SA Tech Software India Limited (SAT) is preparing to launch its Initial Public Offering (IPO), an exciting opportunity for investors in the IT sector.
Here’s a detailed overview of the IPO, including dates, pricing, company background, and financials, tailored for those keen on investing in this emerging player.
Company Overview
SA Tech Software India Limited, a subsidiary of SA Technologies Inc. USA, has established itself as a prominent IT consulting firm with a dual base in Pune and Bengaluru.
The company has a rich history of over a decade, serving a diverse clientele both domestically and internationally.
Leveraging its global presence, SA Tech Software offers a range of digital solutions and products, including application and mobile app development, cloud infrastructure, software quality assurance, and cutting-edge technologies like generative AI, machine learning, IoT solutions, and data science analytics.
The company’s unique onshore-offshore service delivery model allows it to efficiently meet the complex and rapidly changing needs of its clients, ensuring timely and innovative solutions.
SA Tech Software IPO Details
IPO Opening Date: July 26, 2024
IPO Closing Date: July 30, 2024
IPO Size: Approximately ₹23.01 Crores (3,900,000 Equity Shares)
Face Value: ₹10 per Equity Share
Price Band: ₹56 to ₹59 per Equity Share
Listing: NSE SME
The IPO aims to raise around ₹23.01 crores, offering 3,900,000 equity shares. The price band is set between ₹56 and ₹59 per share, with a minimum market lot of 2000 shares.
The company’s shares will be listed on the NSE SME platform, making it accessible to a broader investor base.
Market Lot and Investment Details
Investors can apply for a minimum of 2000 shares per lot, which translates to an initial investment of ₹118,000. Here’s a breakdown:
- Retail Investors:
- Minimum: 1 lot (2000 shares) – ₹118,000
- Maximum: 1 lot (2000 shares) – ₹118,000
- S-HNI Investors:
- Minimum: 2 lots (4000 shares) – ₹236,000
Important Dates for SA Tech Software IPO
- IPO Opening Date: July 26, 2024
- IPO Closing Date: July 30, 2024
- Basis of Allotment: July 31, 2024
- Refunds Initiation: August 1, 2024
- Credit to Demat Accounts: August 1, 2024
- Listing Date: August 2, 2024
These dates are crucial for investors to keep in mind, ensuring they don’t miss out on any part of the investment process, from application to receiving shares in their demat accounts.
Financial Performance
The financial health of a company is a key factor for potential investors. Here’s a snapshot of SA Tech Software’s financial performance over the past three years:
| Year | Revenue (₹ in Crores) | Expense (₹ in Crores) | PAT (₹ in Crores) |
|---|---|---|---|
| 2022 | 41.54 | 48.45 | 5.48 |
| 2023 | 56.73 | 54.99 | 1.09 |
| 2024 | 72.38 | 67.13 | 3.69 |
| June 2024* | 23.97 | 20.64 | 2.48 |
*Note: The figures for June 2024 represent a partial fiscal year.
Company Strategy and Growth Potential
SA Tech Software has consistently expanded its service offerings and market reach, leveraging its expertise in various IT domains.
The company’s focus on emerging technologies, such as AI and IoT, positions it well for future growth, especially as businesses worldwide increasingly adopt digital transformation initiatives.
The company’s strategic partnership with its parent company, SA Technologies Inc., USA, provides access to a broader client base and technological expertise, further enhancing its capabilities and market presence.
This partnership is a significant asset, enabling the company to offer innovative solutions and cater to the evolving needs of its clients.
Investment Considerations
Investing in an IPO like SA Tech Software offers both opportunities and risks. The company’s strong track record, diverse service portfolio, and focus on emerging technologies are positive indicators.
However, investors should consider the broader market conditions, the competitive landscape, and the inherent risks associated with investing in a relatively young and dynamic industry.
Potential investors should also be mindful of the company’s financial performance, especially the fluctuations in PAT over the past few years.
While the revenue has shown a steady increase, the profit margins have varied, reflecting the challenges and investments required to sustain growth in a competitive market.
Conclusion
SA Tech Software’s IPO presents an intriguing opportunity for investors looking to tap into the IT sector’s growth potential.
The company’s strong foundation, innovative service offerings, and strategic partnerships position it well for future success.
However, as with any investment, potential investors should conduct thorough research and consider their risk tolerance before participating in the IPO.
This comprehensive guide aims to provide all the essential details about the SA Tech Software IPO, helping investors make informed decisions.
Keep an eye on the important dates and stay updated with the latest information to make the most of this investment opportunity.