Fidel Softech SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 May 2022 – 02 Jun 2022
- Listing date
- 10 Jun 2022
- Face value
- ₹10 per share
- Issue price
- ₹37 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹13.50 Cr
- Market cap at offer price
- ₹50.88 Cr
- Promoter holding
- 98.98% → 72.72% pre-issue → post-issue
- ISIN
- INE0LQQ01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Unit No.202, 2nd Floor, Marisoft 3, West Wing, Marigold Software IT Park, Vadgaon Sheri, 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 | 1,86,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹37
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,11,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,22,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,99,000 |
| B-HNI (min) | 10 | 30,000 | ₹11,10,000 |
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 |
|---|---|---|
| EPS (₹) | 4.52 | — |
| P/E (×) | 8.19 | — |
| Market cap | — | ₹50.88 Cr |
Key performance indicators
- Return on net worth
- 30.68%
- Debt / equity
- 0.11
- NAV per share
- ₹14.73
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Fidel Softech SME
Fidel Softech Limited ('Fidel') is a Pune-headquartered 'LangTech' consulting firm incorporated on December 24, 2004 as Fidel Softech Private Limited under the Companies Act, 1956 (initial subscribers Sudhakar Shankarrao Kulkarni and Ranjana Sudhakar Kulkarni) and converted into a public limited company in April 2022, when it was renamed Fidel Softech Limited (CIN U72200PN2004PLC020061). The company delivers technology services with local-language UI/UX across three service lines: IT/tech services (customized software development & support, product development as a service, cloud infrastructure & managed services, enterprise application implementation/customization for ServiceNow and Automation Anywhere, training and third-party solution implementation), localization/language services (translation, interpretation, software/website localization & linguistic testing, transcription & annotation, multilingual data creation for AI engines/chatbots, digitization/DTP and localization engineering), and consulting & staffing (onsite contingency staffing and deployment of bilingual talent). Its former subsidiary LinguaSol Private Limited ceased to be a subsidiary on December 30, 2021. Fidel serves clients across India and about 30 countries — exports contributed 86.09%, 86.89% and 82.40% of revenue from operations in FY2022, FY2021 and FY2020 respectively — is ISO/IEC 27001:2013 and ISO 9001:2015 certified, and had 165 employees as of March 31, 2022. For FY2022 it reported revenue from operations of Rs 2,631.31 lakhs, total revenue of Rs 2,686.78 lakhs and profit after tax of Rs 456.50 lakhs. Promoters Sunil Sudhakar Kulkarni (Chairman & Executive Director) and Prachi Sunil Kulkarni (Managing Director) together held 98.98% of the pre-issue equity capital. The company is making a 100% fixed-price fresh issue of up to 36,50,000 equity shares of Rs 10 each on the NSE EMERGE platform to fund working capital requirements and general corporate purposes.
Company Analysis
from DRHPFidel Softech Limited is a LangTech consulting firm offering technology services with local language UI/UX, spanning IT services (software development, infrastructure & cloud support), localization services (translation, interpretation, software localization, multilingual data creation) and consulting & staffing services.
Fidel Softech Limited ('Fidel') is a Pune-headquartered 'LangTech' consulting firm incorporated on December 24, 2004 as Fidel Softech Private Limited under the Companies Act, 1956 (initial subscribers Sudhakar Shankarrao Kulkarni and Ranjana Sudhakar Kulkarni) and converted into a public limited company in April 2022, when it was renamed Fidel Softech Limited (CIN U72200PN2004PLC020061). The company delivers technology services with local-language UI/UX across three service lines: IT/tech services (customized software development & support, product development as a service, cloud infrastructure & managed services, enterprise application implementation/customization for ServiceNow and Automation Anywhere, training and third-party solution implementation), localization/language services (translation, interpretation, software/website localization & linguistic testing, transcription & annotation, multilingual data creation for AI engines/chatbots, digitization/DTP and localization engineering), and consulting & staffing (onsite contingency staffing and deployment of bilingual talent). Its former subsidiary LinguaSol Private Limited ceased to be a subsidiary on December 30, 2021. Fidel serves clients across India and about 30 countries — exports contributed 86.09%, 86.89% and 82.40% of revenue from operations in FY2022, FY2021 and FY2020 respectively — is ISO/IEC 27001:2013 and ISO 9001:2015 certified, and had 165 employees as of March 31, 2022. For FY2022 it reported revenue from operations of Rs 2,631.31 lakhs, total revenue of Rs 2,686.78 lakhs and profit after tax of Rs 456.50 lakhs. Promoters Sunil Sudhakar Kulkarni (Chairman & Executive Director) and Prachi Sunil Kulkarni (Managing Director) together held 98.98% of the pre-issue equity capital. The company is making a 100% fixed-price fresh issue of up to 36,50,000 equity shares of Rs 10 each on the NSE EMERGE platform to fund working capital requirements and general corporate purposes.
