Paramatrix Technologies
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Aug 2024 – 30 Aug 2024
- Listing date
- 04 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹110 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹33.84 Cr
- Market cap at offer price
- ₹127 Cr
- Promoter holding
- 75.46% → 54.77% pre-issue → post-issue
- ISIN
- INE0S2W01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Inventure Merchant Banker Services Pvt.Ltd.
- Registered office
- E-102, 1st Floor, Sanpada Railway Station Complex, Sanpada, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 1,56,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹110
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,32,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,64,000 |
| S-HNI (max) | 7 | 8,400 | ₹9,24,000 |
| B-HNI (min) | 8 | 9,600 | ₹10,56,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.72 | 3.59 |
| P/E (×) | 23.31 | 30.64 |
| Market cap | — | ₹127 Cr |
Key performance indicators
- Return on net worth
- 13.69%
- ROCE
- 17.29%
- PAT margin
- 11.00%
- NAV per share
- ₹29.57
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Paramatrix Technologies
Established in 2004 and incorporated as Paramatrix Technologies Private Limited, the company was converted to a public limited company in November 2023. Located in Mumbai, Paramatrix is ISO 9001:2015 and ISO 27001:2013 certified. The company specializes in understanding clients' business processes and creating software applications and technology solutions that enhance operational efficiency. Its core competencies span Digital Transformation (including Application Development and Maintenance, Solution Architecture, Enterprise Data Management, and proprietary accelerators like INSIGHT, PERFORM, EPPM, PACE, ITCS, DROANA, EVENTJET, BULWARK, PLAYMITY) and Managed Services (Application Managed Services, Cyber Security Services, Cloud & Data Support Services). Revenue from operations was ₹2,799.48 lakhs in FY2024, ₹2,836.48 lakhs in FY2023, and ₹2,732.71 lakhs in FY2022.
Company Analysis
from RHPParamatrix Technologies Limited is an IT software services company providing digital transformation and managed services to enterprises across BFSI, retail, manufacturing, and other sectors.
Established in 2004 and incorporated as Paramatrix Technologies Private Limited, the company was converted to a public limited company in November 2023. Located in Mumbai, Paramatrix is ISO 9001:2015 and ISO 27001:2013 certified. The company specializes in understanding clients' business processes and creating software applications and technology solutions that enhance operational efficiency. Its core competencies span Digital Transformation (including Application Development and Maintenance, Solution Architecture, Enterprise Data Management, and proprietary accelerators like INSIGHT, PERFORM, EPPM, PACE, ITCS, DROANA, EVENTJET, BULWARK, PLAYMITY) and Managed Services (Application Managed Services, Cyber Security Services, Cloud & Data Support Services). Revenue from operations was ₹2,799.48 lakhs in FY2024, ₹2,836.48 lakhs in FY2023, and ₹2,732.71 lakhs in FY2022.
Objects of the Issue
- Capital Expenditure for building our Infrastructure ₹939.72 lakhs p.19
- Investment in our suite of accelerators to enhance our service offerings ₹652.80 lakhs p.19
- Geographical expansion in Middle East and East Asia ₹614.91 lakhs p.19
- General Corporate Purposes ₹717.25 lakhs p.19
- Capital Expenditure for building our Infrastructure (200 seater Rental Development Center) ₹939.72 lakhs p.61
- Investment in our suite of accelerators to enhance our service offerings ₹652.80 lakhs p.61
- Geographical expansion in Middle East and East Asia ₹614.91 lakhs p.61
- General Corporate Purposes ₹717.25 lakhs p.61
- Funding capex for new infrastructure and facilities
- General corporate purposes
Issue Structure
- Total Issue
- ₹3,384.48 lakhs
- Fresh Issue
- ₹3,034.68 lakhs (27,58,800 Equity Shares)
- Offer for Sale
- ₹349.80 lakhs (3,18,000 Equity Shares)
- Price Band
- ₹110.00 per Equity Share (fixed price)
- Lot Size
- Not specified in this part
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue through software services including Application Development and Maintenance (ADM), Solution Architecture and Design, Enterprise Data Management & Data Analytics, proprietary accelerator solutions, Application Managed Services, Cyber Security Services, and Cloud & Data Support Services. Revenue from exports constituted 54.85% of revenue from operations for FY2024. The company serves clients globally including in USA, UK, Hong Kong, Singapore and operates primarily from its Mumbai office.
