Yudiz Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Aug 2023 – 08 Aug 2023
- Listing date
- 17 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹165 per share
- Lot size
- 800 shares
- Issue type
- Book Building issue
- Total issue size
- ₹44.84 Cr
- Market cap at offer price
- ₹170 Cr
- Promoter holding
- 100.00% → 73.66% pre-issue → post-issue
- ISIN
- INE09FA01019
- Registrar
- MAS Services Ltd.
- Lead managers
- Narnolia Financial Services Ltd.
- Registered office
- 13th Floor, Bsquare 2, Iscon-Ambli Road, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 7,60,000 | — | — |
| Market maker | 1,36,800 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹165
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,32,000 |
| S-HNI (min) | 2 | 1,600 | ₹2,64,000 |
| S-HNI (max) | 7 | 5,600 | ₹9,24,000 |
| B-HNI (min) | 8 | 6,400 | ₹10,56,000 |
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 (₹) | 7.47 | — |
| P/E (×) | 22.09 | — |
| Market cap | — | ₹170 Cr |
Key performance indicators
- Return on net worth
- 25.26%
- ROCE
- 14.02%
- PAT margin
- 10.03%
- NAV per share
- ₹14.32
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Yudiz Solutions
Yudiz Solutions Limited was incorporated in 2011 and is engaged in providing IT solutions and consultancy focused on scalable and secure solutions using latest technologies. The company has successfully executed several projects for clients in India and abroad. Its range of solutions and services includes web development, wearable device/IoT development, game development, and mobile application development. The company generates revenue from web development (65.76% in FY2023), game development (20.87%), mobile application (12.57%), and wearable/IoT device services (0.80%). The company derives significant revenue from international operations, with 65.18% of revenues from outside India in FY2023, particularly from North America (23.19%), Asia (22.61%), and Europe (17.12%). The company is transitioning into launching its own gaming platform and gaming studio as new business segments beyond its historical service-based model.
Company Analysis
from RHPYudiz Solutions Limited is an ISO 9001:2015 certified IT solutions and consultancy company providing scalable and secure solutions using cutting-edge technologies including blockchain, metaverse, AR/VR/MR, and AI/ML across web development, IoT, game development, and mobile applications.
Yudiz Solutions Limited was incorporated in 2011 and is engaged in providing IT solutions and consultancy focused on scalable and secure solutions using latest technologies. The company has successfully executed several projects for clients in India and abroad. Its range of solutions and services includes web development, wearable device/IoT development, game development, and mobile application development. The company generates revenue from web development (65.76% in FY2023), game development (20.87%), mobile application (12.57%), and wearable/IoT device services (0.80%). The company derives significant revenue from international operations, with 65.18% of revenues from outside India in FY2023, particularly from North America (23.19%), Asia (22.61%), and Europe (17.12%). The company is transitioning into launching its own gaming platform and gaming studio as new business segments beyond its historical service-based model.
Objects of the Issue
- Unidentified Acquisition (In India & Abroad) ₹615.54 lakhs p.24
- Development of New Product & Technology ₹615.54 lakhs p.24
- Networking & cabling ₹123.10 lakhs p.24
- Branding & Marketing Expenses ₹487.00 lakhs p.24
- Capital Expenditure ₹173.46 lakhs p.24
- Working Capital Requirement ₹1,057.61 lakhs p.24
- General Corporate Purposes ₹727.75 lakhs p.24
- Issue Expenses ₹684.04 lakhs p.24
- Unidentified Acquisition for Company (In India or Abroad) Rs. 615.54 lakhs p.90
- Development of New Product and Technology Rs. 615.54 lakhs p.90
- Networking and cabling for Company Rs. 123.10 lakhs p.90
- Branding & Marketing Expenses for the Company Rs. 487.00 lakhs p.90
- Capital Expenditure Requirement of Company Rs. 173.46 lakhs p.90
- Working Capital requirements of the Company Rs. 1,057.60 lakhs p.90
- General Corporate Purposes Rs. 727.75 lakhs p.90
- Issue Expenses Rs. 684.04 lakhs p.90
- Repayment of borrowings
- Funding capex for new infrastructure
- General corporate purposes
Issue Structure
- Total Issue
- 27,17,600 Equity Shares aggregating ₹4,484.04 lakhs
- Fresh Issue
- 27,17,600 Equity Shares of face value of ₹10/- each fully paid-up for cash at price of ₹165/- per Equity Share aggregating ₹4,484.04 lakhs
- Offer for Sale
- NIL
- Price Band
- Floor Price ₹162/- per Equity Share to Cap Price ₹165/- per Equity Share
- Lot Size
- 800 Equity Shares and in multiples of 800 Equity Shares thereafter
- Face Value
- ₹10/- each
Business Model
The company earns revenue by providing IT solutions and services including web development, game development, mobile application development, IoT solutions, quality assurance, hire on contract, white-label product development, consulting, DevOps, and support & maintenance. The company also develops and offers white-label products for mobiles, consoles, and websites. A significant portion of revenues (approximately 61.31% in FY2023) is deployed towards employee benefit expenses. The company charges 10-25% of total project cost as advance/upfront fees and generates intermediate invoices on a milestone basis.
