Micropro Software Solutions Limited IPO

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Micropro Software provides end-to-end IT solutions to its clients, with a strong emphasis on ensuring the security and efficiency of IT operations. Here’s a breakdown of the key elements of this business model:

1. Core Services:

a) Software Development: The company designs, develops, standardizes, and customizes software solutions across various industry verticals. They emphasize the importance of meeting governance requirements and software development standards while also addressing issues related to traffic load, security, and data protection.

b) No Outsourcing: Notably, the company does not outsource activities to third-party vendors, implying that all services are provided in-house.

2. IT Infrastructure Management Services:

End-to-End IT Solutions: The company positions itself as an end-to-end IT solution specialist, offering services that enable clients to offload their IT operations. This includes software development, implementation, and E-governance to meet governance requirements and software development standards. E-governance is emphasized as an integral part of their services.

3. End User Management:

The company provides End User Services designed to enhance end-user productivity and streamline services across various locations. This includes centralized support with standardized processes, 24/7 support, and the management of desktops, operating systems, office automation applications, business applications, troubleshooting of local network issues, and technical support services.

4. Server Management:

The company acknowledges that managing servers is a costly and time-consuming activity. Their Server Management Service aims to ensure the availability of server hardware and operating systems in a healthy and optimal state. It covers various aspects, including server hardware, operating system installation, configuration, administration, monitoring, incident and problem management, version migration and upgradation, patch management, performance, capacity management, and remote server administration.

5. Virtualization Services:

The company offers Virtualization Services to assist organizations in transitioning from physical to virtual environments. This includes consulting and deployment of virtualization technologies and private cloud infrastructure, high availability setup deployment, administration of virtual machines, and SLA-based incident, problem, and change management.

6. Storage and Backup Management:

The company acts as a Managed Services Partner for storage and backup, not only managing clients’ infrastructure efficiently but also providing insights on data usage and cost control. This service includes provisioning of storage, monitoring and management of storage infrastructure, availability and capacity management, backup monitoring, restoration testing, and disaster recovery management.

7. Network Management:

The company’s Network Infrastructure Management Services address all networking needs, providing reliable and flexible networking infrastructure support. They help clients improve network availability, optimize performance, and proactively manage operational issues. The services cover network consultancy, requirement study, network design, and network implementation for LAN/WAN.

Objects of the Micropro Software Solutions Limited IPO:

The Company proposes to utilize the funds being raised through this Issue towards the below-mentioned objects and gain benefits of listing on the Stock Exchange. 1. Working capital requirements; 2. Funding capital expenditure requirements; 3. General Corporate purposes

Micropro Software Solutions Limited IPO Details:

Open Date: Nov 03 2023
Close Date: Nov 07 2023
Total Shares: 3,790,400
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 30.70 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 81 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 10 2023

Promoters And Management:

i. Mr. Sanjay Mokashi Yadavrao is the Chairman and Managing Director of the company. He is also one of the promoter and founder of the company. He has been associated with the Company since its incorporation as a Director and Promoter. He holds a bachelor’s degree in science from institute of Science from Nagpur and Postgraduate (M.Sc. in Statistics) from Institute of Science, Nagpur University. He also completed Postgraduate Diploma in computer science and Application from Nagpur University. Further, he has received a certificate of Numerical Analysis and Fortran Programming. He has also received a Certificate of Merit from Maharashtra State School Sports Autumn. He has more than three decades of experience in IT industry. He also worked as Programmer/Analyst in Ramdeobaba Kamla Nehru Engineering College (RKNEC), Nagpur. ii. Mr. Meher Shreeram Pophali is the whole time director of the company. He has been associated with the Company since inception. He holds a Master’s degree in Electronics from Nagpur University. He has over 30 years of experience in IT industry. Previously He was associated with HCL Infosystems Ltd. He has a proven track record of successfully leading and managing teams of various sizes across different regions. He is responsible for overseeing the IT infrastructure Servics, marketing, and Enterprise hardware sales departments. He also works closely with the marketing team to develop and execute effective marketing campaigns and strategies that help the company achieve its sales and revenue targets. iii.  Mr. Manish Suresh Peshkar is the whole time director of the company and has been an executive director on the Board of the Company since January 01, 2003. He holds the degree of Bachelor of Computer Science from Pune University. He has also completed Master of Computer Management and Doctor of Philosophy (Ph.D) from Rashtrasant Tukadoji Maharaj Nagpur University. He has over 25 years of experience in IT industry. He is responsible as Principal software architect, Chief Technologist, Engineering Head in product development and custom projects.

