Madhya Pradesh-based information technology solutions provider Xtranet Technologies launched its ₹166.80-crore initial public offering (IPO) in the mainboard segment today. The IPO comprises an entirely fresh issue with no offer-for-sale (OFS) component. The issue opened for public subscription on July 23 and will close on July 27, while the anchor book opened for institutional investors on July 22. The minimum investment requirement is ₹13,970 for retail investors, with a lot size of 110 shares. For small non-institutional investors, the minimum application size is 15 lots (1,650 shares), amounting to ₹2,09,550, while big non-institutional investors require 72 lots (7,920 shares), amounting to ₹10,05,840. The basis of allotment is expected to be finalised on July 28, while refunds and credit of shares to successful bidders' demat accounts are likely on July 29.
The ₹167-crore IPO has received mixed reviews from brokerages, with Swastika recommending applying with a medium-term view and SBI Securities maintaining a 'neutral' call on the offer. As per Business Standard, Swastika finds the IPO ideal for investors with medium-term investment horizons and adequate risk appetite, noting the company's consistent growth in revenue and profitability. However, SBI Securities expressed concerns about customer concentration, dependence on government contracts, and stretched receivables cycle, assigning a 'neutral' rating and preferring to monitor cash-flow generation post-listing. The Grey Market Premium (GMP) stands at ₹147, indicating a listing gain of 15.75% on the upper price band.
On the financial front, Xtranet Technologies has recorded strong growth in recent years with impressive earnings growth metrics. According to the Red Herring Prospectus, the company posted revenue, EBITDA and PAT CAGR of 25%, 83% and 91% respectively during FY24-26. For the financial year ended March 2026, its profit rose 35.6 percent year-on-year to ₹40.73 crore, while revenue increased 32.3 percent to ₹365.29 crore. The company plans to utilise ₹20.2 crore of the IPO proceeds for loan repayment, ₹8.48 crore for the purchase of systems and hardware, and ₹102 crore to meet working capital requirements. At the upper price band, the company will have a pre-IPO market cap of ₹664.03 crore. The net proceeds from the IPO will be used to repay debt, fund capital expenditures, meet working capital requirements, and support general corporate purposes.
Incorporated in 2002, Xtranet Technologies provides comprehensive IT services and solutions with 504 permanent employees as of April 30, 2026. Its core service offerings include ERP implementation and support, IT system integration, network and security solutions, virtualisation, cloud integration, infrastructure management, data centre management, application development and maintenance. The company also offers digital services such as infrastructure-as-a-service, platform-as-a-service and software-as-a-service. Its proprietary platforms include Synergy, a low-code digital transformation platform, and XtraTrust. As reported by The Hindu BusinessLine, Sukhbir Singh Kukreja, Promoter and Managing Director, stated that the company has expanded its capabilities across enterprise applications, managed services, digital transformation, data centres, disaster recovery and proprietary software platforms. The company's domain expertise spans six industries including Law Enforcement, Railways, Transportation, F&B, Financial Services, Telecom & Utilities, Healthcare & Agri, Automotive, Wholesale & Retail and Education.
According to the Red Herring Prospectus, Xtranet Technologies has a higher dependence on public sector companies, with government and PSU clients accounting for 47% of revenue in FY26, though this was higher at 60% in FY25. The IPO share allotment will be finalised by July 28, while the trading in Xtranet shares will commence on the bourses on July 30. According to The Hindu BusinessLine, Sachin Gupta, Director at Share India Capital Services, believes the proposed IPO is intended to support the company's next phase of growth by enabling investment in delivery capabilities and business expansion. The largest part of the proceeds, ₹102 crore, will go towards working capital requirements, with the balance used for general corporate purposes. The company's promoters include Sukhbir Singh Kukreja, Jogendrapal Singh Alagh, and Shiney Sukhbir, as reported in the Red Herring Prospectus.
