Praruh Technologies IPO Details
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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
Praruh Technologies IPO Valuation
Praruh Technologies IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
Market Maker | 5% of the issue size |
QIBs | Not more than 50% of the net issue |
Non-institutional Investors | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
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.
Strengths of Praruh Technologies IPO
Established Track Record
The company has been engaged in the IT consultancy, system integration, networking solutions, IT training and other similar services since 2019 and has an established track record in successfully delivering IT projects viz. successfully implemented and delivered the Training institute and Video management and surveillance for Delhi Metro Rail Corporation, Network Augmentation for Airport Authority of India and other similar projects for various public sector and private entities. The quality of services provided by it is also recognised and accepted by various authorities.
Quality Assurance and Quality Control of Services Products
Quality Assurance and Quality Control are integral parts of its operations. It believes that quality is an ongoing process of building and sustaining relationships. The company’s IT engineers inspect the entire process ensuring quality of its services is maintained. The company has experienced and qualified staff to carry out quality checks, commissioning and inspections at all the stages of its services delivery process.
Diverse Clientele
The company’s diverse client base spans various sectors, including railways, manufacturing entities, Defence sector, Indian Navy, and other govt. events etc. This variety gives it a strategic advantage by reducing its dependency on any single customer or industry, which helps maintain its financial stability, with such a broad clientele, its operations are not overly dependent on the preferences of one customer, minimising the risks associated with changes in the industry.
Risks of Praruh Technologies IPO
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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.
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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.
Praruh Technologies Financials
Peer Comparison
| Company | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|
Praruh Technologies Ltd | 327.24 | 57.57 | 568.38 |
Esconet Technologies Ltd | 5.84 | 25 | 29.85 |
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.
Praruh Technologies IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 61.65 | 28.04 | 20.27 |
Profit Before tax (in ₹ crore) | 8.74 | 2.89 | 1.96 |
Profit After Tax (in ₹ crore) | 6.54 | 2.16 | 1.46 |
EBITDA (in ₹ crore) | 10.49 | 3.17 | 2.08 |
Basic EPS in ₹ | 327.24 | 173 | 307.45 |
Praruh Technologies IPO Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crore) | 8.74 | 2.89 | 1.96 |
Net Cash Flow from Operating Activities (in ₹ crore) | 2.15 | 1.03 | -1.62 |
Net Cash Flow from Investing Activities (in ₹ crore) | -13.78 | -1.49 | -0.03 |
Net Cash flow from Financing Activities (in ₹ crore) | 11.71 | 0.50 | 1.38 |
Cash and Cash Equivalents at the End of the Period (in ₹ crore) | 0.15 | 0.07 | 0.026 |
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.
Praruh Technologies IPO FAQs
Where can I read more about Praruh Technologies business?
You can read more about Praruh Technologies and its IPO from the company’s red herring prospectus (RHP) here.
What is the Praruh Technologies IPO?
The IPO of Praruh Technologies Ltd consists of a fresh issue of up to 37,31,200 equity shares. It has no offer for sale.
When will the IPO of Praruh Technologies go live?
The exact dates of the Praruh Technologies Ltd IPO are yet to be announced.
