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Unified Data- Tech Solutions

• Unified Data- Tech Solutions is coming out with an initial public offering (IPO) of 52,92,000 equity shares in a price band Rs 260-273 per equity share.
• The issue will open on May 22, 2025 and will close on May 26, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 26.00 times of its face value on the lower side and 27.30 times on the higher side.
• Book running lead manager to the issue is HEM Securities.
• Compliance Officer for the issue is Khadija Taher Raniwala.

Profile of the company

Unified Data - Tech Solutions is a technology company specializing in system integration. It provides comprehensive IT solutions, including data centre infrastructure, virtualization, data protection, networking, cybersecurity, secure application delivery etc. Its services cater to a wide range of industries, such as Banking, Finance, Insurance, Manufacturing, Pharmaceuticals, IT and IT enabled services etc. It collaborates closely with clients to develop, implement, and manage cost-effective, secure, and high performance IT solutions that meet their unique requirements, providing ongoing support to optimize their systems.

By focusing on quality delivery and customer satisfaction, it aims to be a trusted partner in delivering cutting-edge solutions that meet the diverse needs of its clientele. It procures products and services relative to Data Center Infrastructure, Virtualization and Private Cloud, Data Protection and Resiliency, Networking and Cybersecurity Solutions and Secure Application Delivery etc. The company is authorized partners of various original equipment manufacturers (OEMs) for distribution of IT products and services along with maintenance contracts and subscriptions etc.

The company’s products and services portfolio comprise of Servers, Storage Solutions, Networking equipment, Firewall and VPN Solutions, Intrusion Detection and Prevention Systems, Endpoint Security Solutions, Network Segmentation and access controls, Application Firewalls, Load Balancing, Application Monitoring and Performance Optimization, Secure Access Solutions, Backup and Restore Solutions, Disaster Recovery Planning, High Availability Solutions, Server Virtualization, Desktop Virtualization, Private Cloud Deployment, Management Tools, Hybrid Cloud Design and Implementation, Cloud Management Platforms. In addition to these product and services, it provides a comprehensive range of services including Technology Advisory Services, System Integration, Expert Technical Services and Operational Management Services among others. 

Proceed is being used for:

• The objects of the offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and the sale of Equity Shares by the Selling Shareholder in the Offer.

Industry Overview

India's IT & BPM sector fuels 7.5% of GDP, projected to hit 10% by 2025. India's IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country’s GDP. The IT industry added 2.9 lakh new jobs taking the industry’s workforce tally to 5.4 million people in FY23. Generative artificial intelligence (GenAI) could enhance productivity in India’s retail industry by 35-37% over the next five years. India's IT industry is likely to hit the $350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP), Infomerics Ratings said in a report. The Indian IT industry’s revenue touched $227 billion in FY22, a 15.5% YoY growth and was estimated to have touched $245 billion in FY23. Further, India is expected to have nine times more digitally skilled workers by 2025. This indicates that a total of 3.9 billion digital skill trainings are expected by 2025. India will need 30 million digitally skilled professionals by 2026.

The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth Rs 7,53,893 crore ($87.46 billion) between April 2000-September 2024. The sector ranked second in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT). Computer software and hardware make up 15.11% of the cumulative FDI equity inflows. This push towards cloud services has boosted hyper-scale data centre investments, with global investments estimated to exceed $200 billion annually by 2025. India is expected to gain a significant share in the global market, with the country's investment expected to hit $5 billion annually by 2025. India’s technology industry is on track to double its revenue to Rs 43,10,000 ($500 billion) by 2030.

Indian IT firms have delivery centres across the world. IT & BPM industry is well diversified across verticals such as BFSI, telecom and retail. Increasing strategic alliance between domestic and international players to deliver solutions across the globe. The Union Budget 2025-26 has sanctioned Rs 2,000 crore ($232 million) to accelerate AI adoption and infrastructure development. The Union Budget 2025-26 allocates Rs 500 crore ($58 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education. The government prioritizes cybersecurity, hyper-scale computing, AI, and blockchain. With data costs at Rs 10/GB ($0.12/GB), India ranks among the world's cheapest. The Ministry of Electronics and Information and Technology (MeitY) had approved 14 eligible applicants under the production linked incentive scheme (PLI) for IT hardware. 

Pros and strengths

Extensive and reliable delivery network: As the company is based in India and generates its revenue from India region. It has developed system to deliver goods and services as required and wherever the client requires the equipment to be installed across the nation. Over the years, it has delivered its products across the country as well as overseas.

