SRIT India Ltd IPO
Status: Upcoming
Overview
IPO date
28 Sept 2026 to 30 Sept 2026
Face value
₹ 5 per share
Price
₹ 123 to ₹130 per share
Issue Size
16,800,000 shares
(aggregating up to ₹ 218.4 Cr)
(aggregating up to ₹ 218.4 Cr)
Allotment Date
01 Oct 2026
Listing at
NSE
Issue type
Book Building
Sector
IT - Software
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T&C*
Strengths vs Risks of SRIT India Ltd
Know the pros & cons
Strengths
- Established track record with end-to-end product solution and integration capabilities.
- Diverse Order Book across offerings for multiple clients & geographies.
- Extensive geographic footprint with scalable operations across key markets.
- Strong financial performance and healthy balance sheet.
- Experienced Promoters and Senior Management team, having domain knowledge.
Risks
- Majority of our projects have been awarded through competitive bidding process, which is heavily dependent on tenders from Government entities, accounting for approximately 89.41%, 91.34%, and 81.84% of our revenue from operations for Fiscals 2026, 2025, and 2024, respectively. Failure to qualify for, complete or win new contracts could negatively impact our business, potentially affecting our financial condition, operational results, growth prospects, and cash flow stability.
- A significant portion of our revenue from operations is attributable to our top ten customers accounting for approximately 89.36%, 92.68%, and 84.54% of our total revenue from operations, for the Fiscals 2026, 2025, and 2024, respectively, and our business and profitability is dependent on our ability to win projects from such customers. Loss of one or more of our customers or reduction in their demand for our offerings could adversely affect our business, results of operations and financial conditions.
- The majority of our Order Book and revenue from operations are from the projects undertaken for the electronic governance sector with such projects accounting for approximately 58.40%, 63.86%, and 65.33% of our total Order Book value, and approximately 68.39%, 61.29%, and 50.13% of our revenue from operations, for the Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Any reduction in the activity and expenditure levels in this sector may adversely affect our business and prospects, and may reduce the number of projects we undertake and impede our growth. Further, any significant social, political, or economic changes in this sector could adversely affect our business, results of operations, financial condition, and cash flows.
- We rely on third parties, including contractors and sub-contractors, to complete specific projects or specific portions of our projects. Sub-contractor costs were 78.92%, 80.87%, and 75.42%, as a percentage of total expenses in the Fiscals 2026, 2025, and 2024, respectively. We would be liable for any delay or default by such sub-contractor. Further, sub-contracting of maintenance activities requires prior approval from the authorities and failure to obtain such approvals would result in a breach of the terms of the project contracts.
- Trade receivables and contract assets form a substantial part of our Current Assets and Net Worth. Failure to manage the same could have an adverse effect on our profitability, cash flow and liquidity.
- Our growth, in part, depends on our ability to maintain successful relationship with our business collaboration and consortium partners and any breakdown of such relationships could adversely affect our business, financial condition, results of operations and cash flows.
- There have been instances of non-compliances and delay in filings with respect to regulatory filings under the Companies Act, 2013 and under the Foreign Exchange Management Act, 1999 ("FEMA") by our Company in the past. Further, we may be subject to regulatory actions and penalties for any such past or future noncompliance or delays under the relevant laws, which can be substantially high once adjudicated, having an impact on our business, financial condition and our reputation may be adversely affected. We have also filed compounding applications which have been compounded. There can be no assurance that we will not experience similar or other instances of non-compliance in the future.
- Our business and operations may be impacted by litigations to which we are not first and direct parties to.
- Any online security breach or cyberattack resulting in unauthorized access to our network, systems, or data may adversely impact our business operations, financial results, and reputation.
- Our Order Book may not be indicative of our future operating performance or financial results, as projects in our Order Book are subject to cancellations, modifications, delays, premature terminations and other uncertainties beyond our control.
- We are required to furnish bank guarantees/surety bonds/EMDs in the ordinary course of our business, and any inability to arrange such guarantees or invocation thereof could adversely affect our cash flows, financial condition, and business operations.
- We may not be able to successfully manage the growth of our business if we are not able to effectively implement our growth strategies.
- For our business, we rely heavily on our Promoters namely, Dr. Nambiar Raghavan Madhusoodan, Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko, who are the Managing Director, Chief Executive Officer and Whole-Time Directors, respectively as well as our Key Managerial and Senior Management. Our business performance may have an adverse effect by their departure or by our failure to recruit or keep them.
