Indus Net Technologies IPO

About Indus Net Technologies IPO

Indus Net Technologies Limited IPO is an IPO of up to 36,00,000 equity shares. It consists of a fresh issue of up to 36,00,000 equity shares. The lot size is TBA. The price range is TBA. The shares will be allotted on TBA. The listing of shares will take place on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Indus Net Technologies IPO

• Global team expansion.
• Investment in new capabilities.
• Productisation and go-to-market (GTM) strategy.
• Investment in existing sales and production capabilities.
• General corporate purposes.

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. As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution.

India's IT industry is likely to hit the US$35,000 crore mark by 2026 and contribute 10% towards the country's gross domestic product (GDP), Infomerics Ratings said in a report. According to the National Association of Software and Service Companies (Nasscom), the Indian IT industry’s revenue touched US$22,700 crore in FY22, a 15.5% YoY growth, and was estimated to have touched US$24,500 crore in FY23. As per a survey by AWS (2021), India is expected to have nine times more digitally skilled workers by 2025. This indicates that a total of approximately 390 crore digital skill trainings are expected by 2025. India will need 3 crore digitally skilled professionals by 2026.

Company Information

Indus Net Technologies Limited provides high-end IT and ITes solutions in the field of digital engineering, covering mobile application development, web application development, creative services, and cloud engineering, along with other major services like data management, data analytics, artificial intelligence/machine learning (AI/ML), digital marketing, cyber security, etc., using standard software practices or through customised software development models, depending upon client requirements. The company is engaged in the business of customised web application development for industries. The applications range from web development, mobile development, e- commerce, IoT and cloud-based applications, along with similar industry-specific requirements. They develop products for the banking, insurance, financial services, healthcare, and edu-tech sectors.

Risks of Indus Net Technologies IPO

• They derive a significant portion of their revenues from clients located in the United States of America, Singapore, and Austria. Any adverse developments in these markets could adversely affect their business.

• Exchange rate fluctuations may adversely affect their results of operations, as a significant portion of their revenues and some portion of their expenditure is denominated in foreign currencies.

• Cyber risk and the failure to maintain the integrity of their operational or security systems or infrastructure, or those of their customers with which they conduct business, could have a material adverse effect on their business, results of operations, financial condition, and cash flows.

IPO Registrar and Book Running Lead Managers

Book running lead managers : Horizon Management Private Limited

Registrar for the IPO : MAS Services Limited

Business Model

The company earns its revenue through providing high-end IT and ITes solutions in the field of digital engineering, covering mobile application development, web application development, creative services, and cloud engineering, along with other major services like data management, data analytics, artificial intelligence/machine learning (AI/ML), digital marketing, cyber security, etc., using standard software practices or through customised software development models, depending upon client requirements.

Company Growth Trajectory

Their revenue from operations for the period that ended on June 30, 2024, was ₹25.16 crores, which was about 81.17% of the total revenue and comprised revenue generated from providing high-end IT and ITes solutions in the field of digital engineering domestically and in the export market. Their other income for the period that ended June 30, 2024, was ₹5.84 crores, which was about 18.83% of the total revenue and included interest income, dividend income, gains from investments, foreign exchange fluctuations, gain on sale of shares and mutual funds, government subsidy, and commission. Their EBITDA for the period that ended June 30, 2024, was ₹6.40 crores. Their PAT for the period that ended on June 30, 2024, was ₹4.26 crores, which was about 13.04% of the total revenue.

Company Market Position

Presently, they are concentrated in India, the USA, the UK, and Singapore.

Some of the company’s key awards, accreditations, and recognitions include: best enterprise mobility solutions in Partner Leadership Award, 2016; best practices in mobile application development & use by Public Relations Society of India, Kolkata (2016); best enterprise mobility solutions in Partner Leadership Award, 2018; commitment towards performance excellence in Icon SMB Performance Excellence Recognition, 2018; and secured second position in the IT services category of the National Export Excellence Award, 2024 presented by Electronics and Computer Software Export Promotion Council.

How To Check Allotment Status of Indus Net Technologies IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar MAS Services Limited. To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Indus Net Technologies Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MAS Services Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Indus Net Technologies Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Indus Net 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.