Know Your IPO: Trimax IT Infrastructure & Services
Trimax IT Infrastructure & Services (Trimax), a Mumbai-based company, is all set to enter the capital market with its upcoming public issue. The company has filed a DRHP to list its equity shares on the BSE and NSE indices. The issue will be based on 100% book building method of a face value of Rs 10 per share. It will comprises both fresh issue and offer for sale of 60.5 equity shares and 70 lakh equity shares respectively, which makes for a total of 1.31 crore equity shares. The lead managers for this issue are SBI Capital Markets and Anand Rathi Advisors.
The IT firm is engaged in providing software services, as also in facilitating solutions in sectors like transport, education, power, healthcare and telecom. It provides a range of IT solutions and related infrastructure services to its clients. Trimax has a pan-Indian presence, with branches in 13 locations such as Ahmedabad, Bengaluru, Delhi, Chandigarh, Gurgaon, Jaipur, Kolkata and Chennai. The company currently operates 440 service support locations in India. It is in partnership with two state-owned companies - BSNL and ITI. It also operates two Tier III compliant data centres, one each in Bengaluru and Navi Mumbai.
The company's consolidated revenue for FY13 came in at Rs 1033 crore over Rs 785 crore in FY12. Though it posted a growth of 32% in its topline, but this was a result of an increase in income earned from traded products. Its primary work area, which is facilitating IT services, has shown moderate growth.
On the expenses side, the company's operating expenses increased by 36% during FY13 to Rs 800 crore. This was due to the increase in purchases and direct expenses, including transport charges, repairing charges, import duty, etc. The EBITDA stood at Rs 233 crore, marking a growth of 19% on account of an increase in revenues from traded products. Furthermore, the bottomline touched the Rs 100 crore mark in FY13, coming in at Rs 107 crore.
The company intends to utilise the fresh issue proceeds to acquire hardware, software and other equipment, particularly for projects in its transport vertical. It has proposed to invest Rs 124.65 crore for the same.
Despite the volatility in the IT industry, it has registered a steady growth because of the growing technology and related services. There are big listed players in the industry like Infosys, Wipro, HCL Technologies, CMC, etc., which enjoy a good market share in the IT industry.
At present, it would not be possible to comment on whether or not one should subscribe to this issue, as the company has not disclosed the issue price and lot size. We will keep our readers updated on the issue-related details as and when they are made public.