(i) The Company started in the year 1996 as a software product innovation company which caters to the Architecture, Engineering and Construction (“AEC”) verticals. ‘Innovation’ is the key to any business and our products are innovative across the entire value chain in the construction industry. The Company is partnering the government in its mission – “Ease of Doing Business” by associating ourselves as a “Smart City Solution Provider” meeting the requirements of the automation in Architecture,Engineering & Construction (AEC) verticals using our expertise in IT. The Company has been specialising in developing product for e-governance and construction ERP products for smart city projects, municipal corporations, urban local bodies, development authorities and work organizations. Our Company also offers 2D and 3D CAD based intelligent and machine learning driven technology which eliminates entire human intervention along with providing Cloud Technology enabled products offered as “SaaS”.
(ii)Products Launched By Company–The Company started by launching its first product – STRUDS in the year 1996, which was used for Structural Analysis and Designing. In the year 2000, we launched another product, ESRGSR, which was also used on the same line. With growing acceptance of our products, we received a Venture Capital funding from SIDBI Venture Capital in year 2003. Between the year 1997 – 2011, various updated versions of our product STRUDS were released. Both our products viz., STRUDS and ESR GSR were acquired in year 2011 by CSC (UK) Limited.
(iii) Meanwhile, the Company had already launched two new products viz., PWIMS and AutoDCR which have been the flagship products of the Company since its launch in the year 2004 and 2005 respectively. PWIMS provides a complete online solution to Public Works Department (PWD) for e-procurement and work management. AutoDCR is a software for automation of building permits approvals which is used by the government authorities in scrutinizing and automating the building permits based on the CAD based building plan which works on an online system and environment. Riding on the success of these products, the Company in year 2010 launched, OPTICON which caters to the needs of construction contractors and real estate companies by helping them in cost estimating, construction management and overall automation. The success has again been entrusted by another VC funding round from Rajasthan Venture Capital Fund in the year 2014 which acquired 26.77% stake in the Company.
(iv) The Company has strategic business alliances with key organizations such as – Microsoft and Autodesk. .
(v) The Company has a total human capital asset of 433.
Objectives of Softtech Engineers Limited IPO are:
The Offer for Sale:
The Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder.
The Fresh Issue :
The company intend to utilize the Net Proceeds of the Fresh Issue towards the following objects:
1.Product Development and Enhancement Costs.
2.Funding of the Domestic and International Product Penetration and Marketing Costs.
3.Repayment/ Pre-payment of certain unsecured borrowings availed by our Company.
4.General corporate purposes.
Promoters of Softtech Engineers Limited Company are:
The Company was founded by Mr. Vijay Gupta who is an IIT Mumbai Alumni and has an experience of more than 3 decade in the industry. He is also the promoter of the Company and is being supported by an experienced and educated management team. Mr. Vijay Gupta along with his adequately experienced team is actively and fully involved in day-to-day affairs of our Company’s operations. The experience of our Company’s management is reflected in Company’s operational performance where earlier products having been acquired by foreign company, receiving venture capital funding and current products being widely accepted.
(i) Authorized Share Capital
( 1,10,00,000 shares at FV@10)
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(70,51,276 Shares at FV@10)
(iii) Present Issue
(28,51,200 Shares at FV@10)
(iv) QIB & HNI Quota[ 5% quota for MFs]
(v) Retail Quota
(vi) Paid Up Share Capital after the issue
Financials of Softtech Engineers Limited IPO as per DRHP:
1. Balance Sheet Snippet[ Financials as of Sept 2017]
(i) Shareholders’ Fund[Equity] Value
(iv) Debt/Equity[<1 ideal]
(v) Net Worth(Asset- Liability)
(vi) RONW(PAT/Net Worth) or ROE
(vii) Book Value or NAV[ Net Worth/No.of Shares]
(viii) P/B [<5 ideal]
2.Profit n Loss Snippet
(i) The Revenue of the Company in last 4 years i.e. from FY 2013 to FY 2017 is growing at CAGR of 21.7%[Excellent].
(ii) The PAT of the Company in last 4 years i.e. from FY 2013 to FY 2017 is growing at CAGR of 58.68%[Excellent].
(iii)The EBITDA Margins of last 5 years are: 15%(FY13),29%(FY14), 22%(FY15), 25%(FY16) and 31%(FY17). The company's EBITDA margin has improved from 15% to 31% in last 5 years which speaks about the working of the company.
(iv) P/B(post issue)= 2.31
(v) Annualized EPS(post issue)= 5.039
(vi) Annualized P/E(post issue)=15(Fairly priced )at the cutoff price of 80
3. Cash Flow Statement(all figures in lacs)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
Comparison With Peers:
Name of the Company
Softtech Engginers limited
Ramco Systems Limited
Ceinsys Tech Limited
Cyber Tech Systems and Softwares limited
Newgen Softwares Technologies limited
Recommendation on Softtech Engineers Limited IPO:
Review and Recommendation of
Softtech Engineers Limited IPO
from our side is:
The Pentagon, Unit No. 5A,
Near Satara Road Telephone Exchange,
Shahu College Road, Parvati,
Pune 411009 Maharashtra, India
Tel. No: +91-020-24218747
Bid Details of Softtech Engineers Limited IPO as on
03-May-2018 18:00:00 IST