The initial public offering of SA Tech Software India Limited opened for subscription on July 26 and will be accepted till July 30. The bookbuilt issue involves a fresh issue of 3.9 million shares. The SME’s IPO was subscribed 15.37 times on the first day and 101.92 times on the second day. On the last day of bidding, SA Tech Software India Limited’s issue received an overwhelming response from investors as it was oversubscribed by more than 550 times the number of shares offered.
As of 3:27 p.m. Tuesday, the IPO was oversubscribed 555.38 times.
Anchor investor: 1 time
Non-institutional investors: 1,067.39
Individual investors: 565.33 times
Certification bodies: 153.26 times
The price band for the IPO has been set at Rs 56 to Rs 59 per share. Investors wanting to participate can apply for a minimum lot of 2,000 shares and retail investors will need to invest a minimum of Rs 118,000. For high net worth individuals, the minimum investment is two lots, or 4,000 shares, totalling Rs 236,000. The IPO allotment will be finalised by July 31 and the shares are tentatively scheduled to be listed on the NSE SME platform on August 2.
A total of 3,900,000 shares are being offered in the SA Tech Software India IPO, of which 18.56% will be reserved for QIBs, 13.95% for NIIs, 32.46% for retail investors and 27.74% for anchor investors.
The bookrunning lead manager for the IPO is GYR Capital Advisors Private Limited while Bigshare Services Pvt Ltd is acting as the registrar for the issue. The market maker for the SA Tech Software IPO is Giriraj Stock Broking.
Founded in 2012, SA Tech Software India Limited operates as an IT consulting subsidiary of US-based SA Technologies Inc. The company specializes in a wide range of technology services including application development, mobile app development, cloud infrastructure, software quality assurance, generative AI, machine learning, IoT solutions, data science and other emerging technologies.
SA Tech Software’s services cater to Fortune 500 clients and focus on enhancing product conceptualization, design, development and delivery. The company’s portfolio includes Artificial Intelligence & Machine Learning, Data Science & Analytics, Software Development, Digital Transformation, Cloud & DevOps Services, and Quality Assurance & Testing.
The net proceeds from the IPO will be used for several primary purposes. Primarily, the proceeds will be used to strengthen the working capital requirements of the Company. Additionally, the proceeds from the IPO will support expansion efforts and the enhancement of technological capabilities. The proceeds will also be used for general corporate purposes, including strategic investments and operational expansion.
SA Tech Software India Ltd has demonstrated some financial growth, reporting a 27.59% increase in revenue for the financial year ending March 31, 2024, compared to the previous fiscal year. Notably, the company’s Profit After Tax (PAT) grew by a staggering 266.7%.