Objects of the Issue
- Funding working capital requirements p.72
- General corporate purposes p.73
Issue Structure
- Total Issue
- Up to 36,50,000 Equity Shares aggregating to Rs. [●] Lakhs
- Fresh Issue
- Up to 36,50,000 Equity Shares aggregating to Rs. [●] Lakhs (entire issue constitutes fresh issue)
- Offer for Sale
- Nil - NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTES FRESH ISSUE OF EQUITY SHARES
- Face Value
- Rs. 10/- each
Business Model
Earns service fees from (i) IT/tech engagements — mostly time-and-material (T&M) contracts for customized software development and support, product development as a service, duration-based cloud infrastructure/managed-services contracts, task- or hourly-based 'Engineer-as-a-Service', and enterprise application implementation/customization (ServiceNow, Automation Anywhere); (ii) localization/language services — translation, interpretation, transcription & annotation, multilingual data creation, digitization/DTP and localization engineering; and (iii) consulting & staffing income from recruiting and dispatching bilingual technology talent to clients. About 86% of revenue comes from exports to international clients.
Business Segments
SWOT Analysis
- • LangTech niche with local-language UI/UX delivery backed by in-house linguistic + technology skillsets and a global pre-vetted linguist database(p.95)
- • Diversified international client base across ~30 countries; exports contributed 86.09% of revenue from operations in FY22(p.96)
- • Wide service portfolio spanning localization/language services, IT/tech services and consulting & staffing(p.96)
- • Quality assurance certified under ISO/IEC 27001:2013 (information security) and ISO 9001:2015 (quality management)(p.96)
- • Experienced promoter leadership with 20+ years average industry experience(p.96)
- • High customer concentration — top 10/top 5 customers contribute the bulk of revenues(p.31)
- • No long-term contracts with customers; business runs largely on purchase-order basis(p.32)
- • Negative operating cash flow in FY2022 (Rs. -244.79 lakhs)(p.33)
- • Heavy dependence on Promoters for day-to-day functioning and strategy(p.33)
- • Secured borrowings with charge over movable and immovable properties (Rs. 162.00 lakhs outstanding as on March 31, 2022)(p.34)
- • Lender NOC for the Issue not yet received; loan documentation carries restrictive covenants requiring lender consents(p.35)
- • Working-capital-intensive business model with growing receivables(p.35)
- • Material related-party transactions with Promoter/group entities (e.g., loans to LinguaSol Private Limited)(p.36)
- • Strategy to widen international footprint and enter new geographies(p.96)
- • Increase brand awareness through expanded digital marketing post-pandemic(p.97)
- • Scale employee base (currently 165) to take on more projects and grow revenue(p.97)
- • Broaden customer-centric offerings — additional maintenance/staffing services and customized packages to raise revenue per customer(p.97)
- • Indian IT industry tailwind — Nasscom-estimated US$ 194 billion revenue in FY21(p.89)
- • Global IT market growth at 11.2% CAGR (2021→2022)(p.86)
- • AI-driven multilingual data annotation market in India projected to grow from ~US$ 250 million (FY20) to ~US$ 7 billion by 2030 — directly relevant to the Company's vernacular data creation/annotation services(p.89)
- • Strong current demand for consulting & staffing in IT/technology firms that the Company aims to leverage(p.100)
- • Intense competition from organized and unorganized players, some with greater resources(p.36)
- • Foreign-currency exposure on ~86% export revenues with no hedging in place(p.30)
- • COVID-19 or similar communicable disease outbreaks could disrupt business sentiment, customers and operations(p.28)
- • Escalating global privacy/data-protection regulation could raise compliance costs or restrict offerings(p.26)
- • Rapid technological change and evolving industry standards require continuous product/service renewal(p.25)
- • Rising interest rates would increase finance costs on indebtedness(p.34)
- • Global economic, political and social conditions could depress demand and access to capital(p.42)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sunil Sudhakar Kulkarni | Promoter | 75.23% | — |
| Prachi Sunil Kulkarni | Promoter | 23.76% | — |
| Shyamak Sunil Kulkarni | Promoter Group | Negligible | — |
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.