- During Fiscals 2026, 2025, and 2024, the attrition rate of the employees of our Company was 33.63%, 19.10%, and 24.05%, respectively. If we are unable to hire, integrate, train and retain qualified personnel, or if we experience high attrition levels, which are largely out of our control, our business, financial condition, results of operations and cash flows could suffer.
- Our Registered and Corporate Office, from where we operate, as well as the branch offices of our Company are located on land not owned by us and have been leased to us by third parties. In the event we lose or are unable to renew such leasehold rights, our business, financial condition, cash flows and results of operations may be adversely affected.
- Certain reservations, qualifications and matters of emphasis have been reported by our Statutory Auditors in their examination report on the Restated Consolidated Financial Information, which may adversely affect investor confidence and the trading price of our Equity Shares.
- Our business requires significant working capital, and any variation in key assumptions could result in increased financing needs. Any inability to meet our working capital requirements or repay financial obligations could adversely affect our business, financial condition, results of operations, and cash flows.
- Significant investment in research and development and client-specific consultations for customised solutions may not yield the intended benefits and could adversely affect our margins and profitability.
- Our actual project costs and timelines may differ significantly from bid assumptions. Any inability to recover additional expenses or manage time overruns could adversely affect our financial condition, results of operations, and cash flows.
- If we fail to protect or incur significant costs in defending our intellectual property or if we infringe the intellectual property rights of others, our business, results of operation, financial condition and cash flows could be adversely affected.
- As on the date of this RHP, we have neither identified any specific target entities/ businesses, nor signed any definitive agreements with any such targets/ entities whose acquisition will be funded from the Net Proceeds.
- We have experienced negative net cash flow from investing and financing activities in the past years and may continue to do so in future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.
- Our past performance may not be indicative of our future growth. An inability to effectively manage our growth, implement our strategies and expansion plan may have an adverse effect on our business prospects and future financial performance.
- Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties and in turn may have an adverse effect on our Company's business, financial condition, results of operation and cash flows.
- Dependence on third-party OEMs for hardware and server infrastructure exposes us to risks of cost escalation and procurement delays, which could adversely impact project timelines and business operations.
- For the Fiscals 2026, 2025, and 2024, the cost of supplies from our top ten suppliers represented 60.03%, 78.63%, and 79.41%, of our total expenses, respectively. We rely on our suppliers for various critical aspects of our information technology infrastructure. If any of our top 10 suppliers ceased supplying products/services to us and we were unable to find a supplier to replace it, it could have an adverse effect on our business, financial condition, results of operations, and cash flows.
- Our international business exposes us to complex management, legal, tax and economic risks, which could adversely affect our business, results of operations, financial condition and cash flows.
- We may enter into necessary or desirable strategic acquisitions, or make acquisitions, or investments to grow our business. Any failure to achieve the anticipated benefits from these strategic acquisitions, or investments with our existing business, could adversely affect us.
- Our ability to invest in foreign subsidiaries or joint ventures is constrained by applicable restrictions under Indian overseas investment laws as well as laws of the relevant international jurisdictions, which could adversely affect our business prospects and international growth strategy.
- There are certain outstanding legal proceeding involving our Company, Directors, Subsidiary, RICT India Private Limited and one of our KMPs. Any adverse outcome in such proceeding may have an adverse impact on our reputation, business, results of operations, cash flows and financial condition.
- Our business will suffer if we fail to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes in technology and in the industries on which we focus.
- We rely on proprietary and third-party software solutions, and any failure or defect in these systems could adversely affect our operations and financial condition.
- We face certain competitive pressures from the existing competitors and new entrants in both public and private sector. Increased competition and aggressive bidding by such competitors are expected to make our ability to procure business in future more uncertain which may adversely affect our business, financial condition and results of operations.
- Our ability to implement AI solutions depends in part on our ability to operate with third-party services and any failure to do so could adversely impact our operations.
- We incur employee benefits expense, as part of our operations. An increase in employee costs, including on account of changes in regulations, may prevent us from maintaining our competitive advantage and may reduce our profitability.
- In addition to undertaking projects on a principal basis, we also execute certain projects as a sub-contractor, which may involve additional conditions and requirements. Failure to comply with these conditions could result in early termination or penalties imposed by the primary contractor, potentially adversely affecting our cash flows, business operations, and financial performance.
