IPO Details
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IPO Size
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Schedule of Advantal Technologies IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Advantal Technologies IPO
The IPO of Advantal Technologies Ltd comprises a fresh issue of up to 23,28,000 equity shares. There’s no offer for sale in this IPO which is a 100% book-built issue. The IPO opens on TBA and closes on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA and the basis of allotment will take place on TBA.
Objectives of Advantal Technologies IPO
- Funding for inorganic growth and other strategic initiatives
- Funding capital expenditure towards business expansion
- Funding working capital requirements
- General corporate purpose
Advantal Technologies IPO Valuation
Advantal Technologies IPO Share Offer and Subscription Details
| Investor | Share Offered |
|---|---|
QIBs | Not more than 50% of the issue |
Non-institutional Investors | Not less than 15% of the issue |
Retail Individual Investors | Not less than 35% of the issue |
Industry Outlook
According to the National Association of Software and Service Companies (NASSCOM), the Indian IT industry’s revenue touched US$ 227 billion in FY22, a 15.5% YoY growth and was estimated to have touched US$ 245 billion in FY23. The IT spending in India is estimated to record a double-digit growth of 11.1% in 2024, totalling US$ 138.6 billion up from US$ 124.7 billion last year. The Indian software product industry is expected to reach US$ 100 billion by 2025. The Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies are focusing on investing internationally to expand their global footprint and enhance their global delivery centres. The data annotation market in India stood at US$ 250 million in FY20, of which the US market contributed 60% to the overall value. The market is expected to reach US$ 7 billion by 2030 due to accelerated domestic demand for AI. India's IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP), Infomerics Ratings said in a report.
Company Information
Advantal Technologies Ltd is a software product engineering services company specialising in end-to-end custom software development. It offers tech services, including software products, digital transformation solutions, managed IT services, and DevOps services that align with its clients’ organisational goals. Over the years, the company has undergone expansion including a wide range of services, transforming into a comprehensive service provider that now encompasses digital technologies such as web design and development, ecommerce development, mobile application development, custom software product engineering, digital transformation, AI and ML development, and other software development services.
Strengths of Advantal Technologies IPO
Capabilities Spanning the Digital Lifecycle from Requirement Gathering to Deployment and Maintenance
Advantal Technologies Ltd is involved in full lifecycle software development services including design and prototyping, development and testing, component design and integration, software deployment, performance tuning, porting, cross platform migration and ongoing support. It’s capable of delivering customised solutions tailored to address the distinct requirements of its clients.
Customer Base Across Diverse Industries
The company commenced business in 2010 and has built its reputation based on the quality of its products and services. The factors that have enabled it to consistently grow its business is its ability to tailor and customise its product and services to suit the requirements of its customers.
Over the years it has built its experience to develop products and solutions for different industries such as Banking, Financial Services, & Insurance, Defence and Government Agencies, IT Administrators in Businesses, Educational Institutions, real-estate, retail, Telecom Operators, Mobile & virtual mobile networks operators, among others.
Quality Assurance
Advantal is an ISO 9001:2015 & ISO/IEC 27001:2022 certified company. In order to maintain the quality and meet the customer requirements and standards it performs different tests to ensure the quality and usability of the software developed by our company.
These tests include unit testing, integration testing, and system testing, to ensure the software meets quality standards and usability testing to ensure the software is user-friendly and meets the client's expectations.
Risks of Advantal Technologies IPO
- Defects and Disruptions in Software Solution
Advantal Technologies Ltd may become liable to its customers and lose customers if it has defects or disruptions in its software solutions or it provides poor services. It may also be liable in the event of misuse of its software solutions.
- Regulatory and Legal Risks
The company’s software solutions expose it to numerous risks, including sometimes conflicting legal and regulatory requirements, and violation of these regulations could adversely affect its business and results of operations.
- Technical Error Execution
The company’s services owing to certain issues such as coding, configuration or any other technical error or defects could lead to it bearing exponential costs, delay in revenues and consequently expose it to litigation.
Advantal Technologies IPO Financials
Peer Comparison
| Company Name | Total Income (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) |
|---|---|---|---|
Advantal Technologies Ltd | 15.27 | 7.03 | 62.14 |
Olatech Solutions Ltd | 15.17 | 6.97 | 40.84 |
Paramatrix Technologies Ltd | 28.59 | 4.72 | 13.63 |
CG-VAK Software and Exports Ltd | 80.64 | 18.28 | 17 |
IPO Registrar and Book Running Lead Manager
IPO Registrar: Bigshare Services Pvt Ltd
Book Running Lead Manager: Hem Securities Ltd
Business Model
Advantal Technologies Ltd offers services of custom software product engineering, mobile app development, web development, managed IT services, software maintenance & support, and digital transformation. It offers its clients with various software products, such as ShieldCrypt, Shield360°, Sylog Server Software, IP Log Manager SMS Centre (SMSC) and AAA with TACACS+ & NAC.
Company Growth Trajectory
The revenue from operations of Advantal Technologies Ltd grew from ₹6.8965 crores in FY 22 to ₹15.1455 crores in FY 24. Its EBITDA margin has risen from 9.71% in FY 22 to 41.52% in FY 24, while PAT margin has risen from 6.51% in FY 22 to 30.15% in FY 24. Experienced promoters supported by an experienced team coupled with customer base across diverse industries has helped the company grow over the years.
Market Position
An ISO 9001:2015 & ISO/IEC 27001:2022 certified company, Advantal Technologies Ltd operates in both domestic as well as international markets. In the international markets, its clients are spread across the globe with presence in countries majorly in the UK, USA, South Korea, Saudi Arabia, Kuwait, Cyprus, Bahrain etc.
Advantal Technologies IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 15.27 | 10.65 | 6.95 |
Profit (Loss) Before Tax (in ₹ crores) | 6.13 | 1.92 | 0.57 |
Profit After Tax (in ₹ crores) | 4.56 | 1.38 | 0.44 |
EPS in ₹ | 7.03 | 2.13 | 0.69 |
Advantal Technologies IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit (Loss) Before Tax (in ₹ crores) | 6.13 | 1.92 | 0.57 |
Net Cash Flow From/ (Used in) Operating Activities (in ₹ crores) | 3.40 | 0.02 | 0.31 |
Net Cash Flow From/ (Used in) Investing Activities (in ₹ crores) | (0.32) | (0.074) | (0.27) |
Net Cash Flow From / (Used in) Financing Activities (in ₹ crores) | 0.045 | (0.21) | 0.27 |
Cash and Cash Equivalents at the end of the Year (in ₹ crores) | 3.80 | 0.68 | 0.95 |
How to Check Allotment Status of Advantal Technologies IPO?
Visit the Registrar’s Website
- Visit the official website of Bigshare Services Private Ltd
- Choose ‘IPO Allotment Status’ under ‘Solutions’
- Click on any one of the server links
- Select company from dropdown and enter either your application number, beneficiary ID or PAN number
- Enter captcha and click on ‘Search’ to know the status
Check on the NSE Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Advantal Technologies Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for Advantal Technologies IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Advantal Technologies IPO FAQs
Where can I read more about Advantal Technologies business?
You can read more about Advantal Technologies and its IPO from the company’s red herring prospectus (RHP) here.
What is the Advantal Technologies IPO?
The IPO of Advantal Technologies Ltd IPO comprises a fresh issue of up to 23,28,000 equity shares.
When will the IPO of Advantal Technologies go live?
The exact dates of the IPO are yet to be announced.
