EverestIMS Technologies
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Pre-IPO 8:1 bonus issue in November 2024 expanding insider equity at zero cost.
- Trade receivables standing at Rs. 51.96 crore (249 receivable days and 79.79% of revenue).
- High customer concentration with top 10 clients generating 88.77% of FY26 revenue.
- High supplier concentration with top 10 vendors accounting for 99.62% of purchases.
- Auditor change in October 2024 prior to RHP filing.
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
EverestIMS Technologies Limited is a software product company providing SaaS and on-premises IT Operations Management (ITOM), IT Service Management (ITSM), and telecom Operations Support System (OSS) solutions under its flagship platform 'Infraon Infinity'.
What this company actually does — full breakdown ▾
Incorporated in 2017 and headquartered in Bengaluru, Karnataka, EverestIMS Technologies Limited is an Indian software product company specializing in IT Operations Management (ITOM), AI-enabled IT Service Management (ITSM), and Operations Support Systems (OSS) for telecom operators, large enterprises, and SMBs. Its flagship unified platform, 'Infraon Infinity', integrates modules including IT Infrastructure Management (ITIM), AIOps, Network Configuration and Change Management (NCCM), IT Asset Management (ITAM), and telecom OSS. The business model generates revenue through software license sales (on-premises) and subscription fees for cloud-hosted SaaS solutions, alongside IT support/consultancy services. In FY26, domestic software product sales contributed 71.79% (Rs. 46.7578 crore), export software product sales contributed 5.06% (Rs. 3.2979 crore), domestic service sales contributed 14.10% (Rs. 9.1814 crore), export service sales contributed 0.97% (Rs. 0.6328 crore), and domestic hardware sales contributed 8.07% (Rs. 5.2540 crore) of total operating revenue. Top 10 customers accounted for 88.77% of FY26 revenue, while top 10 suppliers accounted for 99.62% of purchases. The company operates a wholly owned US subsidiary, Infraon Corp, to drive overseas distributor sales in global markets.
Proprietary unified platform 'Infraon Infinity' integrating AIOps, ITSM, ITIM, and telecom OSS; established presence across telecom, BFSI, and government sectors; product-led growth strategy with direct sales and global channel partner network.
The Offer
Follow the Money — Use of Proceeds
- Purchase of IT hardware for setting up of Artificial Intelligence (AI) Innovation and Experience Laboratory — ₹5.66 cr
- Funding of Working Capital Requirement — ₹24.00 cr
- General Corporate Purposes
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 3 live components.
80% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity, Valuation Vs Peers. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 65.1239 | 56.543 | 45.228 |
| Net Profit (₹ Cr) | 13.1393 | 14.077 | 10.8308 |
| PAT Margin | 20.18% | 24.9% | 23.95% |
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Our read of the filing is solid, but demand is thin so far. Books fill late — most retail and institutional bids land in the final hours — so this may simply be the clock. Or the market may know something the filing does not say.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from Operations (FY26 vs FY25) | ↑ 15.2% | Revenue increased due to higher adoption of Infraon Infinity platform, expansion of SaaS subscription sales, and larger enterprise license deployments. | Structural |
| Employee Benefits Expense (FY26 vs FY25) | ↓ 5.7% | Employee costs declined slightly due to talent optimization and reallocating R&D personnel toward capitalized software development. | Structural |
| Finance Costs (FY26 vs FY25) | ↓ 20.8% | Finance costs remained minimal as the company maintained a debt-free balance sheet with zero outstanding bank borrowings. | Structural |
| Other Expenses (FY26 vs FY25) | ↑ 33.6% | Other expenses rose due to higher cloud hosting costs, software licensing tools, overseas sales expansion in US subsidiary Infraon Corp, and marketing expenses. | Structural |
| Profit After Tax (FY26 vs FY25) | ↓ 6.7% | Net profit moderated slightly to Rs. 13.1393 crore due to higher cloud infrastructure costs and overseas market expansion investments. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 42.1% | Trade receivables expanded due to milestone-based enterprise contract billings and long payment realization cycles from telecom and PSU customers. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↑ 249.8% | Operating cash flow rebounded strongly to Rs. 9.2016 crore in FY26 (up from Rs. 2.6307 crore in FY25) due to higher customer realizations and working capital optimization. | Structural |
Headwinds
- High customer concentration with top 10 clients generating 88.77% of FY26 revenue company persistent
A significant portion of revenue is derived from key telecom and enterprise clients, exposing operating performance to contract renewals and customer budgeting cycles. - High vendor concentration with top 10 suppliers accounting for 99.62% of purchases company persistent
Procurement of cloud hosting, specialized software libraries, and hardware relies on a limited group of technology vendors. - Rapid technological obsolescence and necessity for continuous R&D in AI/AIOps sector persistent
Fast-evolving enterprise software demands constant software enhancements and feature integrations to maintain product competitiveness.
