Sahana Systems
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 May 2023 – 02 Jun 2023
- Listing date
- 12 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹135 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹32.74 Cr
- Market cap at offer price
- ₹108 Cr
- Promoter holding
- 90.25% → 62.88% pre-issue → post-issue
- ISIN
- INE0LEX01011
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- 901-A-Block, Mondeal Square, Nr.Iscon Elegance, S.G.Highway, Prahladnagar, Gujarat
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 | 1,25,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹135
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 8,000 | ₹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 (₹) | 11.48 | — |
| P/E (×) | 11.76 | — |
| Market cap | — | ₹108 Cr |
Key performance indicators
- Return on net worth
- 59.24%
- ROCE
- 61.05%
- Debt / equity
- 0.44
- PAT margin
- 26.49%
- NAV per share
- ₹19.38
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sahana Systems
Sahana System Limited was originally formed as a partnership firm 'M/s. Oceans Technologies' in March 2013, converted to 'Sahana System' partnership in April 2019, and incorporated as a private limited company in February 2020, becoming a public limited company in April 2022. The company is engaged in offering IT related services including web app development, mobile application development, AI & ML development, ChatBot development, product prototyping, graphics designing, UI/UX design, SEO & ASO, digital marketing, website & application migration, cyber security and outsourcing of IT services. It also trades in hardware instruments related to Franking Machines, Computers, LED, and Laptops. The company serves industries including healthcare, surveillance, retail, education/e-learning, restaurants, banking, media & entertainment and fintech, and has maintained repeated orders from clients.
Company Analysis
from RHPSahana System Limited is an IT services company offering web and mobile app development, AI/ML, chatbot development, and related digital services, with ancillary hardware trading business.
Sahana System Limited was originally formed as a partnership firm 'M/s. Oceans Technologies' in March 2013, converted to 'Sahana System' partnership in April 2019, and incorporated as a private limited company in February 2020, becoming a public limited company in April 2022. The company is engaged in offering IT related services including web app development, mobile application development, AI & ML development, ChatBot development, product prototyping, graphics designing, UI/UX design, SEO & ASO, digital marketing, website & application migration, cyber security and outsourcing of IT services. It also trades in hardware instruments related to Franking Machines, Computers, LED, and Laptops. The company serves industries including healthcare, surveillance, retail, education/e-learning, restaurants, banking, media & entertainment and fintech, and has maintained repeated orders from clients.
Objects of the Issue
- To meet the working capital requirements ₹650.00 lakhs p.27
- Installation of EV charging Station ₹1,445.41 lakhs p.27
- General Corporate Purposes ₹655.34 lakhs p.27
- To meet the working capital requirements ₹650.00 lakhs p.79
- Installation of EV charging Station ₹1,445.41 lakhs p.79
- General Corporate Purposes ₹655.34 lakhs p.79
- To meet the issue expenses ₹523.00 lakhs p.87
- Not explicitly stated in this document section p.189
Issue Structure
- Total Issue
- ₹3,273.75 lakhs
- Fresh Issue
- 24,25,000 Equity Shares of face value ₹10 each aggregating to ₹3,273.75 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹132 to ₹135 per equity share
- Lot Size
- 1,000 Equity Shares and in multiples of 1,000 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue through IT services delivery (web and mobile app development, AI/ML solutions, digital transformation services) and trading of hardware instruments. The company operates on both project basis and purchase order basis without necessarily long-term contracts with most customers.
