Yudiz Solutions Limited IPO - Review, Valuation & GMP

Yudiz Solutions Limited - Complete Overview

Established in 2012, Yudiz Solution Limited specializes in offering IT solutions and consultancy services. The company's primary focus is on delivering scalable and secure solutions by leveraging the latest and cutting-edge technologies.

Their extensive range of services includes mobile app development, game development, Blockchain, AR/VR, web development, website design & development, website maintenance & support, e-commerce web apps and portal development, mobile app prototype development, hybrid apps development, Android/iOS app development, PC/mobile game development, digital marketing, white label product development, and more.

Furthermore, the company holds ISO certification in Medical Care and Quality Management Systems (QMS) Development in the respective field.

Utilizing an agile and collaborative approach, Yudiz Solution Limited has successfully provided tailored domain-specific IT solutions to address various business challenges.

The company excels in mobile app development, Blockchain, game development, AR/VR, and web development.

Among their platforms are the News Platform, E-commerce Bidding Platform, On-Demand Services Platform, VR Training Platform, Upskilling Industry-specific VR Platform, HR Intelligence Software, and more.

 

What does the company do?

Yudiz Solution Limited specializes in offering IT solutions and consultancy services. The company's primary focus is on delivering scalable and secure solutions by leveraging the latest and cutting-edge technologies.

 

 

IPO Overview

The Yudiz Solutions Ltd IPO is scheduled to open from August 4 to August 8, 2023, on NSE SME. Each lot in the upcoming IPO consists of 800 shares.

The Yudiz Solutions IPO listing date is expected to be August 17, 2023. However, the company has not yet disclosed the IPO price. The total issue size of the IPO is 2,717,600 shares.

Regarding the allocation of shares, the company has earmarked 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Yudiz Solutions Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	4 August 2023
IPO Closing Date	8 August 2023
IPO Allotment Date	11 August 2023
Refund initiation	14 August 2023
IPO Listing Date	17 August 2023

 

Yudiz Solutions Limited IPO Details

IPO Opening & Closing Date	4 August to 8 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 162 to Rs. 165 per share
Lot Size	800 Shares
Price of 1 Lot	Rs. 132,000
Issue Size	2,717,600 shares (aggregating up to Rs. 44.84 Cr)
Offer for Sale	NA
Fresh Issue	2,717,600 shares (aggregating up to Rs. 44.84 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Mas Service Ltd.

 

Yudiz Solutions Limited IPO Lot Details

Minimum Lot Investment (Retail)	NA
Maximum Lot Investment (Retail)	NA
Minimum Lot Investment (HNI)	NA
Maximum Lot Investment (HNI)	NA

 

Yudiz Solutions Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in Crores

Period	FY 21	FY 22	FY 23
Total Assets	759.86	958.58	1701.80
Total Revenue	1305.41	1881.55	2744.75
PAT	80.76	74.07	275.17
Net Worth	533.99	669.03	1089.21

 

Details Revenue Bifurcation of Yudiz Solutions Limited IPO

(Amount in Lakhs)

Services	FY 22	FY 21	FY 20
Web Development	885.70	545.71	296.74
Wearable/IoT Device	13.08	Nil	7.64
Game Development	520.12	364.41	271.59
Mobile Application	376.23	333.36	253.41
Other Services	80.86	39.19	117.73
Total	1,875.98	1,282.67	947.12

 

Objective of the Issue

The company is raising funds to fulfil the following objectives:

• Cover the expenses for an unidentified acquisition for the company (in India or abroad).
• Fulfil the expenses for the development of new products and technology.
• Cover the expenses for networking and cabling for the company.
• Use the funds for branding & marketing expenses for the company.
• Meet the capital expenditure requirement of the company.
• Fulfil the working capital requirements of the company.
• Serve general corporate purposes.
• Cover the issue expenses.

 

Promoters and Management of Yudiz Solutions Limited

The company's promoters consist of Mr Bharat Shamjibhai Patel, aged 62, serving as the Chairperson and Whole Time Director; Mr Chirag Rajendrakumar Leuva, aged 37, holding the position of Executive Director and Chief Executive Officer; and Mr Pratik Bhaskarbhai Patel, aged 36, serving as the Managing Director. Additionally, Ability Games Limited acts as the corporate promoter of the company.

Pre-issue Promoters Holding	100.00%
Post-issue Promoters Holding	73.66%

 

Peer Comparison

As per Yudiz Solutions Limited DRHP, the following are the competitors of the company.

Company Name	CMP	EPS	TTM P/E Ratio	PAT (Rs. Lakhs)
Yudiz Solutions Limited	-	1.61		19.29%
Dev Information Technology Limited	93.45	3.47	29.2	5.63%
Nazara Technologies Limited	506.40	10.8	109.61	3.76%
Silver Touch Technologies Limited	335.00	4.81	42.25	7.41%
Sigma Solve Ltd.	195.50	2.97	41.35	11.55%
KSolves India Ltd	445.95	12.88	24.44	93.15%

 

IPO's Valuations

Yudiz Solutions Limited's EPS is Rs. 1.61 per share, and the company has set the issue price to be in the range of Rs. 162 to Rs. 165 per share. Although the PE ratio is not specified, if we leverage the provided data for IPO valuation, it would be around 102.

 

Dividend Policy 

The company has not implemented a formal dividend policy in the past. However, following its share listing in the market, the company may plan to pay dividends based on the company's financial performance, expenditures, and future prospects.

 

IPO's Strengths

• Experienced management team with specialized domain knowledge, complemented by a skilled and professional workforce.
• Utilizes an integrated business model, providing comprehensive one-stop-shop solutions.
• Demonstrates a low attrition rate among employees.
• Boasts a diverse, long-standing, and expanding global client base.
• Emphasizes innovation through in-house Research and Development efforts.

 

IPO Weaknesses

• There is pending outstanding litigation against the Corporate Promoter.
• The company reported a restated loss for the six-month period ended September 30, 2022.
• The present promoters of the Company are first-generation entrepreneurs.
• Negative cash flows have been observed in current and past years.
• The company has provided a Corporate Guarantee in compliance with Sections 185 & 186 to D’Square Saga LLP, which is related to the promoters of the company. Any failure or inability of the LLP could impose the liability of loan repayment on the company.
• Negative profitability occurred in one out of the three previous financial years and for the stub period ending on September 30, 2022.
• The industry is highly employee-intensive, presenting significant labour costs.
• The majority of the Company’s operations are international, which exposes them to the risks of conducting business overseas.
• The Corporate Promoter of the Company has suffered a loss in the past.
• As of now, the company has not conducted an independent IT Audit from any certified IT Auditor.
• The company has certain contingent liabilities.
• The company has engaged in related party transactions in the past and may continue to do so in the future.
• The market for AI services and blockchain development solutions is relatively new and evolving. If the market does not develop further, develops more slowly, or evolves unexpectedly, it could adversely affect the business.

 

 

IPO GMP Today

As on 08th Aug 2023 Yudiz Solutions latest IPO GMP is Rs. 20.

 

Conclusion

Yudiz Solutions Limited operates in the IT industry and offers consultancy services. The company is currently offering an IPO, providing an investment opportunity for potential investors interested in this sector. However, it's essential to note that the company has experienced negative cash flow in the past. While the grey market performance of the share seems promising, it is crucial to exercise caution and thoroughly assess all relevant factors before making any investment decisions to ensure the potential for a positive outcome. 

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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