Financials of Micropro Software Solutions Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 1,388 1,744 2,206 271
Other Income 4 12 12 5
Total Revenue 1,392 1,755 2,217 276
Purchases of Stock-in-Trade 332 366 269 19
Change in Inventories 16 7 -6 1
Employee benefits expenses 553 595 679 117
Other Expenses 260 359 352 56
EBITDA 232 428 923 82
Depreciation & Amortisation 26 30 70 12
Finance Cost 24 27 31 5
EBIT 206 398 853 71
OPM (%) 16.66% 24.39% 41.62% 29.84%
PBT 181 371 822 66
Tax 52 104 230 18
PAT 130 267 592 48
NPM (%) 9.30% 15.22% 26.71% 17.27%
No.of Shares 142.99 142.99 142.99 142.99
EPS 0.90 1.86 4.14 0.33

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Micropro Software Solutions Limited 22 6 4.14 19.6 81 116
Softtech Engineers Limited 65 4 3.94 65.6 221 224
Compucom Software Limited 55 5 0.63 38.6 21 166
Persistent Systems Limited 8,351 921 120.52 47.5 6,198 47,680
* All the data is as per FY23.

Recommendation on Micropro Software Solutions Limited IPO:

Review and Recommendation of Mircopro India SME IPO by IZ team is 3/10

A) Company Overview:

Micropro has been in the Information Technology sector for over 30 years, offering a range of products and services to clients worldwide. The company has a diverse product portfolio including: 1. Hospycare: A hospital management tool used by healthcare institutions in UAE, India, Botswana, and Seychelles. 2. OpenSys-Logix: An analytical tool that predicts future product demands based on historical data and current market trends. 3. PharmaZip: A platform connecting retail pharmacies with wholesale distributors. 4. OpenSys MicroBooks: An accounting software designed for small and medium businesses. In addition to these, Micropro offers IT services like Property Tax Management solutions and a digital trading platform for APMCs.

B) Revenue Contribution:

In 2023, the breakdown of revenue contributions is as follows: a) Products: 22% b) Software Development: 26% c) Maintenance & Support Services: 50% Despite having a variety of products, the majority of the revenue comes from Maintenance & Support Services.

C) Historical Performance:

Micropro has been operating for 30 years but has experienced limited revenue growth: a) 2018: 14 crores b) 2019: 19 crores c) 2023: 22 crores This slow growth suggests potential challenges in marketing or product appeal.

D) IPO Details:

Micropro plans to go public with an IPO priced at a P/E ratio of 20, which may not be considered cheap.

E) Analysis:

Strengths: a) Diverse Portfolio: Micropro offers a wide range of products catering to different sectors, which can be a strength in terms of market reach. b) Global Presence: Having clients in multiple countries like UAE, India, Botswana, and Seychelles indicates a global appeal.

F) Concerns:

a) Stagnant Revenue Growth: The slow increase in sales over the years could be indicative of ineffective marketing strategies or lack of competitiveness in their products. b) Revenue Dependence: With 50% of the revenue coming from Maintenance & Support Services, the company seems to be heavily reliant on this stream, potentially indicating underperformance in product sales. c) IPO Pricing: The P/E ratio of 20 for the IPO may not be attractive to investors seeking a bargain, given the company's slow revenue growth.


Investors considering Micropro's IPO should closely evaluate the company's fundamentals, growth prospects, and the potential reasons behind the stagnant revenue growth. The high reliance on support services and the P/E ratio may warrant a thorough examination of the company's strategic direction, product competitiveness, and market positioning before making an investment decision.

Lead Manager of Micropro Software Solutions Limited IPO:

  1. Swaraj Shares and Securities Private Limited

Registrar of Micropro Software Solutions Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Micropro Software Solutions Limited Plot No. 28, 702, Wing A 7th Floor, IT Park, Gayatri Nagar, Nagpur-440022, Phone: +91-9373693405 Email: compliance@microproindia.com Websitehttp://www.microproindia.com/

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