DelaPlex IPO is an issue of Rs 46.08 crores. The issue is a combination of fresh issue of Rs 34.56 crores and offer for sale of Rs 11.52 crores. DelaPlex Limited is a subsidiary of delaPlex INC., a U.S.-based enterprise. DelaPlex INC. which has a 51% stake in the company. The Company provides technology and software development solutions and consulting services to help clients achieve growth, revenue, and marketplace value.

About DelaPlex Ltd:

• Company was originally incorporated under the name “Quality Management Concepts Private Limited” in 2004.
• In 2019, 51.00% of the equity share capital of the Company was acquired by by delaPlex INC.
• DelaPlex Limited (DPL) is a subsidiary of DelaPlex INC., a U.S.- based enterprise, where DelaPlex INC. holds 51% of the company’s shares.
• Company is a technology and software development solution and consulting provider, helping client companies to achieve in deriving growth, revenue and marketplace value.
• Company has developed expertise and partnerships with various industry players that provide the latest technology, tools, and software development solutions.
• Company is a global technology partner in Supply Chain Consulting, Custom Software Development, Cloud Services, and Data Science.
• Company, offers various tech solutions encompassing software-defined data centers, integrated infrastructure, cloud technologies, DevOps, security solutions, data analytics, and artificial intelligence. Built for the channel partners and end users they create next-gen solutions to address IT problems.
• As of September 2023, they had 300 employees on its payroll.
• Mr. Nitin Sachdeva and Mr. Manish Iqbalchand Sachdeva, Ms. Preeti Sachdeva and Mr. Mark T River is are the current individual promoters of the company and delaPlex INC is the corporate promoter of Company.

Financials: DelaPlex Ltd

Anchors: DelaPlex IPO

DelaPlex IPO: Salient Points

• Post IPO the promoters will hold 73.66% of the equity share capital from almost 100% at present.
• Information Technology Market was valued at $519.61 Bn in 2022 and is expected to reach $1358.79 Bn by 2029, at a CAGR of 14.72% during the forecast period.
• Revenue Bifurcation on the basis of types of services provided by the company

• The company also has a presence in international markets by way of its foreign holding Company delaPlex INC and foreign Group Company Xperity LLC.
• They derive most of their business from USA as indicated in table below:

• 83% of its revenue is originating from its holding company (delaPlex INC) and a group entity, Xperity LLC.
• The company intends to explore and evaluate strategic acquisition and technology alliance opportunities to gain access to new clients and sectors, add new technology capabilities.
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• APAC (Asia Pacific) Advertisement, Sales and Marketing expenses towards enhancing the awareness in the region.
• FINANCIAL KPIs of Company:

• They offer services across industries and a diversified customer base majorly in the United States of America which include clients from Broadcasting, Petroleum, Retail, 3PL, WFM, QSRs, Hospitality, IT & ITES, Telecom etc.

• Peers

• DelaPlex is comprised of four separate, but complimentary business divisions supporting firms across a wide array of industries including supply chain, healthcare, retail, new media, broadcast, hospitality, and technology.
• Among others they have partnered with Blue Yonder  which is the world leader in digital supply chain transformations and omni-channel commerce fulfillment. 
• The delaPlex Store Execution Centre of Excellence (COE) is located across North America, UK and India. The CoE can provide skills across the entire range of activities that are part and parcel of running a Store Execution landscape. These skills include the following; : Governance and advisory, Process and change management, Migrations and upgrades, Reporting and analytics, Data validation and integration, API development, Core product and development of extensions, Application management and support services.
• The delaPlex Warehouse Management Centre of Excellence is based out of 4 locations in India. A team of 50+ associates are able to support a broad range of WMS activities. This covers areas including: Managing and resolving support tickets, Providing a customer application management support, Core product development skills, WMS extensions and enhancements, API’s and integrations, Testing including automated testing. 
• DelaPlex IPO is coming at a PE ratio of 13.6x(fy23 earnings) and 11.6x (fy24 annualized earnings).
• I intend to apply in DelaPlex IPO subject to availability of funds. Their financial performance has shown a steady growing trend.
• GMP as reported on social media has been Rs.125/-.
• hreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include Net Avenue Technologies Limited, Swashthik Plascon Limited, KK Shah Hospitals Limited, Marco Cables & Conductors Limited, Meson Valves India Limited, C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes LimitedS, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
• SME IPO are much more risky and volatile than mainboard IPOs.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.