Tridhya Tech Limited IPO

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i. Tridhya Tech is engaged in full-service Software Development which includes all IT services and resources. They provide turnkey consultancy services to various industries like e-commerce, Real estate, transport and Logistics, Insurance and other sectors. They provide services related to ecommerce development, Enterprise content Management, Bespoke Web Management, Mobile App, Development, API Development, Product Support & Maintenance, Front End Development and Graphic design.

ii. They provide customised software products, which starts from the initial concept of the product requirement, designing the architecture, coding and testing, deploying to the final deployment of the product. They also provide post deployment support on time to time basis to our clients. They also provide project management, consultation services, maintenance and support services to ensure the successful completion of the project and longevity of the software. This helps to ensure that the software is properly developed and deployed, meeting the expectations of the client. The company believe in technological empowerment and provide end-to-end tech solutions to build an effective digital presence.

iii. Their total employees strength is 162 including permanent and on call software professionals/technicians in our Company.

iv. Tridhya has strong presence in international market i.e., Australia, Canada, Estonia, France, Germany, Israel, Italy, Japan, Mauritius, Netherlands, Qatar, Singapore, Switzerland, UAE, UK, USA. In domestic market our customer is based on Maharashtra, Gujarat, Punjab, Telangana and Karnataka

SERVICES :

A. IT Solutions Developments & Maintenance Services (Time Base Income):

i.  E-commerce development
ii. Enterprise Content Management (ECM)
iii.. Bespoke Web Management
iv. Mobile App development
v. API development
vi. Product Support and Maintenance
vii. Front End Development
viii. Graphic Design
ix. Software Applications

B. IT Staff Augmentation (Fixed Basis Income):

COMPETITIVE STRENGTHS:

i. Experienced Promoter
ii. End-to-end IT Services under a single umbrella
iii. Quality Service

Objects of the Tridhya Tech Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Repayment of unsecured and secured loans, ii. General Corporate Purpose, and iii. Meeting Public Issue Expenses.
DRHP of Tridhya Tech Limited IPO
RHP of Tridhya Tech Limited IPO

Tridhya Tech Limited IPO Details:

Open Date: Jun 30 2023
Close Date: Jul 05 2023
Total Shares: 6,288,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: ₹26.41 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 35 to ₹42 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 13 2023

Promoters And Management:

i. Ramesh Marand aged 41 years, is the Promoter and Managing Director of the Company. He has completed his Bachelor Degree in Information Technology from L D Engineering College, Gujarat University in 2006. After completion of his education, he has served many organizations at a different role started from trainee to Delivery Head in the IT sector. He got immense experience and knowledge that he started his own business in IT Industry only. Currently he holds nearly two decade of the overall experience in the field of IT. After joining ou Company as a pioneer, he has delivered his al time and knowledge in expansion of the business activities. Currently, he takes care of software development and overall business operation of the Company. ii. Vinay Dangar aged 32 Years, is the Executive Director of the company. He holds Bachelor Degree in Mining from Gujarat Technological University. He is having more than a decade experience in the business of mining, which was owned by himself. By implementing technology revolution in his own business, he has achieved many milestones like increase efficiency, reduce overhead, maximize output and customer satisfaction. He being one of the pioneer and promoter of our company, concentrate the growth of the business with efficiency and solving the problem of the customers in our Company. iii. Gaurav Barot aged 42 years, is the Executive Director of the company. He holds Bachelor Degree in Information Technology from GCET Vallabh Vidyanagar. He is having experience of two decades in the field of IT which includes experience of service in IT Organization as well as running owned IT Business. He is Director and Chief Strategy officer of the company. He plays a vital role in the hiring of skilled employees for the company as well as he also look after the business takeover strategies and acquisition strategies of the Company.

