Synoptics Technologies
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Jun 2023 – 05 Jul 2023
- Listing date
- 13 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹237 per share
- Lot size
- 600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹54.04 Cr
- Market cap at offer price
- ₹201 Cr
- Promoter holding
- 100.00% → 73.11% pre-issue → post-issue
- ISIN
- INE0BTR01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- 301, A-Wing, 3rd Floor, Interface 16, Mindspace, Malad (West), 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 | 1,14,000 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹237
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,42,200 |
| S-HNI (min) | 2 | 1,200 | ₹2,84,400 |
| S-HNI (max) | 7 | 4,200 | ₹9,95,400 |
| B-HNI (min) | 8 | 4,800 | ₹11,37,600 |
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 (₹) | 4.65 | — |
| P/E (×) | 50.97 | — |
| Market cap | — | ₹201 Cr |
Key performance indicators
- Return on net worth
- 19.48%
- ROCE
- 19.16%
- Debt / equity
- 0.82
- PAT margin
- 8.48%
- NAV per share
- ₹26.81
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Synoptics Technologies
Synoptics Technologies Limited, incorporated on October 15, 2008, and converted to a public company in 2018, is an IT Services company offering solutions in IT Infrastructure connectivity, network equipment supply and implementation, cloud application migration and management, IT security solutions including firewall installation and management, and data centre design and optimization. The company operates across India with 584 employees and serves B2B customers including government entities, PSUs, and private enterprises. The company aims to reduce Total Cost of Ownership (TCO) and increase Return on Investment (RoI) for customers adopting Digital Transformation. Total revenues for FY 2022, FY 2021, and FY 2020 were Rs. 5,097.07 Lakhs, Rs. 3,479.91 Lakhs, and Rs. 2,211.43 Lakhs respectively, with profit after tax of Rs. 432.36 Lakhs, Rs. 236.02 Lakhs, and Rs. 182.06 Lakhs in the same periods.
Company Analysis
from RHPSynoptics Technologies Limited is an IT Infrastructure Services company providing managed IT solutions, cloud infrastructure, IT security, and data centre solutions to enterprise, small businesses, and government customers across India.
Synoptics Technologies Limited, incorporated on October 15, 2008, and converted to a public company in 2018, is an IT Services company offering solutions in IT Infrastructure connectivity, network equipment supply and implementation, cloud application migration and management, IT security solutions including firewall installation and management, and data centre design and optimization. The company operates across India with 584 employees and serves B2B customers including government entities, PSUs, and private enterprises. The company aims to reduce Total Cost of Ownership (TCO) and increase Return on Investment (RoI) for customers adopting Digital Transformation. Total revenues for FY 2022, FY 2021, and FY 2020 were Rs. 5,097.07 Lakhs, Rs. 3,479.91 Lakhs, and Rs. 2,211.43 Lakhs respectively, with profit after tax of Rs. 432.36 Lakhs, Rs. 236.02 Lakhs, and Rs. 182.06 Lakhs in the same periods.
Objects of the Issue
- Repayment of certain Borrowings Rs. 500.00 Lakhs p.20
- To meet the Working Capital requirements Rs. 1,757.60 Lakhs p.20
- Investment in Strategic Acquisition / Joint Venture Rs. 530.00 Lakhs p.20
- General Corporate Purpose Rs. 670.00 Lakhs p.20
- To meet the expenses of the Issue Rs. 50.00 Lakhs p.20
- Repayment of certain Borrowings Rs. 500.00 lakhs p.69
- Funding additional Working capital requirements Rs. 1,757.60 lakhs p.71
- Investment in Strategic Acquisition / Joint Venture Rs. 530.00 lakhs p.72
- General Corporate Purposes Rs. 670.00 lakhs p.72
- Repayment or prepayment, in full or in part, of certain borrowings availed by the Company ₹ 500.00 lakhs
- Funding capital expenditure for setting up of new office premises and upgradation of existing infrastructure ₹ 1000.00 lakhs
- Funding working capital requirements of the Company ₹ 1207.60 lakhs
- General corporate purposes ₹ 800.00 lakhs
Issue Structure
- Total Issue
- Rs. 5,403.60 Lakhs (22,80,000 Equity Shares)
- Fresh Issue
- Rs. 3,507.60 Lakhs (14,80,000 Equity Shares)
- Offer for Sale
- Rs. 1,896.00 Lakhs (8,00,000 Equity Shares by Mr. Jagmohan Manilal Shah and Mr. Jatin Jagmohan Shah)
- Price Band
- Rs. 237.00 per Equity Share (fixed price issue)
- Lot Size
- 600 Equity Shares (market lot); multiples of 600 thereafter
- Face Value
- Rs. 10.00 per Equity Share
Business Model
The company earns revenue primarily through Managed IT Services and Solutions business (95.02% of revenue in 9 months ending December 31, 2022), which includes providing IT infrastructure solutions, connectivity services, network equipment supply and implementation, cloud migration services, IT security solutions, and data centre design and optimization. The company derives revenues from both service delivery and traded goods (IT equipment such as switches, routers, wireless devices, and security devices).
