DS
Digilogic Systems
Book Building issueSMEBSE₹81 Cr issue
-20.00%
Listing gain over issue price
Issue size
₹81 Cr
1 lot at cut-off
₹1,24,800
Lot size
1,200shares
Open
20 Jan 2026
Close
22 Jan 2026
Allotment
23 Jan 2026
Listing
28 Jan 2026
Listing performance
Issue price
₹104
Listed at
₹83.20
Listing-day close
₹79.05
Latest price
₹123
Listing gain
-20.00%
Return since listing
+18.27%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Grey market premium
Unofficial and indicative — not a forecast
₹0
3 observations recorded — too few to plot a trend.
Day-wise premium · 3 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 28 Jan 2026 | ₹0 | 0.00% | ₹0 | ₹104 | ₹0 |
| 27 Jan 2026 | ₹0 | 0.00% | ₹0 | ₹104 | ₹0 |
| 26 Jan 2026 | ₹0 | 0.00% | ₹0 | ₹104 | ₹0 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Issue details
- IPO date
- 20 Jan 2026 – 22 Jan 2026
- Listing date
- 28 Jan 2026
- Face value
- ₹1 per share
- Issue price
- ₹104 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹81 Cr
- Market cap at offer price
- ₹301 Cr
- Promoter holding
- 88.50% → 64.25% pre-issue → post-issue
- ISIN
- INE1OOT01028
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Indorient Financial Services Ltd.
- Registered office
- #102, 1ST Floor, DSL Abacus Tech Park Uppal Kalsa Village, Uppal Ma, Rangareddy, Telangana
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 | 22,18,800 | — | — |
| Market maker | 3,90,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹104
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,24,800 |
| S-HNI (min) | 2 | 2,400 | ₹2,49,600 |
| S-HNI (max) | 8 | 9,600 | ₹9,98,400 |
| B-HNI (min) | 9 | 10,800 | ₹11,23,200 |
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.
Shares allocated
22,18,800
Anchor portion
₹23.08 Cr
at ₹104 per share
Valuation and performance
Valuation at offer price
₹104 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.65 | 1.11 |
| P/E (×) | 28.49 | 93.69 |
| Price to book (×) | 6.91 | — |
| Market cap | — | ₹301 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 34.57%
- ROCE
- 34.27%
- Debt / equity
- 0.40
- PAT margin
- 11.26%
- EBITDA margin
- 18.60%
- NAV per share
- ₹15.04
- Price to book
- 6.91
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Digilogic Systems
Digilogic Systems Limited, formerly Digilogic Systems Private Limited, was originally formed as a partnership firm in May 2007 and converted to a private limited company in December 2011. The company converted to a public limited company in July 2025. It is incorporated in Telangana, India with CIN U62099TG2011PLC077933. The company designs, develops, integrates, manufactures, supplies and supports specialized equipment and software solutions for defence and aerospace sectors. It operates in the critical Test, Measurement, and Simulation Technologies market which reached INR 4,799 crore in FY'25P with a CAGR of ~13% during FY'19-FY'25P. The company has four promoters: Mr. Madhusudhan Varma Jetty, Mrs. Radhika Varma Jetty, Mr. Jetty Shashank Varma and Mr. Hitesh Varma Jetty.
Company Analysis
from RHPDigilogic Systems Limited is a technology-led company engaged in the design, development, integration, manufacturing, supply and support of Automated Test Equipment (ATE) systems, radar and Electronic Warfare environmental simulators, application software, and embedded signal processing solutions for the defence and aerospace engineering sector.
Digilogic Systems Limited, formerly Digilogic Systems Private Limited, was originally formed as a partnership firm in May 2007 and converted to a private limited company in December 2011. The company converted to a public limited company in July 2025. It is incorporated in Telangana, India with CIN U62099TG2011PLC077933. The company designs, develops, integrates, manufactures, supplies and supports specialized equipment and software solutions for defence and aerospace sectors. It operates in the critical Test, Measurement, and Simulation Technologies market which reached INR 4,799 crore in FY'25P with a CAGR of ~13% during FY'19-FY'25P. The company has four promoters: Mr. Madhusudhan Varma Jetty, Mrs. Radhika Varma Jetty, Mr. Jetty Shashank Varma and Mr. Hitesh Varma Jetty.