- Our marketing and advertising campaigns, may not be successful in increasing the popularity of our products and offerings which may adversely affect our business and results of operations.
- Our Subsidiaries are involved in the same or similar line of activity or business as that of our Company.
- Any failure to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for our operations from time to time may adversely affect our business.
- Certain of our Promoters, namely Dr. Nambiar Raghavan Madhusoodan, Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko have provided personal guarantees as security for certain facilities availed by our Company. If these guarantees are revoked, we may be unable to procure alternative guarantees satisfactory to our lenders, which may adversely affect our business, results of operations, cash flows and financial condition
- Our Company has availed unsecured borrowings from our Promoters which is repayable on demand
- Our business and growth strategy depend on the quality and successful implementation of our AI solutions. Delays or failure in meeting contractual timelines or the expectation of our clients may result in cost overrun, loss of business and disputes which in turn could adversely impact our business, financial condition and results of operations.
- The emergence of new and advanced technologies could render our existing solutions obsolete or irrelevant which could adversely impact our results of operations, financial condition and cash flows.
- Our use of open-source software may expose us to increased costs, legal risks, or operational challenges if license terms change or additional compliance obligations arise.
- We do not retain full ownership of certain software developed for Government clients, which may restrict our ability to independently commercialize or monetize such solutions.
- We enter into related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not have an adverse effect on our results of operation and financial condition.
- Our financing agreements contain covenants that limit our flexibility in operating our business. Further, our Company has availed unsecured loans from banks and other financial institutions, which may be recalled on demand. If we are not in compliance with certain of these covenants and are unable to obtain waivers from the respective lenders, our lenders may accelerate the repayment schedules, and enforce their respective security interests, leading to a material adverse effect on our business and financial condition.
- We do not have any direct hedging policy in place and are exposed to foreign currency fluctuation risks. Exchange rate fluctuations may adversely affect our results of operations as a certain portion of our revenues and are denominated in foreign currencies.
- An inability to maintain adequate insurance cover in connection with our business may adversely affect our operations and profitability.
- Certain unsecured loans have been availed by our Subsidiary, RICT India Private Limited, which may be recalled by lenders at any time.
- Our contingent liabilities could materially and adversely affect our business, results of operations and financial condition.
- Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose customers or otherwise harm our business.
- Non-compliance with applicable government IT, cybersecurity, accessibility, and public procurement guidelines may adversely affect our business operations, eligibility in government tenders, and reputation.
- Except for R Thiyagarajan and Karthick Varadarajan, the Independent Directors of our Company, none of our Directors have prior experience as directors in any other listed company in India. This may pose certain potential challenges for our Company, and in the event of any material non-compliance for which our Directors are held liable, it may become necessary for us to appoint new directors.
- This Red Herring Prospectus contains information from industry sources including the industry report commissioned by the Company from Dun & Bradstreet, and reliance on such information for making an investment decision in the Issue is subject to certain inherent risks.
- We face industry-specific operational and adoption challenges in our key sectors, which could adversely impact the scalability and effectiveness of our solutions.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- We have not yet placed orders or entered into definitive agreements for the equipment and skilled personnel that we propose to finance from the Net Proceeds. In the event of any delay in placing such orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, it may result in time and cost overruns and our business, prospects and results of operations may be adversely affected.
- Our funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution, and the proposed utilization of Net Proceeds is based on, amongst others, our current business plan and management estimates, and if there are any delays or cost overruns, our business, cash flows, financial condition and results of operations may be adversely affected.
- Our Promoter, Managing Director and Chief Executive Officer, Dr. Nambiar Raghavan Madhusoodan has significant control over our Company and has the ability to direct our business and affairs; their interests may conflict with your interests as a shareholder.
- Our Company has not paid dividends during the last three Fiscals and during the current Fiscal. There can be no assurance that our Company will be in a position to pay dividends in the future. Our ability to pay dividends in the future may be affected by any material adverse effect on our future earnings, financial condition or cash flows.
- Our Promoters and Directors have interests in our Company other than reimbursement of expenses incurred or normal remuneration or benefits. Any real or potential conflicts of interest that may arise in this regard may materially adversely impact our business, financial condition, results of operations and cash flows.
- We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the Indian IT industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which may affect investor's assessment of our financial condition.
- The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges.
- Pursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measures (GSM) by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
SRIT India Ltd Peer Comparison
Understand the company’s industry standing
SRIT India Ltd
Mastek Ltd
Railtel Corporation of India Ltd
Face Value
5
5
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
450
3698.75
4277.48
EPS-Basis
9.47
130.45
10.79
EPS-Diluted
9.47
129.5
10.79
NAV Per Share
40.71
965.11
70.47
P/E-Basic EPS
---
12.59
24.03
P/E-Diluted EPS
---
---
---
RONW(%)
30.23
14.81
16.25
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 28 Sept 2026 & closes on 30 Sept 2026.
SRIT India Limited was originally incorporated as Sobha Renaissance Information Technology Private Limited' as a private limited company under the Companies Act, 1956 dated September 09, 1999. Subsequently, the name of the Company was changed to SRIT India Private Limited' on June 17, 2014. Subsequently, it was converted from a private limited company to a public limited company, and the name was changed to SRIT India Limited', via certificate of incorporation issued by the Central Processing Centre on May 16, 2025.
SRIT India Limited is a Bengaluru-headquartered Information Technology and Information Technology enabled Services (IT/ITes) solutions company offering digital solutions and automations of systems through custom application development and integration services. It provide a comprehensive range of services in the IT space for a diversified portfolio of businesses in healthcare, electronic governance, telecom & broadband sectors. It compete with software product development and IT companies, as well as service providers. These services cover design, implementation, operation, and maintenance of digital platforms, network infrastructure, and enterprise systems, supported by software development solutions, system integration, automations, customizations and managed service.
Apart from these, some of the domestic projects include the implementation of a smart card-based welfare management system for construction laborers in Karnataka, the deployment of a connected health ecosystem with point-of-care devices across 100 mobile medical units, and the rollout of e-District software in Odisha and Chhattisgarh. In addition, smart metering is a key focus area for Company, enabling real-time monitoring and improving accuracy in measurement and reporting.
The competitors are RailTel Corporation of India Limited, Protean E-Gov Technologies Limited, Aurionpro Solutions Limited, Mastek Limited and Allied Digital Services Limited. In addition, Company has established a branch office in Qatar to pursue multi-divisional, technology-intensive projects.
The Company has entered into an agreement dated November 11, 2025 with an India based multinational company engaged in engineering and construction to strengthen its technology capabilities and market reach in November, 2025. It has implemented large-scale, mission-critical projects for both central and state government bodies across India. Through its network, Company operate as a managed service provider for Government and Enterprise clients, including internet service providers, supporting delivery of services to the end customers. IT modernization enables real-time decision-making, better data governance, and enhanced citizen engagement.
Company has filed a Draft Prospectus with SEBI and is planning the fresh issue of 16,800,000 equity shares of Rs 5 each through IPO.
SRIT India Ltd IPO will close on 30 Sept 2026.
- Established track record with end-to-end product solution and integration capabilities.
- Diverse Order Book across offerings for multiple clients & geographies.
- Extensive geographic footprint with scalable operations across key markets.
- Strong financial performance and healthy balance sheet.
- Experienced Promoters and Senior Management team, having domain knowledge.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Nambiar Raghavan Madhusoodan | 24013577 | 50.58 | 24013577 | 36.36 |
| 2 | Prasaktha Vakkiyl Nambiar | 8353820 | 17.6 | 8353820 | 13 |
| 3 | Martin Poovakkulam Chacko | 7859350 | 16.56 | 7859350 | 12.23 |
| 4 | Prasenan Vakkiyl | 10000 | 0.02 | 10000 | 0.02 |
| 5 | Shivaprasad Menon | 10000 | 0.02 | 10000 | 0.02 |
| 6 | Vakkiyil Praseeda | 10000 | 0.02 | 10000 | 0.02 |
| 7 | Madan Nambiar | 10000 | 0.02 | 10000 | 0.02 |
| 8 | Vakkiyil Gowri Prasanna | 10000 | 0.02 | 10000 | 0.02 |
| 9 | Latha Shyam Menon | 10000 | 0.02 | 10000 | 0.02 |
| 10 | Poovakkulathu Chacko Lovely | 20000 | 0.04 | 20000 | 0.03 |
- Majority of our projects have been awarded through competitive bidding process, which is heavily dependent on tenders from Government entities, accounting for approximately 89.41%, 91.34%, and 81.84% of our revenue from operations for Fiscals 2026, 2025, and 2024, respectively. Failure to qualify for, complete or win new contracts could negatively impact our business, potentially affecting our financial condition, operational results, growth prospects, and cash flow stability.
