Optivalue Tek Consulting Soars on Stock Market Debut After Hugely Oversubscribed IPO
Optivalue Tek Consulting, a Bengaluru-based technology consulting firm, listed on the stock exchange after a highly successful IPO. The Rs 52-crore SME IPO was priced at Rs 80-84 per share and saw an overall subscription rate of 64.5 times. Non-institutional investors subscribed 118.8 times, retail investors 49.6 times, and qualified institutional buyers 49.3 times. The IPO attracted over 42,000 applications. Analysts expect a listing price of Rs 96-97 per share based on grey market premium. The company specializes in enterprise modernization and digital transformation, with offices in India, the US, and Australia. Optivalue Tek Consulting's revenue increased by 54% to Rs 56.50 crore in FY25, with net profit more than doubling to Rs 12.10 crore. IPO proceeds will fund new product development, a new Bengaluru office, IT infrastructure upgrades, and working capital requirements.
*this image is generated using AI for illustrative purposes only.
Optivalue Tek Consulting, a Bengaluru-based technology consulting firm, made a strong market debut on September 10 following its highly successful initial public offering (IPO). The company's shares were listed on the stock exchange after an IPO that garnered significant investor interest across various categories.
IPO Details and Subscription Rates
The Rs 52-crore SME IPO was priced at Rs 80-84 per share and witnessed an impressive overall subscription rate of 64.5 times. The breakdown of subscription rates across different investor categories showcases the widespread appeal of the offering:
- Non-institutional investors: 118.8 times
- Retail investors: 49.6 times
- Qualified institutional buyers: 49.3 times
The IPO's popularity was further evidenced by the more than 42,000 applications it attracted from potential investors.
Expected Listing Price
Based on the grey market premium, market analysts anticipate a potential listing price of Rs 96-97 per share, indicating a positive market sentiment towards the company's prospects.
Company Profile
Founded in 2011, Optivalue Tek Consulting specializes in enterprise modernization and digital transformation. The company has established a global presence with offices in the United States and Australia, in addition to its headquarters in Bengaluru, India.
Key highlights of the company include:
- A workforce comprising 70 full-time staff and 70-80 contractual workers
- Completion of over 500 integrations across more than 20 countries
- Expertise in technology consulting, particularly in enterprise modernization and digital transformation
Financial Performance
Optivalue Tek Consulting has demonstrated strong financial growth in recent years:
| Fiscal Year | Revenue (Rs Crore) | Net Profit (Rs Crore) |
|---|---|---|
| FY25 | 56.50 | 12.10 |
| FY24 | 36.70 | 5.50 |
The company's revenue jumped by 54% to Rs 56.50 crore in FY25, while its net profit more than doubled from Rs 5.50 crore in FY24 to Rs 12.10 crore in FY25, showcasing robust financial performance.
Utilization of IPO Proceeds
The funds raised through the IPO will be allocated to various growth initiatives and operational improvements:
- New product development
- Establishment of a new branch office in Bengaluru
- Upgrades to IT infrastructure
- Meeting working capital requirements
These strategic investments aim to support the company's expansion plans and enhance its operational capabilities in the competitive technology consulting sector.
The successful listing of Optivalue Tek Consulting reflects the strong investor confidence in the company's business model and growth prospects. As the firm embarks on its journey as a publicly traded entity, market participants will be keenly watching its performance and the execution of its growth strategies in the coming quarters.
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