Pune-based engineering solutions provider Neilsoft Ltd has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signalling its intent to raise INR 100 crore through a fresh issue. The move sets the stage for the company’s next phase of growth, targeting infrastructure upgrades, IT system enhancements, and expanded software capabilities.
Raising Capital for Growth
Neilsoft’s IPO plan includes a fresh issue of INR 100 crore along with an offer for sale (OFS) of up to 8 million shares by current promoters and shareholders. The proceeds are earmarked for several strategic objectives designed to bolster the company’s operational and technological infrastructure.
The planned investments include:
- Office Expansion: Civil construction and interior enhancements at its Viman Nagar location.
- Infrastructure Growth: Setting up additional workstations and upgrading facilities at its Hinjewadi office.
- Technology Upgrades: Investing in advanced IT systems—servers, cloud platforms, network switches, and printers.
- Software Enhancements: Procuring software licenses and subscriptions to support the company’s scaling needs.
Neilsoft’s Journey and Market Position
With over two decades of experience, Neilsoft has carved a niche in engineering services, catering to industries such as Architecture, Engineering, and Construction (AEC), Manufacturing, and Industrial Plants. The company specializes in integrating digitalization, automation, and sustainability practices into design and operational workflows. These capabilities have enabled Neilsoft to stand out as a partner of choice for businesses seeking efficiency and innovation.
Steady Financial Trajectory
Financially, Neilsoft has demonstrated consistent growth. In the financial year 2024, the company reported revenues of INR 325.85 crore, marking an uptick from INR 291 crore in the financial year 2023. Net profits also rose, climbing to INR 57.85 crore from INR 46.64 crore in the prior year. These figures reflect a stable and profitable business model, which likely strengthens investor confidence as Neilsoft moves toward its public debut.
Offer Structure
The IPO combines a fresh issuance with a secondary offer for sale, providing both fundraising opportunities and liquidity for existing stakeholders:
- Fresh Issue Size: INR 100 crore.
- Offer for Sale: Up to 8 million equity shares.
Who’s Managing the IPO?
Neilsoft has brought in Equirus Capital and IIFL Capital as the lead managers for the IPO. Their responsibilities include regulatory compliance, overseeing the issuance process, and ensuring a smooth path to listing. While Link InTime is appointed as the registrar of the issue.
Strategic Positioning for Future Growth
Neilsoft’s IPO isn’t just about raising funds—it’s about positioning the company for the long haul. India’s engineering research and development outsourcing market is projected to hit USD 189 billion by 2030, and Neilsoft is determined to grab its share of this expanding pie. By leveraging new technologies and strengthening its infrastructure, the company is laying the groundwork for sustained growth and a larger market presence.
Going public represents a pivotal step for Neilsoft as it scales operations and broadens its offerings. The company’s focus on innovation, backed by solid financials and strategic planning, suggests it is prepared to capitalize on emerging opportunities.
For investors, the IPO offers a chance to be part of Neilsoft’s journey as it navigates the evolving engineering services landscape. As the listing date approaches, all eyes will be on how Neilsoft translates its growth ambitions into reality.
In Summary
Neilsoft’s IPO marks a new chapter in its growth story. From infrastructure expansion to cutting-edge IT upgrades, the company’s strategic plans indicate readiness for the future. With seasoned managers guiding the process and promising financial performance, Neilsoft is positioning itself as a key player in India’s engineering and technology ecosystem. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