- A significant portion of our revenue from operations is attributable to our top ten customers accounting for approximately 89.36%, 92.68%, and 84.54% of our total revenue from operations, for the Fiscals 2026, 2025, and 2024, respectively, and our business and profitability is dependent on our ability to win projects from such customers. Loss of one or more of our customers or reduction in their demand for our offerings could adversely affect our business, results of operations and financial conditions.
- The majority of our Order Book and revenue from operations are from the projects undertaken for the electronic governance sector with such projects accounting for approximately 58.40%, 63.86%, and 65.33% of our total Order Book value, and approximately 68.39%, 61.29%, and 50.13% of our revenue from operations, for the Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Any reduction in the activity and expenditure levels in this sector may adversely affect our business and prospects, and may reduce the number of projects we undertake and impede our growth. Further, any significant social, political, or economic changes in this sector could adversely affect our business, results of operations, financial condition, and cash flows.
- We rely on third parties, including contractors and sub-contractors, to complete specific projects or specific portions of our projects. Sub-contractor costs were 78.92%, 80.87%, and 75.42%, as a percentage of total expenses in the Fiscals 2026, 2025, and 2024, respectively. We would be liable for any delay or default by such sub-contractor. Further, sub-contracting of maintenance activities requires prior approval from the authorities and failure to obtain such approvals would result in a breach of the terms of the project contracts.
- Trade receivables and contract assets form a substantial part of our Current Assets and Net Worth. Failure to manage the same could have an adverse effect on our profitability, cash flow and liquidity.
- Our growth, in part, depends on our ability to maintain successful relationship with our business collaboration and consortium partners and any breakdown of such relationships could adversely affect our business, financial condition, results of operations and cash flows.
- There have been instances of non-compliances and delay in filings with respect to regulatory filings under the Companies Act, 2013 and under the Foreign Exchange Management Act, 1999 ("FEMA") by our Company in the past. Further, we may be subject to regulatory actions and penalties for any such past or future noncompliance or delays under the relevant laws, which can be substantially high once adjudicated, having an impact on our business, financial condition and our reputation may be adversely affected. We have also filed compounding applications which have been compounded. There can be no assurance that we will not experience similar or other instances of non-compliance in the future.
- Our business and operations may be impacted by litigations to which we are not first and direct parties to.
- Any online security breach or cyberattack resulting in unauthorized access to our network, systems, or data may adversely impact our business operations, financial results, and reputation.
- Our Order Book may not be indicative of our future operating performance or financial results, as projects in our Order Book are subject to cancellations, modifications, delays, premature terminations and other uncertainties beyond our control.
- We are required to furnish bank guarantees/surety bonds/EMDs in the ordinary course of our business, and any inability to arrange such guarantees or invocation thereof could adversely affect our cash flows, financial condition, and business operations.
- We may not be able to successfully manage the growth of our business if we are not able to effectively implement our growth strategies.
- For our business, we rely heavily on our Promoters namely, Dr. Nambiar Raghavan Madhusoodan, Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko, who are the Managing Director, Chief Executive Officer and Whole-Time Directors, respectively as well as our Key Managerial and Senior Management. Our business performance may have an adverse effect by their departure or by our failure to recruit or keep them.
- During Fiscals 2026, 2025, and 2024, the attrition rate of the employees of our Company was 33.63%, 19.10%, and 24.05%, respectively. If we are unable to hire, integrate, train and retain qualified personnel, or if we experience high attrition levels, which are largely out of our control, our business, financial condition, results of operations and cash flows could suffer.
- Our Registered and Corporate Office, from where we operate, as well as the branch offices of our Company are located on land not owned by us and have been leased to us by third parties. In the event we lose or are unable to renew such leasehold rights, our business, financial condition, cash flows and results of operations may be adversely affected.
- Certain reservations, qualifications and matters of emphasis have been reported by our Statutory Auditors in their examination report on the Restated Consolidated Financial Information, which may adversely affect investor confidence and the trading price of our Equity Shares.
- Our business requires significant working capital, and any variation in key assumptions could result in increased financing needs. Any inability to meet our working capital requirements or repay financial obligations could adversely affect our business, financial condition, results of operations, and cash flows.
