Sattrix Information Security IPO: From subscription status to GMP, here’s all you need to know

The ₹21,78 crore initial public offering (IPO) of Sattrix Information Security opened for subscription on Wednesday, June 5, and closed today, on Friday, June 7. The issue's price band has been fixed at ₹121 apiece. Sattrix Information Security Limited was founded in 2013 and develops customer-oriented cyber security solutions.

Sattrix Information Security IPO subscription today

The issue was subscribed 70.44 times by the third day, June 7. It has received bids for 12.03 crore shares as against 17.08 lakh shares on offer. The Non-Institutional Investors (NII) portion was bid 78.88 times while the retail investor quota was bid 37.76 times.

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Sattrix Information Security IPO GMP today

Sattrix IPO GMP or grey market premium was ₹5, which meant shares are likely to be listed at ₹126, a 4.13 percent premium to their issue price of ₹121. It fell from ₹20 (16.5 percent premium) in the previous session.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

All you need to know about the IPO

Issue Details: Sattrix IPO consists only of a fresh issue of 18 lakh equity shares with a face value of ₹10. There is no offer-for-sale component.

Objective: The objective of the net issue is to raise funds for capital expenditure: (a) To cover the costs of air conditioning, furniture, and fittings for a new office in Ahmedabad (b) To acquire and install networking (LAN), computer hardware, servers, SAN storage, CCTV cameras, video conferencing equipment, and other equipment. 

The costs associated with business expansion are as follows: (a) development of new products and technology; (b) other business expansion costs; (c) additional working capital requirement; and (d) general corporate purpose.

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Lot Size: The minimum lot size for an application is 1,000 shares. The minimum amount of investment required by retail investors is ₹1,21,000. The minimum lot size investment for HNI is 2 lots (2,000 shares) amounting to ₹2,42,000.

About the Firm: Sattrix Information Security Limited was founded with the goal of providing end-to-end cybersecurity services to businesses in the Middle East (UAE), India, and the United States.

The company specialises in custom data security solutions for clients, whether on-premise or in the cloud. Their services include vulnerability assessment, penetration testing, red teaming, anti-phishing solutions, and application security services. They also offer IT infrastructure management for swift threat detection and response, employing various technologies. Their hybrid IT services provide both on-premise and cloud infrastructures to enhance agility and compliance. Furthermore, their Managed Security Services encompass Vulnerability Management, SOC (Incident Response), Endpoint Detection & Response (Managed EDR), Helpdesk / Tech Support, IT Infrastructure Security, and Cybersecurity Compliance Services.

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Financials: Between March 31, 2022, and March 31, 2023, Sattrix Information Security Limited's profit after tax (PAT) climbed by 86.86 percent while its revenue increased by 60.76 percent.

Listed Peers: As per the RHP, the company's listed peers are Systango Technologies Ltd (with a P/E of 19.79), Dev Information Technology Ltd (with a P/E of 29.41), and TAC Infosec Ltd (with a P/E of 71.70).

Book-running Managers: The registrar for the Sattrix IPO is Bigshare Services Pvt Ltd, while the book-running lead manager is Isk Advisors Pvt Ltd. Sunflower Broking is the market maker for the Sattrix IPO.

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Important Dates: The IPO will be listed on June 12 on BSE SME while the shares are likely to be allotted on June 10. Moreover, the initiation of refunds as well as the credit to demat account will be seen on June 11