S A Tech Software India
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Jul 2024 – 30 Jul 2024
- Listing date
- 02 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹59 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹23.01 Cr
- Market cap at offer price
- ₹77.04 Cr
- Promoter holding
- 99.02% → 69.45% pre-issue → post-issue
- ISIN
- INE0BSN01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Off No.D-6030, 6th Floor Solitaire Bus.Hub, Viman 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 |
|---|---|---|---|
| Anchor investor · within QIB | 10,82,000 | — | — |
| Market maker | 2,84,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹59
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,18,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,36,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,44,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,62,000 |
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 (₹) | 4.03 | 7.60 |
| P/E (×) | 14.64 | 7.76 |
| Price to book (×) | 3.82 | — |
| Market cap | — | ₹77.04 Cr |
Key performance indicators
- Return on net worth
- 17.54%
- ROCE
- 10.95%
- Debt / equity
- 1.49
- PAT margin
- 10.38%
- NAV per share
- ₹15.45
- Price to book
- 3.82
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About S A Tech Software India
S A Tech Software India Limited, centered in Pune and Bengaluru, is a subsidiary of California-based SA Technologies Inc, USA, promoted by Mr. Manoj Joshi and Ms. Priyanka Joshi. The company has over a decade of experience serving both global and domestic customers. It is a CMMI Level 5 certified company offering AI-driven IT consulting, scalable IT outsourcing solutions, and Global Development Centers. The company serves a diverse portfolio of clients from small to enterprise, operating through three business models: Consulting, Offshoring, and GCC (Global Capability Center). Services include artificial intelligence, machine learning, software development, mobile app development, cloud infrastructure, software quality assurance, IoT solutions, and data science and analytics. The company leverages its globally distributed onshore-offshore service delivery capability and has partnerships with tech giants like Microsoft and Google.
Company Analysis
from RHPSA Tech Software India Limited is an AI-driven IT consulting company providing scalable IT outsourcing solutions and Global Development Centers (GDCs) across the IT services industry.
S A Tech Software India Limited, centered in Pune and Bengaluru, is a subsidiary of California-based SA Technologies Inc, USA, promoted by Mr. Manoj Joshi and Ms. Priyanka Joshi. The company has over a decade of experience serving both global and domestic customers. It is a CMMI Level 5 certified company offering AI-driven IT consulting, scalable IT outsourcing solutions, and Global Development Centers. The company serves a diverse portfolio of clients from small to enterprise, operating through three business models: Consulting, Offshoring, and GCC (Global Capability Center). Services include artificial intelligence, machine learning, software development, mobile app development, cloud infrastructure, software quality assurance, IoT solutions, and data science and analytics. The company leverages its globally distributed onshore-offshore service delivery capability and has partnerships with tech giants like Microsoft and Google.
Objects of the Issue
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our company Upto ₹917.73 Lakhs p.87
- Funding the working capital requirements of our company Upto ₹1080.00 Lakhs p.88
- General Corporate Purposes [●] p.92
- Not explicitly stated in this part of the document
Issue Structure
- Total Issue
- Upto 39,00,000 Equity Shares of face value of ₹ 10 each fully paid up at a price of ₹ [●] per Equity share aggregating to ₹ [●] Lakhs
- Fresh Issue
- Upto 39,00,000 Equity Shares of face value of ₹ 10 each fully paid up
- Price Band
- [●] to [●] per Equity Share
- Face Value
- ₹ 10 each
Business Model
The company operates through three primary business models: (1) Consulting - companies hire SA Tech to customize acquired technology; (2) Offshoring - international organizations offshore work to SA Tech for better quality at lower cost; (3) GCC (Build Operate Transfer model) - international organizations use SA Tech's setup, hiring, and operations support to transition work to India. Revenue is generated through outsourced technological services and digital transformation services.
