Grey market activity suggests a solid debut, with shares commanding a GMP of around 83% over the upper price band, signalling robust listing expectations if the momentum sustains. The company has already raised Rs 11.09 crore from anchor investors ahead of the issue.
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Business profile
Founded in 2017, TechD is a cybersecurity solutions provider catering to corporates, government entities and global clients. Its services range from vulnerability assessment and penetration testing (VAPT) to managed security operations (SOC services), compliance, training and consulting.
The company counts the Adani Group, Zensar Technologies, Astral and ETO Gruppe Technologies GmbH among its clients, underscoring its credibility in a fast-growing sector. With the global surge in digital adoption and rising cyber threats, demand for end-to-end security solutions continues to expand.
The company plans to use the IPO proceeds to strengthen manpower, set up a Global Security Operation Centre (GSOC) in Ahmedabad, and for general corporate purposes.
Financial performance
TechD has demonstrated rapid growth. Revenue rose 97% year-on-year to Rs 30.23 crore in FY25, while profit after tax surged 159% to Rs 8.4 crore.
At the upper band, the IPO values the company at a market capitalisation of Rs 144.36 crore, translating into a post-issue P/E multiple of 16.8x.
Risks and challenges
Despite strong fundamentals, the company faces risks. Cybersecurity is a highly competitive industry, with large global players and fast-changing technology trends. Sustaining high margins in the long run may be challenging. Moreover, as a small-cap SME listing, stock liquidity could be limited post-listing, amplifying volatility.
The high GMP indicates significant listing-day excitement. However, being an SME IPO, investors need to be mindful of risks and invest with a medium- to long-term perspective.
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