Tailwinds
- Global demand for AI-driven ITOM, AIOps, and telecom 5G OSS platform solutions macro
Enterprise adoption of unified AIOps platforms and telecom 5G network management drives demand for the proprietary Infraon Infinity product suite. - Overseas market expansion driven by wholly owned US subsidiary Infraon Corp company
Establishing Infraon Corp in the United States enables direct engagement with global channel partners and enterprise clients across North America and EMEA.
Movements the filing does not explain
- Pre-IPO 8:1 Bonus Issue Capitalizing Rs. 15.15 Crore of Reserves FY25 — In November 2024, the company issued 15,150,736 bonus shares (8:1 ratio) at Rs. 0.00 per share by capitalizing security premium, expanding pre-issue equity and lowering promoter acquisition costs to Rs. 0.29 per share prior to the public offer.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-10-07
- Pre Application Start2026-09-28
- Bidding Start2026-09-29
- Bidding End2026-10-05
- Allotment Process Start2026-10-06
- Allotment Finalization2026-10-07
- Listing Day2026-10-08
- Mandate End2026-11-16
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 65.12 | 56.54 | 45.23 |
| Other Income | 0.79 | 1.24 | 0.39 |
| Total Income | 65.91 | 57.78 | 45.62 |
| Employee Benefit Expense | 22.04 | 23.38 | 18.77 |
| Finance Cost | 0.02 | 0.02 | 0.27 |
| Depreciation & Amortisation | 5.70 | 3.78 | 2.57 |
| Other Expenses | 11.89 | 8.90 | 7.36 |
| Total Expenses | 48.28 | 38.93 | 30.77 |
| Profit Before Exceptional Items and Tax | 17.64 | 18.85 | 14.84 |
| Profit Before Tax | 17.64 | 18.85 | 14.84 |
| Tax Expense | 4.50 | 4.78 | 4.01 |
| Profit After Tax | 13.14 | 14.08 | 10.83 |
| EPS - Basic | 7.71 | 8.27 | 6.57 |
| EPS - Diluted | 7.71 | 8.27 | 6.57 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 17.04 | 17.04 | 1.83 |
| Reserves & Surplus | 43.54 | 30.37 | 30.39 |
| Net Worth | 60.59 | 47.41 | 32.22 |
| Long-term Borrowings | 0.00 | 0.00 | 0.00 |
| Short-term Borrowings | 0.00 | 0.00 | 0.00 |
| Total Borrowings | 0.00 | 0.00 | 0.00 |
| Trade Payables | 6.99 | 0.54 | 0.60 |
| Current Liabilities | 23.71 | 15.59 | 13.91 |
| Total Liabilities | 90.27 | 67.82 | 50.47 |
| Property, Plant & Equipment | 1.88 | 2.07 | 2.03 |
| Capital Work in Progress | 0.00 | 0.00 | 0.00 |
| Intangible Assets | 14.31 | 10.36 | 6.63 |
| Investments | 0.76 | 0.76 | 4.54 |
| Inventories | 0.00 | 0.00 | 0.00 |
| Trade Receivables | 51.96 | 36.56 | 30.70 |
| Cash & Equivalents | 7.65 | 4.28 | 4.51 |
| Current Assets | 66.42 | 43.26 | 41.40 |
| Total Assets | 90.27 | 67.82 | 50.47 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 9.20 | 2.63 | 5.32 |
| Capital Expenditure | -9.49 | -7.55 | -5.50 |
| Net Cash from Investing Activities | -8.76 | -2.75 | -6.56 |
| Net Cash from Financing Activities | -0.02 | 0.04 | -0.27 |
| Net Change in Cash | 0.43 | -0.08 | -1.50 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 35.4 | 39.2 | 38.8 |
| EBIT Margin (%) | 26.8 | 32.7 | 33.1 |
| PAT Margin (%) | 20.2 | 24.9 | 23.9 |
| Return on Equity (%) | 21.7 | 29.7 | 33.6 |
| Return on Capital Employed (%) | 29.1 | 39.8 | 46.9 |
| Return on Assets (%) | 14.6 | 20.8 | 21.5 |
| Leverage | |||
| Debt / Equity (x) | 0 | 0 | 0 |
| Net Debt / EBITDA (x) | -0.33 | -0.19 | -0.26 |
| Interest Coverage (x) | 910.08 | 770.56 | 56.97 |
| Liquidity | |||
| Current Ratio (x) | 2.8 | 2.77 | 2.98 |
