Tranway Technologies IPO

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(i) The Company was originally incorporated as “Tranway Technologies Private Limited” on March 25, 2015, under the provisions of the Companies Act, 2013 bearing Corporate Identification Number U74900KA2015PTC079480 issued by the Registrar of Companies, Karnataka, Bangalore. Subsequently, the company was converted into Public Limited Company in Jan 2020.

(ii)  The Core Business of the company is to provide Staffing solutions and Payroll processing.

a) Staffing Solutions: They provide services for recruiting staff for their clients. We all know for a  business to be successful, it needs good staff, as the hiring of the same is a cumbersome task for the companies, so, they take the service of companies like “Tramway Technologies” to provide that facility instead of hiring directly.

Tramway Technologies has a  recruiting team comprises of experienced recruitment professionals with extensive domain-expertise adopt innovative-approach in the hiring process to ensure zero gaps between the client’s needs and the offerings.

Tramway Technologies Staffing Services offers both permanent recruitment and contract staffing solutions to clients across the country.

b) Payroll Processing: Tramway Technologies Payroll process outsourcing is designed to manage the payroll of a client’s on-roll employees. The payroll processing services are configured to meet comprehensive requirements including Salary calculation, Payslip generation, Statutory reports under various laws, Leave management, MIS and Year-End activities. 

Objects of the Tranway Technologies IPO:

The proceeds from the issue will be utilized for the following purpose: 1. Funding the working capital requirements of the Company = 3.64 Crores 2. Issue related expenses  = 35 lakh 3. General corporate purposes = 25 lakh

Tranway Technologies IPO Details:

Open Date: Jan 27 2020
Close Date: Jan 29 2020
Total Shares: 4,240,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 4.2 Cr.
Lot Size: 10000 Shares
Issue Price: ₹ 10 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 06 2020

Promoters And Management:

(i) The Company is led by Mr. Bharat, Founder, and Managing Director, who has a proven track record of business creation, development, and optimization. He is a visionary person and a very respected and successful entrepreneur in the service industry and relies on a strong network, innovative leadership and entrepreneurial methodologies. He has contributed significantly to achieving business goals in a short time span. (ii) The IT technology team is led by Director, Kalavathy Bylappa, an IT thought leader with two decades of experience in the implementation of IT services and projects. Her in-depth knowledge of market trends help in analyzing client’s requirements and create a roadmap for business success. She has worked with Ness Technologies, SAP Labs and Thompson Reuters to set up Quality Engineering & Assurance (QA) teams from inception.

Financials of Tranway Technologies IPO:

[ Figures in Lakhs ]
Year Revenue EBITDA OPM PAT NPM Shares F.V. EPS NW RONW
2017 311.73 18.57 6% 12.34 4% 63.58 10 0.19 19.92 62%
2018 393.93 28.96 7% 11.37 3% 63.58 10 0.18 31.11 37%
2019 517.53 68.19 13% 24.01 5% 63.58 10 0.38 55.49 43%
Post-IPO 517.53 68.19 13% 24.01 5% 105.98 10 0.23 446.83 5%
CAGR 29% 92% 39%

Comparison With Peers:

[ Figures in Lakhs ]
Name of the Company Revenue Growth in 3 years PAT Growth  RONW P/E Debt  Debt to Net-Worth
Info Edge 15.47% -18.74% 4.67% 117 37 0.04
Tranway Technologies 28.85% 39% 10.26% 6.62 147 2.4

Recommendation on Tranway Technologies IPO:

Review and Recommendation of InvestorZone is:3/10 [ The asking P/E is 43 and Mcap/Sales is 2.04 based on FY19 financials, which looks very high. Moreover, the sector in which the company is doing business is highly competitive ]

Lead Manager of Tranway Technologies IPO:

  1. Finshore Management Services Limited

Registrar of Tranway Technologies IPO:

  1. Link Intime India Private Limited

Bid Details of Tranway Technologies IPO as on
29 Jan 2020 | 11:56:04 PM

Category No.of shares offered No. of shares bid
2,010,000 2,190,000
2,010,000 5,770,000
220,000 220,000
4,240,000 8,180,000
QIBs No
QIBs+HNIs Subscription 1.09X
Retail Subscription 2.87X
Total Subscription 1.98X

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