- Significant investment in research and development and client-specific consultations for customised solutions may not yield the intended benefits and could adversely affect our margins and profitability.
- Our actual project costs and timelines may differ significantly from bid assumptions. Any inability to recover additional expenses or manage time overruns could adversely affect our financial condition, results of operations, and cash flows.
- If we fail to protect or incur significant costs in defending our intellectual property or if we infringe the intellectual property rights of others, our business, results of operation, financial condition and cash flows could be adversely affected.
- As on the date of this RHP, we have neither identified any specific target entities/ businesses, nor signed any definitive agreements with any such targets/ entities whose acquisition will be funded from the Net Proceeds.
- We have experienced negative net cash flow from investing and financing activities in the past years and may continue to do so in future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.
- Our past performance may not be indicative of our future growth. An inability to effectively manage our growth, implement our strategies and expansion plan may have an adverse effect on our business prospects and future financial performance.
- Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties and in turn may have an adverse effect on our Company's business, financial condition, results of operation and cash flows.
- Dependence on third-party OEMs for hardware and server infrastructure exposes us to risks of cost escalation and procurement delays, which could adversely impact project timelines and business operations.
- For the Fiscals 2026, 2025, and 2024, the cost of supplies from our top ten suppliers represented 60.03%, 78.63%, and 79.41%, of our total expenses, respectively. We rely on our suppliers for various critical aspects of our information technology infrastructure. If any of our top 10 suppliers ceased supplying products/services to us and we were unable to find a supplier to replace it, it could have an adverse effect on our business, financial condition, results of operations, and cash flows.
- Our international business exposes us to complex management, legal, tax and economic risks, which could adversely affect our business, results of operations, financial condition and cash flows.
- We may enter into necessary or desirable strategic acquisitions, or make acquisitions, or investments to grow our business. Any failure to achieve the anticipated benefits from these strategic acquisitions, or investments with our existing business, could adversely affect us.
- Our ability to invest in foreign subsidiaries or joint ventures is constrained by applicable restrictions under Indian overseas investment laws as well as laws of the relevant international jurisdictions, which could adversely affect our business prospects and international growth strategy.
- There are certain outstanding legal proceeding involving our Company, Directors, Subsidiary, RICT India Private Limited and one of our KMPs. Any adverse outcome in such proceeding may have an adverse impact on our reputation, business, results of operations, cash flows and financial condition.
- Our business will suffer if we fail to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes in technology and in the industries on which we focus.
- We rely on proprietary and third-party software solutions, and any failure or defect in these systems could adversely affect our operations and financial condition.
- We face certain competitive pressures from the existing competitors and new entrants in both public and private sector. Increased competition and aggressive bidding by such competitors are expected to make our ability to procure business in future more uncertain which may adversely affect our business, financial condition and results of operations.
- Our ability to implement AI solutions depends in part on our ability to operate with third-party services and any failure to do so could adversely impact our operations.
- We incur employee benefits expense, as part of our operations. An increase in employee costs, including on account of changes in regulations, may prevent us from maintaining our competitive advantage and may reduce our profitability.
- In addition to undertaking projects on a principal basis, we also execute certain projects as a sub-contractor, which may involve additional conditions and requirements. Failure to comply with these conditions could result in early termination or penalties imposed by the primary contractor, potentially adversely affecting our cash flows, business operations, and financial performance.
- Our marketing and advertising campaigns, may not be successful in increasing the popularity of our products and offerings which may adversely affect our business and results of operations.
- Our Subsidiaries are involved in the same or similar line of activity or business as that of our Company.
- Any failure to obtain, renew and maintain requisite statutory and regulatory permits, licenses and approvals for our operations from time to time may adversely affect our business.
- Certain of our Promoters, namely Dr. Nambiar Raghavan Madhusoodan, Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko have provided personal guarantees as security for certain facilities availed by our Company. If these guarantees are revoked, we may be unable to procure alternative guarantees satisfactory to our lenders, which may adversely affect our business, results of operations, cash flows and financial condition
- Our Company has availed unsecured borrowings from our Promoters which is repayable on demand
- Our business and growth strategy depend on the quality and successful implementation of our AI solutions. Delays or failure in meeting contractual timelines or the expectation of our clients may result in cost overrun, loss of business and disputes which in turn could adversely impact our business, financial condition and results of operations.