Business Segments
SWOT Analysis
- • Diverse IT solutions portfolio serving enterprise and government clients(p.19)
- • Strong revenue growth trajectory with expanding profitability(p.19)
- • Pan-India operational footprint with 17 regional offices(p.19)
- • Established client base including government entities and large corporations(p.19)
- • Recent partnership with BSNL for Private LTE/Private 5G services(p.19)
- • Integrated IT solutions with pan-India on-site support(p.105)
- • Strong geographic footprint with 17 regional offices(p.100)
- • Experienced management with 20+ years in IT industry(p.105)
- • Strong financial performance with revenue growth(p.105)
- • ISO certifications for quality services(p.106)
- • Large technically-qualified workforce(p.106)
- • Strategic alliances with leading technology vendors(p.107)
- • Diversified customer base across sectors(p.100)
- • Established presence in IT networking and managed services with awards from major vendors(p.119)
- • Consolidated revenue generation across equipment sales and managed services(p.154)
- • Profitable operations with consistent profit before tax growth(p.154)
- • Strong promoter ownership and commitment with 98% promoter shareholding(p.136)
- • Established IT services company with 584-member team across 17 Indian locations(p.196)
- • Prestigious customer base including government entities, PSUs and large private enterprises(p.196)
- • Strategic partnership as authorized BSNL Private LTE/5G service partner nationwide(p.196)
- • Strong financial growth with PAT increasing 83.18% from FY2021 to FY2022(p.201)
- • Improving profitability with net profit ratio of 8.48% in FY2022(p.199)
- • ISO certifications demonstrating quality and security standards(p.214)
- • Heavy dependence on small customer base for revenue(p.28)
- • High debt levels and restrictive financing covenants(p.31)
- • Significant working capital requirements with high inventory and receivables(p.27)
- • Delayed compliance with statutory provisions under Companies Act(p.36)
- • Concentration of business in Western India particularly Maharashtra and Gujarat(p.34)
- • Pending litigation matters involving the company, promoters and directors(p.24)
- • High financial indebtedness with outstanding borrowings(p.69)
- • Significant dependence on few large customers(p.100)
- • Working capital intensive business model(p.70)
- • Significant accumulated long-term and short-term debt obligations(p.153)
- • Concentrated customer base with large receivables from few clients(p.153)
- • Reliance on personal guarantees from promoters for bank facilities(p.140)
- • No formal dividend policy and no dividend history(p.148)
- • Limited independent non-executive board representation with recent director appointments(p.122)
- • Significant dependence on top customers with top 5 customers representing 67.08% of revenue(p.204)
- • High operating leverage with employee benefit expenses at 34.78% of total income(p.198)
- • Substantial debt obligations with total borrowings of Rs. 1,959.06 lakhs as of December 31, 2022(p.205)
- • Relatively small scale with post-issue paid-up capital of Rs. 8.48 crores(p.217)
- • Pending litigation related to preferential/undervalued transactions under Insolvency Code(p.207)
- • Outstanding tax disputes totaling Rs. 1.25 crore across direct and indirect taxation(p.207)
- • High growth IT infrastructure services market in India(p.19)
- • Massive digital transformation opportunity driven by Cloud adoption(p.19)
- • Growing skilled IT workforce in India(p.19)
- • Strategic expansion through acquisitions and joint ventures(p.29)
