Varanium Cloud
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Sep 2022 – 20 Sep 2022
- Listing date
- 27 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹122 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹36.60 Cr
- Market cap at offer price
- ₹123 Cr
- Promoter holding
- 100.00% → 63.19% pre-issue → post-issue
- ISIN
- INE0JOO01021
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- Third Floor, Plot No.244-A RDP 2, CTS 1374/B, Vill, Versova SVP Nagar, Four Bungalows, 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 | 0 | — | — |
| Market maker | 4,86,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹122
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,22,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,44,000 |
| S-HNI (max) | 8 | 8,000 | ₹9,76,000 |
| B-HNI (min) | 9 | 9,000 | ₹10,98,000 |
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 (₹) | 23.81 | — |
| P/E (×) | 5.12 | — |
| Market cap | — | ₹123 Cr |
Key performance indicators
- Return on net worth
- 55.55%
- PAT margin
- 68.95%
- NAV per share
- ₹23.81
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Varanium Cloud
Varanium Cloud Limited (formerly Streamcast Cloud Private Limited) was incorporated on December 21, 2017, and converted to a public company on September 17, 2021. The company operates in digital content streaming, online payment facilitation, low-bandwidth education technology, and IT infrastructure services. It serves content owners, telecom operators, educational institutions, startups, and SMEs in India and internationally through SaaS and IaaS models. The company's key products include Edmission (phy-gital learning centers), JumpTalk (VoIP solutions), PayFac services, Hydra Web Solutions, and eCommerce as a Service. As of March 31, 2022, the company reported total revenues of ₹3,535.21 lakhs with a net profit of ₹840.19 lakhs.
Company Analysis
from RHPVaranium Cloud Limited is a fast-growing Indian technology company focused on providing digital audio, video, and financial blockchain-based streaming services across multiple verticals including VoIP, EdTech, PayFac, and IaaS.
Varanium Cloud Limited (formerly Streamcast Cloud Private Limited) was incorporated on December 21, 2017, and converted to a public company on September 17, 2021. The company operates in digital content streaming, online payment facilitation, low-bandwidth education technology, and IT infrastructure services. It serves content owners, telecom operators, educational institutions, startups, and SMEs in India and internationally through SaaS and IaaS models. The company's key products include Edmission (phy-gital learning centers), JumpTalk (VoIP solutions), PayFac services, Hydra Web Solutions, and eCommerce as a Service. As of March 31, 2022, the company reported total revenues of ₹3,535.21 lakhs with a net profit of ₹840.19 lakhs.
Objects of the Issue
- Setting up 3 Nos. Containerized Edge Data Centres ₹2,340.00 lakhs p.17
- Rollout of 3 Edmission flagship Digital Learning Centres ₹840.00 lakhs p.17
- General Corporate Purpose ₹859.00 lakhs p.17
- To meet Issue Expenses ₹314.00 lakhs p.17
- Setting up 3 Nos. Containerized Edge Data Centres ₹2,340.00 lakhs p.57
- Rollout of 3 Edmission flagship Digital Learning Centres ₹840.00 lakhs p.57
- General Corporate Purpose ₹859.00 lakhs p.57
- General corporate purposes ₹3660 lakhs total issue size (less market maker reservation of ₹592.92 lakhs = ₹3067.08 lakhs net issue) p.188
Issue Structure
- Total Issue
- ₹3,660 lakhs (30,00,000 Equity Shares at ₹122 per share)
- Fresh Issue
- 30,00,000 Equity Shares at ₹122 per share aggregating to ₹3,660 lakhs
- Offer for Sale
- N.A.
- Price Band
- ₹122 per Equity Share (Fixed Price Issue)
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue through Software-as-a-Service (SaaS) models for digital audio and video streaming to content owners and telecom operators in B2B and B2C segments; payment facilitation services (PayFac); low-bandwidth digital education content platforms for Tier 2 and rural areas; and Infrastructure-as-a-Service (IaaS) for IT-related services to startups and SMEs. Majority of revenue is from export of services, constituting 87.05% of revenues from operations in FY 2022.
