TechD Cybersecurity, a prominent player in the cybersecurity sector, has witnessed an overwhelming response to its Initial Public Offering (IPO) on the second day of bidding. The Rs 40-crore SME IPO has been oversubscribed by 56.90 times, showcasing strong investor interest in the company's shares.

IPO Details

The IPO comprises 20 lakh fresh shares with a price band set between Rs 183-193 per share. The offering is set to close on September 17, with the allotment scheduled for September 18. Investors can expect the shares to be listed on the NSE SME platform on September 22.

Subscription Breakdown

The impressive oversubscription has been driven by strong demand across various investor categories:

Grey Market Premium

The grey market is showing significant enthusiasm for TechD Cybersecurity shares, with a premium of Rs 160 per share. This indicates an estimated listing price of Rs 353, suggesting potential gains for IPO subscribers.

Utilization of IPO Proceeds

The funds raised through this IPO will be allocated to several key areas:

1. Human resources expansion
2. Capital expenditure for a Global Security Operation Centre in Ahmedabad
3. General corporate purposes

Company Profile

TechD Cybersecurity has established itself as a notable player in the cybersecurity industry. The company boasts an impressive client roster that includes prominent names such as:

• Swiggy
• Indian Oil
• Capgemini

These high-profile clients underscore the company's expertise and reliability in providing cybersecurity solutions.

Market Outlook

The strong investor response to TechD Cybersecurity's IPO reflects the growing importance of cybersecurity in today's digital landscape. As businesses and organizations continue to face increasing cyber threats, companies specializing in cybersecurity solutions are likely to see sustained demand for their services.

Investors and market watchers will be keenly observing the company's performance post-listing, as it could set a precedent for other cybersecurity firms considering public offerings in the near future.

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:

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:

1. Manpower expansion
2. Establishing a Global Security Operation Centre in Ahmedabad
3. 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.