28 lakhs in total revenue from operations and other income. The company earns revenue from supply chain consulting, custom software development, cloud services, and data science offerings, with significant customer concentration among its body corporate promoter (delaPlex INC) and group companies. The company has established long-term relationships and exclusivity agreements with its holding company and related US entities.
Objects of the Issue
- APAC - Sales and Marketing expenditure ₹416.00 Lakhs p.21
- Funding of capital expenditure requirements of our Company towards purchase of Office equipment ₹65.00 Lakhs p.21
- Funding Working Capital Requirements of our Company ₹1,334.00 Lakhs p.21
- General corporate purposes and unidentified inorganic acquisition p.21
- APAC - Advertisement, Sales and Marketing expenses towards enhancing the awareness ₹416.00 Lakhs p.74
- Funding Working Capital Requirements of our Company ₹1,334.00 Lakhs p.74
- Funding of capital expenditure requirements of our Company towards purchase of Office Laptops ₹65.00 Lakhs p.74
- General corporate purposes and unidentified inorganic acquisition [●] (not to exceed 35% of Gross Proceeds, with general corporate purposes alone not exceeding 25% of Gross Proceeds) p.74
Issue Structure
- Total Issue
- Up to 24,00,000 Equity Shares aggregating up to ₹[●] Lakhs
- Fresh Issue
- Up to 18,00,000 Equity Shares aggregating up to ₹[●] Lakhs
- Offer for Sale
- Up to 6,00,000 Equity Shares by delaPlex INC aggregating up to ₹[●] Lakhs
- Price Band
- Floor Price ₹[●] per Equity Share to Cap Price ₹[●] per Equity Share
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/- each
Business Model
The company earns revenue through provision of technology and software development solutions and consulting services, including supply chain consulting, custom software development, cloud services, and data science. Revenue is generated on a project and service delivery basis, with customers primarily located in the United States.
Business Segments
SWOT Analysis
- • Software product and solutions for supply chain management(p.85)
- • Tailored tech solutions and wide service portfolio(p.85)
- • International client base with export-focused revenue(p.85)
- • Strong profitability with improving margins(p.87)
- • High return on equity and capital employed(p.87)
- • End-to-end supply chain software and consulting solutions(p.117)
- • Diversified international client base across multiple industries(p.111)
- • Experienced promoters with deep industry expertise(p.111)
- • Strong financial performance and profitability margins(p.112)
- • Broad service portfolio across multiple technology domains(p.110)
- • Strategic investments in emerging technologies(p.111)
- • Experienced management team with deep industry expertise(p.161)
- • Diversified customer base across multiple industries and geographies(p.161)
- • Strong profitability with improving margins(p.162)
- • Debt-free balance sheet providing financial flexibility(p.162)
- • Recurring revenue model with quality certifications(p.162)
- • Heavy customer concentration; top 5 customers account for 99.37% of revenue, with significant dependence on body corporate promoter and one group company(p.27)
- • Most customers lack long-term commitments; no assurance of continued business on current terms(p.27)
- • Restated financial statements prepared by peer-reviewed chartered accountants who are not the statutory auditor(p.30)
- • Outstanding taxation litigation with ₹1.11 lakhs TDS differential pending(p.29)
- • Past delays in GST and PF return filings incurring late filing fees and interest(p.37)
- • Significant unregistered rent agreements with promoters not in compliance with Transfer of Property Act(p.37)
- • Trademark/brand name not owned; acquired only through no-objection certificate from promoter and subject to future terms changes(p.38)
- • Negative investing cash flows and high working capital intensity; working capital gap of ₹2,818.21 lakhs as of September 30, 2023(p.36)
- • High employee costs relative to revenue(p.52)
- • Concentration of revenue among limited customer base(p.46)
- • Customer retention rate declining from 100% to 67%(p.87)
- • Dependence on promoter expertise without succession plan evident(p.85)
- • No debt financing currently; potential vulnerability to market downturns(p.51)
- • Heavy dependence on international markets, particularly USA(p.111)
- • Customer retention rate has declined significantly(p.112)
- • Revenue volatility and recent revenue decline(p.112)
- • Dependence on highly skilled workforce(p.120)
- • Heavy dependence on few large customers for revenue(p.173)
- • High employee cost as proportion of revenue(p.167)