Business Segments
SWOT Analysis
- • Fast-growing technology company with multiple revenue verticals(p.16)
- • Strong revenue growth trajectory from FY2020 to FY2022(p.17)
- • Profitability achieved with PAT of ₹840.19 lakhs in FY2022(p.17)
- • Significant revenue from export of services(p.21)
- • Promoter has long-standing experience in the business domain(p.23)
- • Multiple business verticals reducing dependence on single revenue stream(p.16)
- • Proprietary low-bandwidth streaming technology for underserved populations(p.91)
- • Own data center infrastructure reducing reliance on third-party providers(p.92)
- • Valuable user behavioral data and insights for product innovation(p.92)
- • Founder-led visionary management with long-term strategic focus(p.92)
- • High EBITDA margin and profitability improvement trajectory(p.91)
- • Experienced founder-led management with deep technology and PE background(p.121)
- • Proprietary patented narrowband streaming technology with global reach(p.121)
- • Operations across 7 countries serving telecom operators globally(p.121)
- • Strategic technology infrastructure with partnerships including Government of Malta(p.121)
- • Strong recent revenue and profitability growth(p.160)
- • Limited operational history compared to competitors(p.23)
- • Heavy dependence on few major clients(p.24)
- • High supplier concentration risk(p.24)
- • Outstanding statutory dues paid with delays in past(p.23)
- • Unregistered trademarks providing limited legal protection(p.29)
- • Dependence on leased premises with expiry risk(p.29)
- • Negative cash flow in FY2021 and capital intensive operations(p.22)
- • No long-term contracts with clients(p.21)
- • Highly concentrated revenue dependent on few B2B customers(p.91)
- • Very small employee base with limited organizational scale(p.97)
- • Early-stage company with limited operating history and track record(p.105)
- • No intellectual property ownership(p.98)
- • Sole promoter with concentrated ownership (87.80% pre-IPO)(p.109)
- • High concentration in top customers(p.164)
- • Over-reliance on top suppliers(p.164)
- • High promoter concentration with sole controlling shareholder(p.146)
- • Material conflicts of interest with group entities lacking non-compete agreements(p.122)
- • Significant trade payables burden(p.136)
- • Expansion of subscriber base across geographies(p.16)
- • Product diversification and service expansion(p.16)
- • India positioned as fastest-growing major economy(p.17)
- • Growing digital and EdTech market in Tier 2 and rural areas(p.16)
- • Infrastructure efficiency and differentiation opportunities(p.16)
- • Focus on growth and margin enhancement strategy(p.16)
- • Expansion into new geographies through co-location and new data centers(p.92)
- • Growth in India's EdTech sector with digital transformation tailwinds(p.83)
- • Rapid 5G deployment and edge computing infrastructure demand in India(p.79)
- • Government support for Digital India initiatives and digital infrastructure(p.84)
- • Expanding product portfolio to increase customer engagement and monetization(p.92)
- • Expansion into new geographies and products(p.158)
- • EdTech market expansion with Edmission brand targeting Tier 2 & rural areas(p.158)
- • Growth in online payment facilitation services (PayFac)(p.158)
- • Infrastructure as a Service (IaaS) growth for SMEs(p.158)
- • Underlying demand driven by Indian economic growth(p.159)
- • Significant foreign exchange exposure from export revenues(p.21)
- • Concentrated operations in Maharashtra region(p.21)
- • COVID-19 pandemic impact on operations(p.22)
- • Technology obsolescence and rapid industry changes(p.25)
- • Intense competition in the industry(p.21)
- • Changing regulatory environment including GST and data protection laws(p.30)
- • System failures and cybersecurity risks(p.26)
- • Data security and privacy compliance requirements(p.27)
- • Dependence on telecommunications and internet infrastructure(p.27)
- • Macroeconomic downturn risk affecting India market(p.30)
- • Competition from larger, better-capitalized players with greater brand presence(p.97)
- • Dependence on regulatory approvals and telecom operator partnerships(p.99)
- • Volatility in telecom sector revenues and customer concentration risk(p.76)
- • Data protection and privacy regulation compliance requirements(p.100)
- • Infrastructure limitations and weak digital connectivity in target rural markets(p.84)
- • Intense competition from better-resourced competitors(p.159)
- • Regulatory changes affecting business operations(p.159)
- • Dependence on adapting to technological changes(p.159)
- • Fluctuations in demand driven by external economic factors(p.159)
- • COVID-19 pandemic impact demonstrated operational vulnerability(p.159)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Harshawardhan Hanmant Sabale | Promoter | 87.80% | 55.48% |
| Varanium Networks Pvt. Ltd. | Promoter Group | 12.20% | 7.71% |
| Varanium Earth Pvt. Ltd. | Promoter Group | Negligible | Negligible |
| Varanium Lifestyle Pvt. Ltd. | Promoter Group | Negligible | Negligible |
| Harshawardhan Hanmant Sabale | Promoter | 79.08% | 55.48% |
| Varanium Networks Pvt. Ltd. | Promoter Group | 10.99% | 7.71% |
| Varanium Earth Pvt. Ltd. | Promoter Group | Negligible | Negligible |
| Varanium Lifestyle Pvt. Ltd. | Promoter Group | Negligible | Negligible |
| Harshawardhan Hanmant Sabale | Promoter/Managing Director | 87.80% | — |
| Varanium Networks Private Limited | Promoter Group Entity | 12.20% | — |
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.