- Our view
- May Subscribe
- Market cap then
- ~INR 144.36 Cr.
- Price band
- INR 183 to 193 per share
TechD Cybersecurity Ltd provides cybersecurity services and training to enterprises, with its operations based in Ahmedabad. Minerva Capital Research Solutions recommends May Subscribe to the IPO, citing the promoter’s technical experience, marquee clientele and CERT-In empanelment, while noting the company’s small operating scale and working-capital and customer-dependency risks.
About TechD Cybersecurity
Incorporated in 2017 in Ahmedabad, Gujarat, TechD Cybersecurity provides end-to-end cybersecurity solutions to enterprises. Its services include Vulnerability Assessment & Penetration Testing (VAPT), Security Operations Center (SOC), compliance and specialized services, staff augmentation and Managed Security Services Provider (MSSP) solutions. It also provides training through educational partnerships and corporate programmes. Services and training represented a revenue mix of 84:16 in FY25.
TechD Cybersecurity IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 183 to 193 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 144.36 |
| Exchange | NSE SME |
| Min. Lot Size (Retail | HNI) | 1,200 | 1,800 |
| Issue Opens on | 15-Sep’25 |
| Issue Closes on | 17-Sep’25 |
| Listing Date | 22-Sep’25 |
| Fresh Issue of Shares (#) | 20,20,200 |
| Offer for Sale (#) | - |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 38.99 |
Use of IPO Proceeds
- Human resources: 26.09 Cr. is allocated to investment in human resources.
- Global Security Operation Centre: 5.89 Cr. is allocated for capex to set up a Global Security Operation Centre (GSOC) at Ahmedabad.
- General corporate purposes: The amount is shown as [●] in the issue table.
| Particulars | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter & Promoter Group | 86.61% | 63.22% |
| Public | 13.39% | 36.78% |
| Total | 100.00% | 100.00% |
Strengths
- Promoter experience and established clients: Promoter and Managing Director Mr. Sunny Vaghela has over a decade of cybersecurity experience. The company’s clientele includes Adani Group, Zensar Tech and Astral Ltd.; private enterprises and government accounted for a 99.6%:0.4% sales mix in FY25.
- CERT-In empanelment: The report identifies empanelment as an advantage when serving large enterprises and as relevant to BFSI, NBFC and government sectors. It notes the certificate was valid till 30-Sep’25 and that management stated its renewal had been completed with an extension for the next 3 years.
- International expansion: The company is targeting the US, Middle East, SEA and Europe. IPO proceeds are intended to support sales and marketing recruitment for international expansion; domestic and international sales were 84:16 in FY25.
- Cybersecurity education: The company plans to extend university partnerships and launch a global e-learning platform.
TechD Cybersecurity Key Financials
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (excl. other inc.) | 8 | 15 | 30 |
| Growth Rate Y-o-Y % | 214% | 99.4% | 97.7% |
| EBITDA (excl. other inc.) | 1.3 | 4.7 | 11.9 |
| PAT | 0.9 | 3.2 | 8.4 |
| Gross Margin % | 68.9% | 81.0% | 72.7% |
| EBITDA % (excl. other inc.) | 17.8% | 31.0% | 39.8% |
| PAT % | 12.4% | 21.1% | 27.8% |
| Debt (Short+Long) | 1.6 | 1.8 | 0.3 |
| Debt/Equity | 1.06x | 0.38x | 0.01x |
| ROE % | 86.4% | 101.9% | 62.3% |
| ROCE % | 40.3% | 72.1% | 54.3% |
| CFO / EBITDA % | 0.8% | (24.8%) | (20.1%) |
IPO Valuation and Our View
The issue is valued at a P/E ratio of 17.2x based on FY25 PAT. The report weighs the promoter’s technical expertise, marquee clientele, CERT-In empanelment, international expansion plans and expected GSOC benefits against the company’s small scale, lack of long-term customer contracts and OEM dependence. Its recommendation is May Subscribe.
- INR 183 to 193 per share
- IPO price band
- 17.2x
- P/E based on FY25 PAT
- May Subscribe
- Recommendation
Key Risks
- Customer arrangements: The company has no long-term or exclusive arrangements with its customers.
- OEM reliance: MSSP offerings depend on cybersecurity products from OEMs. As of Mar’25, the company had partnerships with 10 OEMs, with an average relationship of 1 to 3 years.
- Receivables and cash flow: Trade receivables rose to INR 12.6 Cr. in FY25 from INR 2.1 Cr. in FY24; INR 2.2 Cr. was overdue for more than 6 months. The report identifies working-capital improvement and positive cash flow from operations as monitorables.
- Employee attrition: Technically skilled employees are important to the business; attrition rose from 13.9% in FY24 to 17% in FY25.
Our View
The report sees support for the IPO case in the company’s technical capabilities, customer base, CERT-In empanelment and expansion plans, alongside rising revenue and profitability. It balances these factors against small scale, customer and OEM dependence, and working-capital concerns, and recommends May Subscribe.
Standard disclosures
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Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%