Business Segments
SWOT Analysis
- • ISO certified company with established quality standards(p.23)
- • Diversified technology and service portfolio across multiple domains(p.23)
- • Established international presence with revenue from multiple geographies(p.32)
- • Profitable and debt-free financial position(p.47)
- • Strong revenue growth trajectory(p.25)
- • Strong revenue growth trajectory(p.106)
- • Robust EBITDA margin expansion(p.106)
- • Significant improvement in profitability(p.106)
- • Strong Return on Equity(p.106)
- • Excellent current ratio indicating liquidity(p.106)
- • Integrated business model with multiple revenue streams(p.103)
- • Seasoned management team with deep technical and industry expertise(p.147)
- • Integrated one-stop-shop business model across web, mobile, game, and IoT development(p.147)
- • Significantly low employee attrition rate versus IT industry benchmark(p.148)
- • ISO certifications in quality management and medical care standards(p.134)
- • Strong revenue growth and expanding EBITDA margins(p.143)
- • Strong revenue growth and profitability(p.255)
- • Solid cash position with low debt(p.254)
- • Profitable operations with improving margins(p.255)
- • Diverse group of subsidiary and associated entities(p.197)
- • Growing trade receivables indicating increased customer base(p.254)
- • Outstanding litigation against corporate promoter(p.29)
- • Significant contingent liabilities that could materialize(p.30)
- • First generation entrepreneurs with limited proven experience(p.30)
- • Dependence on leased premises with no ownership(p.30)
- • Negative cash flows from investing and financing activities(p.30)
- • Corporate Promoter with history of losses(p.34)
- • High employee benefit expenses consuming majority of revenue(p.38)
- • No formal IT audit and lack of comprehensive IT security measures(p.36)
- • Heavy dependence on employee costs(p.56)
- • Concentrated customer base risk(p.103)
- • Significant depreciation and amortization burden(p.56)
- • Declining operating cash flow despite profitability(p.57)
- • Heavy dependence on parent company Ability Games Limited for strategic direction and synergies(p.134)
- • Limited geographic footprint currently restricted to Ahmedabad offices(p.148)
- • Significant outsourcing of advanced animation, VFX, and 3D graphics work to third parties(p.148)
- • Limited support and maintenance services currently restricted to Indian Standard Time(p.148)
- • High employee benefit expenses relative to revenue(p.255)
- • Significant provision for employee gratuity obligations(p.254)
- • Losses in certain group entities(p.199)
- • Negative net worth in certain group companies(p.201)
- • Dependency on related party transactions(p.248)
- • Development of new gaming studio and gaming platform (YGS & YGP)(p.34)
- • Expansion through unidentified acquisitions and business combinations(p.31)
- • Market growth in AI services and blockchain development solutions(p.33)
- • Expansion of international operations into additional jurisdictions(p.32)
- • Branding and marketing to increase visibility and client acquisition(p.36)
- • Capital expenditure for IT infrastructure enhancement(p.24)
- • Expansion into new gaming products and platforms(p.91)
- • Strategic acquisition opportunities in IT sector(p.91)
- • Expansion of branding and marketing presence(p.96)
- • Growth in global IT and gaming markets(p.118)
- • Rising demand for gaming and metaverse solutions(p.122)
- • Strong Indian IT industry growth trajectory(p.126)
- • Commercialization of existing white-label products in fantasy sports, e-commerce, dating, food delivery and OTT platforms(p.148)
- • Launch of proprietary platforms in hyper casual gaming, fantasy sports and OTT with game publishing capability(p.148)
- • Rapid growth in Indian gaming industry with 507 million gamers and 25% CAGR in paying gamers(p.129)
- • Expanding AR/VR market with 30-35% CAGR expected to reach USD 11-14.5 billion by 2028(p.132)