Defence and AerospaceTest, Measurement, and Simulation TechnologiesElectronic WarfareAutomated Test Equipment manufacturing
Objects of the Issue
- Capital expenditure towards setting up a Proposed New Facility ₹5,173.78 lakhs p.29
- Pre-payment/re-payment, in part or full, of certain outstanding borrowings availed by our Company ₹800.00 lakhs p.29
- General Corporate Purposes p.29
- Capital expenditure towards setting up of Proposed New Facility ₹5,173.78 lakhs p.99
- Pre-payment/re-payment, in part or full, of certain outstanding borrowings availed by our Company ₹800.00 lakhs p.99
- General corporate purposes [●] p.99
- Setting up the Proposed New Facility - Land and Land Development ₹1,057.72 lakhs (including processing fees and registration and stamp duty) p.102
- Setting up the Proposed New Facility - Construction of Building ₹2,904.35 lakhs (intended to be funded from the Net Proceeds out of total ₹3,042.87 lakhs) p.102
- Setting up the Proposed New Facility - Equipment, Plant and Machinery ₹2,269.43 lakhs (proposed to be entirely funded from the Net Proceeds of the Issue) p.105
- Pre-payment or repayment of outstanding borrowings ₹800.00 lakhs p.114
- General corporate purposes p.120
- Setting up the Proposed New Facility p.300
- Funding capex for capex (setting up new manufacturing facility) ₹6,967.58 Lakhs (Fresh Issue component as stated in offer structure) p.342
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹2/- each, aggregating up to ₹[●] lakhs
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹2/- each aggregating up to ₹6,967.58 Lakhs
- Offer for Sale
- Up to 10,89,600 Equity Shares of face value of ₹2/- each aggregating up to ₹[●] Lakhs by Mr. Madhusudhan Varma Jetty
- Price Band
- Floor Price: ₹98 per Equity Share (49 times face value); Cap Price: ₹104 per Equity Share (52 times face value)
- Lot Size
- 1,200 equity shares and in multiples of 1,200 equity shares thereafter
- Face Value
- ₹2/- per Equity Share
Business Model
The company earns revenue from the design, development, integration, manufacturing and supply of Automated Test Equipment (ATE) systems, radar and Electronic Warfare environmental simulators, application software, and embedded signal processing solutions primarily for defence and aerospace customers. For the six months ended September 30, 2025 and Fiscal 2025, 2024 and 2023, revenue from Test Systems was ₹1,654.99 Lakhs, ₹6,386.56 Lakhs, ₹4,130.19 Lakhs, and ₹3,519.71 Lakhs respectively, accounting for 91.05%, 88.63%, 80.11% and 62.89% of total revenue from operations. Revenue is primarily derived from sales to government of India entities and defence public sector undertakings, which accounted for 99.02%, 84.99%, 96.92% and 99.11% of revenue in the respective periods.
Business Segments
Design, development, integration, manufacturing, supply and support of Automated Test Equipment (ATE) systems
Radar and Electronic Warfare environmental simulators, application software, and embedded signal processing solutions
Products and services for defence and aerospace engineering sector
Includes Automated Test Equipment, Checkout Systems, and Radar/EW Simulators
Comprises data acquisition platforms and IP cores
Includes system integration, upgrades, and lifecycle support
Develops customized automated test systems that are used to verify the performance and reliability of electronic components and subsystems. These systems include Automated Test Equipment (ATE) and Test Jigs, Checkout Systems, and Radar and Electronic Warfare (EW) Simulators.
Develops custom software platforms that work with test systems and simulators. These software tools enable signal processing, data capture, remote access, control automation, and sensor interface. Includes data acquisition system software and Intellectual Property (IP) Cores.
Provides specialized services that complement product offerings in test, simulation, and embedded systems. Services cover the entire project lifecycle, from concept development to deployment and maintenance, including system integration, custom test and simulation design, firmware and software development, IP core development, consulting and engineering services, upgrades and retrofits, training and documentation, and lifecycle support and maintenance.
