Globesecure Technologies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 May 2022 – 25 May 2022
- Listing date
- 02 Jun 2022
- Face value
- ₹10 per share
- Issue price
- ₹29 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹10.13 Cr
- Market cap at offer price
- ₹26.41 Cr
- Promoter holding
- 58.05% → 35.80% pre-issue → post-issue
- ISIN
- INE00WS01056
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Fast Track Finsec Pvt.Ltd.
- Registered office
- C-321, 215 Atrium, M.V.Road, Near Courtyard Marriott Hotel, Andheri (East), 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 | 1,80,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹29
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,16,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,32,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,28,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,44,000 |
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 (₹) | 2.01 | — |
| P/E (×) | 14.43 | — |
| Market cap | — | ₹26.41 Cr |
Key performance indicators
- Return on net worth
- 13.55%
- Debt / equity
- 0.81
- NAV per share
- ₹14.83
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Globesecure Technologies SME
Incorporated in Mumbai in February 2016 as Globesecure Technologies Private Limited and converted into a public limited company in August 2019, Globesecure Technologies Limited is a digital transformation company with a focus on cyber security. It executes cyber security transformation, infrastructure and digital transformation projects for institutions and also provides similar independent services, with capabilities spanning consultation, architecture, solution design, implementation, monitoring and managed services. Its business is classified into three lines: Cyber Security (threat intelligence, monitoring, detection, hunting and incident response; SOC design/build; managed security services including a pay-per-use MSSP model; MDR; cloud security; data protection; endpoint and email security), Integrated Enterprise Solutions (design and implementation of network and data centre infrastructure - LAN/WAN, Wi-Fi, SD-WAN, server/storage/backup, unified communications, NOC - plus cloud and big data/analytics offerings) and Managed Services (outsourced IT covering networks, security, cloud, SaaS, wireless and communications). Revenue is concentrated in the BFSI vertical (85.09%, 85.90% and 81.09% of revenue from operations in Fiscals 2019, 2020 and 2021). Restated revenue from operations was Rs. 991.68 lakh (FY2019), Rs. 1,918.17 lakh (FY2020), Rs. 1,908.26 lakh (FY2021) and Rs. 305.29 lakh for the six months ended September 30, 2021, with profit after tax of Rs. 61.74 lakh, Rs. 11.81 lakh, Rs. 100.46 lakh and Rs. 11.09 lakh respectively. The company is making a fixed-price fresh issue of up to 34,92,000 equity shares of face value Rs. 10 each on the NSE EMERGE platform, principally to part-finance working capital requirements of Rs. 602 lakh; promoters Ragavan Rajkumar (50.34%) and Saravanan Narayanasamy (7.72%) together hold 58.05% pre-issue.
Company Analysis
from DRHPGlobesecure Technologies Limited is an Indian digital transformation company focused on cyber security, serving clients across cyber security solutions, integrated enterprise solutions and managed IT services.
Incorporated in Mumbai in February 2016 as Globesecure Technologies Private Limited and converted into a public limited company in August 2019, Globesecure Technologies Limited is a digital transformation company with a focus on cyber security. It executes cyber security transformation, infrastructure and digital transformation projects for institutions and also provides similar independent services, with capabilities spanning consultation, architecture, solution design, implementation, monitoring and managed services. Its business is classified into three lines: Cyber Security (threat intelligence, monitoring, detection, hunting and incident response; SOC design/build; managed security services including a pay-per-use MSSP model; MDR; cloud security; data protection; endpoint and email security), Integrated Enterprise Solutions (design and implementation of network and data centre infrastructure - LAN/WAN, Wi-Fi, SD-WAN, server/storage/backup, unified communications, NOC - plus cloud and big data/analytics offerings) and Managed Services (outsourced IT covering networks, security, cloud, SaaS, wireless and communications). Revenue is concentrated in the BFSI vertical (85.09%, 85.90% and 81.09% of revenue from operations in Fiscals 2019, 2020 and 2021). Restated revenue from operations was Rs. 991.68 lakh (FY2019), Rs. 1,918.17 lakh (FY2020), Rs. 1,908.26 lakh (FY2021) and Rs. 305.29 lakh for the six months ended September 30, 2021, with profit after tax of Rs. 61.74 lakh, Rs. 11.81 lakh, Rs. 100.46 lakh and Rs. 11.09 lakh respectively. The company is making a fixed-price fresh issue of up to 34,92,000 equity shares of face value Rs. 10 each on the NSE EMERGE platform, principally to part-finance working capital requirements of Rs. 602 lakh; promoters Ragavan Rajkumar (50.34%) and Saravanan Narayanasamy (7.72%) together hold 58.05% pre-issue.
