Praruh Technologies IPO

About Praruh Technologies IPO

The IPO of Praruh Technologies Ltd comprises a fresh issue of up to 37,31,200 equity shares. 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 IPO Opening date is TBA. The IPO closing 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.

Objectives of Praruh Technologies IPO

• To meet out the repayment of certain borrowings
• To meet and pursue unidentified acquisitions in India
• To meet the working capital requirements of the company
• To meet out the general corporate purposes

Industry Outlook

Information Technology and Information Technology Services (IT/ITES) industry plays a key role by contributing in positioning the country as a preferred investment destination for global investors. IT services helps organisations in the creation, management, and optimisation of access to information and business processes. IT/ITES provide technical expertise to standardise and streamline business processes and enable organisations to enhance and easily access information.

The Indian IT industry is a major contributor to India’s economy and accounts for about 8% of the country’s GDP, along with being the largest contributor in total services exports. Indian tech industry revenue is estimated to be at USD 253.9 billion in FY24, according to NASSCOM with an incremental revenue of USD 9.3 billion over FY23.

It is anticipated that India's export revenue from IT services (excluding hardware) is estimated to be at USD 199 billion in FY24 in reported currency, representing a 3.3% increase over FY23, and the domestic technology sector is expected to cross USD 54 billion, growing at 5.9% y-o-y. Just the ER&D industry made over 48% of the total export growth in income for FY24.

Revenues from the domestic market grew to USD 54.4 billion supported by various government initiatives such as digital India, start-up India, smart cities and digital payments.

Company Information

Praruh is a leading ICT system integration firm dedicated to transforming businesses and driving growth through comprehensive technology solutions. The company specialises in a broad spectrum of services, including Hardware, Applications, Data Centre, Networking, Storage, Security, Audio-Video Integration and Collaboration Solutions.

By offering turnkey solutions and leveraging best practices in ICT systems and infrastructure, Praruh addresses the diverse needs of various industries and organisations, ensuring that each solution is both effective and aligned with the client's business strategy.

Risks of Praruh Technologies IPO

• Dependence on Few Clients : The company’s customers include Indian Railways and Delhi Metro Rail Corporation Limited and others. For the financial year ended March 31, 2024, its top five clients accounted for approximately 80% of its revenue from operations.
  The loss of any significant client would have a material effect on its financial results. It cannot assure that it can maintain the historical levels of business from these clients or that it will be able to replace these clients in case it loses any of them.

• Failure to Get New Contracts : The company’s business, growth prospects and financial performance largely depends on its ability to obtain new contracts. It is noteworthy that in the past, its bids for contracts have encountered rejection, either due to the favourable standing of its competitors. It is important to acknowledge that there is no guarantee of its ability to fulfil these criteria in the future, whether independently or in collaboration with joint venture partners. In case it faces challenges in securing new contracts, it will have a significant and adverse impact on its business.

• Dependence on Third-party for Supply of Finished Goods : The company depends on third parties for the supply of finished goods or products and does not have firm commitments for supply or exclusive arrangements with any of its suppliers. Loss of suppliers may have an adverse effect on its business, results of operations and financial condition.

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Manager of Praruh Technologies IPO

• IPO Registrar: Maashitla Securities Pvt Ltd
• Book Running Lead Manager: Corporate Makers Capital Ltd

Business Model of Praruh Technologies IPO

Praruh goes beyond selling technology. It becomes a customer’s trusted IT partner. It offers tailored services to help customers grow their business, including IT consultancy, cloud solutions and services, ICT System Integration, disaster recovery, audio-visual integration, IT security, data management, and infrastructure management.

Praruh transcends mere technology providers, transforming into a strategic partner for customer’s business. Its expert team delves into specific needs and goals, crafting customised IT solutions that seamlessly integrate with existing infrastructure.

Company Growth Trajectory of Praruh Technologies IPO

The revenue from operations of Praruh Technologies Ltd grew from ₹20.2606 crores in FY 22 to ₹61.4382 crores in FY 24. Its EBITDA margin grew from 10.27% in FY 22 to 17.09% in FY 24, while PAT margin grew from 7.21% in FY 22 to 10.65% in FY 24. An established track record coupled with a diverse clientele has helped in the company's growth over the years.

Market Position of Praruh Technologies IPO

What sets Praruh apart is its consulting-led approach, which combines deep technical expertise with a focus on exceptional service delivery. The company's extensive investment in developing technical capabilities, support infrastructure, and engineering services allows it to manage complex IT projects with precision.

The company boasts a highly certified and trained team of consulting sales and services professionals who provide 24/7 support, ensuring that any IT challenge is met with prompt and effective solutions. This dedication to service excellence has earned Praruh a strong reputation across both the private and public sectors.

How to Check Allotment Status of Praruh Technologies IPO?

Visit the Registrar’s Website

• Go to the official website of Maashitla Securities Pvt Ltd
• Choose ‘Public’ Issues from ‘Allotment Status’
• Select Company Name and enter either your PAN No, Application No or Demat Account No
• 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 Praruh 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.