Tridhya Tech IPO Opens Today: GMP, Issue Price, & Other Details. Apply?

Tridhya Tech Ltd, an industry leader in software development with headquarters in Ahmedabad, intends its SME public issue to raise up to Rs. 26.41 crore which opens for subscriptions on June 30. On July 5, the public issue will end. The company's shares will be listed on Thursday, 13 July 2023 on the NSE SME platform. Its promoter group shareholding pre-issue is 80.8% which post-issue will be 58.98%.

The fresh issuance of 62.88 lakh equity shares with a face value of Rs. 10 each will be offered in the initial public offering. The price range for the fresh issue is Rs. 35-42 per equity share, plus a premium of Rs. 25-32 per equity share. Through the public offering, the company aims to generate up to Rs. 26.41 crore via IPO. A minimum application value of between Rs. 1.05 and Rs. 1.26 lakh is required for each application as the minimum lot size is 3000 shares. Retail investors and HNIs are limited to receiving no less than 35% and 15% of the issue, respectively, as part of the IPO, while the QIB quota is limited to receiving no more than 50% of the issue. 3,15,000 equity shares make up the reserve part for market makers.

Interactive Financial Services Ltd is the lead manager of the issue and Link Intime India Private Ltd is the Tridhya Tech IPO registrar.
Tridhya Tech said it plans to use the proceeds of the public issue for the repayment of unsecured and secured loans and general corporate purposes for its business activities.

Mr. Ramesh Marand, Managing Director, "Company has taken important strategic initiatives with a focus to expand our footprints and services. Company has a vision to become one of the leading company in the software development space with best tech infrastructure to provide end-to-end tech solutions powered build an effective digital presence. We are confident that after the proposed public issue, we will be able to execute our growth strategy in a manner that creates exponential value for all stakeholders. Proceeds of the issue will further strengthen company's balance sheet and help fund its strategic growth initiatives."

The firm recorded total revenue of Rs. 14.07 crore and net profit of Rs. 3.39 crore for the fiscal year (FY) 21-22. The firm recorded a total revenue of Rs. 15.08 crore for the nine months that ended in December 2022 and a net profit of Rs. 2.85 crore. The company's net worth as of December 2022 was Rs. 20.30 crore, its total assets were Rs. 59.69 crore, and its reserves and surplus were Rs. 18.60 crore.

Tridhya Tech IPO latest GMP is Rs 9 as of June 29th 2023 06:15 PM in the grey market. According to market observers, the Tridhya Tech SME IPO's expected listing price is Rs 51 (cap price plus today's GMP), considering the upper end of the price band of Rs 42. Therefore, based on the latest GMP, Tridhya Tech IPO indicates a good listing premium of 21.43% above the issue price on its listing day.

Apply Tridhya Tech IPO?

Before applying for any IPO firstly, we should understand the objectives of fund utilization for the IPO that is being initiated. We generally preferred the IPO which is raising money to expand businesses or any new business acquisitions or something like that. On the other hand, if any company raises funds just to repay the loans that means there is a lack of net profitability and it also gives some impression about management also. Tridhya Tech Ltd IPO (NSE Emerge) is majorly about loan repayments and secondary for business growth. So, it isn't a big trigger for us to apply for this IPO. Better to wait and observe for initial 2 days to observe QIB and HNI subscriptions and if it is fully subscribed then apply for it. One better way is, to let it perform in the secondary market and if it shows strength, we can try to invest in it. But as of now, it is "Avoid" from our side said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

Disclaimer

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