Olatech Solutions SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Aug 2022 – 19 Aug 2022
- Listing date
- 29 Aug 2022
- Face value
- ₹10 per share
- Issue price
- ₹27 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹1.89 Cr
- Market cap at offer price
- ₹6.32 Cr
- Promoter holding
- 92.00% → 64.48% pre-issue → post-issue
- ISIN
- INE0M3901015
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Office No.310, 3rd Floor, Rupa Solitaire, Millennium Business Park, Thane-Belapur Road, Mahape, 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 | 44,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹27
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 36,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 40,000 | ₹10,80,000 |
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 (₹) | 2.13 | — |
| P/E (×) | 12.68 | — |
| Market cap | — | ₹6.32 Cr |
Key performance indicators
- Return on net worth
- 21.31%
- ROCE
- 21.31%
- PAT margin
- 13.82%
- NAV per share
- ₹10.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Olatech Solutions SME
Olatech Solutions Limited was originally incorporated as 'Ola Traders Private Limited' on January 03, 2014, and subsequently changed its name to 'Olatech Solutions Private Limited' in April 2022, before converting to a public limited company and changing its name to 'Olatech Solutions Limited' in May 2022. The company is engaged in the business of Data Centre, Enterprise, Telecom and IT Software solutions in the OSS – BSS segment. Its services include portal and mobile app development, network services, system integration, managed services, cloud & data center services and consultancy services, empowering Web to Digital Technologies in Businesses. The company operates with its registered office in Navi Mumbai, Maharashtra, and also has a branch office in Pune.
Company Analysis
from RHPOlatech Solutions Limited is an IT software and services company providing data centre, enterprise, telecom, and IT solutions in the OSS-BSS segment, with services spanning portal and mobile app development, network services, system integration, managed services, and cloud & data center solutions.
Olatech Solutions Limited was originally incorporated as 'Ola Traders Private Limited' on January 03, 2014, and subsequently changed its name to 'Olatech Solutions Private Limited' in April 2022, before converting to a public limited company and changing its name to 'Olatech Solutions Limited' in May 2022. The company is engaged in the business of Data Centre, Enterprise, Telecom and IT Software solutions in the OSS – BSS segment. Its services include portal and mobile app development, network services, system integration, managed services, cloud & data center services and consultancy services, empowering Web to Digital Technologies in Businesses. The company operates with its registered office in Navi Mumbai, Maharashtra, and also has a branch office in Pune.
Objects of the Issue
- Funding Working Capital Requirements ₹87.90 Lakhs p.20
- General Corporate Purpose ₹45.00 Lakhs p.20
- Funding working capital requirements ₹87.90 Lakhs p.66
- General corporate purposes ₹45.00 Lakhs p.67
Issue Structure
- Total Issue
- ₹189.00 Lakhs (7,00,000 Equity Shares)
- Fresh Issue
- ₹189.00 Lakhs (7,00,000 Equity Shares of face value of ₹10/- each at ₹27/- per share)
- Offer for Sale
- N.A.
- Price Band
- ₹27/- per Equity Share (Fixed Price Issue)
- Lot Size
- 4,000 Equity Shares and in multiples thereof
- Face Value
- ₹10/- each
Business Model
The company generates revenue through the provision of IT software and services solutions. It operates on both project-based and time-and-material contract arrangements. The company provides services in data centre management, enterprise solutions, telecom solutions, IT software development, portal and mobile app development, network services, system integration, managed services, and cloud & data center services. Services are typically provided on an order-to-order basis rather than through long-term contracts.