Automated test systems for aircraft programmes, radar simulators, and other test equipment for defence and aerospace applications
Software solutions and signal processing for defence and aerospace systems
Post-delivery support, system diagnostics, preventive maintenance, calibration, embedded software updates, and obsolescence management
Design, development, integration, manufacturing and supply of automated test equipment for defence and aerospace applications
Design and development of data acquisition systems for measurement and testing applications
Development and supply of checkout systems for testing and verification purposes
Supply of measurement equipment for industrial and defence applications
Software development and technical consultancy services
Provision of annual maintenance and support services for equipment and systems
Design, development, manufacture, assembly, integration, testing, servicing, overhaul, upgrade, import, export, and supply of defence and aerospace systems, platforms, sub-systems, and components including weapons systems, surveillance systems, communication systems, radar systems, navigation and avionics, unmanned aerial and ground vehicles, electronic warfare systems, and cybersecurity solutions
Design, development, manufacture, assembly, integration, testing, servicing, overhaul, upgrade, import, export, and supply of systems, platforms, sub-systems, and components including Automated Test Equipment (ATE), Checkout Systems, RF Simulators, System Evaluators, System Engineering & Deployments, Data Acquisition Systems, Static Test Beds, Maintenance, Repair & Overhaul Services (MRO)
Provision of Electronics Manufacturing Services including printed circuit board assembly (PCBA), surface mount technology (SMT), through-hole assembly, box build, cable and wire harnessing, electromechanical assembly, systems integration, and testing of products and components for use in defence, aerospace, space, automotive, healthcare, industrial, and other dual-use applications
SWOT Analysis
Strengths
- • Established track record in defence and aerospace sector with long-term customer relationships(p.54)
- • Diversified product portfolio across test systems, software, and services(p.100)
- • Experienced and stable management team with deep domain expertise(p.56)
- • Substantial working capital already deployed to support operations(p.50)
- • Modular test and measurement platforms with end-to-end design capabilities(p.165)
- • Domain expertise in radar and electronic warfare testing with advanced signal processing(p.165)
- • Integrated solution provider with software IPs and reusable platforms(p.163)
- • Full-spectrum capability from hardware development to maintenance support(p.163)
- • Professional and experienced leadership team with technical expertise(p.122)
- • End-to-end solution capabilities for defence and aerospace systems(p.122)
- • International certifications (AS9100D and ISO 9001:2015)(p.179)
- • 18 years' experience delivering defence & aerospace systems with strong customer retention(p.191)
- • Empanelled as design partner with Development cum Production Partner (DcPP), providing enhanced visibility and access to larger opportunities(p.192)
- • End-to-end integrated solution capabilities across entire system development lifecycle(p.192)
- • Reusable engineering platforms enabling faster customization and efficient project execution(p.192)
- • Experienced leadership with 38 years defence/space expertise and strong board with domain knowledge(p.192)
- • AS9100D and ISO 9001:2015 certifications enabling participation in stringent defence and international projects(p.192)
- • Uniquely positioned as integrated solution provider with presence across hardware, software and maintenance services(p.195)
- • Formalized reusable software IP library reducing non-engineering expense and enabling faster deployment(p.196)
Weaknesses
- • Significant capital commitment with uncertain execution timeline(p.38)
- • History of negative cash flows and regulatory delays(p.40)
- • Inadvertent corporate filing inconsistencies with regulatory exposure(p.38)
- • High concentration of customers and revenue dependency(p.42)
- • Single geographic location risk for facilities(p.44)
- • Supplier concentration and raw material dependency(p.46)
- • Cyber security breach history with financial impact(p.43)