Financials of Tridhya Tech Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Equity Share Capital 1.00 1.00 145.86 170.00
Reserves 14 100 1,296 1,754
Borrowings 67 687 705 2,360
Trade Payables 6 363 242 126
Other Liabilities 48 48 208 631
Total Liabilities 122 1,098 1,156 3,117
Net Block 12 590 1,037 1,148
Capital Work in Progress 0 186 0 0
Investments 0 0 986 1,728
Other Assets 5 10 39 299
Total NC Assets 17 787 2,062 3,175
Receivables 64 150 114 70
Cash & Bank 15 189 4 7
Other Assets 41 74 417 1,788
Face value 10 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 435 827 1,322 1,175
Employee Cost 318 306 442 415
Other Expenses 72 375 342 300
Other Income 2 7 32 124
EBITDA 46 153 571 439
EBITDA Margin 10.59% 18.53% 43.21% 49.76%
Depreciation 10 16 69 129
Interest 7 22 72 113
Profit before tax 29 115 430 342
Tax 5 29 108 87
Net profit 24 86 323 256
NPM (%) 5.53% 10.30% 23.81% 19.67%
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Cash From Operating Activity
Profit From Operation 58 153 564 389
Receivable -64 -86 36 44
Payable 6 356 -121 -116
Loans And Advances -1 -53 -363 -1196
Other WC Items 48 7 118 221
Working Capital Changes -10 225 -330 -1047
Direct Taxes -9 -27 -75 -61
Net Cash Inflow from Operating Activity 39 351 159 -719
Cash from Investing Activity
Fixed assets purchased -8 -594 -366 -460
Fixed assets sold 0 0 30 3
Investments purchased 0 0 -986 -741
Other investing items 0.1 6 15 60
Net cash inflow from investing activities -8 -588 -1308 -1138
Cash from Financing Activity
Proceeds from shares 0 -186 1018 290
Proceeds from borrowings 0 620 18 1655
Repayment of borrowings -14 0 0 0
Intrest paid fin -7 -22 -72 -85
Net Cash Flow 10 175 -185 3
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Tridhya Tech Limited 11.7 2.5 1.09 38.26 42 97.8
Dev Information Technology Limited 124 9 4.06 36.9 150 331
Silver Touch Technologies Limited 166 10 7.66 50.3 385 489
Infobeans Technologies Limited 385 36 14.83 30.9 458 1,112
* All Data is as per FY23.

Lead Manager of Tridhya Tech Limited IPO:

  1. Interactive Financial Services

Registrar of Tridhya Tech Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Tridhya Tech Limited 401, One World West, Near Ambli T-Junction 200' S. P. Ring Road, Bopal Ahmedabad - 380058 Phone: +919571831080 Email: grievance@tridhyatech.com Website: https://www.tridhyatech.com/

Discussion on Tridhya Tech Limited IPO:

4 Comments

    In the first 9MFy23, the company has given loan of 12 Cr to Others. There is no mention of who are these ‘Other”.

    Now question is where they got this amount, as Total PAT is ~3.22 Crores in Fy22.



    Further, they bought ~5 Cr of PPE and ~7.4 Cr of investment in three companies Basilroot Technologies Private Limited ( ~2 Cr), Vedity Software Private Limited (~4 Cr), Tridhya Tech GmBH (0.04 Cr)….

    This is done to consolidate the business. As these are IT companies.



    Now, if you add these amount of 12 Cr + 5 Cr + 7.4 Cr = ~24 Cr….



    This was approximately funded by ~4 Cr from Cash from Operations, and taking ~16 Cr loans from bank.



    Now the purpose of this IPO is to pay this secured and unsecured loan taken from banks.

    Looks like lot of doubts in the company.

    Reply

    The company is having Revenue of 11 cr and PAT of 2 Cr. Asking Valuation 100 cr……

    Mcap/Sales = 10x
    P/E = 38x

    Whereas one of the India’s largest IT Company Infosys with Revenue of 1.5 Lac cr and PAT of 24k Cr…..Is available at 5.6 Lakh Cr of valaution.

    Mcap/Sales = 3x
    P/E =23x

    Insane valuation in the SME

    Reply

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