Bengaluru-based IT firm SRIT India will open its Rs 218.4 crore IPO on September 28, with a price band of Rs 123-130. While the company has shown revenue growth, investors should watch the declining order book and high dependency on government contracts, which account for 90% of its income.
Bengaluru-based IT solutions firm SRIT India is set to launch its initial public offering (IPO) on September 28, 2026. The company is aiming to raise Rs 218.4 crore by issuing fresh equity shares. It has fixed a price band of Rs 123 to Rs 130 per share. Institutional investors will have the opportunity to bid on September 25, while the public subscription window closes on September 30. The company expects to list its shares on the stock exchange on October 6.
Financial Performance and Order Book Trends
For the financial year ending March 2026, SRIT India reported a revenue of Rs 450 crore, which represents a 15.6% increase compared to the previous year. However, a key metric for potential investors to examine is the trend in the company's order book. The value of pending orders has decreased to Rs 1,182.8 crore in FY26 from Rs 1,476.9 crore in FY25. Since the order book serves as an indicator of future business, a decline of this magnitude suggests that the company is facing a tighter market for securing new, large-scale projects.
Dependency on Government Contracts
The company’s revenue model is highly concentrated. Approximately 90% of its income in the last fiscal year came from government contracts. While this can provide a consistent pipeline of work, it also introduces significant operational risk. The business is sensitive to changes in government policy, payment cycles, and budget allocations. Any delay in government payments or a failure to win bids in public sector tenders can directly impact the company's cash flow, making this a critical area for investors to monitor.
Allocation of IPO Proceeds
The fresh capital raised will be used primarily to fund the company’s ongoing operations. Out of the total proceeds, Rs 124 crore is earmarked for working capital requirements, which are essential for covering day-to-day business expenses. Another Rs 15.3 crore is planned for the modernization of its existing software products. The remaining portion of the funds is intended to support the company’s inorganic growth, which includes exploring potential acquisitions. The emphasis on working capital signals that the business requires significant cash liquidity to sustain its project-heavy operations.
Stakeholder Changes
Following the successful completion of the IPO, the stake held by the promoters will decrease from 84.74% to 62.59%. The company has attracted interest from various investors, including the Sunil Singhania-backed Abakkus Venture Opportunities Fund, which holds a 1.47% stake. Investors will be keeping a close eye on whether the company can reverse the declining trend in its order book and maintain profit margins while managing the operational pressures inherent in its government-dependent business model.