| Quick Ratio (x) | 2.8 | 2.77 | 2.98 |
| Efficiency | |||
| Asset Turnover (x) | 0.72 | 0.83 | 0.9 |
| Receivable Days | 291 | 236 | 248 |
| Inventory Days | 0 | 0 | 0 |
| Payable Days | 39 | 3 | 5 |
| Cash Conversion Cycle (days) | 252 | 233 | 243 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 0.7 | 0.19 | 0.49 |
| Accruals Ratio (%) | 4.4 | 16.9 | 10.9 |
| Capex / Depreciation (x) | 1.66 | 2 | 2.14 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 20.2% | 24.9% | 23.9% |
| Asset Turnover (Revenue / Assets) | 0.72x | 0.83x | 0.9x |
| Equity Multiplier (Assets / Net Worth) | 1.49x | 1.43x | 1.57x |
| = Return on Equity | 21.7% | 29.7% | 33.6% |
| Tax Burden (PAT / PBT) | 0.75x | 0.75x | 0.73x |
| Interest Burden (PBT / EBIT) | 1x | 1x | 0.98x |
| Operating Margin (EBIT / Revenue) | 27.1% | 33.4% | 33.4% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Receivable days rose from 248 in FY24 to 291 in FY26. The company is booking revenue faster than it is collecting it, which ties up cash and raises the question of who is not paying.
- Interest coverage was 910.08x in FY26. Debt servicing is comfortably covered by operating profit.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
7 of 8 inputsAn eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.234 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | — | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | 0.734 | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.152 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 0.859 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 0.913 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 1.142 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.0436 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
The filing does not disclose every input the model needs, so we withhold the composite score rather than substitute a guess. The components we could compute are above.
Altman Z″-Score (emerging markets)
Z″ = 9.95 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.473 |
| X2 — Retained Earnings / Total Assets | 0.482 |
| X3 — EBIT / Total Assets | 0.196 |
| X4 — Net Worth / Total Liabilities | 0.671 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 9.95 |
Piotroski F-Score (adapted)
3 / 7Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it. A further 1 test is shown as — below: the filing does not disclose what it needs, so it is dropped from the denominator rather than counted as a failure.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✗Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✗Long-term leverage decreasing
- ✓Current ratio improving
- —Gross margin improving
- ✗Asset turnover improving
The Final-Year Check
oursNot from any textbook. The hockey stick in the last year before a filing is the oldest pattern in this business, and nobody publishes it. So we measure it: how the final disclosed year compares with the years behind it. Real acceleration looks exactly the same on the page as a flattering one — which is precisely why it is worth naming rather than assuming either way.
- Profit moved backwards in FY26: net profit fell 6.7% to ₹13 cr even as revenue grew 15.2% to ₹65 cr. Net margin compressed from 24.9% to 20.2%. A premium multiple asked on a year when earnings moved backwards is worth understanding: the profit the price is measured against is not the peak the company has shown.
