Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on November 25, 2025
- The company is an 100% EOU for outsourcing software development and related solutions.
• It is operating in a highly competitive segment.
• The current US Tariff imbroglio looming large on its future prospects.
• The company reported growth in its top and bottom lines for reported periods.
• Based on its recent financial data, the issue appears aggressively priced.
• Only well-informed/risk seekers may park moderate funds for medium term.
ABOUT COMPANY:
Logiciel Solutions Ltd. (LSL) is an experienced outsourced software development firm, delivering end-to-end custom software solutions to enterprises and startups worldwide. Its expertise spans Cloud Engineering, AI/ML, UI/UX Design, and Application Development, leveraging cutting-edge technologies to build high-performing digital solutions.
The company has grown into an offshore software development partner, empowering startups and growing businesses to transform visionary ideas into scalable, secure, and high-performance digital platforms. With over a decade of consistent delivery excellence, it specializes in creating tailored, robust, and future-ready software solutions across web, mobile, and cloud-native technologies.
Its core operations are anchored at its central development center in Ludhiana, Punjab, which houses the majority of engineering and delivery teams. While a large portion of its workforce operates from primary development center, the company also maintain a strategically structured remote engineering workforce across India. This hybrid model allows it to leverage the best of office-based and remote work environments, ensuring strong team cohesion and quality control from its office-based teams, while also tapping into a versatile and geographically diverse talent pool through remote contributors.
At the forefront of its innovation journey is a focused and pragmatic embrace of Artificial Intelligence (AI). Recognizing AI’s transformative impact on software development, LSL is actively integrating AI tools across the lifecycle from code generation and automated testing to UI/UX enhancement and intelligent project management. While AI remains an evolving space, it is moving fast to harness its capabilities and deliver greater speed, efficiency, and insight for clients. Its long-term value as a technology partner is reflected in its enduring client relationships. Many of its clients have grown with it over multiple years, with LSL’s longest ongoing engagement now entering its 12th year – a testament to its reliability, impact, and alignment with client goals. As of October 31, 2025, it had 107 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its maiden book building route combo IPO of 2067600 equity shares of Rs. 10 each to mobilize Rs. 39.90 cr. at the upper cap. The issue opens for subscription on November 28, 2025, and will close on December 02, 2025. The IPO comprises of 1694400 fresh equity shares (worth Rs. 32.70 cr. at the upper cap), and an Offer for Sale (OFS) of 373200 equity shares (worth Rs. 7.20 cr. at the upper cap). The company has announced a price band of Rs. 183 – Rs. 193 per share. Post allotment, shares will be listed on BSE SME. The minimum application to be made is for 1200 shares and in multiples of 600 shares thereon, thereafter. The issue constitutes 27.69% of the post-IPO paid-up capital of the company. From the net proceeds, it will utilize Rs. 1.86 cr. for capex on upgrading physical infrastructure, Rs. 15.28 cr. for investment in Human Resources through manpower hiring, Rs. 4.17 cr. for capex on upgrading IT infrastructure, Rs. 2.50 cr. for funding business development and marketing activities, and the rest for general corporate purposes.
The IPO is solely lead managed by Fintellectual Corporate Advisors Pvt. Ltd., while Maashitla Securities Pvt. Ltd., is the registrar to the issue. Prabhat Financial Services Ltd. is the Market Maker.
Having issued the initial equity capital at par value, the company issued further equity shares in the price range of Rs. 55000 – Rs. 80000 between August 2024, and September 2024. It has also issued bonus shares in the ratio of 499 for 1 in January 2025. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 0.02 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 5.77 cr. will stand enhanced to Rs. 7.47 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 144.13 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 14.09 cr. / Rs. 1.34 cr. (FY23), Rs. 17.10 cr. / Rs. 3.97 cr. (FY24), Rs. 21.20 cr. / Rs. 5.47 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 3.55 cr. on a total income of Rs. 12.83 cr. Since the company (as an 100% EOU) is operating in a highly competitive segment and on going tariff imbroglio may impact its earnings.
For the reported period, the company has posted an average EPS of Rs. 8.10, and an average RoNW of 38.13%. The issue is priced at a P/BV of 4.09 based on its NAV of Rs. 47.25 per share as of September 30, 2025, and at a P/BV of 2.37 based on its post-IPO NAV of Rs. 81.45 per share (at the upper cap).
If we attribute annualized super earnings of FY26 on post-IPO paid-up capital, then the issue price is at a P/E of 20.27, and based on its FY25 earnings, the P/E stands at 26.33. Thus, the issue appears aggressively priced.
For the reported periods, the company has posted PAT margins of 9.65% (FY23), 23.46% (FY24), 26.19% (FY25), 27.95% (H1-FY26), and RoCE margins of 28.88%, 52.73%, 31.95%, 17.42% respectively for the referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Kody Techno, Systango Techno, Infobeans Techno, as its listed peers. They are currently trading at a P/E of 52.7, 16.0, and 21.0 (as of November 25, 2025). However, they are not truly comparable on an apple-to-apple basis. Such comparison appears to be an eyewash.
MERCHANT BANKER’S TRACK RECORD:
This is the 3rd mandate from Fintellectual Corporate in the last two fiscals. From the last 2 listings, all opened with premium ranging from 5.56% to 90% on the listing date.
Conclusion / Investment Strategy
LSL is an 100% EOU for outsourcing software development and related solutions. It is operating in a highly competitive segment. The current US Tariff imbroglio looming large on its future prospects. The company reported growth in its top and bottom lines for reported periods. Based on its recent financial data, the issue appears aggressively priced. Tiny paid-up capital post-IPO indicates longer gestation for migration. Only well-informed/risk seekers may park moderate funds for medium term, others may skip.
Review By Dilip Davda on November 25, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
