At a Glance
Meta Infotech Ltd, a Mumbai-based cybersecurity solutions provider, is raising ₹80.18 Cr via an IPO – with 75% of it being Offer for Sale (OFS). Just ₹20 Cr is fresh capital. With 38% ROE, growing profits, and 260+ employees, the company looks decent on paper. But at 21x P/E, is this just “IT services in a cybersecurity hoodie”?
1. 🎯 Introduction with Hook
Everyone wants to be a “cybersecurity startup” now.
Even if 80% of your business is reselling OEM software, offering some training, and installing firewalls at PSU banks.
Meta Infotech says it’s India’s answer to Palo Alto Networks. But when you zoom in… it’s more like a secure Zoom installer with a good PowerPoint deck.
Let’s break down whether this SME IPO is secure or just an inflated packet sniffing exercise.
2. 💻 Business Model – WTF Do They Even Do?
Meta Infotech sells and supports cybersecurity solutions to corporates, banks, and IT firms.
They don’t build their own products. Instead:
- ✅ Authorized resellers of OEM software (firewall, SASE, email security, identity management etc.)
- 🛠️ Offer consulting + implementation + AMC
- 💻 24/7 managed security services (i.e., log monitoring, patching)
- 🧪 Set up interactive cybersecurity demo centers (read: showrooms)
Clients? Banks, insurers, IT firms, manufacturers.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
Revenue has grown sharply, and net profit’s up 38% in FY25.
| ₹ in Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 109.5 | 153.0 | 220.0 (+44%) |
| EBITDA | 9.20 | 15.69 | 22.24 |
| PAT | 6.54 | 10.51 | 14.50 |
| Net Worth | 19.5 | 30.0 | 44.5 |
| Debt | 7.60 | 0.77 | 17.35 |
Growth ✅, but margins? Hmm.
- PAT Margin: 6.63%
- EBITDA Margin: 10.17%
For a “tech” firm, those are service company margins.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
Let’s do some quick math.
- Post-issue EPS = ₹7.68
- Issue Price = ₹161
- P/E = 20.96x
- P/BV = 6.37x
For comparison, even Happiest Minds trades around 25x.
Meta Infotech doesn’t have proprietary IP, high recurring SaaS revenue, or global presence. So, 21x P/E is aggressive.
🎯 EduInvesting FV Range:
At 15–18x earnings = ₹115–₹135/share
So listing at ₹161 = premium hope or exit liquidity.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 💰 OFS of ₹60 Cr = 75% of issue is promoter/early exit
- 🧾 ₹16.7 Cr going to loan repayment – not growth
- 🏢 New office + experience center = ₹2.11 Cr
- 🧑💼 265 employees, primarily in support and integration
The “cyber” story here is solid, but it’s more Accenture than Akamai.
6. 💣 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹74.38 Cr |
| Borrowing | ₹17.35 Cr (up from ₹0.77 Cr in FY24) |
| Net Worth | ₹44.55 Cr |
The sudden spike in debt before IPO is… not ideal.
7. 💵 Cash Flow – Sab Number Game Hai
- Positive operating cash flow from high-margin service contracts
- However, working capital tied in OEM deals, AMC receivables
- IPO helps repay loans, not fuel massive tech infra
No burn. But no big innovation capex either.
8. 📐 Ratios – Sexy or Stressy?
| KPI | FY25 |
|---|---|
| ROE | 38.88% |
| ROCE | 37.81% |
| Debt/Equity | 0.39x |
| PAT Margin | 6.63% |
| EBITDA Margin | 10.17% |
| P/E | 21x |
High ROE is mostly due to thin equity base and earnings boost. Margins are solid but not “tech firm” level.
9. 💵 P&L Breakdown – Show Me the Money
Revenue Split (estimated):
- 60% – Product reselling (OEM-based software)
- 30% – Services: consulting, implementation
- 10% – AMC, managed security
Cost Drivers:
- OEM purchase costs
- Employee salaries (engineers, consultants)
- Tech infra and demo centers
- Rent, compliance, certification renewals
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | Revenue | PAT | Margin | P/E |
|---|---|---|---|---|
| Meta Infotech | ₹220 Cr | ₹14.5 Cr | 6.6% | 21x |
| SIS Ltd (BSE) | ₹10,000 Cr | ₹250 Cr | 2.5% | ~15x |
| Cyient DLM (larger) | ₹1,200 Cr | ₹55 Cr | 4.6% | ~32x |
Meta’s small size means it can’t compare with listed IT behemoths. But for SME space, it’s in the mid-range on P/E and near-top on ROE.
11. 🧩 Miscellaneous – Shareholding, Promoters
Promoter: Venu Gopal Peruri
- Pre-IPO Holding: 94.94%
- Post-IPO: 68.9%
Anchor Book: ₹22.58 Cr already locked with 14 lakh shares allotted.
Employee Quota: Discount of ₹10 (₹151/share)
12. 🧑⚖️ EduInvesting Verdict™
Let’s break this down:
✅ Positives:
- 44% YoY revenue growth
- ROE > 38%
- Zero shady promoter red flags
- Cybersecurity theme remains hot
❌ Red Flags:
- 75% OFS = heavy promoter cash-out
- Valuation is steep for a service-heavy model
- Thin margins for a “tech” firm
- Recent debt spike pre-IPO
If this were listed on mainboard? Pass.
But for SME IPO space? Could attract demand if listing pops continue.
Meta Infotech isn’t “meta” in the Web3 sense.
It’s just a decent SME tech integrator with high valuations and clean books.
Tread with eyes open.
Tags: Meta Infotech IPO, SME Cybersecurity IPO, Meta IPO Review, July 2025 IPOs, Hem Securities IPO, tech IPO India
✍️ Written by Prashant | 📅 July 7, 2025