- • Expansion of geographic presence and customer base(p.27)
- • Expansion into growing managed IT services market(p.91)
- • Strategic acquisition and joint ventures(p.72)
- • Growing cloud computing and modernization services market(p.95)
- • Expansion of managed security services(p.92)
- • India cloud computing market growth(p.94)
- • Emerging private LTE and 5G opportunities(p.100)
- • Growing SME adoption of IT services(p.94)
- • Digital transformation initiatives across sectors(p.100)
- • Expansion of managed services and VNO offerings through subsidiary(p.156)
- • Growth in international revenue streams already commenced(p.181)
- • Expansion of technology solutions across vertical markets(p.119)
- • Infrastructure development through capital work-in-progress projects(p.153)
- • Expansion of managed IT and enterprise solutions business segments(p.196)
- • Growth in digital transformation services with technology-led approach(p.196)
- • Expansion through regional office network currently covering 17 Indian states(p.196)
- • Entry into private LTE/5G market through BSNL authorization nationwide(p.196)
- • Total Cost of Ownership reduction and ROI improvement focus attracts government and PSU clients(p.196)
- • Intense competition from larger established IT service providers(p.35)
- • Rapid technological change and risk of obsolescence(p.35)
- • Supply chain volatility and equipment price fluctuations(p.26)
- • Currency exchange rate fluctuations affecting export revenue(p.36)
- • Macroeconomic downturn and market volatility risks(p.42)
- • Regulatory and compliance framework changes(p.41)
- • Natural disasters and pandemic risks affecting operations(p.43)
- • Intense competition in IT services market(p.107)
- • Competition from global IT service providers(p.107)
- • Cybersecurity risks and data breach threats(p.98)
- • Cloud security and cyber attack risks(p.94)
- • Regulatory and compliance requirements(p.111)
- • Technology and market evolution risks(p.68)
- • Rising interest rates and finance costs impacting profitability(p.154)
- • Significant employee cost burden representing major operating expense(p.154)
- • Exposure to collection risk from trade receivables with ageing patterns(p.179)
- • Foreign currency transaction exposure(p.161)
- • Regulatory compliance requirements across multiple tax and labour laws(p.114)
- • Intense competition in IT infrastructure and services sector(p.204)
- • Dependence on government projects and regulatory policies affecting IT sector(p.197)
- • Foreign currency fluctuation risks from export activities(p.197)
- • Economic sensitivity and IT sector cyclicality affecting demand(p.197)
- • Talent retention challenges and need for specialized skilled engineers(p.203)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jatin Jagmohan Shah | Promoter | 92.00% | 67.69% |
| Mr. Jagmohan Manilal Shah | Promoter | 4.00% | 2.12% |
| Mrs. Janvi Jatin Shah | Promoter | 2.00% | 1.65% |
| Mr. Jatin Jagmohan Shah | Promoter | 92.00% | 67.69% |
| Mr. Jagmohan Manilal Shah | Promoter | 4.00% | 2.12% |
| Mrs. Janvi Jatin Shah | Promoter | 2.00% | 1.65% |
| Miss. Navya Shah | Promoter Group | 2.00% | 1.65% |
| Mr. Jagmohan Manilal Shah | Promoter | 4.00% | — |
| Mr. Jatin Jagmohan Shah | Promoter | 92.00% | — |
| Mrs. Janvi Jatin Shah | Promoter | 2.00% | — |
| Mr. Jatin Jagmohan Shah | Promoter/Selling Shareholder | — | — |
| Mr. Jagmohan Manilal Shah | Promoter/Selling Shareholder | — | — |
| Jatin Jagmohan Shah | Promoter/Managing Director | — | — |
| Jagmohan Manilal Shah | Promoter/Executive 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.