Objects of the Issue
- Part financing of working capital requirements Rs. 602.00 Lakhs p.95
- General corporate purposes p.98
- Meeting issue expenses p.98
Issue Structure
- Total Issue
- Up to 34,92,000 Equity Shares of face value of Rs.10/- each for cash at a price of ₹ [●] per equity share aggregating to ₹ [●]
- Fresh Issue
- Upto 34,92,000 Equity Shares having face value of ₹10 each at a price of ₹ [●] per Equity Share (including a share premium of ₹ [●] per Equity share) aggregating ₹ [●] lakhs
- Face Value
- Rs. 10 each
Business Model
Earns revenue through bundled long-term contracts covering architecting, designing, implementing, monitoring and maintaining client solutions; a mix of recurring/annual business via long-term contracts, AMCs and outsourced contracts alongside project-based consulting/implementation revenue; a pay-per-use MSSP model for managed security; and sales of licenses and hardware components (recognized on transfer of significant risks and rewards of ownership) plus support-service income recognized pro-rata over the contract period.
Business Segments
SWOT Analysis
- • Experienced management team with deep IT-services and domain expertise(p.125)
- • Recurring revenue model built on long-term relationships with large banking clients(p.125)
- • Proven execution of complex migration projects (e.g., 18,000+ firewall policies)(p.125)
- • Delivery model generating high percentage of repeat business and stable revenue stream(p.127)
- • Industry recognition and awards (ChannelWorld/IDG 2019; PulseSecure 'Top Partner Asia South' 2021)(p.139)
- • High client concentration – top 5 clients contributed up to 64.71% of revenue(p.35)
- • Revenue heavily concentrated in the BFSI vertical (~81–86% of revenue)(p.41)
- • Unsecured loans of ₹1,171.98 lakhs from Directors/related parties/NBFCs recallable at any time(p.45)
- • History of negative cash flows from operating activities (FY19 and FY20)(p.44)
- • Past erroneous/non-compliant statutory filings with Ministry of Corporate Affairs(p.37)
- • No trademark registration for the 'Globesecure' name, logo or products/services(p.38)
- • Dependence on continued services of Promoters, senior executives and key personnel(p.43)
- • Company and Directors are party to pending legal proceedings(p.31)
- • Expand client base and cross-sell/up-sell offerings across lines of business(p.125)
- • Large market opportunity for managed services driven by post-COVID cloud adoption(p.126)
- • Cyber security services market transforming rapidly with cross-sector, non-discretionary demand(p.126)
- • Global cyber security market projected to exceed US$ 330 Billion by 2027(p.112)
- • India cyber security market expected to grow at 15.6% CAGR to USD 3.05 billion by 2022(p.114)
- • Invest in new service capabilities (IR, DevOps, MSS, NOC/SOC, automation and AI-based products)(p.127)
- • COVID-19 has accelerated enterprise digital transformation, expected to benefit the business(p.124)
- • Highly competitive IT services market with expected intensification and pricing pressure(p.33)
- • Adverse changes in government regulations or their implementation could disrupt operations(p.47)
- • Foreign exchange fluctuations affecting foreign-currency purchases and revenues(p.42)
- • Challenging global economic conditions impacting Indian financial markets, economy and the company(p.48)
- • Natural or man-made disasters, epidemics/pandemics, war, terrorist attacks and civil unrest(p.49)
- • Changes in taxes and levies imposed by Central or State Governments(p.48)
- • Failure to keep pace with rapidly evolving technology trends (mobility, virtualization, cloud computing)(p.34)
- • Continuing uncertain impact of the COVID-19 pandemic on business and financial performance(p.38)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ragavan Rajkumar | Promoter | 50.34% | — |
| Saravanan Narayanasamy | Promoter | 7.72% | — |
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.