Micropro Software Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Nov 2023 – 07 Nov 2023
- Listing date
- 10 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹81 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹30.70 Cr
- Market cap at offer price
- ₹116 Cr
- Promoter holding
- 63.40% → 46.59% pre-issue → post-issue
- ISIN
- INE0PZK01014
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Swaraj shares & securities Pvt.Ltd.
- Registered office
- Plot No.28, 702, Wing A, 7th Floor, IT Park, Gayatri Nagar, 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 | 1,90,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹81
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,29,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,59,200 |
| S-HNI (max) | 7 | 11,200 | ₹9,07,200 |
| B-HNI (min) | 8 | 12,800 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.78 | — |
| P/E (×) | 14.01 | — |
| Market cap | — | ₹116 Cr |
Key performance indicators
- Return on net worth
- 35.93%
- ROCE
- 41.00%
- Debt / equity
- 0.13
- PAT margin
- 27.00%
- NAV per share
- ₹659.28
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Micropro Software Solutions
Micropro began in 1988 as a partnership firm named 'MICROPRO' set up by promoters Hitesh Dhirajlal Parikh, Prashant Renukadas Rajurkar and Sanjay Yadavrao Mokashi for software development, data processing and software training, and was incorporated as Micropro Software Solutions Private Limited on September 05, 1996; it was converted into a public limited company, Micropro Software Solutions Limited, on June 16, 2023. Headquartered in Nagpur, Maharashtra, with a branch office in Sharjah, UAE, the ISO 9001:2015 certified company had 107 employees as of the Draft Prospectus date and serves customers in India, the UAE, Seychelles and Botswana. Its offerings span five service lines — IT infrastructure management, network and security, cloud computing, e-governance and IT manpower services — and proprietary products including HospyCare (a hospital management information system used by clients such as Zulekha Healthcare Group in the UAE), PharmaZip, the OpenSys-Logix distribution management solution, Zip App and MR Portal, alongside e-governance implementations such as property tax management systems and the national eNAM digital agricultural trading platform. The company earns money from one-time project charges and monthly subscriptions after go-live, software and hardware sales, and maintenance & support contracts; in Fiscal 2023 it reported revenue from operations of ₹2,205.53 lakhs (India 74.78%, UAE 11.46%, other countries 13.75%), EBITDA of ₹922.89 lakhs and profit after tax of ₹592.23 lakhs.
Company Analysis
from DRHPMicropro Software Solutions Limited is an ISO 9001:2015-certified Indian IT company that designs, develops and supports customized software solutions (hospital management, pharma distribution, e-governance platforms) while providing IT infrastructure management, network and security, cloud computing, e-governance and IT manpower services across industry verticals.
Micropro began in 1988 as a partnership firm named 'MICROPRO' set up by promoters Hitesh Dhirajlal Parikh, Prashant Renukadas Rajurkar and Sanjay Yadavrao Mokashi for software development, data processing and software training, and was incorporated as Micropro Software Solutions Private Limited on September 05, 1996; it was converted into a public limited company, Micropro Software Solutions Limited, on June 16, 2023. Headquartered in Nagpur, Maharashtra, with a branch office in Sharjah, UAE, the ISO 9001:2015 certified company had 107 employees as of the Draft Prospectus date and serves customers in India, the UAE, Seychelles and Botswana. Its offerings span five service lines — IT infrastructure management, network and security, cloud computing, e-governance and IT manpower services — and proprietary products including HospyCare (a hospital management information system used by clients such as Zulekha Healthcare Group in the UAE), PharmaZip, the OpenSys-Logix distribution management solution, Zip App and MR Portal, alongside e-governance implementations such as property tax management systems and the national eNAM digital agricultural trading platform. The company earns money from one-time project charges and monthly subscriptions after go-live, software and hardware sales, and maintenance & support contracts; in Fiscal 2023 it reported revenue from operations of ₹2,205.53 lakhs (India 74.78%, UAE 11.46%, other countries 13.75%), EBITDA of ₹922.89 lakhs and profit after tax of ₹592.23 lakhs.
Objects of the Issue
- Working capital requirements ₹800.00 Lakhs p.86
- Funding capital expenditure requirements — migration/upgradation and development of existing products (PharmaZip, HospyCare, AIMS, DMS ERP) on a new platform (₹756.00 Lakhs), research & development and prototype manufacturing of an Automatic Grain Analyzer (₹210.00 Lakhs), and procurement of server workstations, peripherals and software from three vendors (estimated ₹342.37, ₹332.37 and ₹319.34 Lakhs) ₹1,960.00 Lakhs p.84
- General corporate purposes (capped at 25% of gross proceeds) p.92
Issue Structure
- Total Issue
- Up to 37,92,000 Equity Shares aggregating up to ₹[●] Lakhs
- Fresh Issue
- Up to 37,92,000 Equity Shares aggregating to ₹[●] Lakhs (entire Issue is a Fresh Issue)
- Offer for Sale
- Nil
- Face Value
- ₹10.00 each
Business Model
Revenue comes from (i) sale of software products/licences (HospyCare, PharmaZip, OpenSys-Logix, Zip App, MR Portal), (ii) sale of hardware, (iii) software development and implementation billed as one-time project charges followed by monthly subscriptions after go-live, and (iv) maintenance & support (AMC) services, plus minor commission income; maintenance & support was the largest stream at ₹1,104.62 lakhs (50.08%) of Fiscal 2023 revenue from operations.
Business Segments
SWOT Analysis
- • High customer retention with ~91% of FY23 revenues from repeat customers(p.136)
- • Consistent revenue and profit growth over three fiscal years(p.136)
- • Experienced Board and senior management team(p.136)
- • Strong profitability metrics — RoE of 55.91% and EBITDA Margin of 41.78% in FY23(p.136)
- • High customer concentration — Top 10 clients account for ~65% of revenue(p.36)
- • Significant increase in trade receivable days from 62 to 201 days over three fiscals(p.39)
- • Substantial indebtedness with outstanding borrowings of ₹397.97 Lakhs(p.44)
- • Untraceable historical corporate/secretarial records raising governance concerns(p.47)
- • Promoter unable to produce educational qualification documents(p.49)
- • Delays in payment of statutory dues attracting potential penalties(p.48)
- • Expanding geographic footprint into new markets(p.137)
- • Investment in technology to improve productivity and serve clients better(p.137)
- • Deepening presence in South East Asia(p.138)
- • Global IT market expected to grow to $11,995.97 billion by 2027(p.105)
- • Indian IT industry expected to reach $19.93 billion by 2025(p.112)
- • Intense competition from large IT consulting firms and multinationals(p.31)
- • Foreign exchange rate fluctuations affecting competitiveness(p.32)
- • Rapid technological changes requiring continuous product development(p.32)
- • Global economic slowdown reducing IT spending(p.38)
- • Political, regulatory and macroeconomic uncertainties beyond company control(p.53)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sanjay Yadavrao Mokashi | Promoter | 6.24% | — |
| Mr. Hitesh Dhirajlal Parikh | Promoter | 14.24% | — |
| Mr. Prashant Renukadas Rajurkar | Promoter | 5.46% | — |
| Mrs. Meenakshi Sanjay Mokashi | Promoter | 15.02% | — |
| Mrs. Shefali Hitesh Parikh | Promoter | 7.02% | — |
| Mrs. Swati Prashant Rajurkar | Promoter | 15.41% | — |
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.