Trident Techlabs Limited, a leading technology company, is set to launch its Initial Public Offering (IPO), aiming to raise Rs. 16.03 crores. This IPO comprises a fresh issue of 45.8 lakh shares, open for subscription from December 21 to December 26, 2023. The company anticipates finalizing allotments on December 27, 2023, with a projected listing on the NSE SME on December 29, 2023.

The Trident Techlabs IPO price band is between Rs. 33 to Rs. 35 per share. For investors, the minimum lot size stands at 4000 shares, requiring a minimum investment of Rs. 140,000 for retail investors. High Net Worth Individuals (HNI) are required to invest in a minimum of 2 lots (8,000 shares) amounting to Rs. 280,000.

Financial Management:

GYR Capital Advisors Private Limited serves as the book running lead manager for the Trident Techlabs IPO. Additionally, Maashitla Securities Private Limited operates as the registrar for this issue, ensuring smooth administrative processes. Giriraj Stock Broking takes the role of the market maker, further enhancing market liquidity.

For detailed insights into the Trident Techlabs IPO, investors can refer to the Red Herring Prospectus (RHP), offering comprehensive information on the company’s financials, objectives, and future prospects.

Trident Techlabs IPO Details

IPO DateDecember 21, 2023 to December 26, 2023
Face Value₹10 per share
Price Band₹33 to ₹35 per share
Lot Size4000 Shares
Total Issue Size4,580,000 shares (aggregating up to ₹16.03 Cr)
Fresh Issue4,580,000 shares (aggregating up to ₹16.03 Cr)
Issue TypeBook Built Issue IPO
Listing AtNSE SME
Shareholding Pre-Issue12,701,064
Shareholding Post-Issue17,281,064
Market Maker Portion360,000 shares

The Trident Techlabs IPO offers 4,580,000 shares at a face value of Rs. 10 per share, within the price band of Rs. 33 to Rs. 35 per share. It’s a book-built issue IPO open for subscription from December 21 to December 26, 2023, with a lot size of 4000 shares. The total issue size aggregates to Rs. 16.03 Cr, solely through fresh issues.

Upon successful completion, the company’s pre-issue shareholding of 12,701,064 shares will expand to 17,281,064 shares post-issue. Notably, the Market Maker portion includes 360,000 shares, facilitating market liquidity for this offering, listed on the NSE SME.

This IPO presents an opportunity for investors to participate in Trident Techlabs’ growth story, with clear details on share allotments, issue types, and market listing.

Trident Techlabs IPO Timeline (Tentative Schedule)

The Trident Techlabs IPO is slated to follow a carefully structured timeline, ensuring a smooth and transparent process for investors.

IPO OpensThursday, December 21, 2023
IPO ClosesTuesday, December 26, 2023
Basis of Allotment AnnouncementWednesday, December 27, 2023
Initiation of RefundsThursday, December 28, 2023
Credit of Shares to DematThursday, December 28, 2023
Listing DateFriday, December 29, 2023
Cut-off time for UPI mandate confirmation5 PM on December 26, 2023

The IPO opens its subscription phase on December 21, 2023, and concludes on December 26, 2023, allowing investors this window to participate. Following closure, the allotment basis is anticipated to be declared on December 27, 2023, facilitating transparency in the allocation of shares.

Investors can expect the initiation of refunds and the credit of shares to their Demat accounts on December 28, 2023, ensuring a swift and efficient process post-closure. Finally, the anticipated listing date on the NSE SME is set for December 29, 2023, providing an entry point for investors in the market.

It’s crucial for investors to note the cut-off time for UPI mandate confirmation, which is until 5 PM on December 26, 2023, to avoid any processing delays. The Trident Techlabs IPO timeline ensures a systematic and organized sequence of events, enabling a seamless experience for all involved stakeholders.

Trident Techlabs IPO Lot Size

Investors participating in the Trident Techlabs IPO can bid for shares within specified lot sizes, catering to both retail and High Net Worth Individual (HNI) investors. Here’s a detailed breakdown:

Retail (Min)14000₹140,000
Retail (Max)14000₹140,000
HNI (Min)28000₹280,000

For retail investors, the bidding lot size remains fixed at 4000 shares, requiring a minimum investment of Rs. 140,000, with no provision for bidding in multiples beyond this lot. HNI investors, on the other hand, are required to bid for a minimum of 2 lots, totaling 8000 shares, with a minimum investment of Rs. 280,000.

This delineation in lot sizes enables both retail and HNI investors to participate in the Trident Techlabs IPO according to their investment capacities. It’s important for investors to adhere to these lot sizes and corresponding investment amounts during the subscription period.