Established relationships with suppliers: The company has established strategic partnerships with several major technology companies, commonly referred to as Original Equipment Manufacturers (OEMs). To facilitate these partnerships, it teams up with authorized OEM distributors, enabling it to become authorized resellers of their Information Technology products and services. These offerings empower organizations to enhance their operational efficiency while safeguarding their networks, data, and applications from emerging cyber threats. its robust partnerships allow it to provide a comprehensive suite of solutions across diverse industries, encompassing web security, data protection, virtualization, and cloud security. By directly collaborating with industry leaders, it is able to deliver cutting-edge tools to its clients, empowering them to secure their digital assets effectively.

Robust client relationships and diverse clientele: The company has started business from the year 2010, since, then company has made its mark by delivering quality products and services. The company has built enduring partnerships with its core customer accounts. Supporting the testament to its services, it has secured 62.29%, 79.40 %, 72.79 % and 62.49 % of the company's total business from top five customers for the period ended on February 28, 2025 and for the Financial Year ended on March 31, 2024, March 31, 2023 and March 31, 2022, which comes from these clients, who continue to rely on it for their IT needs.

Risks and concerns  

Maximum revenue comes from few customers: The substantial portion of the company’s revenue is significantly dependent on certain key customers. For instance, its top five customers for the period ended February 28, 2025 and financial years 2023-24, 2022-23 and 2021-22 accounted for 62.29%, 79.40%, 72.79% and 62.48% of its revenue from operations for the respective period/financial years. Moreover, its revenue from its top customer being one of the leading BFSI Institution constituted 32.69%, 41.29%, 38.88% and 23.27% of its revenue from operations for the period ended on February 28, 2025 and financial year ended at March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its key customers, acceptance of the provisional order, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Geographical constrain: The company generates its major turnover from the Western India, particularly from the state of Maharashtra. For the period ended on February 28, 2025 and financial years 2023-24, 2022-23 and 2021-22, it derived major portion of its revenue from the state of Maharashtra i.e. 68.12%, 52.51%, 71.80% and 54.88% of total revenue from operations, respectively. Any adverse developments affecting its operations in this region could have an adverse impact on its revenue and results of operations.

Dependent on few key suppliers for procurement of products and services: It procures products and services from various suppliers. For the period ended on February 28, 2025, financial years 2023-24, 2022-23 and 2021-22, purchases from its top five suppliers amounted to Rs. 14,177.47 lakh, Rs 20,466.48 lakh, Rs 7,555.82 lakh and Rs 6,172.64 lakh respectively, which represented 95.14%, 95.94%, 89.25% and 88.77% of its total products and services purchased, respectively, for the said period. It does not have any long-term supply contracts with these suppliers and therefore, it cannot assure that it shall always have a steady supply of products and services at prices favourable to it. 

Outlook

Unified Data- Tech Solutions is a Mumbai-based IT service provider specializing in delivering innovative and customized technology solutions. The company has proven track record of financial success. It also has seasoned leadership and skilled workforce. On the concern side, the company is dependent on a few customers for a major part of its revenues. Further, it does not have any long-term commitments from customers and any failure to continue its existing arrangements could adversely affect its business and results of operations. Moreover, the company is primarily dependent on few key suppliers for procurement of products and services. Any delay, interruption or reduction in the supply of products and services may adversely affect its business, results of operations, cash flows and financial conditions.

The company is coming out with a maiden IPO of 52,92,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 260-273 per equity share. The aggregate size of the offer is around Rs 137.59 crore to Rs 144.47 crore based on lower and upper price band respectively. On performance front, the revenue from operation of the company increased to Rs 26,037.87 lakh in FY24 as against Rs 11,048.66 lakh in the FY23 representing an increase of 135.67%. The main reason for the increase in revenue is due to increase in sale of products and services. Moreover, the company reported restated profit after tax for the financial year 2023-24 of Rs 2,512.59 lakh in comparison to Rs 1,040.09 lakh in the financial year 2022-23. The increase of 141.57% is due to increase in sale of products and services along with reported increase in other income.

The company has built strong, enduring relationships with its clients by deeply understanding their needs and tailoring innovative solutions to address their unique challenges. Its commitment to helping clients achieve greater efficiency and responsiveness has established it as a trusted partner capable of transforming complex business processes into streamlined, impactful systems. Leveraging its expertise in technology customization, it continues to deliver value-added services that empower its clients to succeed in an evolving business landscape. As it grows, the company is focusing on securing government and public sector projects, which offer significant opportunities for scalability and showcase its capability to deliver large-scale IT solutions. These projects allow it to demonstrate its technical proficiency, reliability, and ability to meet the demands of critical and impactful initiatives.