Systango Technologies IPO envisages to raise ₹34.82 Cr at a IPO price band of ₹85 – ₹90 with a market lot of 1600 shares. Systango Technologies is a Indore based company and will list on NSE SME platform. It is engaged in the business of providing software solutions that enables companies to design, implement and manage their own customized digital platforms including Web2, Web3 and mobile applications with strong emphasis on data and analytics.
IPO opens
02-Mar-23
IPO Closes
06-Mar-23
IPO Size (Rs.)
~ ₹34.82 Cr
IPO Size (shares) (100% fresh isue)
38,68,800
Face Value:
₹10
IPO Price in Rs :
₹85 – ₹90
Minimum Lot
1600
Listing At
NSE SME
QIB Quota
50% of Net Issue
NII Quota
15% of Net Issue
Retail Quota
35% of Net Issue
Lead Manager
Hem Securities
Registrar
Bigshare Services
Company was originally incorporated as “Bushcare Overseas Private Limited” on September 17, 2004.
Systango Technologies is engaged in the business of providing software solutions that enables companies to design, implement and manage their own customized digital platforms including Web2, Web3 and mobile applications with strong emphasis on data and analytics.
its range of software solutions include services like: website development, mobile app development (both for iOS and Android applications), web3 development, DeFi, data engineering, implementation of blockchain, cloud computing, digital marketing etc for companies across sectors such as Financial Services (FinTech), Hospitality, Fantasy Sports, PropertyTech etc.
Through its software solutions, it combines the functionality, flexibility and customization capabilities for customers with the lower costs, speed of implementation and other operational benefits of outsourcing.
Vinita Rathi and Nilesh Rathi are the promoters of the company.
Company has a diversified Client base:
Systango Technologies IPO: Financials
Particulars / Rs. Lacs
H1FY23
2022
2021
2020
Total Income
2137.91
3434.23
2421.18
1455.31
Profit/(loss) after tax
436.18
712.09
595.83
251.88
Share Capital
270
270
270
55
Net Worth
2223.55
1785.16
1073.07
476.81
Earnings per Share
4.04
6.59
5.52
2.33
Net Asset Value per Share (Based on Weighted
20.59
16.53
9.94
4.41
Average Number of Shares)
Total Borrowings (including current maturities of
–
21.5
21.5
–
long term borrowings)
Post issue Share Capital
1467.00
FV
10
IPO price
90
EPS FY22
4.85
PE Fy22
18.54
EPS Fy233 (ann)
5.95
PE Fy23 (ann)
15.13
Market cap in Lacs
13203
Market Cap/sales
3.09
Key Performance Indicators
Revenue from operations
2344.16
3482.82
EBITDA
763.84
970.98
EBITDA Margin
32.58%
27.88%
PAT
534.35
908.04
PAT Margin
22.79%
26.07%
Net Worth
2444.83
1996.13
RoCE(%)(8)
25.58%
51.55%
Salient Points
Post the IPO prompters shall be holding 71.96% of the share capital.
The company has diversified revenue from multiple geographies across the world with a major portion coming from exports.
Systango Technologies aims to utilize the net proceeds from the issue for strategic investment and acquisitions, investment in subsidiaries, working capital requirements and general corporate purposes, The company plans to spend INR 10 Crore on strategic investment and acquisitions and similar amount is panned to be invested in Subsidiaries.
Recently in FY 2020, it has incorporated a wholly owned subsidiary in US, Systango LLC. In FY22, Systango Technologies has acquired a company Isystango Ltd, UK.
Peers:
Name of the Company
FV
CMP rs.
Revenue (Cr)
Profit (Cr)
P/E
ebidta margin
Systango Technologies Limited
10
90
44
11
11.53
22.78%
InfoBeans Technologies Ltd
10
500
385
47
25.7
24.86%
Innovana Thinklabs Limited
10
699
52
12
35.2
44.53%
Ksolves India Ltd
10
439
68
22
23.7
42.44%
Company is headquartered in Special Economic Zone of Indore that allows it to avail tax benefits as per SEZ norms. Its operations are further facilitated through wholly owned subsidiary Companies i.e. Isystango Ltd. in UK and Systango LLC in USA.
Social media reports indicate a low GMP of about Rs. 30-32 on the issue price.
it provide services to customers in India and overseas such as USA, UK, Canada, Australia, Hongkong, Netherlands, Switzerland, South Africa, Qatar etc.
Systango Technologies top five customers for the six months period ended Sept.’22, F.Y. ended March 31, 2022 and March 31, 2021 accounted for 89.71%, 65.34% and 74.97% of revenue from operations for the respective year.
it has historically derived a significant portion of revenues from exports to the USA and UK. The revenue generated from exports to the USA and UK for the six months period ended Sept.’22, F.Y. ended March 31, 2022 and March 31, 2021 accounted for 87.33%, 82.67% and 81.86% of its revenue from operations for the respective
PE ratio is 18.5x (fy22 earnings) and 15.1x (fy23 annualized).
I have a positive view on Systango Technologies IPO. I intend to apply in Systango Technologies IPO.
SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
The lead manager Hem Securities has quite good record with most of the SME IPOs lead managed by them having listed with good gains.
Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in 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. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