Trident Techlabs IPO Promoter Holding

The promoters of Trident Techlabs Limited, namely Mr. Sukesh Chandra Naithani and Mr. Praveen Kapoor, hold a significant stake in the company.

As of the pre-issue stage, the promoter holding stands at 92.48%. However, the post-issue promoter holding details are currently unavailable or unspecified. It is advisable for investors to refer to the Red Herring Prospectus (RHP) or other official documentation for precise and updated information regarding the post-issue promoter holding in Trident Techlabs Limited.

The substantial promoter holding indicates a strong vested interest in the company’s growth and success, showcasing their commitment and confidence in the business. This information is pivotal for investors as it provides insights into the company’s leadership and their vested interest in the ongoing and future prospects of Trident Techlabs.

Key Strategic Indicator

Trident Techlabs IPO presents key performance indicators reflecting its financial standing and market valuation:

P/E (x)7.42
Post P/E (x)13.62
Market Cap (₹ Cr.)60.48
EPS (Rs)4.72

The Price/Earnings ratio (P/E) at 7.42 indicates the valuation of the company concerning its earnings per share (EPS), which stands at Rs 4.72. The post P/E ratio at 13.62 potentially reflects the market’s adjusted valuation post the IPO.

Trident Techlabs demonstrates robust financial metrics with a Return on Equity (ROE) of 34.41%, a Return on Capital Employed (ROCE) of 23.67%, and a Return on Net Worth (RoNW) at 29.36%. These figures highlight the company’s ability to generate profits relative to its capital investments.

The Debt/Equity ratio of 0.84 suggests a moderately leveraged position, indicating prudent financial management by the company.

These KPIs provide potential investors with insights into Trident Techlabs’ financial health, market valuation, and profitability, serving as essential metrics to consider before making investment decisions.

Grey Market Premium (GMP) Trident Techlabs IPO

The Trident Techlabs SME IPO has generated significant interest in the Grey Market, with the latest Grey Market Premium (GMP) recorded at Rs. 45 as of December 24th, 2023, 12:25 PM. This valuation reflects investor expectations ahead of its official listing.

At a price band of Rs. 35.00, the estimated listing price for the Trident Techlabs SME IPO stands at Rs. 80, combining the cap price with the current GMP. This projection suggests a potential gain of 128.57% per share from the cap price.

Investors should note the retail subject to Sauda (application rate) for the Trident Techlabs SME IPO, set at Rs. 136,800.

Monitoring the day-wise trend of the IPO’s GMP over the last 14 sessions indicates fluctuations, revealing the dynamic nature of the grey market. The GMP, representing the unregulated market price pre-listing, has fluctuated between Rs. 0 and Rs. 45, indicating volatility in market sentiment.

Trident Techlabs Day-wise IPO GMP Trend

GMP DateIPO PriceGMPSub2 Sauda RateEstimated Listing PriceLast Updated
24-12-202335.00₹45 no change136800₹80 (128.57%)24-Dec-2023 12:25
23-12-202335.00₹45  Up136800₹80 (128.57%)23-Dec-2023 23:31
22-12-202335.00₹40  no change121600₹75 (114.29%)22-Dec-2023 23:30
21-12-2023 Open35.00₹40  no change121600₹75 (114.29%)21-Dec-2023 23:25
20-12-202335.00₹40 Down121600₹75 (114.29%)20-Dec-2023 23:29
19-12-202335.00₹45  Up136800₹80 (128.57%)19-Dec-2023 23:26

Understanding IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) unveils the unofficial trading price of an IPO before its official market listing. This unregulated metric offers insights into how an IPO might fare upon listing, reflecting market expectations. A positive GMP implies potential profitability on the listing day, while a negative GMP suggests a probable discount.

However, it’s crucial to note the volatility inherent in IPO GMP. Relying solely on the Trident Techlabs SME IPO GMP for investment decisions can pose risks. Investors should conduct comprehensive evaluations, considering diverse factors beyond the GMP. Assessing company fundamentals, market conditions, and consulting financial experts is crucial before making investment choices regarding the Trident Techlabs SME IPO.

By recognizing the GMP’s indicative nature and its potential limitations, investors can make informed decisions. The Trident Techlabs SME IPO, like any market investment, warrants a thorough understanding of its nuances to mitigate risks and make strategic investment choices aligned with individual financial goals.

