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 opens
June 05, 2024
IPO Closes
June 07,2024
IPO Size (Rs.)
₹21.78 Cr
IPO Size (shares)
1,800,000 shares
Breakup
Fresh issue only
Face Value:
₹10
IPO Price in Rs :
₹121 per share
Minimum Lot
1000 Shares
Listing At
BSE SME
NII Quota
~50%
Retail Quota
~50%
Lead Manager
Isk Advisors Pvt Ltd
Registrar
Bigshare
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 Lacs
9m Dec 2023
2022-23
2021-22
2020-21
Total Revenue
3,035.88
3,775.65
2,348.69
2,120.23
Profit After Tax
250.71
400.12
214.13
193.83
Share Capital
500
1
1
1
Reserves & Surplus
946.96
1,193.02
775.51
556.12
Net-Worth
1446.96
1194.02
776.51
557.12
EPS Basic & Diluted
5.01
8
4.28
3.88
Net Asset Value
28.94
23.88
15.53
11.14
Total Borrowings
-Long Term
17.62
0.21
2.59
4.76
-Short Term
367.15
194.34
233.29
39.78
Post issue Share Capital
680
FV
10.0
IPO price
121.0
EPS Fy23
5.9
PE Fy23
20.6
EPS Fy24 (annualized)
4.9
PE Fy24 (annualized)
24.6
Market cap in Lacs
8,228
Market cap / Sales
2.18
Sattrix IPO: Salient Points
The fund requirements for each of the Object of the Issue are stated as below:
Sr.No.
Particulars
Amount
% of NetProceeds
1
Capital 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%
2
Business Expansion Cost: (a) Development of New Product & Technology
756.00
38.18%
(b) Other business expansion cost
212.00
10.71%
3
Additional Working Capital Requirement
250.00
12.63%
4
General Corporate Purpose
292.00
14.74%
Net Proceeds – Total
1980.00
100.00%
Details of Revenue earned from India, UAE and USA
Revenue
31.12.2023
31.03.2023
31.03.2022
31.03.2021
INDIA
2846.43
3147.18
1907.34
1802.87
USA
41.43
271.42
186.48
125.44
UAE
148.02
240.66
199.75
183.49
Total
3035.88
3659.26
2293.57
2111.81
Peers:
Company/ FY23 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RoNW(%)
Sattrix Information Security
121
36.59
8.63
23.6%
20.6(24.6)
2.18
40.61
Systango Technologies
241
52.34
14.00
26.7%
20.9
6.25
22.7
Dev Information
113
124.16
1.71
1.4%
27.4
1.55
21.71
TAC Infosec
455
10.00
5.07
50.7%
75.3
41
66.05
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.
