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  • Writer's pictureJatin Agarwal

Synoptics Technologies IPO


Synoptics Technologies Logo

Company and IPO Overview:


Synoptics Technologies Limited provides IT services and solutions. The company offers solutions in the areas of IT Infrastructure like connectivity to the Branches, Supply, implementation, and support of the network equipment needed to run the IT setup like routers, switches, etc.


It designs solutions for customers who need to put their applications on Cloud, as well as application migration, and managing the setup in the cloud. IT Security solutions like firewall installation and management are among few spaces where the company works. Data Centre design and solution with newer technology to optimize the investment and use less space and power are few niche areas where the company operates.


Synoptics Technologies helps enterprises, small businesses, and the Government in their Digital journey with various use cases of specific industry verticals. Its B2B customers include government entities, public sector undertakings (“PSUs”), and private enterprises. Some of its esteemed customers include TATA Communications Limited, BOB Financial Services, Blue Dart Express Limited, Lifestyle International Private Limited, Shoppers Stop Limited, Hennes & Mauritz Retail Private Limited (H&M), Fedbank Financial Services Limited, GIC Housing Finance Ltd, Motilal Oswal Financial Services Limited, Government of Gujarat etc.


Synoptics Technologies Limited has recently signed an agreement with BSNL to become their authorized Private LTE / Private 5G service partner nationwide this would establish the company into upcoming private LTE / Private 5G opportunities. The Company is headquartered in Mumbai and has regional offices in 17 locations throughout India including Andhra Pradesh, Bihar, Chandigarh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Odisha, Punjab, Rajasthan, Telangana, TamilNadu, Uttar Pradesh, Uttarakhand and West Bengal with a team of 584 employees.


Synoptics Technologies IPO is an NSE SME IPO and the company is about to raise around ₹ 54.03 crores via IPO that comprises fresh issue of ₹ 35.08 crores and Offer For Sale (OFS) up to ₹ 18.96 crores. The price of the IPO is fixed at ₹ 237 with a market lot of 600 shares. The retail quota is 47.50%, Non retail is 47.50% and market makers are offered 5%.


Financials (rounded off):

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2021

35

2.3

31/03/2022

51

4.3

31/12/2022

34

5.25

Objectives of the Issue:


The company intends to utilize the net proceeds from the issue towards the funding of the following objects:


1. Repayment of Borrowings,

2. Funding Working capital requirements,

3. Investment in Strategic Acquisition / Joint Venture.


IPO Details:

IPO Date

30/06/2023-05/07/2023

Face Value

₹10 per share

IPO Price Band

₹237 per share

IPO Lot Size

600 Shares

Listing at

NSE SME

Basis of Allotment

10/07/2023

Credit of Shares in Demat

12/07/2023

Listing Date

13/07/2023

Pre-Issue Shareholding

100%

Post-Issue Shareholding

73.11%

Retail Minimum Lot Size

600 shares (₹1,42,200)


Valuations & Margins:

Indicators

FY 20

FY 21

FY 22

EPS

2.6

3.37

6.18

P/E

-

-

38.35

EBITDA (%)

28.74

22.59

21.52

Debt/Equity

1.07

0.83

0.75

ROCE (%)

15.48

18.53

22.91


Important things to note about the Company:


1. Team of highly experienced professionals with a proven track record of providing high-quality services and achieving strong financial performance.


2. Strong presence across India, with a nationwide reach.


3. The company is showing strong order book with accelerating financials.


4. The company's promoters are currently engaged in legal proceedings, and any unfavorable judgment can have a negative impact on the business.


5. The company relies heavily on managed IT services, and a decrease in demand could adversely affect the business.


6. Failing to maintain and renew approvals, permits, and licenses to operate smoothly.



Crisp Insights:

  • Current Grey Market Premium is Rs.22.

  • Synoptics Technologies IPO is gaining good traction from the market and is likely to do well even post listing.



Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.




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