Business Segments
SWOT Analysis
- • Global presence with onshore-offshore service delivery model(p.25)
- • Experienced promoters with two decades of IT industry experience(p.25)
- • Diverse service portfolio across multiple technology domains(p.25)
- • Revenue growth trajectory with improving profitability(p.43)
- • Experienced promoter and qualified senior management team(p.96)
- • Global presence with established partnerships(p.116)
- • CMMI Level 5 certification demonstrating process excellence(p.116)
- • Scalable delivery model from 1 to 1000 professionals(p.116)
- • Tech partnerships with major players (Microsoft, Google)(p.117)
- • Revenue growth and profitability improvement(p.99)
- • Experienced promoter leadership with 25+ years in IT industry(p.143)
- • Scalable cloud-native technology platform and business model(p.124)
- • Strategic partnerships with major technology giants(p.124)
- • Established relationships with Fortune 500 clients(p.125)
- • In-house talent pool enabling end-to-end service delivery(p.126)
- • Strong financial performance with 27.47% YoY revenue growth(p.122)
- • Significant revenue growth trajectory with strategic client expansion(p.213)
- • Improved profitability and operational efficiency with margin expansion(p.225)
- • Strong gross margin improvement through strategic mark-up strategy(p.226)
- • ISO certifications demonstrating quality and security compliance(p.236)
- • Export revenue diversification with growing international presence(p.201)
- • Positive EBITDA with improving margins(p.214)
- • Heavy customer concentration with top 10 customers representing 84.27% of revenues in Q1 FY25(p.36)
- • No long-term contracts with customers; reliance on purchase orders(p.36)
- • Leased branch offices not owned by the company(p.35)
- • Secured debt obligations with charge over movable and immovable properties(p.37)
- • Negative operating cash flow in recent period(p.42)
- • Past non-compliance with statutory filing requirements under Companies Act(p.35)
- • Promoters retaining majority control post-IPO (approximately 55.59%)(p.46)
- • High debt-equity ratio and significant borrowings(p.87)
- • Dependence on working capital financing(p.88)
- • Increasing trade receivables and collection cycle risk(p.89)
- • Negative profitability in prior year(p.99)
- • Limited pre-issue revenue base(p.56)
- • High customer concentration dependency with top 10 clients at 84.27% of revenue(p.127)
- • Elevated Debt-Equity ratio of 1.49 as at June 30, 2024(p.122)
- • Limited intellectual property portfolio with only 4 domain names and 1 pending trademark(p.129)
- • Significant tax disputes and contingent liabilities(p.201)
- • High debt-to-equity ratio indicating financial leverage(p.214)
- • Historical losses and vulnerability to project discontinuations(p.225)
- • Negative operating cash flows in recent period(p.227)
- • High employee cost concentration as percentage of revenue(p.220)
- • Discrepancies between bank statements and book records(p.202)
- • India's strong economic growth and digital transformation initiatives(p.25)
- • Expansion of service exports market with India's service sector growth(p.25)
- • Rising demand for digital transformation and cloud infrastructure services(p.25)
- • Growing adoption of emerging technologies including AI and machine learning(p.25)
- • Government support for technology sector and tax incentives(p.25)
- • Growth in global IT services market(p.109)
- • Expansion of Global Capability Centres in India(p.112)
- • Rising demand for cloud and digital transformation services(p.109)
- • Strong Indian IT industry growth trajectory(p.110)
- • Expansion strategy focused on capacity and capabilities(p.96)
- • Cost-effective India-based delivery advantage(p.113)
- • Expansion of GCC services to optimize offshore delivery and scalability(p.119)
- • AI/ML capabilities in generative AI for creative industries(p.120)
- • Data science and analytics for business intelligence and competitive advantage(p.120)
- • Digital transformation and RPA services for business automation(p.121)
- • Penetration opportunities within existing Fortune 500 client base(p.125)
- • Diversification into new business segments including GCC business(p.213)
- • Expansion into emerging technology segments(p.228)
- • Continued acquisition of new clients across multiple sectors(p.225)
- • Growth potential from digital transformation initiatives globally(p.228)
- • Migration to main board enhancing market visibility(p.260)
- • Intense competition from larger IT consulting firms and multinational technology companies(p.40)
- • Consolidation among technology majors creating larger, better-resourced competitors(p.40)
- • Rapid technological change and obsolescence risk(p.43)
- • Slowdown in Indian economic growth could adversely affect business(p.48)
- • Inflation impacting cost structure and pricing power(p.49)
- • Volatility in Indian securities markets affecting share price and liquidity(p.50)
- • Regulatory changes and compliance risks(p.49)
- • Natural calamities and force majeure events(p.50)
- • Foreign exchange and regulatory risks for foreign investors(p.51)
- • Client concentration risk(p.90)
- • Market price volatility risk post-listing(p.51)
- • Intense competition in IT services industry(p.86)
- • Global economic slowdown impact(p.107)
- • Pricing pressure and margin compression(p.90)
- • Regulatory changes in data protection and employment laws(p.131)
- • Foreign investment regulation compliance requirements(p.133)
- • Intense competition from established IT service providers and market cyclicality(p.135)
- • Foreign exchange volatility and currency fluctuation risks(p.189)
- • Client concentration and termination risks(p.214)
- • Intense competition from domestic and global market players(p.215)
- • Rapid technological change and infrastructure obsolescence(p.214)
- • Regulatory and compliance risks(p.214)
- • Macroeconomic volatility and demand uncertainty(p.215)
- • Key personnel dependency(p.215)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| SA Technologies Inc., USA | Promoter | 78.28% | [●] |
| Mindpool Technologies Limited | Promoter | 19.30% | [●] |
| Mr. Ritesh Sharma | Promoter | 0.46% | [●] |
| Mrs. Poonam Sharma | Promoter | 0.00% (Negligible) | [●] |
| Opal Force Software India Limited | Promoter Group | 0.99% | [●] |
| SA Technologies Inc., USA | Promoter | 78.28% | — |
| Manoj Joshi | Promoter | — | — |
| Priyanka Joshi | Promoter | — | — |
| Mindpool Technologies Limited | Promoter | 19.30% | — |
| Ritesh Sharma | Promoter | 0.46% | — |
| Poonam Sharma | Promoter | 0.00% | — |
| Bhavin Goda | Director | — | — |
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.