Olatech Solutions Limited IPO

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i. Olatech Solutions is engaged in the business of Data Centre, Enterprise, Telecom and IT Software solutions in the OSS – BSS (Operations Support System and Business Support System) segment. They provide software solutions and transformation services (System Integration) to its clients and have deployed their software solutions at various institutions in India and other regions also.

ii. Olatech Solutions possess capabilities spanning the lifecycle of services ranging from consultation, architecture, solution design, and implementation to monitoring and providing managed services. Their software solutions are offered under its registered trademark “Epiphany”. Key offerings include software solutions such as NOC tools, Network monitoring, management & analytics, secured authentication and accounting of users & devices, Data Centre Infrastructure Management etc.

iii. The company have gained experience by collaborating with its clients across verticals such as Telcos, ISPs, Enterprises, Data Centre Service Providers, Public Sector to create a foundation for the evolution of offerings across the verticals.

iv. The company’s customer base is also in countries like Singapore and Hongkong currently. The company’s sales through exports contributed nil, 9.56%, 5.07% and 18.45% respectively from its revenue from operations for the year ended March 31, 2019, 2020, 2021 and for the period ended December 31, 2021 respectively.

v. Competitive Strengths :

  • Experienced Promoter and a well-trained employee base.
  • Our solutions are robust, trusted & industry proven.
  • Technology and Quality Certifications.
  • Strengthen human capital.
  • Cost Advantage and Centre of Excellence.

Objects of the Olatech Solutions Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: 1. Funding working capital requirements; and 2. General corporate purposes.
DRHP of Olatech Solutions Limited IPO

Olatech Solutions Limited IPO Details:

Open Date: Aug 12 2022
Close Date: Aug 18 2022
Total Shares: 700,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 1.89 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 27 Per Equity Share
Listing At: BSE SME

Promoters And Management:

Mr. Amit Kumar Singh, aged 43 years, is the Promoter, Chairman & Managing Director of the Company. He has been associated with the Company as Director since inception. He holds Bachelor’s Degree in Electronics & Communication, from Dr. K N Modi Institute of Engineering & Technology, Modinagar CH. Charan Singh University, Meerut. He has around twenty years of experience in Telecommunications, Sales and Marketing field. He has worked with ZTE Telecom India Pvt Ltd, Nokia Siemens Networks Pvt. Ltd, MTNL, Huawei Telecommunications (India) Co Pvt Ltd, Mavenir Systems Private Limited, Elite Core Technologies Private Limited, etc. under various positions in sales and marketing. He has understanding of the Telecom Domain from Testing, Planning, Integration to Pricing, Business Development, Sales, Negotiations, and Contract Closures. Mr. Navneet Kakkar, aged 43 years, is the Non-Executive Director of the Company and is on Board w.e.f. from January 22, 2019. He was previously appointed as Chief Operating Officer of the company. He has completed his Bachelor Degree of Engineering in Computer Science & Engineering from Chaudhary Charan Singh University, Meerut. He has twenty-one years of experience in Radio Access Network & Transmission operations, installation & commissioning of switches, operations & maintenance & software development. He worked with Kothari Info-Tech Limited, Tata Communications Transformation Services Ltd, as Senior Manager-Network Operations & posted as Circle Head for ROM Circle. He has experience in handling network operations, transmission operations, infra maintenance, node creation/configuration, BTS/Node B maintenance, BSC/RNC maintenance, wireline maintenance & switch maintenance. Mr. Anurag Goel, aged 40 years, is Independent Director of the Company w.e.f. May 19, 2022. He has completed his Bachelor in Commerce (Honours) from University of Delhi in 2002. He is a fellow member of the Institute of Chartered Accountants of India. He is a Practicing Chartered Accountant and possess around thirteen years of experience in the field of Audit, Accounting Operations, Direct & Indirect Taxation.

Financials of Olatech Solutions Limited IPO:

Particulars (in Lakhs) March 21 March 20 March 19
Revenue from operations 546.00 833.44 73.48
Purchase of Stock-in-Trade 342 394.00 7.05
Employee Benefit Expense 104 183.00 10
Other Expense 75 181 39
Operating Profit 24.80 75.37 17.38
OPM% 4.54% 9.04% 23.65%
Finance Cost 1 0
Depreciation 10 6 4
Other Income 3 2 1
Profit (Loss) before tax 17 69 15
Tax expense 4 18 4
Profit (Loss) for the period 12 51 10
Earnings per share 1,232 5,158 1,041

Comparison With Peers:

Name of the Company CMP EPS PAT (In Cr.) Mcap (in crores)
Olatech Solutions Limited 27 0.75 12.32
Megasoft Limited 43.7 0.25 1.85 322
Sterlite Technologies Limited 152 6.95 275 6,042

Recommendation on Olatech Solutions Limited IPO:

Review and Recommendation of Ola tech Solutions by InvestorZone 2/10 1. The company is in the OSS - BSS (Operations Support System and Business Support System) business, providing Data Centre, Enterprise, Telecom, and IT Software solutions.

2. Key offerings include NOC tools, network monitoring, management, and analytics, secure authentication and accounting of users and devices, data centre infrastructure management, and so on. 3. Mr. Amit Kumar Singh, who has nearly twenty years of experience in telecommunications, sales, and marketing, is the company's promoter. 4. They had a revenue of Rs. 8 crores in FY20, but if we annualise the first 9 months of FY22, it will be only Rs. 2 crores. 5. The company has had negative operating cash flows for the last three years. 6. The number of trade receivables days in the first 9MFY22 is 183, which is extremely high. 7. There is currently nothing enticing in the business.

Lead Manager of Olatech Solutions Limited IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Olatech Solutions Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Olatech Solutions Limited Office No. 310, 3rd Floor, Rupa Solitaire, Millennium Business Park, Thane-Belapur Road, Mahape, Navi Mumbai – 400 710, Raigarh Phone: 022 – 2778 0129 Email: investor@olatechs.com Website: https://olatechs.com/

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