- • High and increasing working capital requirements with deteriorating turnover ratios(p.50)
- • Significant debt burden with total secured borrowings of ₹1,865.87 Lakhs(p.55)
- • Unpatented technical knowledge vulnerable to leakage and employee departure(p.54)
- • Significant dependence on few key customers in government sector(p.51)
- • High attrition rates among employees pose operational risk(p.49)
- • Pending compliance updates for statutory licenses and registrations(p.51)
- • Small market share relative to peers and large established players(p.163)
- • Limited focus on end-use defence applications reduces higher-margin opportunities(p.165)
- • Smaller revenue scale compared to major peers(p.126)
- • High working capital requirements relative to operations(p.125)
- • Extreme concentration of revenue among top 2 customers (37.75% + 34.55% = 72.3% in H1 FY'26)(p.185)
- • High dependence on limited suppliers with NI Systems accounting for 36.95% of purchases in H1 FY'26(p.187)
- • Significant imported content in raw materials (6.31% in FY'25) dependent on foreign suppliers, primarily USA(p.187)
- • Small employee base (102 permanent employees) limiting capacity for project execution(p.196)
- • Limited net working capital efficiency with 113 days in Fiscal 2025(p.190)
- • High leverage and debt burden with multiple term loans and significant borrowings(p.303)
- • Significant concentration of collateral security in promoter personal properties rather than company assets(p.301)
- • Leverage ratio of 0.63 as of September 30, 2025 indicates rising debt levels(p.319)
- • Outstanding dues to material creditors of ₹455.84 Lakhs as of September 30, 2025(p.310)
Opportunities
- • Capacity expansion and vertical integration through new facility(p.101)
- • Establishment of in-house environmental test facility to capture additional revenue(p.101)
- • Expand market reach and international presence in defence and aerospace sectors(p.51)
- • Strengthen position through product diversification and innovation(p.51)
- • Public listing enhancing visibility and access to capital markets(p.98)
- • Growing India Critical Test, Measurement, and Simulation Technologies market expanding at 13.8% CAGR(p.150)
- • Fastest-growing technology segment in Avionic Test Systems at 15.2% CAGR(p.152)
- • Strong government push for defence indigenization through Make in India and Atmanirbhar Bharat(p.150)
- • Increased capital allocation to DRDO and defence R&D enabling technology investments(p.156)
- • Rising demand for customized test solutions from defence modernization programs(p.158)
- • New facility for electronic sub-systems manufacturing and environmental testing(p.171)
- • Projected SOM growth from INR 72 crore to INR 250 crore by FY'30(p.171)
- • India Critical TMS market projected to grow at 13.8% CAGR from ₹4,799 cr (FY'25) to ₹9,174 cr (FY'30)(p.191)
- • Addressable market opportunity to grow from ₹72 cr (FY'25) to ₹250 cr (FY'30) by FY'30(p.191)
- • Proposed new facility for in-house electronic sub-systems manufacturing and environmental testing reducing vendor dependence(p.191)
- • Expansion into emerging defence domains including unmanned systems, AI-enabled testing, RF subsystems, and space mission support(p.193)
- • Export opportunity targeting ~10% of revenues within 3 years to defence modernizing nations(p.193)
- • Recurring revenue opportunities through upgrades, calibration, software support, and obsolescence management services(p.193)
- • Alignment with national defence policies ('Make in India', 'Aatmanirbhar Bharat') creating favourable procurement environment(p.193)
- • Capacity development plan to hire ~25 engineers and technical leads until Fiscal 2027 and establish rapid prototyping lab(p.194)
- • Setting up of Proposed New Facility to expand manufacturing capacity(p.300)
- • Diversification into defence and aerospace sectors with dual-use technology focus(p.318)
- • Alignment with 'Make in India' and 'Atmanirbhar Bharat' initiatives for indigenous manufacturing(p.319)
- • Expansion into Electronics Manufacturing Services (EMS) with PCBA and SMT capabilities(p.318)
Threats
- • Heavy dependence on Government of India defense and space budget priorities(p.44)
- • Market cyclicality and critical technology market dependency(p.43)
- • Regulatory and government contract enforcement risks(p.47)
