Alphalogic Techsys IPO: Bidding for India's first start-up issue in progress

Alphalogic Techsys has become country's first start-up to launch an initial public offer (IPO). The Rs 6.18-crore IPO of the Pune-based boutique software consulting firm which began yesterday has an issue price/bid price of Rs 84 per share with a minimum lot size of 1,600 shares.

About the IPO

The IPO of Pune-based boutique software consulting firm will close on August 28, 2019 . It is a public issue of 7,36,000 equity shares at face value of Rs 10 each. Overall, 7.36 lakh shares are on the block, worth Rs 6.18 crore. The equity shares of the company will be listed on the SME Startup Platform of BSE Limited on September 5. Alphalogic SME IPO issue date was revised by the company to August 26-August 28 from August 23 -August 28, citing "unforeseen circumstances".

Finshore Management Services Limited is the book-running lead manager to the issue.

Objectives of the Issue

The company proposes to utilise money which is being raised through this Issue towards:

A. Meeting the working capital requirements of the company, amounting to Rs 500 lakh

B. To meet the Issue Expenses, amounting to Rs 47.20 lakh

C. General Corporate Purposes, amounting to Rs 71.04 lakh

About the company

Incorporated in 2016, the Maharashtra-based software consulting firm is engaged in offering end-to-end technology solutions, technology consulting and support services.

Financials

The company's total income during the year ended March 31, 2019 stood at Rs 510.05 lakh, while expenses stood at Rs 201.53 lakh. The restated net profit during the year ended March 31, 2019 was Rs 219.05 lakh representing 42.95% of the total income. Total debt stood at Rs 1.21 crore in FY19.

In the past 4 years, the company has grown at a compounded annual growth rate (CAGR) of 40%. In FY 2018-19, the company logged growth rate of 120%. At the offer price, the scrip is available at 7.82 times FY19 earnings per share.

Promoters of the company are Anshu Goel and Dhananjay Subhash Goel.

Clientele

Alphalogic Techsys serves clients with their digital transformation needs.  It has over 100 clients with multiple technical verticals in more than 12 countries around the world.

Alphalogic Techsys improves the services offered to clients by customizing the offerings from time to time based on clients' needs. With a team of seasoned technocrats, the company ensures cutting-edge technological solutions for its clients.

BSE Start-up Platform

BSE had launched its start-up platform in December 2018 with an objective to allow startups to launch their IPO under somehow relaxed norms, to raise funds for their business growth.

Markets regulator SEBI in February paved the way for a separate platform for startups to provide young companies easier access to capital. SEBI has first allowed startups to list through the institutional trading platform way back in 2015, although as a non-starter as criteria were fixed the same as any other IPO. These rules were later changed in October 2018.

Edited by Rupa Burman Roy