Ratios Nobody Prints
- Contingent liabilities / Net worth: 0%
Contingent liabilities of 0.00 cr against a net worth of 60.59 cr — 0% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 0%
0% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Promoter remuneration / PAT: 12.1%
Managerial remuneration to the promoter group was 1.59 cr against a profit of 13.14 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth13.14 ÷ 60.59What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)17.66 ÷ (60.59 + 0.00) = 17.66 ÷ 60.59Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue23.36 ÷ 65.12Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth0.00 ÷ 60.59How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost17.66 ÷ 0.02How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(51.96 ÷ 65.12) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days0 + 291 − 39How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT9.20 ÷ 13.14Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(13.14 − 9.20) ÷ 90.27 = 3.94 ÷ 90.27The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹85.00 × 17,044,578 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash144.88 + 0.00 − 7.65What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA137.23 ÷ 23.36The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT144.88 ÷ 13.14The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ weighted average cost of acquisitionAcquired at nil or near-nil considerationEvery offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Here the entry price is nil, which means a bonus issue or a transfer for no consideration. A multiple cannot be computed against zero, and that is the fact worth noticing rather than a number to print. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
Workspace
The post-issue share count is stated as “[•]” in this filing until final pricing, so we derive it: profit after tax divided by earnings per share gives the pre-issue count, and the fresh issue divided by the offer price gives the new shares. Everything below rests on that derivation. It is close, not exact.
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Pre-IPO 8:1 Bonus Issue Expanded Promoter Shareholding at Nil Cost
In November 2024, the company issued 15,150,736 bonus shares (8:1 ratio) at Rs. 0.00 per share by capitalizing security premium, expanding pre-issue capital to 17,044,578 shares and lowering promoter average acquisition costs to Rs. 0.29 per share.
Source: p.72, 85, 88High Working Capital Lock-Up in Trade Receivables (249 Days)
Trade receivables stood at Rs. 51.9620 crore in FY26, representing 79.79% of annual operational revenue and 249 receivable days, driven by milestone billing and payment realization cycles from enterprise and telecom clients.
Source: p.108, 109, 242, 259Zero Corporate Debt and Rebound in Operating Cash Flow to Rs. 9.20 Crore
The company maintains a completely debt-free balance sheet with zero bank borrowings and reported a strong recovery in Operating Cash Flow (CFO) to Rs. 9.2016 crore in FY26 (up from Rs. 2.6307 crore in FY25).
Source: p.35, 238, 240Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Satish Kumar Vijayaragavan
Litigation: No outstanding criminal, regulatory, statutory, or material civil litigation proceedings involving the Company, Promoters, Directors, or Subsidiary.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Newgen Software Technologies Ltd | 23.45 | — | 16.91 | 19.09 |
At the ₹85 upper band, the issue is priced at 11.0x earnings — a 53% discount to the peer median of 23.5x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
Global and Indian ITOM, ITSM, and Telecom OSS Market Metrics
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Global IT Operations Management (ITOM) Market Size (USD billion) | 41.5 | 2024 global ITOM market size according to industry reports |
| Global IT Service Management (ITSM) Market Size (USD billion) | 10.2 | 2024 global ITSM software market size |
| Global Telecom OSS/BSS Market Size (USD billion) | 52.8 | 2024 global telecom operations support systems market |
Source: p.123, 124, 125
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
On November 9, 2024 (22 months prior to RHP filing), the company issued 15,150,736 bonus shares in an 8:1 ratio at Rs. 0.00 per share by capitalizing Rs. 15.1507 crore of reserves, following a 1:10 share consolidation. This expanded pre-issue capital to 17,044,578 shares, reducing promoter average acquisition cost to Rs. 0.29 per share.
p.72, 85, 88Trade receivables stood at Rs. 51.9620 crore in FY26, representing 79.79% of annual operational revenue and 249 receivable days, expanding from 220 days in FY25 and 205 days in FY24.
p.108, 109, 242, 259On September 16, 2026 (5 days prior to RHP filing), promoters and key personnel transferred 642,880 equity shares at Rs. 68 per share to M/s Kedia Securities Private Limited.
p.85, 89, 122The peer comparison set consists solely of mainboard-listed Newgen Software Technologies Ltd (P/E 23.45x).
p.116, 117Statutory auditor M/s S H & Co. resigned on October 10, 2024 to enable the appointment of peer-reviewed auditor M/s CGSS & Associates LLP for the IPO process.
p.235, 251Goodwill and intangibles are 23.6% of net worth.
rule: intangibles 15-30% of net worthRevenue rose to ₹65.12 cr in FY26 while profit fell to ₹13.14 cr. Net margin went from 24.9% to 20.2%. The profit the offer price is measured against is not the best the company has shown.
rule: revenue↑ & PAT↓ in offer yearCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Restated trade receivables stood at Rs. 51.96 crore in FY26 (249 receivable days), confirming high working capital intensity required for enterprise and telecom software deployments.
p.95, 108, 109, 242Software amortization expenses expanded 60.25% to Rs. 5.08 crore in FY26 due to in-house software capitalization, confirming ongoing R&D investment in platform development.
p.95, 254, 283Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: Maashitla Securities
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (16 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
How are the fresh issue IPO proceeds allocated across AI lab infrastructure, working capital, and general corporate purposes?
