Synoptics Technologies IPO Reveals Strong Order Book & Accelerating Financial Growth

Synoptics Technologies Limited, a leading IT services and solutions provider, is set to embark on its maiden initial public offering from 30th June to 5th July 2023. With an impressive track record, a diverse range of B2B clients, and robust financial performance, the IPO presents an enticing opportunity for investors seeking long-term gains in the technology sector.

Synoptics Technologies' IPO will comprise a total of 2,280,000 equity shares, each with a face value of ₹10 per share. Priced at ₹237 per share, the IPO aims to raise ₹54.04 crore. The issue consists of a fresh equity issue of 1,480,000 shares, amounting to ₹35.08 crore, and an offer for sale (OFS) of 800,000 shares worth ₹18.96 crore. The IPO will open for subscription on 30th June and close on 5th July 2023, with a minimum application size of 600 shares and multiples thereafter. The shares will be listed on NSE SME Emerge.
Synoptics Technologies specializes in providing comprehensive IT infrastructure solutions to its clients.

From establishing connectivity across branches to the supply, implementation, and support of network equipment, such as routers and switches, the company ensures the smooth functioning of its clients' IT setups. Additionally, Synoptics designs and manages cloud-based applications, offers IT security solutions, and provides data center design services to optimize investment and efficiency.

Synoptics Technologies boasts an impressive clientele comprising a wide range of esteemed B2B customers. Notable names in its portfolio include TATA Communications Limited,BSNL, Chroma, 7 Eleven, Aditya Birla Group, Shoppers Stop, State Bank of India, Kotak Mahindra, Federal Bank, Pidilite, Mahanagar Gas, Tech Mahindra, RailTel, Bank Of Baroda, Blue Dart Express Limited, Lifestyle International Private Limited, Shoppers Stop Limited, Hennes & Mauritz Retail Private Limited (H&M), and Government of Gujarat, among others. This diverse and prestigious client base underscores the company's reputation and market presence.

Synoptics Technologies has demonstrated consistent growth in its financial performance. Over the past few years, the company has witnessed significant revenue and profit increases. According to the restated consolidated financial data, the company's total revenue has grown by approximately 57% from ₹2,211.43 lakhs in FY20 to ₹5,097.07 lakhs in FY22. Similarly, its profit after tax has surged by around 137% during the same period, reaching ₹432.36 lakhs in FY22. These robust growth figures are indicative of Synoptics' ability to capitalize on market opportunities and drive sustainable profitability.

Apart from its strong financial performance, Synoptics Technologies has several other positive factors that make it an attractive investment option. The company's strategic focus on innovation, technology-led solutions, and customer-centric approach has enabled it to carve a niche in the digital transformation journey of enterprises, small businesses, and government entities. Furthermore, Synoptics recently secured an agreement with BSNL, positioning itself as the authorized Private LTE/5G service partner nationwide, thereby expanding its market reach and capitalizing on emerging opportunities in the telecom sector.

As of May 31, 2023, Synoptics Technologies boasts a robust order book worth ₹28.00 crore. This signifies the company's strong market demand and its ability to secure long-term contracts from reputed clients. The healthy order book not only provides revenue visibility but also showcases the company's credibility in the industry.

The IPO pricing of Synoptics Technologies indicates an attractive valuation. The company is seeking a market capitalization of approximately ₹200.98 crore based on the IPO pricing. The issue is priced at a price-to-earnings (P/E) ratio of 25.32, considering the annualized FY23 earnings. This indicates that the IPO is reasonably priced, offering investors a potential opportunity for capital appreciation.

Synoptics Technologies aims to utilize the net proceeds from the IPO for several strategic purposes. These include repayment of certain borrowings, funding additional working capital requirements, investment in strategic acquisition/joint venture, and general corporate purposes. The IPO will provide the company with the necessary financial resources to fuel its growth, expand its market presence, and capitalize on emerging opportunities in the IT services sector.

Mr. Dilip Davda, a well-respected expert in the IPO analysis space and the founder of Chittorgarh.com, has recommended applying for the Synoptics Technologies IPO. His positive recommendation underlines the potential of the company and its prospects for long-term gains. Mr. Davda's expertise and positive outlook on the IPO provide additional confidence to potential investors considering participating in the offering.

Synoptics Technologies' IPO presents an attractive opportunity for investors seeking exposure to the IT services sector. With a strong order book, favorable valuation, and positive recommendations from industry experts like Mr. Dilip Davda, the company is well-positioned for sustained growth. The IPO's objectives align with the company's expansion plans and its commitment to delivering innovative technology solutions. Investors with a long-term perspective and an appetite for potential capital appreciation should consider applying for the Synoptics Technologies IPO.