- • Strict quality and compliance requirements from government clients(p.47)
- • Intense bidding competition and pre-qualification dependency(p.48)
- • Rapid technological change and innovation requirements(p.48)
- • Government contracts subject to extensive scrutiny and regulatory requirements(p.49)
- • Payment delays and revenue volatility from government contracts(p.49)
- • Competition for skilled talent driving up employee costs(p.49)
- • Vulnerability to IT infrastructure failures and cyber threats(p.50)
- • Dependence on third-party transportation with disruption risks(p.51)
- • Exposure to foreign exchange fluctuations without hedging arrangements(p.57)
- • Macroeconomic risks including inflation and economic slowdown(p.61)
- • Regulatory changes and taxation uncertainties affecting profitability(p.61)
- • Risk from natural disasters, pandemics, and geopolitical events(p.61)
- • Exposure to complex, onerous government contract terms(p.49)
- • High reliance on imports for critical TMS technologies and components(p.160)
- • Regulatory and bureaucratic hurdles delaying procurement and deployment(p.160)
- • Talent shortage and high R&D costs limiting innovation capability(p.160)
- • Intense competition from foreign OEMs with superior AI-enabled platforms(p.161)
- • Geopolitical risks including border tensions and export control restrictions(p.161)
- • Cybersecurity threats to defence infrastructure and indigenous platforms(p.161)
- • Supply chain disruptions from chip shortages and import dependence(p.161)
- • Weak IP enforcement and unclear ownership in collaborative R&D projects(p.161)
- • Government budget allocation and discretionary defence procurement spending critical to revenue sustainability(p.185)
- • Concentrated market with 25-30 competitors including large-scale enterprises with ₹1,000+ cr revenue(p.195)
- • International competition from larger OEMs with greater resources and established global presence(p.193)
- • Technology evolution requiring continuous R&D investment to maintain competitive position(p.196)
- • Import-dependent components expose business to currency fluctuations, supply chain disruptions, and geopolitical risks(p.187)
- • Defence regulations, certifications, and compliance requirements create barriers and may restrict operations(p.187)
- • Regulatory oversight by RCMA, DGAQA, MSQAA restricts operational flexibility and product deployment(p.195)
- • Material approval still pending for Height Clearance from Airports Authority of India for Proposed New Facility(p.314)
- • Multiple government approvals yet to be obtained for Proposed New Facility operations(p.315)
- • Regulatory dependence on defence and aerospace sector approvals and compliance(p.318)
- • Cyber fraud incident resulting in loss of ₹45.17 lakhs indicating operational vulnerabilities(p.308)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Madhusudhan Varma Jetty | Promoter and Promoter Selling Shareholder | 60.73% | — |
| Mrs. Radhika Varma Jetty | Promoter | 27.31% | — |
| Mr. Jetty Shashank Varma | Promoter | 0.23% | — |
| Mr. Hitesh Varma Jetty | Promoter | 0.23% | — |
| Mr. Madhusudhan Varma Jetty | Promoter | 60.73% | [●] |
| Mrs. Radhika Varma Jetty | Promoter | 27.31% | [●] |
| Mr. Jetty Shashank Varma | Promoter | 0.23% | [●] |
| Mr. Hitesh Varma Jetty | Promoter | 0.23% | [●] |
| Madhusudhan Varma Jetty | Promoter | — | — |
| Radhika Varma Jetty | Promoter | — | — |
| Mr. Madhusudhan Varma Jetty | Promoter | 60.73% | — |
| Mrs. Radhika Varma Jetty | Promoter | 27.31% | — |
| Mr. Jetty Shashank Varma | Promoter | 0.23% | — |
| Mr. Hitesh Varma Jetty | Promoter | 0.23% | — |
| Madhusudhan Varma Jetty | Promoter | 60.73% | — |
| Radhika Varma Jetty | Promoter | 27.31% | — |
| Jetty Shashank Varma | Promoter | 0.23% | — |
| Hitesh Varma Jetty | Promoter | 0.23% | — |
| Mr. Madhusudhan Varma Jetty | Promoter/Promoter Group | — | — |
| Mrs. Radhika Varma Jetty | Promoter/Promoter Group | — | — |
| Mr. Jetty Shashank Varma | Promoter/Promoter Group | — | — |
| Mr. Hitesh Varma Jetty | Promoter/Promoter Group | — | — |
Leadership
Mr. Madhusudhan Varma Jetty · Chairman and Managing Director
Mr. Kameswara Rao Vempati · Company Secretary and Compliance Officer
Mr. Sriharsha Vadakattu · Chief Financial Officer
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.