IPO Opens Today:-
So the IPO of XL Technologies has opened in the market today. Meaning, just take a one day subscription and we will get all the basic details of the IPO. The timeline of our IPO. Like on 19th November i.e. today this IPO has opened in the market. The time to apply is available from 19th November to 21st November. Talking about the basis of the remaining allotment, the company is going to clear the basis of allotment on 24th November and this IPO is going to be listed in the market on 26th November. Meaning, this IPO will be converted into shares through IPO. XL Technologies is going to be listed on the stock exchange on 26th November.
Issue Size & Structure:-
About the issue size of IPO, then here we get to see an important thing in the issue. From where we clearly understand the objective of IPO that where is the money raised from IPO going to be used ? What is the intention of the promoters ? Meaning it is an offer for sale or a fresh issue. So we understand that thing. Look, the issue size is Rs 500 crore. Meaning it is not such a big issue. Recently, the IPO of Tenco Cl Air came in the market. It was listed today. Its issue was around Rs 3600 crore. There was a good profit. Around 24 to 25% of the IPO investors who got allotment benefited. About 8 lakh people got allotment. But this IPO that we are seeing, the IPO of Rs 500 crore, here only a few people will get allotment. Now we will understand how many people are actually going to get the allotment. First let us buffer it a bit. So we can see both the things here. First of all, your fresh issue is of total ₹10 crore. About offer for sale, then OFS offer for sale of Rs 320 crore is being seen here. Basically, what happens in an offer for sale is that the existing investors of the company sell their shares in the IPO. This means that shares worth Rs 320 crore are going to be sold through this IPO. Look, the structure of the IPO is clearly showing us that the portion of fresh issue here is less.
Utilization of Funds:-
Meaning the major money that is coming out from this IPO is going to be an offer for sale.The company is going to use the ₹180 crores it is raising? Let me give you a little overview of the business. So the company is an IT sector company. We can see technologies in the name. So we have to keep in mind that this is an IT company. So according to that, the utilization of the company’s funds is going to happen. Ok? First of all, they are establishing their new facility in Mysore. The company is going to use a total of ₹72 crore for land acquisition from where it will operate. Ok? Besides, they already have existing facilities. The company is going to use a total of ₹40 crore to upgrade the electric system there.
IPO Reservation Structure:-
Along with this, the company is going to utilize ₹54 crore in its IT upgrade. Where they will upgrade their software hardware a bit and along with that they are also going to upgrade their communication networks and tools. Basically, it is an IT sector company, so they will upgrade their core business and the remaining money will be used for general corporate purposes. About the reservations of this IPO, a quota of 50% is reserved for QIBs (Qualified Institutional Buyers). Where there is a quota of 30% for anchor investors and 20% for ex-anchors. About HAI, then a reservation of 15% is being seen for high net worth individuals. At the same time, if we talk about retail, then for retail investors, as always, that is, what we are seeing in major IPOs, that 35% quota is seen here in majority IPOs. Look, the issue size of the IPO is small, so not many people are getting allotment here. About the reserve application for retail investors, then 116 means 116000 people are going to get allotment in this IPO. About the price band of this IPO, the company has kept the price band of the share at ₹14 to ₹120. So according to this price band we will find out the valuation of our company.
Business Model Overview:-
About the business of the rest of the company, then we can see technologies in the name of the company itself. So the company does work in the IT sector. But they work on a model which is called Saas. Ok? This model is the Software as a Service model. Meaning they provide software as a service. They have a software. They would provide that service to their clients through software. See what Capillary Technologies basically did? It used AI and analytics to provide marketing and customer loyalty engagement services to its clients. At the same time, if we talk about our Excel Shopt Technologies, then the target it works like an A-tech company. Where they target educational institutions. There they provide the exam related software requirements. Along with this, the company looks after all the software related to online learning, providing e-books, conducting examinations etc. The company has served more than 200 organizations so far. They also have more than 30 million learners. Meaning, globally from the educational institutions to which this service is being provided, then more than 30 million people have studied through their software. About the rest of the company’s financials, we have data from 2023 to 2025.
Financial Performance:-
Along with this, we can also see the data of June quarter here. In 2023, the company had a revenue of approximately ₹18 crore. Reached above Rs 200 crore in 2024. In 2023, it reached above Rs 250 crore and in the June quarter, its total revenue in one quarter was Rs 60 crore. Ok? So if we multiply this by four. Ok ? So, here we are seeing revenue of around Rs 250 crore. Ok? So he did not plant that many flags in one quarter. He made a profit of Rs 22 crore in 2023. It is above 12 crores in 2024. Meaning a decline was seen.
Key Performance Indicators:-
Above ₹34 crore in 2025. A. There is growth here. About the June quarter, they generated a revenue of Rs 6 crore here. Meaning, if we compare the PAT margin of the quarter with that of last year, then we are seeing a decline here. ROE (Return on Equity) of the company is seen to be 10% which is not good. And if we about ROCE, the return on capital employed is quite good for an IT company at 16%. The company has around 1000-1100 employees, so salaries etc. are not a big problem. Since it is an IT sector company, things get a little tough, but if we talk about the debt to equity ratio, it is seen to be under control. The debt to equity ratio is 0.05 and because their debt to equity ratio is not that high, so from their fresh issue, no such money is going into day payment because generally, the companies which have debt, have borrowings. From there, the companies use the money from the issue for debt payment.
Key Performance Indicators:-
About EBITDA of about 31%. Coming to PAT, the company is keeping its margins around 15%, which seems fine to us. Talking about the valuations of the rest of the company, at ₹120 per share, the market capitalization of the company comes out to be ₹1381 crore. About price turning ratio, the PE ratio of the company is 38. Currently, if it is an IT sector company then it has a PE ratio of 38, so it should be fine. These things come out. But you should not consider it as undervalued because whenever the offer for sale in the IPO of a company is very high, then it is not a cheap valuation. This is also not a cheap valuation. So investors can make profit here. About the rest of the grey market premium, then we are seeing a share of ₹120. So here we are seeing a premium on the share at ₹15. If we go percentage wise, a premium of 13% is seen here.
Valuation:-
Rest of the day one subscription of this IPO has already come. Where we are seeing a lot of applications in the retail category. Amount wise 2X and subscription are available. There were 11,000 reserve applications right there. So 1,82,000 applications already here. About the remaining HAI quota, then we are seeing 2.6x more subscription here. The remaining chances are quite high that if we still have two days left then we will see a good increase in subscription here and the subscription of KYBIS, the subscription of qualified institutional buyers, comes above day three.