Neilsoft IPO: Engineering Firm Files Draft Papers For Maiden Book Build Offer

Engineering services and design company Neilsoft Ltd. filed its preliminary papers for its initial public offering on Dec. 26. The IPO is a fresh issue of shares worth Rs 100 crore, with an offer-for-sale segment of 80 lakh shares. The expected launch date of the offer is yet to be announced.

Promoters of the company include Ketan Champaklal Bakshi, Rupa Harish Shah and Daksha Bakshi. Rupa Harish Shah jointly with Harishkumar Shah is offloading 11.45 lakh shares, along with promoter groups Netsophy Pvt. Ltd., Nishit Shah jointly with Rupa Harish Shah, and Harishkumar Shah jointly with Rupa Harish Shah offloading a total of 14.45 lakh shares.

Equirus Capital Pvt. Ltd. and IIFL Capital Services Ltd. are the bankers handling the issue, while Link Intime India Pvt. Ltd. is the main registrar.

Neilsoft is a technology-driven, pure-play engineering services and solutions company with multidisciplinary domain expertise and proprietary solutions catering to the architecture, engineering and construction, manufacturing, and industrial plant segments, with over 20 years of experience in servicing global customers.

Their offerings address the digitalisation (using digital technologies for transforming a business/process), digitisation (converting analog data into digital format) and automation needs of customers, and seek to make the design-build-operate activities more efficient & sustainable by leveraging digital technologies. Their business are categorised as engineering services and engineering solutions.

Neilsoft's listed peers include KPIT Technologies Ltd., Onward Technologies Ltd., Cyient Ltd., L&T Technology Services Ltd., and Tata Technologies Ltd.

For the quarter ended June, Neilsoft clocked a net profit of Rs 14.1 crore against revenue of Rs 88.24 crore. The company's bottom-line print stood at Rs 57.9 crore for the fiscal ended March 2024, against a topline of Rs 325.9 crore. As of Nov. 30, 2024, the company's debt pile stood at Rs 68.12 crore.

The company plans to utilise the proceeds from the fresh issue of shares for funding capex requirements including Rs 9.85 crore for civil construction and interior development at their Viman Nagar Office and Rs 6.27 crore for setting up new workstation at their Hinjewadi office.

Rs 34.2 crore is proposed to be used for the purchase of new computer graphics workstation and IT infrastructure, Rs 19.3 crore for purchase of software subscriptions and licenses, and the remaining for general corporate purposes, as per the draft red herring prospectus.