Systango Technologies IPO subscription is opening on 2nd March 2023. According to the prospectus, the IPO consists of a fresh issue of 3,868,800 shares of ₹10 face value. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each.
Systango Technologies IPO – Business Description
Systango Technologies is engaged in a business of software solutions that enables companies to design, implement and manage their customized digital platforms including Web2, Web3, and mobile applications.
Systango Technologies is primarily generated from export sales across 10 countries including the USA, UK, Canada, Australia, Hongkong, Netherlands, Switzerland, South Africa, Qatar, etc. The key customers include Sila Inc, Urbansoft Sa(Pty)Ltd, Youtility Ltd, Ulster University, etc.
The company provides end-to-end technology solutions and support including website development, mobile app development, 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.
Systango Technologies offers services as below.
- Mobile App Development
- Web Development
- Data Engineering
- Zoho Offerings
- DevOps
- Digital Marketing
- Blockchain Development
- Cloud Computing
- Web3 Development
- iOS App Development
- Android App Development
- Fintech Development.
Systango Technologies Founders and Leadership team
Mr. Nilesh Rathi and Vinita Rathi are the promoters of the company. Both have over 15 years of experience in the associated industry. Vinita is the founder and CEO of the company and Nilesh is the founder and managing director of the company. The management team includes 8 young, energetic, and experienced teams.
Systango Technologies Revenue and Profit
Systango Technologies Revenue and Profit is in strong track. The Company has diversified revenue from multiple geographical locations. About 68% of the total revenue comes from the USA and 19% from the UK. The IT segment is the major revenue earner for the company contributing 53.5% of the total revenue in FY 2022. The revenue from the operation grew by over 90% from FY 2020 to FY 2022. EBITDA grew over 100% during the same time from Rs 304.07 lakh in FY2020 to Rs 743.47 in FY2022.
Systango Technologies Financial Snapshot
| All amounts in INR Lakhs | |||
| (Year ended March 31) | 2020 | 2021 | 2022 |
| Revenue Operation | 1428.45 | 2298.96 | 3268.80 |
| Total Revenue | 1,455.31 | 2,388.09 | 3,392.10 |
| EBITDA | 304.07 | 626.97 | 743.47 |
| EBITDA Margin (%) | 21.29 | 27.27 | 22.74 |
| Profit After Tax | 251.88 | 568.26 | 676.99 |
| PAT Margin (%) | 17.63 | 24.72 | 20.71 |
| Net Worth | 476.81 | 1045.50 | 1722.49 |
| Net Cash from Operating Activities | 374.55 | 726.02 | 522.18 |
| Return on Equity (%) | 66.74 | 74.66 | 48.92 |
| ROCE (%) | 61.38 | 64.88 | 46.90 |
| ROI (%) | 39.32 | 44.12 | 35.25 |
| Debt-Equity Ratio | 0.56 | 0.46 | 0.32 |
Objective Behind the Systango Technologies IPO
- Out of the net proceeds of this IPO, the company is planning to spend INR 1000 lakhs on Strategic Investment and Acquisitions.
- The company would also utilize INR 1000 lakhs in investing in Subsidiaries
Systango Technologies IPO Review: Do you invest?
- Systango Technologies recorded strong revenue growth of over 90% from FY2020 to FY2021.
- The company has witnessed strong growth in PAT from INR 251.88 lakh in FY 2020 to INR 676.99 lakh in FY 2022.
- EBITDA has doubled during the same time.
- The company is into Artificial intelligence and continuously enhancing its technological capabilities.
- The best part is, the company will utilize net proceeds from the IPO to expand its operation through organic and inorganic ways.
- Promoters have strong experience in this industry.
- Looking at the financials and factors mentioned above, I would prefer to invest in this SME IPO for the long term.
Systango Technologies IPO Details
| Systango Technologies IPO Details | IPO Date, Price and other details |
| IPO subscription Date | Mar 2, 2023 to Mar 6, 2023 |
| IPO Price | ₹85 to ₹90 per share |
| IPO Allotment date | Mar 10, 2023 |
| Refunds Initiation date | Mar 13, 2023 |
| Credit of Shares to Demat Account | Mar 14, 2023 |
| IPO Listing Date | Mar 15, 2023 |
| Offer for Sale | Nil |
| IPO Issue Size (Fresh Issue) | 3,868,800 shares of ₹10 (aggregating up to ₹34.82 Cr) |
| Minimum bid (lot size) For retail investor | 1 lot of 1600 equity share investment of ₹ 144,000 |
| HNI (Min) | 1 lot of each total 3,200 equity share investment of ₹ 288,000 |
| Face Value | INR 10 per share |
| Listing on | NSE SME |
| Promoters | Mrs. Vinita Rathi Mr. Nilesh Rathi |
Systango Technologies SME IPO: Lead Managers and Contact
| Contact Details | IPO Lead Managers |
| Third Floor (LHS), STP-I Crystal IT Park, Ring Road, Indore 452010, Madhya Pradesh, India. E-mail: cs@systango.com Tel No: +91 0731 2971030 www.systango.com | 1. Hem Securities Ltd. |
Systango Technologies SME IPO Allotment Status
Systango Technologies SME IPO Allotment status will be available on available on BIGSHARE SERVICES PRIVATE LIMITED website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Tel. No.: +91 22 62638200, E-mail: ipo@bigshareonline.com
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