MOURI Tech, a Hyderabad based IT services company with strong presence in enterprise solutions and digital transformation, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an IPO of INR 1,500 crore. The issue will consist of fresh issue of equity shares up to INR 250 crore and offer for sale (OFS) by existing shareholders of up to INR 1,250 crore. The company will list its equity shares on BSE and NSE.
Offer Structure and Selling Shareholders
The OFS component sees key promoters and shareholders diluting their holdings. Promoter Sujai Paturu will offload shares worth up to INR 726.3 crore, while fellow promoter Anil Reddy Yerramreddy aims to sell shares aggregating up to INR 370.6 crore. Other significant exits include Srinivasu Rao Sandaka, whose stake sale could amount to INR 153.1 crore.
Utilisation of IPO Proceeds
The net proceeds from the fresh issue are earmarked for strategic growth and debt reduction. Of the INR 250 crore fresh issue:
- INR 165 crore will be invested in the company’s US subsidiary, MT USA, to repay or prepay existing borrowings including interest liabilities.
- The remaining proceeds are proposed to be utilised for inorganic growth via acquisitions and general corporate purposes, although exact allocations remain unspecified.
A Deep Tech Player With AI at Its Core
MOURI Tech describes itself as an “AI-first” IT services firm, with core strengths across four verticals — intelligent ERP (iERP), enterprise digital transformation, infrastructure services, and program management. Their offerings are heavily infused with advanced technologies including machine learning, generative AI, and hyper-automation, supported by a proprietary AI Center of Excellence.
The company has built strong partnerships with major Independent Software Vendors (ISVs) and holds advanced recognitions from global cloud, data, and ERP solution providers.
Strong Financial Performance But Recent Margin Pressures
Topline growth has been consistent. Revenue from operations has grown from INR 827.96 crore in FY22 to INR 1,141.30 crore in FY24.
However, profitability has been under pressure lately:
- PAT margin has increased to 14.65% in FY24 from 14.05% in FY22.
- EBITDA margin has contracted to 21.28% in FY24 from 20.74% in FY22.
- RoE has fallen sharply from 45.88% in FY22 to 30.51% in FY24.
Despite the margin contraction, MOURI Tech’s net worth has grown to INR 671.80 crore as on 31st December 2024. Strong balance sheet.
Customer Base and Geographic Spread
As of 31st Dec 2024, MOURI Tech has 554 active customers — up from 359 in FY 2022. We have customers primarily in the US which accounts for 87.32% of revenue for the 9 months ended Dec 2024.
MOURI Tech has a distributed operations model with delivery centers in Hyderabad, Bengaluru, Chennai, Visakhapatnam, Kolhapur and Indore and international offices in USA, Canada, Germany, South Africa, UK, UAE and Singapore. We are also planning to expand in Philippines.
Employees and Operational Efficiency
As of 31st Dec 2024, we have 2,983 IT professionals, excluding BPO employees, with a workforce utilization of 81.12%. The BPO vertical, which earlier served a public sector client, has been phased out as of mid-2024.
R&D-Led Differentiation
R&D is at the heart of MOURI Tech’s innovation strategy. The firm has created over 2,600 proprietary digital assets, including AI agents, frameworks, process maps, accelerators, and analytics tools. These tools not only streamline project delivery but also support internal automation and provide a foundation for future monetization.
IPO Advisors
The IPO is being managed by a consortium of seasoned book-running lead managers:
- Nuvama Wealth Management
- ICICI Securities
- JM Financial
The registrar to the offer is MUFG Intime India Pvt. Ltd.
Final Words
Given this is MOURI Tech’s first foray into public markets, the DRHP notes the absence of any historical market performance of its equity shares. Investors are cautioned to examine all risk factors carefully, including volatility risks and limited historical trading data post-listing.
With India’s IT outsourcing market poised for faster growth and enterprise digital transformation demand rising globally, MOURI Tech IPO could attract interest from institutional and retail investors alike. However, softening margins and pending clarity on acquisition plans suggest that cautious optimism may be the prudent lens for prospective shareholders. For more details related to IPO GMP, and Live Subscription stay tuned to IPO Central.