TechD Cybersecurity IPO Review – Financials, Valuation, Grey Market Premium & Risks
TechD Cybersecurity IPO opens Sep 15-17, 2025, at ₹183‐193 per share to raise ~₹39 crore. Strong revenue growth, impressive margins, and backed by Vijay Kedia. Read on for financials, peer comparison & risks.
What is TechD Cybersecurity?
TechD Cybersecurity Ltd (formerly TechDefence Labs Solutions) is a CERT-In empanelled cybersecurity firm founded in 2017, offering services like MSSP (Managed Security Services), Vulnerability Assessment & Penetration Testing (VAPT), compliance, staff augmentation, and SOC-type offerings.
Backed by investor Vijay Kedia, it has built a client base spanning corporates, government, SMEs, co-operative banks, fintechs, etc.
Key IPO Details: Price Band, Issue Size & Timeline
| Detail | Info |
|---|---|
| IPO Type | SME IPO – fresh issue |
| Price Band | ₹183 – ₹193 per share |
| Issue Size / Funds to be Raised | ~₹38.99 crore (≈ ₹39 crore) |
| Number of Shares | ~20.20 lakh equity shares (fresh issue) |
| Face Value | ₹10 per share |
| IPO Subscription Dates | Opens: September 15, 2025; Closes: September 17, 2025 |
| Listing Platform | NSE SME (Emerge platform) |
Financial Performance FY2023-25
| Financial Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue from Operations | ₹7.59 Cr | ₹15.36 Cr | ₹30.23 Cr |
| Profit After Tax (PAT) | ~₹0.94 Cr | ~₹3.24 Cr | ~₹8.40 Cr |
| Growth Rates (YoY) | — | Revenue growth ~100%+; PAT growth strong |
Also: High margins (EBITDA margin ~40.48% in FY25), RoE ~62.33%, RoCE ~54.25%, PAT margin ~28.18% in FY25. Debt-to-Equity very low (~0.01) in FY25.
Use of IPO Funds & Growth Strategy
- Primary uses: ~₹26.09 crore for strengthening human resources and expansion; ~₹5.89 crore for capital expenditure towards setting up a Global Security Operations Center (GSOC) in Ahmedabad; rest for general corporate purposes.
- Strategic expansion: North America, Middle East, Africa, Australia and positioning Gujarat as a cybersecurity hub.
Valuation Metrics: P/E, NAV, ROE, Margins
| Metric | FY2025 Value |
|---|---|
| Earnings Per Share (EPS) | ~₹16.44 (basic) |
| P/E Ratio (based on IPO price) | At upper band (₹193), P/E around ~11.7× – much lower than many peers. |
| Return on Net Worth (RoNW) | ~37.93% |
| Return on Capital Employed (RoCE) | ~54.25% |
| EBITDA Margin | ~40.48% |
| PAT Margin | ~28.18% |
| NAV (Net Asset Value) per share | ~₹40.55 |
These figures suggest strong operational efficiency and profitability, especially for a relatively young SME cybersecurity company.
Peer Comparison: How Does TechD Stack Up vs Peers
Here’s how TechD compares with some listed cybersecurity / infosec companies:
| Peer | EPS | P/E Ratio | RoNW (%) | NAV / Share | Total Income (most recent) |
|---|---|---|---|---|---|
| TechD Cybersecurity (IPO) | ~₹16.44 | ~11.7× (upper band) | ~37.93% | ~₹40.55 | ~₹30.23 Cr |
| TAC Infosec Ltd | ~₹13.77 | ~80.40× | ~26.10% | ~₹52.71 | ~₹32.20 Cr |
| Sattrix Information Security Pvt Ltd | ~₹6.27 | ~29.64× | ~11.08% | ~₹53.72 | ~₹45.07 Cr |
Takeaways from comparison:
- Valuation discount: TechD’s P/E is much lower than peers, possibly making it more attractive from valuation standpoint.
- Profitability & ROE: TechD’s RoNW and margins are significantly better than many peers.
- Scalability & size: TechD is smaller in terms of income vs Sattrix, but its growth rate is strong.
Strengths & Risks to Consider
Strengths
- Strong revenue & profit growth (nearly doubled revenue YoY).
- Healthy margins and low leverage (low debt-to-equity).
- Backed by well known investor (Vijay Kedia) – adds credibility.
- Diversified services and client base across sectors and geographies.
- Plans for setting up GSOC and expanding globally give potential for scaling.
Risks
- SME IPOs often have higher volatility and listing risk.
- Intense competition in cybersecurity space; many larger players operating at scale.
- Fast-evolving tech; must keep investing in R&D to stay relevant.
- Dependence on regulatory, compliance, and security standards; any lapses could impact reputation.
- Client concentration risk or dependence on a few major contracts could be risky.
Outlook: Market Potential & Investor Sentiment
- Strong investor demand indicated by a high Grey Market Premium (GMP ~83%) over the upper price band.
- Cybersecurity is a growing theme both globally & in India, driven by increased cyber threats, regulatory requirements, etc.
- The SME platform (NSE Emerge) is attracting retail and small-investor attention; being listed there can provide visibility.
Conclusion: IPO Verdict
TechD Cybersecurity presents an intriguing opportunity for investors looking into the cybersecurity SME space. Given its robust financials, attractive valuation (lower P/E compared to peers), credible backing, and clear growth roadmap, it may offer decent upside.
However, as with all IPOs, especially SME IPOs, potential investors should weigh risks, ensure they understand the sector, and consider holding period and market sentiment. If you believe in the cybersecurity sector’s growth and are comfortable with SME IPO dynamics, this TechD IPO appears to be one with relatively strong fundamental merit.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
