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Vertexplus Technologiesn IPO envisages to raise ₹14.20 Cr. in a price band of ₹91 to ₹96 per share with a market lot of 1200 shares. Vertexplus Technologies Limited is an ISO 9001:2015 and ISO/IEC 27001:2013 certified Information Technology company. The company is engaged in consulting, outsourcing, infrastructure, and digital solutions and services.. It will list on the listed on the Emerge Platform of National Stock Exchange of India Limited, NSE SME platform.

• Anchor Investors

• VertexPlus Technologies Limited, a Jaipur based IT company. It is engaged in consulting, outsourcing, infrastructure and digital solutions and services.
• Company was originally incorporated on October 20, 2010 as “Vertexplus Technologies Private Limited”
• Vertexplus Technologies powers up enterprises to think beyond the ordinary through an integrated, intelligent, technology stack that automates the processes and accelerates the operations. From small programming assignments, to an intensely complex project, or a niche solution,it is fully equipped to develop dynamic, integrated applications & systems that enable business to succeed, scale, expand along the measures they set for current and envision for ahead.
• To ensure time delivery in the most cost-effective manner and in order to determine the success of complex enterprise projects, it offers five delivery models:
  • Off-shore Model
  • On-site Model
  • Hybrid Model
  • Global Model
  • Strategic Partnerships

• Mr. Sandeep Kumar Pahariya and Mrs. Niru Pahariya are the Promoters of the company.

Vertexplus Technologies IPO: Financials

Salient Points

• The projected utilisation of the proceeds raised from the issue is:
  • 70% for working capital requirements
  • 20% for general corporate purposes
  • 10% for the issue expense

• Top ten customers have contributed 99.81%, 99.20%, 99.60% & 98.80% of revenues for the period ended September 30, 2022, March 31, 2022, March 31, 2021, March 31, 2020.
• As of September 30, 2022, its long-term borrowings were ₹ 41.87 Lakhs & short-term borrowings were ₹ 318.74 Lakhs.
• Global slowdown has cast a shadodow on IT sector.
• Company operates from Noida and Jaipur offices.
• Social media reports indicate a low GMP of about Rs. 10 on the issue price.
• Has availed secured loans from HDFC Bank, Kotak Mahiondra Bank for Rs. 360.61 Lakhs.
• PE ratio is 28x (fy22 earnings)  and 28x (fy23 annualized).
• P/BV is based on the post-IPO NAV of Rs. 40.66
• I have a neutral view on Vertexplus Technologies IPO and valuations are certainly streched. I may apply very small lot in Vertexplus Technologies IPO at the fag end on Day 3 purely as a small risky short term investment.
• SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
• The lead manager Beeline Capital Advisors has a reasonable record with most of the SME IPOs lead managed by them having listed with 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.