Sattrix Information Security makes strong debut, shares list at 24% premium on BSE SME platform

Sattrix Information Security Ltd, a cyber-security solutions provider, made a decent trading debut on Wednesday, June 12. The company’s shares listed at a 24% premium on the BSE SME platform compared to their issue price.

The Sattrix Information stock opened the session at ₹150 apiece on BSE SME, up 23.9% compared with its initial public offering (IPO) price of ₹121. Soon after listing, the stock slipped and hit an intra-day low of ₹142.50, but later recovered to hit an intra-day high of ₹155 apiece.

Considering the minimum bid quantity in the Sattrix Information IPO was 1,000 shares, successful bidders who were allotted shares would have been sitting on a profit of ₹29,000 (₹29 x 1,000) as soon as the stock started trading on the exchange.

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The nearly ₹22-crore Sattrix Information IPO, which was open for bidding from June 5 to June 7, was subscribed 70.44 times in the three-day period. The company had received bids for 12.03 crore equity shares as against 17.08 lakh shares on offer, according to the data available on BSE.

The portion reserved for non-institutional investors was booked 87.9 times, while the retail category was subscribed 37.8 times.

The Sattrix Information IPO was a 100% book-built issue that aimed to raise ₹21.78 crore. Shares in the fixed-price issue were offered to investors at ₹121 apiece. The lot size for an application was 1,000 shares.

The Sattrix Information was made up entirely of a fresh issuance of 18 lakh shares, with no offer-for-sale (OFS) component.

The company said that it intended to raise funds to meet capital expenditure requirements. These included expenses for purchasing furniture, fixtures and air conditioning for a new office at Ahmedabad, and purchase and installation of IT equipment, computer hardware, server, SAN storage, CCTV cameras, video conferencing equipment, networking (LAN) and other equipment.

A part of the proceeds was also being planned to use towards meeting business expansion costs that includes development of new products and technology, among other things.

Founded in 2013, Sattrix Information Security Ltd develops customer-oriented cyber security solutions. The company designs and builds data security solutions in the cloud and on-premise based on the client's requirements. It caters to enterprises in India, the US and Middle East (UAE).

In 2022-23, Sattrix Information recorded revenue of ₹37.8 crore compared with ₹23.5 crore in 2021-22. The company’s revenue in the first nine months of 2023-24 stood at ₹30.6 crore.

Profit after tax (PAT) almost doubled to ₹4 crore in FY23 against ₹2.14 crore in FY22. In the first nine months of FY24, PAT stood at ₹2.5 crore.

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