Trident Techlabs IPO Reservation

Trident Techlabs’ Initial Public Offering (IPO) involves the allocation of 4,580,000 shares among various investor categories, showcasing a diverse distribution strategy:

Investor CategoryShares OfferedPercentage
Anchor Investors1,204,00026.29%
Market Maker360,0007.86%
QIB (Qualified Institutional Buyers)804,00017.55%
NII (HNI)664,00014.50%
Retail Investors (RII)1,548,00033.80%
Total Shares Offered4,580,000100%

The distribution reflects a strategic allocation to Anchor Investors, comprising 26.29% of the total offering. Market Makers receive 7.86%, while QIBs, NII (HNI), and Retail Investors are respectively allocated 17.55%, 14.50%, and 33.80% of the offered shares.

Trident Techlabs aims for a balanced allotment strategy, ensuring participation from various investor categories, aligning with market demands, and fostering widespread interest in its IPO. This diversified allocation strategy often contributes to a broadened investor base, enhancing market liquidity and stability post-listing.

Trident Techlabs Limited: Innovating Technology Solutions

Established in 2000, Trident Techlabs Limited stands as a pioneering force, delivering cutting-edge technology solutions across diverse industries. Specializing in aerospace, defense, automotive, telecommunications, semiconductor, and power distribution sectors, the company offers comprehensive services and products.

Company Verticals: Engineering Solutions: Trident Techlabs excels in providing a spectrum of consulting and technical services. Their expertise spans system-level electronic design, chip-level electronic design, embedded design, hydraulic/pneumatic systems, system modeling, reliability and quality, design automation, power electronics, PCB design, and electromagnetic simulations.

Power System Solutions: Catering to power distribution utilities, Trident Techlabs offers products and services that optimize aging transmission infrastructure, manage the surge in renewable energy sources, and implement smart grid technologies. Their solutions address the complexity inherent in transmission investment decisions.

Workforce and Expertise: With a dedicated team of over 100 engineers and professionals, Trident Techlabs boasts a formidable force adept at driving innovation and excellence in technological advancements. Their commitment to quality and innovation positions them as a trusted partner in delivering advanced, tailored solutions to meet industry-specific challenges.

Trident Techlabs’ diverse portfolio, coupled with a commitment to technological innovation, places them at the forefront of pioneering technological solutions, continually striving to redefine industry standards and drive impactful advancements across sectors.

Trident Techlabs Limited: Restated Financial Snapshot

Trident Techlabs Limited showcased a significant growth trajectory in its financial performance, as indicated by restated figures spanning various periods up to October 31, 2023:

Financials (in ₹ Lakhs)31 Oct 202331 Mar 202331 Mar 202231 Mar 2021
Profit After Tax (PAT)266.13554.8164.49-32.69
Net Worth2,470.681,653.731,383.571,318.11
Reserves and Surplus1,200.571,609.861,055.05990.56
Total Borrowing2,532.472,299.602,959.993,044.34

Revenue Growth: Between March 31, 2022, and March 31, 2023, Trident Techlabs witnessed a remarkable surge in revenue by 128.4%, marking a significant upturn in their financial performance.

Profit After Tax (PAT): The company reported substantial growth in PAT, soaring by an impressive 760.3% over the same period. This notable surge in profitability underscores the company’s improved operational efficiency and financial health.

Asset and Net Worth Trends: Trident Techlabs displayed a positive trend in its asset base and net worth, showcasing an uptrend in both metrics, signifying strengthened financial stability and growth potential.

These robust financial indicators showcase Trident Techlabs’ commendable strides in revenue generation and profitability, reflecting the company’s resilience and growth trajectory in the competitive technology sector.

Trident Techlabs IPO Objectives: Utilization of Net Proceeds

Trident Techlabs has outlined the utilization of the Net Proceeds generated from its IPO towards fulfilling specific objectives:

Funding Working Capital Requirements: A significant portion of the proceeds is allocated to bolstering the company’s working capital requirements. Strengthening the working capital ensures smooth operational functionalities, supporting day-to-day activities, inventory management, and facilitating sustained business operations.

General Corporate Purposes: The remaining portion of the funds will be dedicated to general corporate purposes. This versatile allocation allows flexibility in utilizing the proceeds for various operational needs, including potential strategic investments, research and development initiatives, marketing efforts, or other unforeseen contingencies aligned with the company’s long-term growth strategy.

By strategically allocating the Net Proceeds, Trident Techlabs aims to optimize its financial resources, ensuring efficient working capital management and providing financial flexibility for general corporate undertakings. These objectives signify the company’s commitment to fortifying its operational capabilities and advancing towards sustained growth in its industry verticals.

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