UDtech IPO Review: Mukul Agrawal’s Conviction Pick? Know Everything Here

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Unified Data-Tech Solutions (UDtech), a specialized IT system integrator, is making its debut on the BSE SME platform with a 100% Offer for Sale (OFS) of 52.92 lakh equity shares, accounting for 26.34% of the post-offer share capital. As Indian enterprises double down on digital transformation, UDtech IPO comes at a time when tech enablement has moved from luxury to necessity.

UDtech IPO review not only sheds light on its robust financials—but also for its impressive roster of pre-IPO investors and a clear business model that addresses mission-critical IT infrastructure needs.

UDtech IPO Review

Company Snapshot

MetricDetails
NameUnified Data-Tech Solutions Limited
Registered OfficeGoregaon East, Mumbai
IPO TypeOffer for Sale
Listing PlatformBSE SME
PromotersHiren R. Mehta, Rajendra K. Mehta, Harshaben Mehta
BRLMHem Securities
RegistrarKFin Technologies

UDtech IPO Review: Business Model

UDtech positions itself as a “comprehensive IT transformation partner” to mid and large-sized Indian enterprises. It caters to sectors such as BFSI, pharma, IT/ITES, and manufacturing, offering deep integration capabilities across five key pillars:

  1. Technology Advisory
    • Tailored architecture blueprints aligned with business outcomes
  2. System Integration
    • End-to-end multi-vendor orchestration and implementation
  3. Expert Technical Services
    • Legacy modernization, virtualization, and secured infrastructure
  4. Operational Management
    • SLA-driven 24×7 managed IT support
  5. Cloud & Cybersecurity Enablement
    • Includes partnerships with OEMs like IBM, Fortinet, Veritas, Dell, Sophos, among others

Key Highlights:

  • Holds 310+ OEM certifications
  • Serves large private sector banks, pharma leaders, and fintech unicorns
  • Operates a lean team of 38 employees, indicating high productivity per capita

Financial Performance

UDtech’s financial trajectory has been nothing short of stellar. Over three years, the company has consistently delivered high profitability, efficient capital usage, and expanding margins.

Restated Financials

MetricFY22FY23FY2411M FY25
Revenue93.30110.49260.38194.59
PAT9.7110.4025.1331.68
EBITDA (%)11.95%11.29%10.70%17.05%
PAT (%)10.41%9.41%9.65%16.28%
RONW (%)34.04%26.72%39.23%33.10%
RoCE (%)46.07%35.82%52.55%43.66%
Figures in INR Cr until specified

Takeaways:

  • FY24 revenue more than doubled YoY
  • Strong PAT margin of 9–16% over the years
  • High RoE & RoCE: Sustained value creation, reflecting management efficiency

UDTech IPO Structure

DetailValue
Offer TypeOffer for Sale (100%)
Total Shares52.92 lakh equity shares
Face ValueINR 10 per share
Net Offer50.24 lakh shares (Excl. Market Maker)
Market Maker Reservation2.67 lakh shares
Post-IPO Holding DilutionPromoter stake down from 86.5% to ~60%

No Fresh Issue:

  • Proceeds go entirely to selling promoter (Hiren Mehta)
  • No capital inflow for capex, working capital, or debt reduction

Top 5 Shareholders (Pre-IPO)

Shareholder% Stake
Hiren Rajendra Mehta (Promoter)86.53%
Mukul Mahavir Agrawal5.25%
India-Ahead Venture Fund2.10%
Kaushik Daga2.10%
Vikas Khemani (Ex-Edelweiss)1.05%

Prominent Investors on Board:

  • Mukul Agrawal: Well-known investor with a strong IPO record
  • Vikas Khemani: Reputed institutional investor and market veteran
  • India-Ahead Venture Fund: Active in SME/tech space

Their strategic entry signals high confidence in UDtech’s scalability and governance.

Peer Comparison

Company NameEPS P/ERoNW
(%)
Book Value
(INR)
Total Income
(INR Cr)
Unified Data-Tech Solutions12.5120.05*39.23%31.88266.80
Dynacons Systems & Solutions42.4124.0234.25%42.331,028.84
Orient Technologies11.827.8523.64%11.57606.86
Silver Touch Technologies12.6754.7314.52%12.48209.25
Annualized FY25 data by IPO Central

Verdict: UDtech outperforms on all profitability metrics.

Risks and Red Flags

  • Value Data Technologies, a group company, operates in a similar business, potentially leading to conflicts of interest and competition that may impact the company’s growth and profitability.
  • Common promoters between the company and its group entity may prioritize the latter’s interests, resulting in unfair business opportunity allocation and adversely affecting the company’s operations.
  • The company and one of its directors are involved in ongoing tax-related legal proceedings, which may harm its reputation and negatively affect its financial and operational standing if outcomes are unfavorable.
  • The company has significant outstanding receivables from customers; delays or defaults in payments could strain its cash flow and materially impact its financial performance.
  • A large amount of outstanding trade payables could lead to disputes or legal actions from creditors, disrupting supply chains and damaging the company’s business relationships and reputation.
  • The company has contingent liabilities through performance bank guarantees that, if invoked, may adversely affect its financial health and ability to meet future obligations.

Valuation Watch

The company’s calculated FY25 EPS is INR 13.62 and P/E 19.09–20.05 seems fairly valued given sectoral peers and growth.

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Investment Verdict

Unified Data-Tech Solutions brings a rare combination of:

  • Strong earnings
  • High RoE/RoCE
  • Operational expertise in high-growth segments
  • Confidence from marquee investors

Despite the OFS structure and SME listing limitations, the business fundamentals and sector outlook remain compelling.

UDtech IPO Rating: ★★★★☆ (4/5)

Ideal For: Tech-focused investors, SME IPO participants, long-term wealth builders

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