Sancode Technologies
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Mar 2023 – 06 Apr 2023
- Listing date
- 18 Apr 2023
- Face value
- ₹10 per share
- Issue price
- ₹47 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹5.15 Cr
- Market cap at offer price
- ₹19.12 Cr
- Promoter holding
- 97.47% → 71.24% pre-issue → post-issue
- ISIN
- INE0P7001013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- 107, Prime Plaza, J.V.Patel Compound, B.M.Road, Opp.Elphinstone Stn., 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 | 57,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹47
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,41,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,82,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,87,000 |
| B-HNI (min) | 8 | 24,000 | ₹11,28,000 |
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 (₹) | 2.42 | — |
| P/E (×) | 19.42 | — |
| Market cap | — | ₹19.12 Cr |
Key performance indicators
- Return on net worth
- 21.93%
- PAT margin
- 25.81%
- EBITDA margin
- 16.78%
- NAV per share
- ₹9.65
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sancode Technologies
Sancode Technologies Limited, incorporated in 2016 as ZNL Startup Advisory Private Limited and converted to a public company in January 2023, is engaged in software and product development. The company offers an API enabled platform and solutions that enable organizations to rapidly adopt powerful technology applications addressing their strategic business needs. The company focuses on providing easy to implement pre-built business logic and solution workflows specially for finance automations, helping organizations drive digital transformation and competitive differentiation.
Company Analysis
from RHPSancode Technologies Limited develops software and API-enabled platforms offering pre-built business logic and solution workflows for finance automation, enabling organizations to rapidly adopt technology for digital transformation.
Sancode Technologies Limited, incorporated in 2016 as ZNL Startup Advisory Private Limited and converted to a public company in January 2023, is engaged in software and product development. The company offers an API enabled platform and solutions that enable organizations to rapidly adopt powerful technology applications addressing their strategic business needs. The company focuses on providing easy to implement pre-built business logic and solution workflows specially for finance automations, helping organizations drive digital transformation and competitive differentiation.
Objects of the Issue
- Funding working capital requirements ₹372.60 Lakhs p.21
- General Corporate Purpose ₹98.00 Lakhs p.21
- Funding working capital requirements ₹372.60 lakhs p.86
- General corporate purposes ₹98.00 lakhs p.85
- Not specified in this document section
Issue Structure
- Total Issue
- ₹514.65 Lakhs (10,95,000 Equity Shares of ₹10/- each at ₹47 per share)
- Fresh Issue
- ₹514.65 Lakhs (10,95,000 Equity Shares)
- Offer for Sale
- Not Applicable
- Price Band
- ₹47 per Equity Share (Fixed Price)
- Lot Size
- 3,000 Equity Shares and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue from software and product development services, offering API-enabled platforms and solutions. It has entered into Business Support Agreements with customers, through which it provides services to clients including a wide range of activities that vary depending on specific customer needs. The company also enters into business partnership agreements for digital innovation platforms and makes strategic investments in companies working on deep tech technology solutions.
Business Segments
SWOT Analysis
- • API-enabled platform for digital transformation and finance automation(p.21)
- • Experienced management with strong industry background(p.38)
- • 100% FDI permitted under automatic route in IT sector(p.121)
- • Operating in emerging digital technologies sector with policy support(p.119)
- • Regulatory recognition and legal framework for software and IT services(p.119)
- • Multiple revenue streams from software products, SaaS, and services(p.185)
- • Strong profitability metrics with high EBITDA margin(p.186)
- • Rapid revenue growth recovery post-COVID(p.193)
- • Reliable customer relationships and end-to-end service capabilities(p.197)
- • Low financial debt burden(p.199)
- • Extreme customer concentration with top 10 customers representing 100% of revenues(p.28)
- • Losses incurred in recent fiscal years(p.37)
- • Negative cash flows from operations in prior periods(p.37)
- • Compliance lapses and filing deficiencies with RoC(p.37)
- • Significant working capital intensity and dependency(p.38)
- • Subsidiaries have incurred losses in prior years(p.38)
- • Restated financials prepared by non-statutory peer-reviewed auditor(p.31)
- • Litigation and legal proceedings pending against company, directors, and promoters(p.29)
- • Leased registered office without ownership(p.40)
- • Small scale with limited financial resources(p.164)
- • Contingent litigation exposure on investments(p.179)
- • High trade receivables concentration with collection risk(p.177)
- • Significant dependence on related party transactions and loans(p.170)
- • Significant dependence on few customers for revenue(p.198)
- • Pending GST litigation with significant demand notice(p.201)
- • Subsidiary litigation involving material investment loss(p.203)
- • Promoter tax demands pending(p.202)
- • Expanding digital transformation market with increasing cloud adoption(p.30)
- • Growing demand for API-enabled solutions and pre-built business logic(p.21)
- • International expansion potential with presence in United States market(p.31)
- • Strategic investments and business partnerships in deep tech solutions(p.33)
- • IT-BPM industry growth trajectory in India(p.21)
- • Data Centre sector growth with policy support for infrastructure(p.119)
- • Universal broadband and digital communications expansion(p.119)
- • Government push for emerging technology adoption(p.119)
- • Policy-driven removal of regulatory barriers to sector growth(p.119)
- • Expansion into AI, ML, RPA and emerging technologies(p.185)
- • Continued growth in SaaS and software-based startup ecosystem(p.193)
- • Digital transformation demand across enterprises(p.185)
- • Migration to main board post two-year listing requirement(p.226)
- • Intense competition from organized and unorganized players(p.39)
- • Rapid technological change and need for continuous innovation(p.30)
- • Foreign exchange volatility affecting revenues(p.35)
- • Evolving data privacy and regulatory compliance requirements(p.32)
- • Global economic uncertainty and market volatility(p.45)
- • Inflation and rising operational costs(p.48)
- • Cybersecurity and data breach risks(p.35)
- • Changing Indian labor and employment laws(p.47)
- • Macroeconomic downturn impacting customer demand(p.46)
- • Natural disasters and pandemics affecting operations(p.48)
- • Regulatory uncertainty from pending Personal Data Protection Bill(p.119)
- • E-waste regulatory compliance requirements and operational burden(p.120)
- • Complex multi-layered labour and employment law compliance(p.121)
- • State-level professional tax and regulatory variations(p.119)
- • Data Centre sector growth hampered by infrastructure and cost impediments(p.119)
- • Intense competition from organized and unorganized players(p.197)
- • General economic and market conditions impact(p.188)
- • Sensitivity to changes in interest rates and inflation(p.196)
- • Credit risk from customer non-payment(p.196)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Amit Vijay Jain | Promoter | 6.80% | 4.97% |
| Khushboo Jain | Promoter | 39.78% | 29.08% |
| Mihir Deepak Vora | Promoter | 2.50% | 1.83% |
| ZNL Startup Accelerator LLP | Promoter | 48.38% | 35.36% |
| Khushboo Jain | Promoter | 39.78% | 29.07% |
| Amit Vijay Jain | Promoter | 6.80% | 4.97% |
| Mihir Deepak Vora | Promoter | 2.50% | 1.83% |
| ZNL Startup Accelerator LLP | Promoter | 48.38% | 35.36% |
| Amit Vijay Jain | Promoter | 6.00% | — |
| Khushboo Jain | Promoter | 42.00% | — |
| Mihir Deepak Vora | Promoter | — | — |
| ZNL Startup Accelerator LLP | Promoter Group | 52.00% | — |
| Amit Vijay Jain | Promoter cum Managing Director | — | — |
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.