Fidel Softech Limited IPO

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i. Fidel Technologies KK (since 2001) is a Tokyo based LangTech Consulting firm & offers Technology – Localization – Bilingual Staffing services & solutions to global as well as SME Japanese clients. For Japan market entry, or IT services (software dev, product dev & implementation, infrastructure support), Localization Services & or Manpower requirements.

ii. Fidel Softech Limited is a LangTech Consulting firm offering technology services with local language UI/ UX. The services offered by the Company include IT services including Software development, Infrastructure & Cloud support, Localization including translation, interpretation, software localization & multilingual data creation, and Consulting & Staffing services including training.

iii. They are a LangTech Consulting firm helping their clients with either Technology-Languages- People. The company help its customers to deliver their solutions /products /services to the end-users in their local languages by leveraging technology, localization solutions, and Consulting. Our Company offers Software development & Cloud infrastructure support services, localisation services; such as Translation, Interpretation, Content creation, Multi lingual data creation, transcription & Annotation for training AI engines, Video subtitling and other video audio services, Data engineering, testing, scripting & tooling services and Consulting & Staffing services.

iv. Company’s customer base is spread across the globe with presence in countries like Argentina, Belgium, China, Cyprus, Czech Republic, Dubai, Egypt, Germany, Hong Kong, Ireland, Italy, Japan, Kingdom of Saudi Arabia, Malaysia, Mauritius, Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Taiwan, Ukraine, United Arab Emirates, United Kingdom, and United States of America.

v. Company’s sales through exports contributed 86.09%, 86.89% and 82.40% respectively from the revenue from operation for the year ended March 31, 2022, 2021 and 2020 respectively. Currently, they have 165 employee base in its Company at various levels and it intend to increase the same so that they are able to take up more projects and thereby increase its revenue from operations and achieve growth in the industry.

vi. Competitive Strengths

  1. Offering technology services with local language UI/ UX.
  2. Clients in both domestic and international markets.
  3. Wide Service Portfolio.
  4. Quality assurance.
  5. Leveraging the experience of our promoters.

Objects of the Fidel Softech Limited IPO:

The Company proposes to utilize the Net Proceeds towards funding the following objects: 1. Funding working capital requirements; and 2. General corporate purposes.
RHP of Fidel Softech Limited IPO

Fidel Softech Limited IPO Details:

Open Date: May 30 2022
Close Date: Jun 02 2022
Total Shares: 36,48,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 13.4976 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 37 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 10 2022

Promoters And Management:

i. Sunil Sudhakar Kulkarni, aged 50 years, is the Promoter, Chairman and Executive Director of the Company. He holds degree of Bachelor of Mechanical Engineering, Pune University, Pune, India in the year 1993 and also completed a summer program in Technical Japanese for Materials Science and Related Engineering, Massachusetts Institute of Technology, in the year 1996. He has been on the Board of the Company since August 23, 2005. He has more than 20 years of experience in the field of Information Technology Consultancy. He is currently responsible for the overall management and marketing affairs of the Company. ii. Prachi Sunil Kulkarni, aged 46 years, is the Promoter and Managing Director of the Company. She holds degree of Bachelor of Engineer (Computer Science), Dr. Babasaheb Ambedkar Marathwada University, Aurangabad, India in the year 1998. She has been on the Board of the Company since 2011. She has an experience of more than 20 years in financial domain in terms of functional and technical. She is responsible for product development, functional and technical department of the Company. iii. Shyamak Sunil Kulkarni, aged around 21 years is the Non-Executive Director of the Company. He has been appointed on March 20, 2022. Presently, he is pursuing for Bachelors of Econometrics and Quantitative Economics from Purdue University, USA.

Financials of Fidel Softech Limited IPO:

Particulars (in Lakh) Mar-22 Mar-21 Mar-20
Sales 2,631 2,571 2,238
Cost of Serivce 717 753 771
Employee Benefits Expense 1,166 1,195 848
Other Expenses 140 191 142
Operating Profit 608 432 477
OPM % 23.11% 16.80% 21.31%
Other Income 55 49 43
Interest 16 8 13
Depreciation 18 15 77
Profit before tax 629 459 431
Total Tax Exps 173 114 116
Net Profit 457 345 315
NPM % 17.37% 13.42% 14.08%
EPS in Rs 4.52 3.42 3.12

Comparison With Peers:

As per RHP, there is no peer in the listed market.

Recommendation on Fidel Softech Limited IPO:

Review and Recommendation of  Fidel Softech Ltd IPO by InvestorZone is 6/10 1. Company is delivering services and solutions to Japan based clients since 2001. The services offered by the Company include IT services including Software development, Infrastructure & Cloud support, Localization including translation, interpretation, software localization & multilingual data creation, and Consulting & Staffing services including training. 2. Company has good management profile. Sunil Sudhakar Kulkarni, aged 50 years, is the Promoter, Chairman and Executive Director of the Company. He holds degree of Bachelor of Mechanical Engineering, Pune University, Pune, India in the year 1993 and also completed a summer program in Technical Japanese for Materials Science and Related Engineering, Massachusetts Institute of Technology, in the year 1996. 3. Revenue has grown at a CAGR of 8.71x in the last 3 years. 4. PAT has grown at a CAGR of 20% in the last 3 years. 5. EPS (FY22)= 3.32 and P/E is 11x (looks fairly priced for an IT Company). 6. Company has excellent ROE of 16% and ROCE of 22%. 7. They are raising funds for Working Capital Requirement. Funds will be used in 2023 and 2024.

Lead Manager of Fidel Softech Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Fidel Softech Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Fidel Softech Limited Unit No. 202, 2nd Floor, Marisoft 3, West Wing, Marigold Software IT Park, Vadgaon Sheri, Pune – 411 014 Phone: 020 – 4900 7878 Email: investor-relations@fidelsoftech.com Website: https://fidelsoftech.com/

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