TAC Infosec’s Cybersecurity IPO 2024: Unveiling India’s Next Vulnerability Management Giant

The prominent player in the cybersecurity and vulnerability management space, is set to embark on a new journey as it prepares to launch its Initial Public Offering (IPO). The company, supported by renowned stock market expert Vijay Kedia, aims to raise approximately Rs 29.9 crore through this public issue, marking a significant milestone in its growth trajectory.

The IPO Details

Slated to open for public subscription on Wednesday, March 27, 2024, the TAC Infosec IPO will remain open until Tuesday, April 2, 2024. The price range for the offering has been fixed at Rs 100 to Rs 106 per share, with a face value of Rs 10 each. Investors will have the opportunity to bid for a minimum lot of 1,200 equity shares and in multiples thereof.

Beeline Capital Advisors Private Limited has been appointed as the book-running lead manager for the IPO, while Skyline Financial Services Private Limited will serve as the registrar. The company plans to list its shares on the National Stock Exchange (NSE) Emerge platform.

Allocation and Utilization of Funds

The IPO comprises a fresh issue of 28,29,600 equity shares, with specific allocations made for different investor categories. Market Makers have been reserved 1.41 lakh equity shares, Non-Institutional Investors (NIIs) have been allocated 4.03 lakh equity shares, Qualified Institutional Buyers (QIBs) have been assigned 13.44 lakh equity shares and Retail Investors (RIIs) have been allocated 9.4 lakh equity shares.

TAC Infosec plans to utilize the funds raised from the IPO for several strategic initiatives. A significant portion will be dedicated to enhancing human resources and product development, fueling growth in India. Additionally, the company intends to invest in TAC Security INC. (Delaware, USA), its wholly-owned subsidiary, to recruit skilled personnel and drive growth beyond Indian borders. The remaining capital will be allocated for general corporate purposes.

Company Overview and Market Position

Founded by entrepreneur Trishneet Arora, TAC Infosec has established itself as a prominent player in the cybersecurity and vulnerability management domain. The company provides risk-based vulnerability management solutions, cybersecurity quantification and penetration testing services to organizations of all sizes through a Software-as-a-Service (SaaS) model.

TAC Infosec boasts an impressive client base, including banks, financial institutions, government agencies, regulatory bodies and also large corporations with notable clients like HDFC, Bandhan Bank, BSE, National Payments Corporation of India, DSP Investment Managers Private Limited, Motilal Oswal and NSDL e-Governance.

Financial Performance and Growth Prospects

According to the company's Red Herring Prospectus (RHP), TAC Infosec Limited experienced remarkable financial growth between March 31, 2022 and March 31, 2023. During this period, the company's profit after tax (PAT) soared by an impressive 735.05%, while its revenue jumped by 93.7%.

The company's listed peers, such as Dev Information Technology Limited (with a P/E of 23.73), Infobeans Technologies Limited (with a P/E of 29.63) and Sigma Solve Limited (with a P/E of 100.86), provide a benchmark for TAC Infosec's potential market performance.

Investor Sentiment and Market Outlook

With the growing importance of cybersecurity and the increasing demand for vulnerability management solutions, TAC Infosec's IPO is expected to attract significant investor interest. With the company's strong financial performance and strategic growth plans position it as an attractive investment opportunity in the rapidly evolving cybersecurity landscape.