Systango Technologies Limited IPO

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i. Systango Technologies is engaged in the business of providing software solutions that enables companies to design, implement and manage their own customized digital platforms including Web2, Web3 and mobile applications with strong emphasis on data and analytics. They provide range of software solution services including like: website development, mobile app development (both for iOS and Android applications), web3 development, DeFi (Decentralized finance), data engineering, implementation of blockchain, cloud computing, digital marketing etc for companies across sectors such as Financial Services (FinTech), Hospitality, Fantasy Sports, Property Tech etc. Through their software solutions they combine the functionality, flexibility and customer software development for their customers with the Cost effective, speed of implementation and other operational benefits of outsourcing.

ii. Over the years the company has evolved as professional and technical service provider by offering end-to-end technology solutions and support. Their clients range from entrepreneurs and start-up enterprises to established companies, engaged in business of Fantasy Sports, transportation and logistics, Financial Services (FinTech) and various other industries including clients like Sila Inc, Urbansoft Sa(Pty)Ltd, Youtility Ltd, Ulster University, Ireland and others.

iii. The Company’s revenue is primarily generated from exports sales and they are providing their services along with its subsidiaries to various clients spread across 10 countries. The company is headquartered in Special Economic Zone (SEZs) of Indore that allows it to avail tax benefits as per SEZ norms. Their operations are further facilitated through its wholly owned subsidiary
Companies i.e. Isystango Ltd. in UK and Systango LLC in USA.

Competitive Strengths:

i. Qualified and Experienced Promoters and Employee base:
ii. Diversified revenue from multiple geographies
iii. Diversified Client base.
iv. End-to-end solutions and support

 

Objects of the Systango Technologies Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives:- i. Strategic Investment and Acquisitions; ii. Investment in Subsidiaries; iii. To Meet Working Capital Requirements; iv. General Corporate Purposes; v. Issue Expenses.
DRHP of Systango Technologies Limited IPO
RHP of Systango Technologies Limited IPO

Systango Technologies Limited IPO Details:

Open Date: Mar 02 2023
Close Date: Mar 06 2023
Total Shares: 3,868,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 34.82 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 85-90 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 15 2023

Promoters And Management:

i. Vinita Rathi is one of the Promoter and Managing Director of the Company. She has been associated with the Company since 2006. She has completed her Bachelor of Engineering [B.E.] in Information Technology from Devi Ahilya Vishwa Vidyalaya, Indore, Madhya Pradesh in 2004. She has a work experience of around 17 years in the field of technology. She is looking after core management of the company and entrepreneur, active and enthusiastic in business activities. She is primarily responsible for the performance and supervision of technical, administrative and day-to-day operations of the Company, including but not limited to developing strategic plans, promotion of revenue, profitability and growth of the Company. ii. Nilesh Rathi is one of the Promoter and the Whole Time Director & Chief Financial Officer (CFO) of the Company. He has been associated with the Company since 2006. He has completed his Bachelor of e-Commerce from Devi Ahilya Vishwavidyalaya, Indore, Madhya Pradesh in 2003. He has a work experience of over 15 years in the Information Technology Industry. He is playing vital role in formulating administration and Accounting, Financial, Taxation and Legal operations and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. His leadership abilities have been instrumental in leading the core team of the Company. iii. Sarita Devi Khandelwal is the Chairman and Non-Executive Director of the Company. She has been on the Board of Directors of the Company since November 05, 2022. She has completed her Master of Arts (M.A). She has over 12 years of experience.  

Financials of Systango Technologies Limited IPO:

Particulars ( In Crore ) 6MFY23 2022 2021 2020
Revenue from Operations 22 32 22 14
Other Income 0.6 1 0.8 0.2
Total Revenue 23 33 23 14
Employee Benefits Expense 13 20 13 9
Other Expenses 2 5 3 1
EBITDA 7 8 7 3
Depreciation & Amortisation 0.2 0.6 0.3 0.3
Finance Cost - - - -
EBIT 6 8 6 2
OPM (%) 30.57% 25.55% 29.99% 22.74%
PBT 6 8 6 2
Taxes 1 1 1 0.4
PAT 5 6 5 2
NPM (%) 24.87% 19.96% 23.80% 17.31%
No.of Shares 1 1 1 1
EPS 3.90 4.61 3.87 1.71
P/E 23.06 19.50 23.23 52.41

Comparison With Peers:

 
Name of the Company Revenue (Cr) Profit (Cr) P/E EPS CMP Mcap (Cr)
Systango Technologies Limited 44 11 11.53 7.80 90 132
InfoBeans Technologies Ltd 385 47 26.4 22.82 514 1,248
Innovana Thinklabs Limited 52 12 34.40 20.46 684.00 701
Ksolves India Ltd 68 22 22.6 12.88 420.00 497
   

Recommendation on Systango Technologies Limited IPO:

Review and Recommendation of Systango Technologies Limited IPO by IZ team is 5/10 1. Systango Technologies Limited provides software solutions that enable enterprises to develop, implement, and manage their own bespoke digital platforms, including Web2, Web3, and mobile apps, with a focus on data and analytics. 2. They offer website development, mobile app development (both iOS and Android), web3 development, DeFi (Decentralised finance), data engineering, blockchain implementation, cloud computing, digital marketing, and more for Financial Services (FinTech), Hospitality, Fantasy Sports, Property Tech, and other industries. 3. Clients include Sila Inc, Urbansoft Sa(Pty)Ltd, Youtility Ltd, Ulster University, Ireland, and others in Fantasy Sports, transportation and logistics, Financial Services (FinTech), and other areas. 4. Their company mostly sells exports and serves clients in 10 countries through its subsidiaries. Their company is headquartered in Indore's Special Economic Zone (SEZ) and receives tax incentives. Their UK and American subsidiaries, Isystango Ltd. and Systango LLC, help them operate. 5. Strengths :- i. Qualified and Experienced Promoters and Employee base: ii. Diversified revenue from multiple geographies iii. Diversified Client base. iv. End-to-end solutions and support v. Strong User Interface (UI)/ User Experience (UX) Design Capabilities and hyper-focus on customer success. 7. Service Portfolio:- i. Full Cycle Product Development              ii. Data Engineering and Machine Learning Services iii. Web3 and Blockchain Solutions            iv. DevOps v. Digital Marketing                                      vi. Product Architecture and design vii. Cloud Services 8. The Revenue has Increased from Rs.14 Crore in FY20 to Rs 32 Crore in FY22. 9. The EBITDA has Increased from 3 Crore in FY20 to 8 Crore in FY22. 10. The PAT has Increased from 2 Crore in FY20 to 6 Crore in FY22. 11. As per FY22, CFO/EBITDA is 0.60 and Debtors Days is 3. 12. As per FY23, EPS is 7.80,  Market Capitalization is 132 Crore & P/E is 11x.

Lead Manager of Systango Technologies Limited IPO:

  1. Hem Securities Limited

Registrar of Systango Technologies Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Systango Technologies Limited Third Floor (LHS), STP-I Crystal IT Park, Ring Road, Indore - 452010 Phone: +91 0731 2971030 Email: cs@systango.com Website: http://www.systango.com/

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