AAA Technologies Limited IPO Poised To Make A Market Debut

By Angel Broking | Published on 29th September 2020 | 687

AAA Technologies Limited IPO Poised To Make A Market Debut

AAA Technologies Limited will join the IPO bandwagon on September 30. The company said that it is ready with the AAA Technologies Limited IPO to hit the market under the NSE SME segment with an offer size of Rs 10. 23 crores.

The IPO market has revived pretty well since the lockdown dampened its performance. Since July, several companies have launched IPO offers, and several others are in line, hoping to gain from revived investors’ interest.  After having a specially active year in 2019, this year has been tepid for the IPO segment mainly because of the COVID-19 outbreak. But since the market is gradually turning around, several companies are reviving their IPO plans. In September, two new-generation IT firms together raised a combined capital of Rs 1,300 crores from the market.

September is always a busy month for the companies in the exchange. Several firms float IPO offers in September based on their June month’s financial performance reports. It is good to see that there is no difference in this year too. The Indian financial market is having a busy time, and along with the big companies, several SME firms are also making a market debut in 2020.

After GM Ployplast and Likitha Infrastructure, AAA Technologies Limited follows suit with initial public offers that will open on the last day of September. AAA Technologies Limited IPO subscription will remain open from September 30 to October 5, 2020.

Company Background

AAA Technologies is an IT and Information Security Auditing and Consulting Company, beginning its journey in 2000.

AAA Technologies offers a wide range of IT services in the domain of software auditing, cybersecurity, OS auditing, ERP, core banking solution, and more across several sectors, including government offices. The diversified product portfolio, two decades plus years of experience in the domain, strong financials, well-experienced promoters’ team are the few key strength areas that can make AAA Technologies a strong contender in the SME IPO segment.

In the draft filed with the exchange, the company mentioned that through AAA Technologies Limited IPO offer it aims to raise funds for expansion and development of business operations and to meet general corporate purposes.

Now let’s review the potential of the AAA Technologies Limited IPO offer. According to market experts’analysis, the company has shown strong financial performance over the years. In March 2020, AAA Technologies recorded a PAT ( profit after tax) of 369.80 lakhs on a revenue of Rs 1,424.74 lakh. It has an experienced management team and a strong client portfolio. However, the company has high receivables from the government offices, which constitutes its main client base. On the plus side, AAA Technologies is debt-free and paid dividends in the last two years.

AAA Technologies IPO Highlights

  • AAA Technologies IPO will open in the NSE SME segment for an IPO size of Rs 10.23 crores
  • Important AAA Technologies IPO dates are the opening date September 30 and the closing date October 5
  • The company will release 2,436,000 fresh equity shares under the IPO offer with a face value of Rs 10
  • Net issue of 11,58,000 equity shares, aggregating upto 2 lakhs will beavailable for subscription to retail investors
  • AAA Technologies Limited IPO also reserves 1,23,000 equity shares, close to Rs 51.66 lakhs, for the market makers
  • The shares will be available for subscription at Rs 42
  • Investors need to subscribe to a minimum lot size of 3000 and a multiple of 3000 thereof
  • The company is also in talks with private equity investors for an investment of Rs 600 crores
  • AAA Technologies has appointed Chartered Finance Management Limited as its lead book manager and Link Intime India Pvt. Ltd. will be the offer registrar
  • Post-IPO promoters’ stake in the company will reduce to 71.51 percent from the existing 100 percent

Conclusion

The IPOs launched this month have seen enthusiastic participation from the investors, prompting other companies to revive their IPO plans from the cold storage. The coming months will see more launches given the frenzy around initial public offers.

You can now subscribe directly for AAA Technologies IPO using an online trading portal or opting for ASBA payment mode from the net banking platform of your bank.