Business Segments
SWOT Analysis
- • Established IT services company with 20 years operational history and ISO certifications(p.18)
- • Diversified service offerings across multiple industry segments with proprietary accelerators(p.18)
- • Strong financial performance with healthy profit margins and cash position(p.20)
- • Experienced promoter with over 25 years in BFSI sector technology integration(p.27)
- • Market Making arrangement with NSE-registered provider ensures post-IPO liquidity(p.48)
- • Strong competitive strengths including client customization and quality certifications(p.101)
- • Proprietary accelerators enabling faster and cost-efficient delivery(p.101)
- • Trusted by leading global brands with repeat customer relationships(p.101)
- • Experienced leadership with deep domain expertise across multiple industries(p.103)
- • Comprehensive cloud security posture assessment tool with self-service capabilities for SMBs(p.107)
- • AI-driven gamification platform with comprehensive employee performance tracking and engagement features(p.107)
- • Managed Application Services offering 24/7 support with focus on user satisfaction and business alignment(p.108)
- • Deep expertise in Managed Security Operations Centre with real-time threat monitoring and response capabilities(p.108)
- • End-to-end cloud adoption and migration services across leading platforms with proven track record(p.108)
- • Long-standing client relationships with major BFSI institutions including banks and insurance companies(p.124)
- • Strong in-house team with expertise in multiple technologies and over 25 years of combined industry experience(p.131)
- • Established subsidiaries in strategic international locations for global service delivery(p.124)
- • High revenue concentration with top 10 customers representing 94.33% of revenues(p.26)
- • Significant working capital requirements with high employee costs and trade receivables(p.26)
- • Declining revenues and profitability over recent fiscal years(p.20)
- • Dependence on leased office premises with risk of lease termination(p.31)
- • Past instances of delayed EPF payments and regulatory compliance issues(p.33)
- • Significant decline in profitability and margins over three years(p.100)
- • Revenue contraction in FY2024 despite growth in prior years(p.100)
- • Declining Return on Equity indicating reduced efficiency in capital deployment(p.100)
- • Heavy dependence on Hong Kong market for revenue(p.100)
- • Concentrated customer base with top 10 customers forming material portion of revenue(p.101)
- • Heavy dependence on small number of major customers in BFSI sector(p.19)
- • Concentration of business in single domain (BFSI) creating revenue vulnerability(p.19)
- • Limited geographic diversification with operations concentrated in India(p.19)
- • Trademark applications in opposed status creating brand protection uncertainty(p.115)
- • Small employee base of 209 full-time employees limiting service capacity(p.114)
- • High dependence on top 10 customers(p.183)
- • Significant dependence on top suppliers(p.183)
- • Declining profitability and PAT margin compression(p.180)
- • Declining revenue from operations(p.179)
- • Multiple employee recovery litigation cases(p.186)
- • Significant increase in other expenses(p.179)
- • Expansion into new geographies in Middle East and East Asia(p.24)
- • Growing Indian IT industry with continued digital transformation demand(p.18)
- • Investment in accelerator suite to enhance service offerings and differentiation(p.24)
- • Infrastructure development with new development center setup(p.23)
- • Favorable IT industry trends focused on digital modernization and cost efficiencies(p.18)
- • Planned geographical expansion into Middle East and East Asia markets(p.101)
- • Double-digit growth projected in India's IT services market and software spending(p.94)
- • Accelerating cloud adoption and digital transformation across industries(p.92)
- • Investment in accelerator product enhancement for SaaS market positioning(p.102)
- • Expansion of development center capacity to support team growth and service delivery(p.102)
- • Large Indian IT industry growth with exports expected to reach $194 billion(p.96)
- • Growing demand for cloud migration and digital transformation services(p.108)
- • Increasing cybersecurity concerns driving demand for managed security services(p.108)
- • Expansion of Account Based Marketing programs targeting select customers(p.115)
- • Development and commercialization of proprietary accelerator platforms(p.113)
- • Innovation Hub exploring emerging technologies including AI and blockchain(p.113)
- • Participation in industry events and conferences to expand market presence(p.115)
- • Software consultancy services market growth in domestic and export segments(p.180)
- • Training and development programs for freshers(p.180)
- • Government export incentive schemes(p.180)
- • Expansion to main board post-listing(p.210)
- • Intense global competition in software services from larger, better-resourced competitors(p.28)
- • Exposure to currency exchange rate fluctuations on foreign revenues(p.29)
- • Potential impact of macroeconomic downturn affecting domestic and export markets(p.34)
- • Risk of data breaches and cyber security threats affecting operations and reputation(p.29)
- • Regulatory and compliance risks from changing laws and evolving regulations(p.34)
- • Risk of natural disasters, pandemics, and geopolitical events disrupting operations(p.34)
- • Intense competition from larger established IT services companies(p.80)
- • Macro-economic uncertainty and client cost-optimization focus(p.96)
- • Global economic slowdown affecting IT spending and project demand(p.91)
- • Currency volatility impacting international revenue and competitiveness(p.100)
- • Talent scarcity and wage inflation in IT services sector(p.94)
- • Highly fragmented and competitive IT services market with diverse domestic and international competitors(p.116)
- • Risk of losing key customers and revenue disruption from client concentration(p.19)
- • Exposure to foreign exchange fluctuations affecting export revenue(p.19)
- • Regulatory changes in IT policy and information technology regulations impacting operations(p.116)
- • Challenge of retaining skilled IT professionals in competitive labor market(p.116)
- • Dependence on third-party service providers and potential service disruptions(p.144)
- • Economic downturn in financial services sector affecting primary customer base(p.19)
- • Dependence on macro-economic conditions and IT industry cyclicality(p.176)
- • Regulatory changes and policy uncertainties(p.176)
- • Customer project completion and business loss(p.179)
- • New product and delivery platform investments may be loss-making(p.176)
- • Competitive pressures in IT industry(p.176)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mukesh Keshubhai Thumar | Promoter | 61.46% | 44.12% |
| Bhavna Mukesh Thumar | Promoter | 12.86% | 9.78% |
| Mukesh Keshubhai Thumar | Promoter | 61.46% | 44.12% |
| Bhavna Mukesh Thumar | Promoter | 12.86% | 9.78% |
| Kalpana Struct-con Private Limited | Promoter Group | 1.14% | 0.87% |
| Mukesh Keshubhai Thumar | Promoter | 68.29% | — |
| Bhavna Mukesh Thumar | Promoter | 14.28% | — |
| Mukesh Keshubhai Thumar | Promoter/Managing Director & CEO | — | — |
| Bhavna Thumar | Promoter/Director | — | — |
| Mukesh Keshubhai Thumar | Selling Shareholder | — | — |
| Mahesh Pandurang Goriwale | Selling Shareholder | — | — |
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.