Tridhya Tech Limited was incorporated in 2018 and is engaged in the full-service software development business. The company offers turnkey consultancy services to industries like e-commerce, transport and logistics, real estate, insurance, etc. Their services include e-commerce development, enterprise content management, bespoke web management, mobile app development, API development, product support and maintenance, front-end development and graphic design.
Tridhya Tech also provides customised software products, from the initial concept of the product requirement, deploying the final product and post-deployment support. The company also offers consultation, project management, maintenance and support services.
IPO Details
Tridhya Tech Limited IPO is a 100% fresh issue comprising 62,88,000 shares, aggregating up to Rs. 26.41 crore. The price band is set between Rs. 35 and Rs. 42 per share. The lot size is 3,000 shares. The IPO is set to open on 30th June 2023 and close on 5th July 2023. It will be listed on NSE SME.
IPO Objectives
The company proposes to use the net proceeds from the issue in the following ways:
- Repayment of unsecured and secured loans.
- General corporate purpose.
- Meeting public issue expenses.
Noteworthy Highlights
- To accelerate development, the company has an inorganic growth policy. This gives Tridhya Tech access to new markets, additional skills, and expertise of new staff. In line with this policy, the company acquired one company in FY 2022 and two in FY 2023.
- The company has not filed the GST returns in due time and has also delayed Provident Fund payments. As a result, they may have to pay interest and penalties if levied by the respective authorities. This can impact their cash flow.
- Tridhya has a presence in both domestic and international markets. Their customer base spans the states of Maharashtra, Punjab, Telangana, Gujarat, and Karnataka. In the international market, their customers are present in Canada, Australia, France, Estonia, Germany, Israel, Italy, Japan, Mauritius, Qatar, Netherlands, Singapore, UAE, UK, USA and Switzerland.
Peer Details
The company’s peers include Dev Information Technologies Limited, Silver Touch Technologies Limited, and Infobeans Technologies Limited. However, they are not strictly comparable, given the nature and size of the business.
Company Financials
| Particulars | March 31, 2020 | For the period ended Dec 31, 2022 (Rs. lakh) | March 31, 2022 (Rs. lakh) |
|---|---|---|---|
| Current Ratio | 1.13 | 0.90 | 0.87 |
| Debt equity ratio (%) | 4.34 | 1.23 | 0.49 |
| Return on equity ratio (%) | 156.45 | 2.85 | 20.90 |
| EBITDA | 46.00 | 416.85 | 569.41 |
| EBITDA Margin (%) | 10.54 | 42.78 | 42.04 |
| Return on Capital Employed (%) | 55.83 | 9.69 | 26.40 |
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Strengths
2Tridhya’s EBITDA has increased multifold over the fiscal years 2020, 2021, and 2022. In 2020, the EBITDA was Rs. 46 lakh, which increased to Rs. 416.85 lakh on 31st December 2023.
Tridhya Tech offers end-to-end IT services that support a full business life-cycle. This makes them a one-stop shop for their clients, allowing the company to foster strong relationships and widen the scope of their engagements.
Risks
2The company’s clients span India and overseas countries, but their intellectual property rights have limited jurisdiction in India.
Tridhya’s international sales and operations are subject to uncertainties and also exposed to foreign currency exchange rate fluctuations. They have not entered into any hedging arrangements to address potential adverse changes in the exchange rate.