- • Rapid growth strains on working capital, particularly trade receivables(p.170)
- • Regulatory restrictions on foreign ownership(p.264)
- • U.S. securities restrictions limiting market access(p.264)
- • Geographic restrictions on equity share sales(p.264)
- • APAC region expansion with planned sales and marketing expenditure of ₹416 lakhs(p.21)
- • Global IT market growth; Information Technology Market expected to grow at 14.72% CAGR from $519.61 Bn (2022) to $1,358.79 Bn (2029)(p.20)
- • Funding for working capital requirements (₹1,334 lakhs) to support growth(p.21)
- • Unidentified inorganic acquisition opportunities via IPO proceeds (up to 25% of net proceeds)(p.21)
- • Expansion into APAC markets beyond current US/India focus(p.77)
- • Growth in supply chain consulting and digital platforms(p.79)
- • Strategic inorganic acquisitions to expand capabilities and reach(p.81)
- • Leverage IPO proceeds for increased brand visibility and working capital(p.74)
- • Rapid growth in Indian software and IT services sector(p.105)
- • Strong government support for digital transformation(p.101)
- • Growing demand for cloud migration and digital transformation services(p.104)
- • Expansion into new geographies and service lines(p.118)
- • Increasing enterprise spending on IT modernization and application transformation(p.105)
- • Supply chain transformation market demand growing globally(p.161)
- • Strategic expansion through partnerships and acquisitions(p.161)
- • Growing adoption of digital transformation and cloud technologies(p.161)
- • International market expansion, particularly in US market(p.161)
- • High geographic revenue concentration: 83.41% of revenue from US customers (Sep 2023); vulnerable to US economic downturns(p.28)
- • US political/regulatory risks including adoption of anti-sourcing laws limiting customer engagement(p.28)
- • Rapid technological obsolescence and need for continuous innovation in competitive IT market(p.29)
- • Intense competition from organized and unorganized players with potential advantages in track record, service portfolio, and market penetration(p.39)
- • Cybersecurity and data breach risks; information technology breaches could harm reputation and result in legal liabilities(p.34)
- • Foreign exchange fluctuation risk; 83.18% of revenue denominated in foreign currencies (primarily USD)(p.37)
- • Talent retention challenges in competitive IT market; employee benefits expense at 83.47% of total operating expense(p.32)
- • Regulatory and compliance risks across multiple jurisdictions (USA, UAE) with evolving data privacy and protection laws(p.30)
- • Regulatory changes in labour and employment laws increasing costs(p.51)
- • India's economic and political instability affecting business operations(p.46)
- • Foreign investment restrictions limiting capital access(p.50)
- • Global economic disruptions and commodity price volatility(p.47)
- • Tax law changes affecting dividend distributions and capital gains(p.51)
- • Currency fluctuation risks with export-heavy revenue model(p.46)
- • Global economic slowdown and weak demand environment(p.96)
- • Intense competition from larger, better-resourced IT companies(p.120)
- • Skills gap in IT industry(p.100)
- • Rising cybersecurity threats and regulatory compliance requirements(p.100)
- • Uncertainty in global monetary policy and inflationary pressures(p.96)
- • Geopolitical tensions affecting global trade and technology markets(p.103)
- • Intense competition from organized and unorganized players(p.173)
- • Economic sensitivity and global market conditions affecting demand(p.163)
- • Foreign exchange volatility impacting export revenue(p.184)
- • Technological disruption and need for continuous innovation(p.163)
- • Regulatory changes and compliance requirements(p.163)
- • FDI policy changes affecting investor participation(p.264)
- • Regulatory changes in foreign investment approval requirements(p.264)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Nitin Sachdeva | Promoter | 49.00% | — |
| Mr. Manish Iqbalchand Sachdeva | Promoter | — | — |
| delaPlex INC | Promoter (Body Corporate) | 51.00% | — |
| Mr. Nitin Sachdeva | Promoter | 48.99% | — |
| M/s delaPlex INC | Promoter and Selling Shareholder | 51.00% | — |
| Mr. Nitin Sachdeva | Promoter | 49.00% | — |
| Mr. Manish Iqbalchand Sachdeva | Promoter | — | — |
| delaPlex INC. | Promoter Group/Corporate Promoter | 51.00% | — |
| Mr. Nitin Sachdeva | Promoter and Managing Director | 49.00% | — |
| Mr. Manish Iqbalchand Sachdeva | Promoter and Non-Executive Director | — | — |
| delaPlex INC (Body Corporate Promoter) | Promoter | 51.00% | — |
| M/s delaPlex INC | Selling Shareholder | — | — |
| delaPlex INC | Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.