Business Segments
SWOT Analysis
- • Engaged in high-growth IT segment (Data Centre, Enterprise, Telecom, IT Software, OSS-BSS)(p.20)
- • Strong promoter and management team with experience(p.26)
- • Experienced promoter with telecommunications expertise(p.94)
- • Robust, industry-proven software solutions across multiple verticals(p.94)
- • ISO 9001:2015 quality certification(p.87)
- • Centre of excellence with high-tech laboratory(p.95)
- • Strong technology stack and product capabilities(p.94)
- • Established business presence with multiple product verticals and geographic reach(p.164)
- • ISO certified operations demonstrating quality standards(p.135)
- • Diversified service offerings across OSS-BSS segment with multiple client types(p.164)
- • Strong liquidity position with minimal debt burden(p.160)
- • Experienced promoter with extensive telecom sector background(p.113)
- • ISO 9001:2015 certification demonstrating quality management standards compliance(p.182)
- • Registered trademark portfolio including EPIPHANY brand in Class 9(p.182)
- • Positive cash accruals for three consecutive years demonstrating financial performance(p.184)
- • Three years of operational history meeting SME exchange eligibility requirements(p.184)
- • Positive net worth and net tangible assets exceeding minimum SME eligibility thresholds(p.183)
- • Heavy dependence on key clients; no long-term contracts(p.24)
- • Significant reliance on promoter and key managerial personnel(p.26)
- • Negative cash flows from operations in recent years(p.29)
- • Registered office and branch office held on lease, expiring soon(p.29)
- • Trademark 'GLATECH SOLUTIONS' not registered; subject to opposition(p.28)
- • Past statutory non-compliance and filing delays(p.30)
- • No insurance coverage for material hazards(p.34)
- • Outstanding tax litigation against company(p.27)
- • Small employee base limiting operational scale(p.97)
- • Significant revenue decline in FY 2021-22(p.87)
- • High working capital requirements(p.66)
- • Highly concentrated revenue from domestic market(p.154)
- • Severe revenue decline indicating business volatility(p.170)
- • Negative operating cash flow despite profitability(p.173)
- • Limited workforce scale with small employee base(p.155)
- • High financial leverage in director remuneration relative to company size(p.155)
- • Material increase in trade receivables creating working capital strain(p.152)
- • Very small revenue base with continuing decline trend(p.171)
- • IEC code de-activated due to non-compliance with KYC requirements(p.180)
- • No subsidiary or group company structure limiting organizational complexity(p.178)
- • Outstanding creditor dues of ₹36.13 lakhs as on March 31, 2022(p.179)
- • No previous experience with public offerings or capital market transactions(p.188)
- • Expansion in IT services and cloud/data center market(p.20)
- • Listing on BSE SME platform to enable capital raising and market access(p.2)
- • Working capital funding to support business growth(p.20)
- • International expansion (current operations in Singapore and Hong Kong)(p.25)
- • Transition to SaaS model for predictive revenue(p.95)
- • Geographic expansion strategy aligned with industry verticals(p.95)
- • Expanding software product portfolio(p.95)
- • Strategic acquisitions and alliances in software development(p.96)
- • Growing global IT and software markets(p.79)
- • Geographic expansion beyond domestic market(p.164)
- • Portfolio expansion in emerging technology domains(p.164)
- • Strategic partnerships with technology OEMs for market penetration(p.107)
- • Government/public sector procurement opportunity through GeM and government orders(p.108)
- • International market expansion with US customer acquisition(p.108)
- • Listing on BSE SME platform enabling access to capital markets(p.179)
- • Potential migration to main board after two-year SME listing period(p.197)
- • IPO proceeds of ₹189 lakhs enabling business expansion and working capital requirements(p.199)
- • 100% underwriting commitment providing subscription certainty(p.196)
- • Intense competition from organized and unorganized players(p.29)
- • Rapid technological change and need for continuous innovation(p.25)
- • COVID-19 pandemic impact on business operations(p.25)
- • Foreign exchange rate fluctuations affecting international operations(p.34)
- • Regulatory and compliance requirements in multiple jurisdictions(p.25)
- • Cybersecurity threats and data breach vulnerabilities(p.30)
- • Political instability and changes in economic liberalization policies in India(p.42)
- • Volatility in Indian IT industry and wage inflation(p.36)
- • Intense competition from larger, better-resourced competitors(p.97)
- • Risk of open-source software alternatives(p.80)
- • Customer concentration risk with telecom industry exposure(p.87)
- • Dependence on limited number of key customers(p.94)
- • Regulatory and data protection compliance requirements(p.99)
- • Extreme vulnerability to customer concentration and loss risk(p.175)
- • Severe revenue cyclicality and market volatility from external factors(p.139)
- • Intense competitive pressure from larger, better-resourced competitors(p.175)
- • Rapid technological obsolescence and need for continuous R&D investment(p.164)
- • Currency volatility affecting export revenue(p.161)
- • Regulatory and compliance burden under multiple labor laws(p.106)
- • Government policy and licensing changes affecting business model(p.164)
- • Mandatory market-making requirement for three years adding operational complexity(p.198)
- • Minimum 50 allottees requirement; full refund if not met within tight timelines(p.196)
- • Lock-in restrictions on pre-issue capital limiting share liquidity and founder flexibility(p.197)
- • Regulatory compliance requirements and potential for changes in SEBI guidelines post-listing(p.211)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Amit Kumar Singh | Promoter | 70.00% | — |
| Mr. Sher Bahadur Singh | Promoter Group | 10.00% | — |
| Mr. Navneet Kakkar | Promoter Group | 10.00% | — |
| Ms. Amrita Singh | Promoter Group | 2.00% | — |
| Mr. Amit Kumar Singh | Promoter | 70.00% | 49.06% |
| Mr. Sher Bahadur Singh | Promoter Group | 10.00% | 7.01% |
| Mr. Navneet Kakkar | Promoter Group | 10.00% | 7.01% |
| Ms. Amrita Singh | Promoter Group | 2.00% | 1.40% |
| Amit Kumar Singh | Promoter | 70.00% | — |
| Rohit Kumar Singh | Promoter | 100 equity shares | — |
| Amit Kumar Singh | Promoter | 900 equity shares | — |
Leadership
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.