Canarys Automations IPO

Apply 0
Avoid 0

i. Started in 1991, Canarys is a leading IT solutions provider with over 30 years of existence in the industry. Their expertise lies in enabling digital transformation for businesses through their comprehensive range of software solutions in the space of Digitalization, Modernization, Automation and Intelligence.

ii. Their business operates across two verticals

i. Technology solutions: Their technology solution offerings include multiple array of consulting solutions in Digitalization, Modernization, Cloudification, Automation, Transformation and Intelligence. Technology expertise includes DevOps Consulting (Azure, GitHub, Atlassian, GitLab, etc.), Cloud Consulting (Azure, AWS, GCP), Digital Enterprise Solutions using SAP, MS Dynamics 365, RPA, Digital Applications and Mobility Solutions.

ii. Water Resource Management Solution: They offer automation solutions to modernize irrigation water conservation, and improve water use efficiency, Turnkey flood risk assessment and mitigation, cloud based water utilisation process automation for water sharing in rivers and canals and SCADA gate control systems.

With a strong focus on digital transformation, the company empower businesses to optimize their operations, enhance customer experiences, and stay ahead of the competition. Their commitment to excellence has been recognized and rewarded by various customers, alliance partners and OEM’s.


Their business operates across two verticals: Technology solutions and Water Resource Management solutions. A brief description of our solution offerings within these two verticals are given below.

Competitive Strengths

i. High-Quality Standards
ii. Value Creation Approach
iii. Sustainability Focus
iv. Customer Centric Approach

Objects of the Canarys Automations IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Funding of expenditure relating to solutions development for digital transformation and water resources management solutions. ii. Creation of a new delivery center including infrastructure thereof and upgrading existing facilities. iii. Funding working capital requirements of the Company. iv. General corporate purposes.

Canarys Automations IPO Details:

Open Date: Sep 27 2023
Close Date: Oct 03 2023
Total Shares: 15,172,000
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 47.03 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 29 - 31 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 07 2023

Promoters And Management:

i. Mr. Metikurke Ramaswamy Raman Subbarao, is one of the Promoter and currently the Chairman and Managing Director of the Company. He holds a Bachelor of Engineering in Electronics from B. M. S. College of Engineering, Bengaluru, Karnataka. He has work experience of more than 32 years in Software development, IEEE-488 based Test & Measuring instruments, Design & development of Microprocessor/Microcontroller based Controllers, vast programming expertise Spanning Machine, Assembly and High-Level Languages, Web based tools for data capturing, monitoring and analysing data. He has been driving technological innovations all throughout, with major accomplishment of becoming the very few early companies to be funded by Venture Capital in 1992 from “Canbank Venture Capital Fund” of Canara Bank for developing Microprocessor based programmable instruments compatible to IEEE-488 standards with PC based controllers for the first time in the country. He has received multiple certificates of recognition for his exceptional performance. ii. Mr. Danavadi Krishnamurthy Arun, is one of the Promoter and Whole-time Director of the Company. He holds a Bachelor of Engineering in Mechanical from Gulbarga University. He has work experience of more than 32 years in IT Industry. He has worked on different technology domains starting from assemble language programming, managing production & testing, deployment of IEEE -488 based equipment’s for Telecom & Defence industry. Currently managing operations by providing directions in implementing systems for business operations, overseeing operations of the company, taking care of legal & statutory compliance, customer & vendor contracts, accounts receivable & accounts payable & interacting with bank & other institutions. He has been associated with the Company since July 01,1991. iii. Mr. Raghu Chandrashekhariah, is one of the Promoter, Whole-time Director and Chief Financial Officer of the Company. He holds a Bachelor of Engineering in Electronics and Communications from University of Mysore. He has work experience of more than 31 years in Business Development, Customer and Talent acquisition. He has been associated with the Company since April 1, 1992.

Financials of Canarys Automations IPO:

Particulars ( In Lakhs )
Revenue from Operations 2,562 5,151 7,452
Other Income 17 49 95
Total Revenue 2,578 5,200 7,547
Cost of Materials Consumed 547 1,944 1,897
Changes in Inventories 130 -327 98
Employee benefits expenses 1,207 1,976 3,045
Other Expenses 352 879 1,136
EBITDA 343 728 1,370
Depreciation & Amortisation 35 38 40
Finance Cost 10 67 150
EBIT 309 690 1,330
OPM (%) 13.32% 14.00% 18.15%
PBT 299 623 1180
Tax 89 167 328
PAT 210 456 853
NPM (%) 8.16% 8.77% 11.30%
No.of Shares 561.83 561.83 561.83
EPS 0.37 0.81 1.51

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Canarys Automations Limited 75 9 1.51 20.4 31 174
All E Technologies Limited 88 12 5.74 21.2 146 295
Happiest minds Limited 1,333 216 14.73 62.2 904 13,757
* All the data is as per FY23.

Recommendation on Canarys Automations IPO:

Review and Recommendation of Canarys Automations SME IPO by IZ team is 6/10 Read Complete Review Here

Lead Manager of Canarys Automations IPO:

  1. Indorient Financial Services

Registrar of Canarys Automations IPO:

  1. Link Intime India Private Limited

Company Address:

Canarys Automations Limited No. 566 & 567, 2nd Floor, 30th Main, Attimabbe Road, Banagirinagara, Banashankari 3rd Stage, Bengaluru - 560085 Phone: +91 98458 62780 Email: Website

Discussion on Canarys Automations IPO:

1 Comment

    This looks a very good IT company. Good Management. Shown good growth in the last 3 years.

Leave a Reply