Sigma Solve SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2020 – 09 Oct 2020
- Listing date
- 19 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹4.95 Cr
- Promoter holding
- 100.00% → 73.24% pre-issue → post-issue
- ISIN
- INE0A0S01010
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Broking Ltd.
- Registered office
- 305-308, 3rd floor, Alpha Megacone House, Opp. Armieda,, Sindhu Bhavan Road, S G Highway,, 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 | 57,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹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 |
|---|
About Sigma Solve SME
Founded by first-generation promoters Prakash Ratilal Parikh and Kalpana Prakashbhai Parikh, the company was incorporated at Ahmedabad on April 29, 2010 as Sigma Solve IT Tech Private Limited to provide IT and IT-enabled services and to accelerate the business opportunities of Sigma Solve Inc., a Florida (USA)-based IT company originally floated as an LLC by the promoters' son-in-law and son. It was renamed Presha Software Private Limited (February 18, 2017), then Sigma Solve Private Limited (March 7, 2019), and converted to a public limited company as Sigma Solve Limited on June 17, 2019. On October 23, 2019 it acquired a 51.04% stake in Sigma Solve Inc. by investing ₹210.93 Lakhs, making it a subsidiary. Essentially all revenue comes from export of services: almost 100% of sales are booked by Sigma Solve Inc., to which Sigma bills monthly for providing execution facilities on a per man-hour basis linked to efficiency levels achieved, while occasionally serving clients directly. As of June 30, 2020 the company employed 103 people; FY2020 restated standalone revenue from operations was ₹553.92 Lakhs (consolidated ₹1,044.57 Lakhs) with profit after tax of ₹65.02 Lakhs standalone (₹151.09 Lakhs attributable to shareholders of the parent company on a consolidated basis).
Company Analysis
from RHPSigma Solve Limited is an Ahmedabad-based information technology company that, jointly with its Florida (USA)-based subsidiary Sigma Solve Inc., offers enterprise software development and turnkey IT consultancy spanning web & e-commerce development, real-time application development, business intelligence analytics, CRM development, digital marketing, UI & UX design, and automation testing & quality assurance.
Founded by first-generation promoters Prakash Ratilal Parikh and Kalpana Prakashbhai Parikh, the company was incorporated at Ahmedabad on April 29, 2010 as Sigma Solve IT Tech Private Limited to provide IT and IT-enabled services and to accelerate the business opportunities of Sigma Solve Inc., a Florida (USA)-based IT company originally floated as an LLC by the promoters' son-in-law and son. It was renamed Presha Software Private Limited (February 18, 2017), then Sigma Solve Private Limited (March 7, 2019), and converted to a public limited company as Sigma Solve Limited on June 17, 2019. On October 23, 2019 it acquired a 51.04% stake in Sigma Solve Inc. by investing ₹210.93 Lakhs, making it a subsidiary. Essentially all revenue comes from export of services: almost 100% of sales are booked by Sigma Solve Inc., to which Sigma bills monthly for providing execution facilities on a per man-hour basis linked to efficiency levels achieved, while occasionally serving clients directly. As of June 30, 2020 the company employed 103 people; FY2020 restated standalone revenue from operations was ₹553.92 Lakhs (consolidated ₹1,044.57 Lakhs) with profit after tax of ₹65.02 Lakhs standalone (₹151.09 Lakhs attributable to shareholders of the parent company on a consolidated basis).
Objects of the Issue
- Acquisitions and other strategic initiatives (acquisition/hiring of land/property for building a corporate house, hiring human resources including marketing or technical people in India or abroad, and strategic alliances with other body corporates) ₹ 230.00 Lakhs p.64
- Investment in subsidiary (subscription to equity shares of Sigma Solve Inc.) ₹ 70.00 Lakhs p.65
- General corporate purpose ₹ 120.00 Lakhs p.65
- Public issue expenses ₹ 75.45 Lakhs p.65
Issue Structure
- Total Issue
- 1101000 Equity Shares of face value ₹ 10 each at ₹ 45 per Equity Share aggregating to ₹ 495.45 Lakh
- Fresh Issue
- Entire issue is a fresh public issue of 1101000 Equity Shares aggregating to ₹ 495.45 Lakh
- Price Band
- Fixed Price Issue at ₹ 45 per Equity Share (including share premium of ₹ 35 per Equity Share)
- Face Value
- ₹ 10
Business Model
The company earns revenue almost entirely by billing its US subsidiary Sigma Solve Inc. on a monthly, per man-hour basis for software development and execution facilities delivered from its Ahmedabad operations, with charges tied to efficiency levels achieved; it occasionally serves end clients directly. All revenue is derived from export of services, with client payments channelized through Sigma Solve Inc., which has offices in Florida (USA), Atlanta and Australia.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Prakash Ratilal Parikh | Promoter | 28.41% | 20.80% |
| Mrs. Kalpana Prakashbhai Parikh | Promoter | 28.39% | 20.78% |
| Mrs. Daksha Harshad Zaverchand Laxmichand | Promoter Group | 43.19% | 31.63% |
| Mr. Rajulbhai Rajnikant Chokshi | Promoter Group | Negligible | Negligible |
| Mrs. Darshanaben Rajulbhai Chokshi | Promoter Group | Negligible | Negligible |
| Mrs. Pintu Nitin Patel | Promoter Group | Negligible | Negligible |
| Mr. Dipakkumar Navinchandra Choksi | Promoter Group | Negligible | Negligible |
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.