Fresh issue proceeds are allocated as: Rs. 5.6556 crore for purchase of IT hardware for setting up an AI Innovation and Experience Laboratory, Rs. 24.0000 crore for funding working capital requirements, and the balance for General Corporate Purposes (capped at 15% of issue proceeds or Rs. 10.00 crore, whichever is lower).
p.95, 108, 114What is the promoters' shareholding pre-issue and their acquisition cost history?
Promoters Satish Kumar Vijayaragavan, Sudhakar Aruchamy, Arun Prasath Ramadoss, Ramesh Pratap Tiwari, Deepak Kumar Shenbagarajan, Srikanth Audina, Ganesh Kumar Nagaiah, and Deepak Gupta hold 84.50% pre-issue equity (14,400,000 shares out of 17,044,578 pre-issue shares). Promoter shareholding was expanded through bonus issues in April 2022 (3:1 ratio) and November 2024 (8:1 ratio), establishing a promoter average cost of acquisition (WACA) of Rs. 0.29 per share.
p.72, 85, 88What are the key related-party transactions, subsidiary operations, and promoter debt support?
The company has one wholly owned US subsidiary, Infraon Corp, which acts as an overseas distributor (total assets Rs. 0.6191 crore, FY26 revenue Rs. 0.5467 crore). Related party transactions with group entity Vedanshi Infotech Pvt Ltd involved lease rentals of Rs. 0.0819 crore. Key managerial remuneration totaled Rs. 1.5900 crore in FY26. The company has no outstanding unsecured promoter loans or bank debt as of March 31, 2026.
p.56, 58, 176, 235, 273How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT stood at Rs. 10.8308 crore in FY24, Rs. 14.0770 crore in FY25, and Rs. 13.1393 crore in FY26. Operating Cash Flow (CFO) remained positive across all three years (+Rs. 5.3248 crore in FY24, +Rs. 2.6307 crore in FY25, and +Rs. 9.2016 crore in FY26), though working capital was absorbed by trade receivables reaching Rs. 51.9620 crore in FY26.
p.35, 37, 53, 54, 239, 240What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The company disclosed no pending criminal, tax, or material civil litigation against the company, promoters, or directors. Statutory auditor M/s S H & Co. resigned in October 2024 to appoint peer-reviewed auditor M/s CGSS & Associates LLP. Administrative delays in EPF deposits were disclosed. Outstanding MSME supplier dues stood at Rs. 6.4456 crore as of March 31, 2026.
p.27, 52, 63, 162, 235, 251, 287, 288What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on BSE SME with a minimum retail application requirement of 2 lots (minimum application size above Rs. 2.00 lakhs). Trading occurs strictly in standardized market lots, and because lots are indivisible, partial exit or fractional lot trading is impossible. KG Stock Broking Private Limited is the Market Maker with 286,400 reserved shares (5.02%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.1, 10, 69, 70, 213, 298What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Promoters & Initial Subscribers to MOA | ₹10.00 | 2017-08-28 | 8.5x |
| An early round from roughly 9 years ago, at roughly 8.5x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Promoters & Key Personnel | ₹10.00 | 2018-03-31 | 8.5x |
| An early round from roughly 9 years ago, at roughly 8.5x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Promoters (Consolidation 1:10) | ₹10.00 | 2024-10-15 | 8.5x |
| Existing Shareholders (Bonus 8:1) | — | 2024-11-09 | — |
| Kedia Securities Private Limited | ₹68.00 | 2026-09-16 | 1.3x |
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 08 Oct 2029promoter3 years3,410,000 shares (20.01% of total)
- 08 Oct 2027promoter group1 year10,990,000 shares (64.48% of total)
- 08 Oct 2027public1 year2,644,578 shares (15.51% of total)
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
