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28 April 2024

TAC Infosec Limited IPO

TAC Infosec Ltd. (TIL) is involved in the business of providing risk-based vulnerability management and assessment solutions, cybersecurity quantification and services of Penetration testing to organizations of any scale, size, and business through "SaaS model". The company offers security software products and solutions both in India and internationally. Its end customers are banks and financial Institutions, government regulatory bodies and departments, large-scale enterprises (including business offices) like HDFC, Bandhan Bank, BSE, National Payments Corporation of India, DSP investment Managers Private Limited, Motilal Oswal Financial Services Limited and NSDL e-Governance.

TAC Infosec IPO is a book-built issue of Rs 29.99 crores. The issue is entirely a fresh issue of 28.3 lakh shares. TAC Infosec IPO price band is set at ₹100 to ₹106 per share. The minimum lot size for an application is 1200 Shares. Beeline Capital Advisors Pvt Ltd is the book running lead manager of the TAC Infosec IPO, while Skyline Financial Services Private Ltd is the registrar for the issue. The market maker for the TAC Infosec IPO is Spread X Securities.

TAC Infosec Limited IPO Details

Detail	Description
IPO Date	March 27, 2024 to April 2, 2024
Listing Date	April 5, 2024
Face Value	₹10 per share
Price Band	₹100 to ₹106 per share
Lot Size	1200 Shares
Total Issue Size	2,829,600 shares (aggregating up to ₹29.99 Cr)
Fresh Issue	2,829,600 shares (aggregating up to ₹29.99 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Share holding pre issue	7,650,000
Share holding post issue	10,479,600
Market Maker portion	141,600 shares Spread X Securities

TAC Infosec Limited IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Wednesday, March 27, 2024
IPO Close Date	Tuesday, April 2, 2024
Basis of Allotment	Wednesday, April 3, 2024
Initiation of Refunds	Thursday, April 4, 2024
Credit of Shares to Demat	Thursday, April 4, 2024
Listing Date	Friday, April 5, 2024
Cut-off time for UPI mandate confirmation	5 PM on April 2, 2024

TAC Infosec Limited IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹127,200
Retail (Max)	1	1200	₹127,200
HNI (Min)	2	2,400	₹254,400

TAC Infosec Limited IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	806,400 (28.50%)
Market Maker Shares Offered	141,600 (5.00%)
QIB Shares Offered	537,600 (19.00%)
NII (HNI) Shares Offered	403,200 (14.25%)
Retail Shares Offered	940,800 (33.25%)
Total Shares Offered	2,829,600 (100%)

TAC Infosec Limited IPO Promoter Holding

Shareholding Pre Issue	78.00%
Shareholding Post Issue	56.94%

TAC Infosec Limited IPO Investors Details

Bid Date	March 26, 2024
Shares Offered	806,400
Anchor Portion Size (In Cr.)	8.55
Anchor lock-in period end date for 50% shares (30 Days)	May 3, 2024
Anchor lock-in period end date for remaining shares (90 Days)	July 2, 2024

Company & Financials

The Company was established in year 2016 and founders are Mr. Trishneet Arora and Mr. Charanjit Singh. Having experience of over a decade of combined expertise in cybersecurity and vulnerability management, further bolstered by a knowledgeable Board of Directors and Key Managerial Personnel (KMP). The company offers risk-based solutions for vulnerability management and assessment, cyber security quantification and penetration testing in a SaaS model. The company's clients include banks and financial institutions, government regulators and departments, large enterprises (including corporate offices) such as HDFC, Bandhan Bank, BSE, National Payments Corporation of India, DSP Investment Managers Private Limited, Motilal Oswal Financial Services Limited and NSDL e-Governance.

TAC Infosec Limited Financial Information

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,213.02	977.65	496.45	404.00
Revenue	531.10	1,014.28	523.63	516.49
Profit After Tax	194.85	507.29	60.75	61.13
Net Worth	962.90	768.05	260.75	200.00
Reserves and Surplus	917.90	723.05	215.75	155.00
Total Borrowing	27.68	35.93	89.06	22.29
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	22.51%
ROCE	22.75%
RoNW	20.24%
P/BV	8.42
PAT Margin (%)	38.81

	Pre IPO	Post IPO
EPS (Rs)	6.63	3.72
P/E (x)	15.98	28.5

Objectives of TAC Infosec Limited IPO

The Object of the Issue will be utilized towards the following objectives:

1. Acquisition of TAC Security Inc (Delaware, USA) and making it a Wholly Owned Subsidiary thereon.
2. Investment in Human resources and Product Development.
3. General Corporate Purposes.

TAC Infosec Limited IPO review

The company is in a niche segment with an established market. It provides cybersecurity, coupled with risk-based vulnerability management and assessment solutions and related services. It marked a spectacular performance for FY23 that raised eyebrows. Based on FY24 annualized earnings, the issue appears fully priced. However, investors may park funds for the medium to long term rewards.

FAQs for TAC Infosec Limited IPO

Why TAC Infosec IPO?

The initial public offer (IPO) of TAC Infosec Limited offers an early investment opportunity in TAC Infosec Limited. A stock market investor can buy TAC Infosec IPO shares by applying in the IPO before TAC Infosec Limited shares get listed at the stock exchanges. An investor could invest in TAC Infosec IPO for short term listing gain or a long term.
Is the TAC Infosec IPO good?

Our recommendation for TAC Infosec IPO is to subscribe.
When will TAC Infosec IPO allotment status?

The TAC Infosec IPO allotment status will be available on or around April 3, 2024. The allotted shares will be credited in the demat account by April 4, 2024.
When will TAC Infosec IPO list?

The TAC Infosec IPO will list on Friday, April 5, 2024, at NSE SME.