Business Segments
SWOT Analysis
- • Diversified IT service offerings with proven client retention(p.27)
- • Strong revenue growth trajectory(p.28)
- • Profitable operations with improving profitability(p.28)
- • End-to-end IT services offering(p.115)
- • Quality certifications and accreditations(p.115)
- • Experienced promoter leadership(p.115)
- • Strong revenue and profit growth trajectory(p.108)
- • ISO 9001:2015, ISO/IEC 27001:2013 & CMMI Level 3 certifications indicate quality and security capabilities(p.128)
- • Recognized as Start-up by Government of India in 2020(p.128)
- • Diversified revenue streams from IT services and hardware trading(p.131)
- • Strong revenue growth with PAT increasing from ₹16.44 lakhs (FY2021) to ₹639.64 lakhs (FY2023)(p.174)
- • Promoter lacks experience in EV charging station installation and operations(p.32)
- • High customer concentration risk(p.37)
- • Dependent on few customers for revenue generation(p.36)
- • Limited operating history as a company(p.34)
- • Unregistered trademark logo(p.42)
- • Unsecured loan obligations subject to recall(p.44)
- • Premises on lease/license basis with limited tenure(p.34)
- • Member of promoter group is a wilful defaulter(p.36)
- • High customer concentration risk(p.108)
- • No prior experience in EV charging business(p.111)
- • Limited international presence and export revenue(p.109)
- • Informal customer relationships without formal agreements(p.118)
- • High dependence on short-term borrowings of ₹477.04 lakhs, including ₹174.58 lakhs in unsecured loans from promoters(p.154)
- • Significant unsecured loans from promoter group members without fixed repayment terms(p.179)
- • Limited cash and cash equivalents of ₹11.37 lakhs as of March 31, 2023 relative to total liabilities(p.154)
- • Promoter litigation pending in criminal court regarding threats and cheating allegations(p.181)
- • Outstanding civil litigation by promoter for ₹19,48,500 regarding unfulfilled machine delivery contract(p.181)
- • India's strong economic growth and IT services expansion(p.27)
- • Government focus on renewable energy and EV infrastructure(p.27)
- • Opportunity in EV charging station business with NREDCAP partnership(p.33)
- • India's growing unicorn ecosystem and innovation landscape(p.27)
- • Expand domestic and international IT services presence(p.116)
- • Growing EV charging market in Andhra Pradesh(p.110)
- • Expansion into new technology service offerings(p.116)
- • Large Indian IT industry growth trajectory(p.105)
- • Provisionally empanelled as EV charging infrastructure developer(p.110)
- • Entry into EV charging station business with government orders from Andhra Pradesh(p.128)
- • Expansion into digital marketing, online platform services and e-commerce segments(p.128)
- • Growing IT services market with expanding industry footprint across healthcare, retail, education, banking sectors(p.172)
- • Channel partnership with Pitney Bowes India for distribution of office equipment products(p.131)
- • No confirmed orders from NREDCAP for EV charging stations(p.33)
- • Intense competition from organized and unorganized players(p.38)
- • Risk of delay in capital equipment procurement(p.40)
- • Regulatory and compliance risks across multiple jurisdictions(p.37)
- • Data security and cyber attack risks(p.38)
- • Wage inflation in IT sector reducing competitive advantage(p.44)
- • Foreign exchange fluctuation risks(p.43)
- • Political instability and economic policy changes(p.49)
- • Financial instability in emerging markets(p.47)
- • Intense competition from organized and unorganized IT players(p.118)
- • Global economic slowdown impacting IT spending(p.98)
- • Risk of larger competitors with established relationships(p.118)
- • Regulatory and policy changes in EV charging infrastructure(p.111)
- • Significant dependence on few customers; company has no diversified customer base protection(p.177)
- • High employee turnover risk and difficulty retaining skilled IT professionals(p.172)
- • Intense competition from established and new IT service providers(p.172)
- • Rapid technology changes requiring continuous adaptation and investment(p.172)
- • Regulatory compliance risks across multiple employment and labor laws applicable in India(p.126)
- • Risk of reduction in business from subcontracting partners(p.172)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pratik Kakadia | Promoter | 78.83% | — |
| Shardaben Kakadia | Promoter Group | 5.91% | — |
| Ramajibhai Kakadia | Promoter Group | 1.20% | — |
| Hetal Patel | Promoter Group | 4.31% | — |
| Pratik Kakadia | Promoter | 78.83% | 54.92% |
| Shardaben Kakadia | Promoter Group | 5.91% | 4.12% |
| Hetal Patel | Promoter Group | 4.31% | 3.00% |
| Ramajibhai Kakadia | Promoter Group | 1.20% | 0.84% |
| Dipak Patel | Promoter Group | 9.75% | 6.80% |
| Pratik Kakadia | Promoter | 78.83% | — |
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.