Sotefin Bharat files DRHP for ₹68.30 Cr IPO
Sotefin Bharat Limited filed its DRHP for a ₹68.30 crore fresh issue IPO to fund manufacturing facilities and working capital. The automated parking solutions provider saw revenue grow 107% to ₹116.75 crore in FY2026, though it faces risks from high customer concentration and negative operating cash flows.
*this image is generated using AI for illustrative purposes only.
Sotefin Bharat Limited has filed its Draft Red Herring Prospectus (DRHP) with market regulators to raise funds through a fresh issue aggregating ₹68.30 crore. The Kolkata-based company, incorporated in 2012, specializes in providing mechanised and automated parking solutions and has reported significant financial growth in recent years. The IPO proceeds are intended to finance capital expenditure for a new manufacturing facility, office premises, and general corporate purposes, alongside meeting working capital needs.
The company’s financial performance shows a robust upward trajectory, with revenue from operations growing from ₹56.28 crore in FY2024 to ₹116.75 crore in FY2026, representing a growth of approximately 107.45% over the two-year period. Profit After Tax (PAT) also increased substantially, rising from ₹6.25 crore in FY2024 to ₹17.37 crore in FY2026. Despite this profitability, the company reported negative cash flows from operating activities of ₹6.86 crore in FY2026, attributed primarily to higher trade receivables from government customers.
Financial Performance
The company's standalone financials highlight a consistent expansion in both top-line and bottom-line figures. Total revenue reached ₹118.23 crore in FY2026, while total assets grew to ₹129.06 crore. The table below summarizes the key financial metrics for the past three fiscal years.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 56.28 | 93.78 | 116.75 |
| Total Revenue | 56.87 | 94.15 | 118.23 |
| Total Expenses | 48.27 | 77.97 | 93.17 |
| Profit After Tax (PAT) | 6.25 | 11.31 | 17.37 |
| Total Equity | 27.88 | 56.51 | 83.93 |
Issue Structure and Objects
The public issue consists entirely of a fresh issue, with no Offer for Sale (OFS) component. The allocation of funds is directed towards specific capital expenditure and operational needs.
| Component | Amount (₹) |
|---|---|
| Fresh Issue – Manufacturing Facility CapEx | 20.13 Crore |
| Fresh Issue – New Office Premises CapEx | 8.17 Crore |
| Fresh Issue – Working Capital | 40.00 Crore |
| Total Identifiable Fresh Issue | ≥ 68.30 Crore |
Operational Highlights and Risks
Sotefin Bharat operates on a turnkey project delivery model, integrating advanced automated parking technologies. As of 31-Mar-2026, the company had completed over 55 projects and was executing more than 30 projects across India and international markets, including the United States and Dubai. It maintains a technology partnership with Sotefin SA, Switzerland.
However, the DRHP highlights several material risk factors. The company exhibits high customer concentration, with the top 10 customers contributing 91.77% of revenue in FY2026. Additionally, there is a significant dependence on its Swiss technology partner, Sotefin SA, which accounted for 50.40% of total purchases in FY2026. The industry is described as highly competitive and fragmented with low barriers to entry.
How will the company address the risks associated with high customer concentration and dependence on government receivables to improve operating cash flows?
What strategies will be implemented to diversify the supply chain and reduce reliance on Sotefin SA for critical technology components?
Will the new manufacturing facility enable the company to vertically integrate operations and improve profit margins over the long term?
15
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
