Unified data-tech IPO: Fair valuation, full OFS

Unified Data-Tech Solutions is launching a Rs 144 crore IPO on May 22, entirely via offer-for-sale. With fair valuations and robust growth in the IT services space, the stock will debut on the BSE SME platform on May 29.

IPO Details

Unified Data-Tech Solutions (UDTS), a Mumbai-based IT services firm, is launching its IPO on May 22, 2025, with subscriptions closing on May 26. The price band is Rs 260–Rs 273 per share, and the minimum application is for 400 shares, amounting to a minimum investment of around Rs 1.09 lakh at the upper end. The issue size is ~52.92 lakh shares, aggregating to ~Rs 144.47 crore, and the stock is set to list on the BSE SME platform on May 29. Notably, this is a 100 per cent offer-for-sale—the company is raising no new funds.

Business Overview

Founded in 2010, UDTS provides enterprise IT products and integration services. The company acts as a reseller and solution partner for brands like IBM and VMware, catering to clients in BFSI, pharma, manufacturing, and IT services. It operates in a rapidly expanding segment, benefiting from India's digital infrastructure push and data centre growth.

Financials

UDTS has demonstrated robust top-line growth in recent years. In FY24, revenue surged to Rs 266.8 crore, with a net profit of Rs 25.1 crore, compared to Rs 112.8 crore/Rs 10.4 crore in FY23. Profit margins have remained healthy (~9–10 per cent), supported by large BFSI projects and scale efficiencies. The company’s three-year CAGR exceeds 60 per cent, although FY24 was its first year with scaled profits.

Investor Outlook

The IPO is priced at a P/E of around 20-21x FY24 earnings, which appears reasonable for a high-growth IT play. However, since the offer is entirely secondary, no proceeds will aid business expansion. Grey-market activity indicated a premium of ~Rs 80 ahead of listing, pointing to positive sentiment, though listing volatility remains. As an SME issue, liquidity could be constrained post-listing. Long-term investors may want to track consistent profitability before committing.

Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.