Sattrix IPO (SME) Overview

Sattrix Information Security Limited develops customer-oriented cyber security solutions. The company designs and builds data security solutions in the cloud and on-premise based on the client’s requirements. Sattrix IPO intends to raise Rs 21.78 crores. The issue is entirely a fresh issue of 18 lakh shares.

IPO opensJune 05, 2024
IPO ClosesJune 07,2024
IPO Size (Rs.)₹21.78 Cr
IPO Size (shares)1,800,000 shares
BreakupFresh issue only
Face Value:₹10
IPO Price in Rs :₹121 per share
Minimum Lot1000 Shares
Listing AtBSE SME
NII Quota~50%
Retail Quota~50%
 Lead ManagerIsk Advisors Pvt Ltd
Market maker Sunflower Broking

About Sattrix Information Security Limited:

  • Sattrix Information Security Limited was founded in 2013 and develops customer-oriented cyber security solutions.
  • The company designs and builds data security solutions in the cloud and on-premise based on the client’s requirements.
  • Sattrix Information Security Limited is in the business to develop customer-centric cybersecurity solutions to protect customers from cyber-attacks.
  • The company offers Managed Security Services, Assessments & Advisory, and Professional Services tailored to customer’s needs.
  • The expert team of the company provides monitoring, proactive threat detection, and rapid response.
  • From vulnerability assessments to incident response, the company has niche services offerings in cyber security domain. The company’s objective is to safeguard customer’s organization against evolving cyber threats. Sattrix aim to deliver end-to-end cybersecurity services to enterprises in India, Middle East (UAE) and USA region.
  • Company is promoted by Mr. Sachhin Kishorbhai Gajjaer and Mrs. Ronak Sachin Gajjar

Financials: Sattrix Information Security Limited

Particulars/ Rs Lacs9m Dec 20232022-232021-222020-21
Total Revenue3,035.883,775.652,348.692,120.23
Profit After Tax250.71400.12214.13193.83
Share Capital500111
Reserves & Surplus946.961,193.02775.51556.12
EPS Basic & Diluted5.0184.283.88
Net Asset Value28.9423.8815.5311.14
Total Borrowings    
-Long Term17.620.212.594.76
-Short Term367.15194.34233.2939.78
Post issue Share Capital680
IPO price121.0
EPS Fy235.9
PE Fy2320.6
EPS Fy24 (annualized)4.9
PE Fy24  (annualized)24.6
Market cap in Lacs8,228
Market cap / Sales2.18

Sattrix IPO: Salient Points

  • The fund requirements for each of the Object of the Issue are stated as below:
Sr. No.ParticularsAmount%   of  Net Proceeds
  1Capital Expenditure: (a)  To   meet  out  expenses  for  Purchasing   Furniture,   Fixture   &   Air Conditioning for new office at Ahmedabad  252.00  12.73%
 (b) To purchase and installation of IT equipment, computer hardware, server, SAN storage, CCTV cameras, video conferencing equipment, networking (LAN) and other equipments  218.00  11.01%
2Business Expansion Cost: (a)  Development of New Product & Technology756.00  38.18%
 (b) Other business expansion cost212.0010.71%
3Additional Working Capital Requirement250.0012.63%
4General Corporate Purpose292.0014.74%
Net Proceeds – Total1980.00100.00%
  • Details of Revenue earned from India, UAE and USA
Revenue 31.12.202331.03.202331.03.202231.03.2021
  • Peers:
Company/ FY23 figuresCMP Rs.Revenue Rs. CrNet Profit Rs. CrNPM (%)PEMacp/salesRoNW(%)
Sattrix Information Security12136.598.6323.6%20.6(24.6)2.1840.61
Systango Technologies24152.3414.0026.7%20.96.2522.7
Dev Information113124.161.711.4%27.41.5521.71
TAC Infosec45510.005.0750.7%75.34166.05
  • Sattrix has successfully completed over 500 projects for 200 clients spanning 12 countries, underscoring its ability to deliver comprehensive solutions.
  • Company has a focus to increase exports after expansion
  • Sattrix Information Security Limited’s revenue increased by 60% and profit after tax was up by 87% between the financial year ending with March 2023 and March 2022.
  • Sattrix IPO is coming at a PE ratio of 20.6x (fy23 earnings) and 24.6x (Fy24 annualized earning).However annualizing in this case is not appropriate as business is seasonal in nature. sales during the first half (i.e., between the months of April and September) are significantly greater than our sales during the second half.
  • Iam likely to apply in Sattrix IPO based on response on Day3 even as it is bit risky. Though it is not of same pedigree but earlier TAC Info systems SME which was backed by an ace investor has fared quite well on the bourses. There is an element of risk as situation on political front is not fully clear and company has a limited track record and valuations are not cheap.
  • GMP as per Social media is around Rs. 10. It may be noted that such rates are perhaps in thin deals and may not be even indicative.
  • Isk Advisors are the lead book running manager with few issues handled but mostly these issues have fared well on the bourses.They have managed SME IPOs like Vishwas Agri, Sadhav Shipping Limited,Magson Retail And Distribution Limited,Sealmatic India Limited, Technopack Polymers Limited, Maruti Interior Products Limited IPO, Advait Infratech Limited.
  • Sunflower Broking Private Limited is the Market Maker. They have been market makers for many SME IPOs like Sadhav Shipping, Kalahridhaan Trendz, Vinsys IT Services , Shri Techtex, Ahasolar Technologies,Pentagon Rubber,Magson, Remus Pharmaceuticals,zSotac Pharmaceuticals, Patron Exim, Sealmatic India, Transvoy Logistics India, DHARNI Capital Services, RBM Infracon , Aristo Bio-Tech and Lifescience, Vital Chemtech 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. These certifications are for 3 year period and are no more valid. 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/IPO investments have high degree of inherent risk.

Leave a Reply