Xtranet Technologies is launching its ₹170 crore initial public offering on July 23, with shares priced between ₹120 and ₹127. The company plans to use the proceeds primarily to boost working capital and repay existing debt. Investors can apply for the issue until July 27, with the company seeking a total market valuation of ₹667 crore.
Xtranet Technologies, an IT solutions provider based in Madhya Pradesh, has announced the details for its ₹170 crore initial public offering (IPO). The public subscription period begins on July 23 and will remain open until July 27. Institutional investors will have access to an anchor book on July 22.
The company has set a price band of ₹120 to ₹127 per share. Based on the upper end of this band, the company is seeking a total valuation of approximately ₹667 crore. This IPO consists entirely of a fresh issue of shares, meaning all money raised will go directly into the business rather than being used by existing shareholders to sell their stakes.
Where the IPO Money Will Go
Investors should note that the company has clear plans for the funds it expects to raise. The largest portion, amounting to ₹102 crore, is designated for working capital requirements. This indicates that the company needs more cash to manage its day-to-day operations as it grows. Additionally, the company intends to use ₹20.2 crore to repay existing debt, which could help lower interest expenses. A smaller portion of ₹8.48 crore is allocated for purchasing systems and hardware to support its IT infrastructure, with the remainder used for general business expenses.
Financial Performance and Growth
The company reported a profit of ₹40.7 crore for the financial year ending March 2026, marking a 35.6 percent increase compared to the previous year. Revenue also showed healthy growth, rising by 32.3 percent to ₹365.3 crore. While these figures indicate positive momentum, investors should consider that profitability in the IT services sector often depends on the ability to retain clients and manage wage costs. As this is a smaller player in the IT space, it may face stiff competition from larger, established technology firms that have greater resources.
Allocation and Listing Schedule
The issue is split into specific portions for different types of investors. Qualified institutional buyers are allocated 50 percent of the total shares. Non-institutional investors, which include high-net-worth individuals and corporate entities, will get 15 percent. The remaining 35 percent is reserved for retail investors. The final allotment of shares is expected to be finalized by July 28, and the stock is scheduled to list on the BSE and the National Stock Exchange on July 30. Share India Capital Services is acting as the sole manager for this issue.