- The emergence of new and advanced technologies could render our existing solutions obsolete or irrelevant which could adversely impact our results of operations, financial condition and cash flows.
- Our use of open-source software may expose us to increased costs, legal risks, or operational challenges if license terms change or additional compliance obligations arise.
- We do not retain full ownership of certain software developed for Government clients, which may restrict our ability to independently commercialize or monetize such solutions.
- We enter into related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not have an adverse effect on our results of operation and financial condition.
- Our financing agreements contain covenants that limit our flexibility in operating our business. Further, our Company has availed unsecured loans from banks and other financial institutions, which may be recalled on demand. If we are not in compliance with certain of these covenants and are unable to obtain waivers from the respective lenders, our lenders may accelerate the repayment schedules, and enforce their respective security interests, leading to a material adverse effect on our business and financial condition.
- We do not have any direct hedging policy in place and are exposed to foreign currency fluctuation risks. Exchange rate fluctuations may adversely affect our results of operations as a certain portion of our revenues and are denominated in foreign currencies.
- An inability to maintain adequate insurance cover in connection with our business may adversely affect our operations and profitability.
- Certain unsecured loans have been availed by our Subsidiary, RICT India Private Limited, which may be recalled by lenders at any time.
- Our contingent liabilities could materially and adversely affect our business, results of operations and financial condition.
- Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose customers or otherwise harm our business.
- Non-compliance with applicable government IT, cybersecurity, accessibility, and public procurement guidelines may adversely affect our business operations, eligibility in government tenders, and reputation.
- Except for R Thiyagarajan and Karthick Varadarajan, the Independent Directors of our Company, none of our Directors have prior experience as directors in any other listed company in India. This may pose certain potential challenges for our Company, and in the event of any material non-compliance for which our Directors are held liable, it may become necessary for us to appoint new directors.
- This Red Herring Prospectus contains information from industry sources including the industry report commissioned by the Company from Dun & Bradstreet, and reliance on such information for making an investment decision in the Issue is subject to certain inherent risks.
- We face industry-specific operational and adoption challenges in our key sectors, which could adversely impact the scalability and effectiveness of our solutions.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- We have not yet placed orders or entered into definitive agreements for the equipment and skilled personnel that we propose to finance from the Net Proceeds. In the event of any delay in placing such orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, it may result in time and cost overruns and our business, prospects and results of operations may be adversely affected.
- Our funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution, and the proposed utilization of Net Proceeds is based on, amongst others, our current business plan and management estimates, and if there are any delays or cost overruns, our business, cash flows, financial condition and results of operations may be adversely affected.
- Our Promoter, Managing Director and Chief Executive Officer, Dr. Nambiar Raghavan Madhusoodan has significant control over our Company and has the ability to direct our business and affairs; their interests may conflict with your interests as a shareholder.
- Our Company has not paid dividends during the last three Fiscals and during the current Fiscal. There can be no assurance that our Company will be in a position to pay dividends in the future. Our ability to pay dividends in the future may be affected by any material adverse effect on our future earnings, financial condition or cash flows.
- Our Promoters and Directors have interests in our Company other than reimbursement of expenses incurred or normal remuneration or benefits. Any real or potential conflicts of interest that may arise in this regard may materially adversely impact our business, financial condition, results of operations and cash flows.
- We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the Indian IT industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which may affect investor's assessment of our financial condition.
- The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges.
- Pursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measures (GSM) by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
The Issue type of SRIT India Ltd is Book Building.
The minimum application for shares of SRIT India Ltd is 115.
The total shares issue of SRIT India Ltd is 16800000.
Initial public offering of up to 16,800,000 equity shares of face value of Rs. 5/- each ("Equity Shares") of Srit India Limited ("Company" or "Issuer") for cash at a price of Rs. [*] per equity share (including a share premium of Rs. [*] per equity share) ("Issue Price") aggregating up to [*] crores ("Issue") comprising a fresh issue of up to 16,800,000 equity shares by the company aggregating up to Rs. [*] crores ("fresh issue"). The issue shall constitute [*]% of the post-issue paid up equity share capital of the company.
Price Band: Rs. 123/- to Rs. 130/- for equity share of face value of Rs. 10 each.
The floor price is 12.30 times times the face value and cap price is 13.00 times of the face value of the equity shares.
Bids can made for a minimum of 115 equity shares and in multiples of 115 equity shares thereafter.