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Tridhya Tech IPO comprises fresh issue of 6288000 equity shares of Rs. 10 each in the price band of Rs. 35 – Rs. 42 per share. With this, The company shall be mobilizing Rs. 26.41 cr. at the upper price bad. The minimum application to be made is for 3000 shares The shares will be listed on NSE SME Emerge. Tridhya Tech is a Ahmedabad based full-service software development company focused on delivering solutions for Web & Mobile Applications, AI & IoT to clients globally

About Tridhya Tech Limited:

• Company is engaged in full-service Software Development which includes all IT services and resources. We provide turnkey consultancy services to various industries like e-commerce, Real estate, transport and Logistics, Insurance and other sectors. We provide services related to ecommerce development, Enterprise content Management, Bespoke Web Management, Mobile App, Development, API Development, Product Support & Maintenance, Front End Development and Graphic design.
• It provides customised software products, which starts from the initial concept of the product requirement, designing the architecture, coding and testing, deploying to the final deployment of the product. We also provide post deployment support on time to time basis to our clients. We also provide project management, consultation services, maintenance and support services to ensure the successful completion of the project and longevity of the software. This helps to ensure that the software is properly developed and deployed, meeting the expectations of the client.

• The Company had adopted an inorganic growth strategy for the growth of the business.

• In the Month of January 2022, the Company acquired Concentric IT Services Private Limited (Concentric), software development company by acquiring 100 % equity. In the month of December 2022, the Company had acquired Basilroot Technologies Private Limited (BTPL), and also Vedity Software Private Limited (Vedity) software development companies by acquiring 100% equity. The Concentric, BTPL and Vedity have staff strength of 21, 5 and 23 employees respectively.
• Tridhya has strong presence in international market i.e., Australia, Canada, Estonia, France, Germany, Israel, Italy, Japan, Mauritius, Netherlands, Qatar, Singapore, Switzerland, UAE, UK, USA. In domestic market our customer is based on Maharashtra, Gujarat, Punjab, Telangana and Karnataka

Tridhya Tech IPO: Financials

Anchor Investors

Tridhya Tech IPO: Salient Points

• Promoters holding is ~80.5% at present and shall get diluted to ~59.5% post the IPO.
• It had recently acquired Concentric IT Services Private Limited, Basic Root Technologies Private Limited, and Vedity Software Private Limited.
• ContCentric is a leading digital experience platform implementation organization providing solutions in various verticals like energy, manufacturing, financial services, automotive, car leasing and car rentals. 

• Company has reported big jump in earnings with margins of ~35% for FY22 & 9m ended FY23.
• Company proposes to utilize the Net Proceeds from the issue towards Repayment of unsecured and secured loans, General Corporate Purpose,
• The listed peers mentioned by the company in RHP are Dev Info, Silver Touch and InfoBeans Tech. All these are much bigger companies.

• ICIC Bank, Yes Bank Limited have sanctioned Mortgage loan to the company.
• I has obtained term loans from Kotak Mahindra Ban, Yes Bank and Ratnnafin Capital private Limited.
• It has also taken unsecured loans from L&T Finance Limited, HDFC Bank, Axis Bank, Aditya Birla Finance Ltd, Cholamandalam Investment and Finance Ltd, UGRO Capital Limited, Tata Capital etc.
• Company in the past did not file the GST returns in due time and also delayed in payment of Provident Fund payments.
• Its PE ratio is 15x (fy23 earnings annualized), 264x (FY22 earnings). Such quantum jump in earning in 9m, FY23 raises some eyebrows.
• The lead book running manager is Interactive Financial Services Ltd has a rather poor record if listing and subsequent performance of issues is a criteria. They have managed issues like Bizotic Commercial Limited, Sahana System Limited, Prospect Commodities Limited, Pace E-Commerce Ventures Limited, Bhatia Colour Chem , Rachana Infrastructure Limited, Global Longlife Hospital and Research Limited, Dipna Pharmachem Limited etc.
• Econo Broking is the market maker for the issue. Earlier they were market maker for MCON Rasayan IPO.
• With a slew of acquisitions, Tridhya Tech can surprise and possibly do well.
• I am neutral on Tridhya Tech IPO. The performance of past issues managed by the LM is a concern. I may apply at the last hour depending on overall subscription figures. My chances of applying in moderate numbers of Tridhya Tech IPO are more despite many concerns and some poor listing recently.
• SME IPO in general are quite risky. In this IPO the risk is high.
• GMP as reported on social media has been steady or rising and may be Rs. 10-12.

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. 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.