- • Blockchain technology adoption expected to propel digital asset economy from $5 billion to $262 billion over 11 years(p.132)
- • Expansion into international markets via planned offices in Dubai, UK, Canada, and domestic expansion to Hyderabad, Indore, Bhubaneswar and Goa(p.148)
- • Establishment of in-house game studio to reduce outsourcing costs and improve profitability(p.148)
- • Expansion of international revenue(p.241)
- • Growth in software development services(p.241)
- • Portfolio diversification through group entities(p.197)
- • Strengthening market position through group synergies(p.197)
- • Monetization of digital and gaming platforms(p.198)
- • Global economic deceleration and financial instability(p.24)
- • International sanctions affecting global business operations(p.33)
- • Highly competitive IT services and software development market(p.42)
- • Currency fluctuation risks from international operations(p.32)
- • Dependence on limited number of top customers(p.37)
- • Rapidly evolving technology landscape requiring continuous innovation(p.36)
- • Client concentration and lack of long-term binding contracts(p.40)
- • COVID-19 and other pandemic risks(p.47)
- • Cyber security threats and data breach risks(p.31)
- • Regulatory changes and compliance requirements(p.49)
- • Global economic slowdown and recession risks(p.116)
- • Elevated global inflation pressures(p.114)
- • Tight global financial conditions and credit constraints(p.113)
- • Geopolitical tensions affecting global trade(p.115)
- • Slowing global trade growth(p.115)
- • Moderation in India's economic growth(p.125)
- • Intense and growing competition from domestic and international IT solutions companies(p.149)
- • Risk of client shifting work to other offshore destinations due to currency fluctuations and policy changes(p.149)
- • Challenge in retaining skilled technical staff in competitive IT labor market(p.149)
- • Regulatory uncertainty around online gaming and gambling legislation(p.128)
- • Potential sector-wide impact from evolving data protection and privacy regulations(p.156)
- • Regulatory and compliance risks in gaming and online platforms(p.241)
- • Foreign exchange volatility exposure(p.243)
- • Concentration risk in customer base(p.248)
- • Competition in software development and IT services(p.241)
- • Dependency on subsidiary performance(p.198)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharat Shamjibhai Patel | Individual Promoter | 10.66% | 7.85% |
| Chirag Rajendrakumar Leuva | Individual Promoter | 10.66% | 7.85% |
| Pratik Bhaskarbhai Patel | Individual Promoter | 10.66% | 7.85% |
| Ability Games Limited | Corporate Promoter | 68.02% | 50.12% |
| Bharat Shamjibhai Patel | Promoter | 10.66% | 7.85% |
| Chirag Rajendrakumar Leuva | Promoter | 10.66% | 7.85% |
| Pratik Bhaskarbhai Patel | Promoter | 10.66% | 7.85% |
| Ability Games Limited | Promoter | 68.02% | 50.12% |
| Alpaben Bharatbhai Patel | Promoter Group | Negligible | Negligible |
| Prachi Joshi | Promoter Group | Negligible | Negligible |
| Khushbu Pratik Bhaskarbhai Patel | Promoter Group | Negligible | Negligible |
| Bharat Shamjibhai Patel | Individual Promoter | 10.66% | — |
| Chirag Rajendrakumar Leuva | Individual Promoter | 10.66% | — |
| Pratik Bhaskarbhai Patel | Individual Promoter | 10.66% | — |
| Ability Games Limited | Corporate Promoter | 67.98% | — |
| Ability Games Limited | Promoter/Holding Company | 51.01% | — |
| Bharat Shamjibhai Patel | Promoter | 16.33% | — |
| Chirag Rajendrakumar Leuva | Promoter | 16.33% | — |
| Pratik Bhaskarbhai Patel | Promoter | 16.33% | — |
| Alpaben Bharatbhai Patel | Promoter | 0.01% | — |
| Ability Games Limited | Promoter | 51.01% | 68.03% |
| Bharat Shamjibhai Patel | Promoter | 16.33% | 10.66% |
| Chirag Rajendrakumar Leuva | Promoter | 16.33% | 10.66% |
| Pratik Bhaskarbhai Patel | Promoter | 16.33% | 10.66% |
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.