Austere Systems IPO Details
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Schedule of Austere Systems IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Austere Systems IPO
The IPO of Austere Systems Ltd comprises a fresh issue of up to 28,50,000 equity shares of face value of ₹ 10 each. There’s no offer for sale in this IPO, which is a 100% book-built issue. The price band of the IPO is TBA. The lot size is TBA.
The opening date of the IPO is TBA. The closing date of the IPO is TBA. The listing date is TBA. The allotment date is TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA.
The company provides an extensive array of services, including software development, Software as a Service (SaaS), mobile application development, information technology solutions, database management, ITenabled services, training and development, web development, web and portal operations, e-commerce platforms, ERP and MIS solutions, Data Analytics and AI Services, Process automation, Digital Transformation as well as data and document management storage.
Objectives of Austere Systems IPO
- Capital expenditure (Upgradation of Hardware)
- Funding the working capital requirements of the company
- General corporate purposes
Austere Systems IPO Valuation
Austere Systems IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Applicants | Not less than 15% of the offer |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025.
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), Info metrics Ratings said in a report. India’s technology industry is on track to double its revenue to US$ 500 billion by 2030.
Company Information
Founded in 2015, Austere System Ltd specialises in an extensive array of services, including software development, Software as a Service (SaaS), mobile application development, information technology solutions, database management, IT enabled services, training and development, web development, web and portal operations, e-commerce platforms, ERP and MIS solutions, Data Analytics and AI Services, Process automation, Digital Transformation as well as data and document management storage.
It also engages in reselling software products and providing business process outsourcing and knowledge management solutions, alongside IT consulting and advisory services.
Strengths of Austere Systems IPO
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Global and Domestic Client Base from Different set of Industries : With over a hundred clients worldwide, the company takes pride in maintaining strong client connections. Its steady track record of successful project execution and client satisfaction makes it a trusted technological partner. The company’s business approach, which is based on technical competence, results-oriented solutions, flexibility, and open communication, is critical to its success. Cross-domain competencies enable it to deliver bespoke solutions that are matched with client needs, resulting in measurable ROI.
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Adapting to and Leveraging the Latest Technological Advancements : The company recognises that in today’s fast-paced digital world, the ability to adapt quickly to new technologies is crucial for businesses aiming to remain competitive and innovative. Its management has developed a proactive approach to technology adoption, which involves closely monitoring emerging trends and integrating them into its services offerings as soon as they prove to be valuable.
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Comprehensive Service and In-House Product Portfolio : The company’s extensive service portfolio includes web-application development, real store operation applications, proof of concepts, RFP creation, process automation, manual and automation testing, cloud computing, and platform deployment. This wide array of offerings enables it to meet diverse technological needs, providing tailored solutions that drive business efficiency and innovation.
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Innovative in-house products, Unlocking the Potential of Untapped Rural Markets : The company plays a pivotal role in assisting state governments, particularly in rural areas, by providing tailored solutions through its in-house products. By focussing on the untapped rural market, the company delivers innovative technologies that address the unique challenges faced by these regions.
Risks of Austere Systems IPO
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Ever Changing Technical Changes : Though early technology adoption gives the company a competitive edge, riding on the innovation wave comes with its own challenges. It mitigates risks around volatility of demand cycles and skill gaps through workforce planning, knowledge management and a structured innovation framework to harness the power of cutting-edge technologies for customer success. There can be no assurance that the company will be able to keep up with the ever-evolving technologies, effectively manage workforce and knowledge, structured innovation and that this would not have an adverse effect on the company and its financial position.
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Business Volatility and Risks : The company derives a significant portion of its revenue from contracts with government agencies. This dependency exposes it to specific risks associated with government procurement processes, budgetary constraints, regulatory changes, and political factors that may impact the timing, size, or renewal of these contracts.
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Delay in Receivables from Government Contracts and Capital Blocking : The company derives a certain portion of its revenue from contracts with government agencies, which often involve extended payment cycles and delays in receivables. There is a risk that delays in receiving payments from government entities could impact the company's liquidity, working capital management, and financial performance.
These delays may be influenced by bureaucratic procedures, budgetary constraints, administrative inefficiencies, or changes in government policies affecting payment timelines.
Austere Systems IPO Financials
Peer Comparison
| Company Name | Total Income (in ₹ crores) | Basic EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
Austere Systems Ltd | 18.65 | 5.39 | 43.32 | 12.44 |
ASM Technologies Ltd | 134.12 | 3.44 | 2.27 | 138.35 |
Moschip Technologies Ltd | 226.05 | 0.35 | 1.92 | 14.57 |
Infobeans Technologies Ltd | 242.58 | 11.89 | 10.71 | 111.05 |
Onward | 356.23 | 12.37 | 14.79 | 83.28 |
Anchor Investor Bidding Date
TBA
IPO Registrar and Book Running Lead Manager of Austere Systems
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: GYR Capital Advisors Pvt Ltd
Business Model of Austere Systems IPO
Austere Systems Ltd specialises in an extensive array of services. This includes:
- Software development
- Software as a Service (SaaS)
- Mobile application development
- Information technology solutions
- Database management
- IT-enabled services
- Training and development
- Web development
- Web and portal operations
- E-commerce platforms
- ERP and MIS solutions
- Data analytics and AI services
- Process automation
- Digital transformation
It also engages in reselling software products and providing business process outsourcing and knowledge management solutions, alongside IT consulting and advisory services.
Company Growth Trajectory IPO
The revenue from operations of Austere Systems Ltd grew from ₹12.3025855 crores in FY 22 to ₹18.5657123 crores in FY 24. Its EBITDA grew from ₹1.52481 crores in FY 22 to ₹5.78801 crores in FY 24. Global and domestic client base coupled with experienced promoter and management have contributed to the company’s growth over the years.
Market Position IPO
Austere Systems Ltd has over 100 clients worldwide and has its footprint in Australia, New Zealand, Canada, America, Brazil, Dubai and Europe. Over the past 9 years, the company has become a preferred IT/ technology partner for organisations looking to harness the full potential of technology to achieve new heights.
Austere Systems Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 18.65 | 15.38 | 12.39 |
Profit Before Tax (in ₹ crores) | 5.05 | 2.42 | 1.03 |
Profit After Tax (in ₹ crores) | 3.77 | 1.81 | 0.76 |
EBITDA (in ₹ crores) | 5.78 | 2.93 | 1.52 |
EPS in ₹ | 5.39 | 2.58 | 1.09 |
Austere Systems Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 5.05 | 2.42 | 1.03 |
Net Cash Generated from Operating Activities (in ₹ crores) | 2.71 | -0.01 | 1.29 |
Net Cash Used in Investing Activities (in ₹ crores) | -0.11 | 1.07 | 0.71 |
Net Cash Flow from/(used in) Financing Activities (in ₹ crores) | -0.43 | 0.76 | -0.51 |
Cash & Cash Equivalents As At End of the Year (in ₹ crores) | 2.65 | 0.48 | 0.81 |
How to Apply for the Austere Systems IPO?
Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
- Click on any one of the appearing links
- Choose IPO name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for the Austere Systems 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.
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.
Austere Systems IPO FAQs
Where can I read more about Austere Systems business?
You can read more about Austere Systems and its IPO from the company’s red herring prospectus (RHP) here.
What is the Austere Systems IPO?
The Austere Systems Ltd IPO comprises a fresh issue of up to 28,50,000 equity shares of face value of ₹ 10 each.
When will the IPO of Austere Systems go live?
The exact dates of the IPO are not known.
