TechD Cybersecurity IPO Launches with Strong Grey Market Premium, Backed by Vijay Kedia
TechD Cybersecurity opens its SME IPO for subscription, aiming to raise Rs 38.99 crore by issuing 20.2 lakh fresh shares at a price band of Rs 183-193 per share. The company, backed by star investor Vijay Kedia who holds a 7% stake, offers cybersecurity services to major corporations. TechD reported strong financial growth with revenue of Rs 30.23 crore (97% increase) and profit after tax of Rs 8.40 crore (159% increase). The post-issue market capitalization is estimated at Rs 144.36 crore with a P/E ratio of 16.8x at the upper price band. Proceeds will be used for manpower expansion, establishing a Global Security Operation Centre in Ahmedabad, and general corporate purposes. The grey market premium stands at approximately 83% above the upper price band.
*this image is generated using AI for illustrative purposes only.
TechD Cybersecurity, a leading provider of cybersecurity solutions, has opened its Small and Medium Enterprise (SME) Initial Public Offering (IPO) for subscription. The company aims to raise Rs 38.99 crore through the issuance of 20.2 lakh fresh shares, with a price band set at Rs 183-193 per share.
Star Investor Backing
The IPO has garnered significant attention, partly due to the involvement of star investor Vijay Kedia, who holds a 7% stake in the company. This backing from a prominent market player has likely contributed to the strong investor interest in the offering.
Company Profile and Services
Founded in 2017, TechD Cybersecurity has quickly established itself as a notable player in the cybersecurity sector. The company offers a comprehensive range of services, including:
- Vulnerability assessment
- Managed security operations
TechD's client portfolio includes major corporations such as the Adani Group, Zensar Technologies, and Astral, demonstrating its ability to secure high-profile customers in various industries.
Financial Performance
TechD Cybersecurity has reported impressive financial results, showcasing strong growth:
| Metric | Amount | Growth |
|---|---|---|
| Revenue | Rs 30.23 crore | 97% |
| Profit After Tax | Rs 8.40 crore | 159% |
These figures indicate a robust financial performance, with nearly doubling of revenue and more than doubling of profit after tax.
IPO Details and Valuation
Key details of the IPO include:
- Total fundraise: Rs 38.99 crore
- Anchor investor allocation: Rs 11.09 crore
- Post-issue market capitalization: Rs 144.36 crore (at upper price band)
- Post-issue P/E ratio: 16.8x (at upper price band)
Use of Proceeds
The company plans to utilize the IPO proceeds for:
- Manpower expansion
- Establishing a Global Security Operation Centre in Ahmedabad
- General corporate purposes
Grey Market Premium
The grey market has shown significant enthusiasm for TechD Cybersecurity's IPO, with the grey market premium standing at approximately 83% above the upper price band. This indicates strong investor interest and positive sentiment towards the company's market debut.
Conclusion
TechD Cybersecurity's IPO presents an opportunity for investors to participate in the growing cybersecurity sector. With its strong financial performance, notable client base, and the backing of a prominent investor, the company has attracted considerable attention in the market. As always, potential investors should conduct their own research and consider their risk appetite before making investment decisions.
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