Quicktouch Technologies coming with an IPO to raise Rs 9.33 crore

Quicktouch Technologies

• Quicktouch Technologies is coming out with an initial public offering (IPO) of 15,30,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 61 per equity share.
• The issue will open for subscription on April 18, 2023 and will close on April 21, 2023.
  
• The shares will be listed on NSE Emerge Platform.
• The share is priced 6.10 times higher to its face value of Rs 10.
• Book running lead managers to the issue are Share India Capital Services and Khambatta Securities.
• Compliance Officer for the issue is Sonali Mathur.

Profile of the company

Quicktouch Technologies is an information technology, helps customers do business better by leveraging industry-wide experience, deep technology expertise, comprehensive portfolio of services and robust business model. The company is in the business of Software IT Solution and Consulting Services, IT Product / Software Development and Software Commercial Training, Web designing. Web designing services include: Website Designing/ Redesigning, iOS App/ Android/ Mobile App Development, Web Hosting Services. It has leveraged its domain expertise, processes and infrastructure to diversify its offering of services to cater to a variety of business sectors.

Its team has extensive experience working in the education sector, and it is committed to providing high-quality solutions that help its clients succeed. Its management team is comprised of savvy technocrats and industry experts, bringing years of experience to a young company. The company is engaged in the business of Enterprise Resource Planning (ERP) - A school management software and mobile apps that help simplify administration and organization.

Proceed is being used for:

• Meeting the working capital requirement of the Company.
• Acquisition of business in similar or complementary areas.
• General Corporate Purposes.
• Issue related expenses.

Industry overview

The Indian Information Technology/ Information Technology Enabled Services (IT/ITeS) industry is a global powerhouse and its impact on India has been incomparable. It has contributed immensely in positioning the country as a preferred investment destination amongst global investors and creating hug job opportunities in India, as well as in the USA, Europe and other parts of the world. In the last decade, the industry has grown many fold in revenue terms and relative share to India’s GDP is around 8% in FY2020-21(E). India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The country's cost competitiveness in providing IT services, which is around 3-4 times cheaper than the US, continues to be its Unique Selling Proposition (USP) in the global sourcing market. Indian IT-ITeS industry offers cost-effectiveness, great quality, high reliability, speedy deliveries and, above all, the use of state-of-the-art technologies globally.

The IT industry accounted for 8% of India's GDP in 2020. According to STPI (Software Technology Park of India), software exports by the IT companies connected to it, stood at Rs 1.20 lakh crore ($16.29 billion) in the first quarter of FY22. India's rankings improved four places to 46th position in the 2021 edition of the Global Innovation Index (GII). Indian software product industry is expected to reach $100 billion by 2025. According to National Association of Software and Service Companies (Nasscom), the Indian IT industry’s revenue is expected to touch $227 billion in FY22 from $196 billion in FY21.

India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Indian IT & business services industry is expected to grow to $19.93 billion by 2025.

Pros and strengths

Quality Policy: The company is constantly focused on building quality into the culture of the organization. It continuously assess and improve its operations, methods and dealings with people, both inside and outside the organization, while deploying effective tools and techniques of quality management. It has established, documented, implemented and is maintaining a Quality Management System and continually improving the effectiveness of its services. Its QMS scope covers provision of software solutions encompassing project management, consultancy, analysis, design, development, testing and validation, installation, maintenance, technical support and re-engineering services in the areas of systems and applications software as applicable to client-server computing, internet-based applications, object-oriented technology, multimedia and embedded systems.

Strengthen human capital: The employees and management team are its most valuable asset. Investing in human capital by training, and retaining its key people has been and will remain critical to its success. To achieve this, it intends to remain committed to provide its personnel with opportunities to expand its business within their areas of expertise. It will also continue to provide its personnel with personal and professional growth opportunities, including training and performance-based incentives.

End-to-end Software Solutions and Support: The company offers end-to-end technology services and solutions to its clients. Since Incorporation, it has continuously developed its offerings to include new-age technologies along with data science and artificial intelligence capabilities, query optimization and rapid iteration services. Its focus has been to become a technology partner to its clients by constantly updating its service offerings to meet the evolving needs of its clients.

Risks and concerns

Dependent upon a limited number of clients: The company is engaged in the business of software designing, development, customization, implementation, dealing in computer software & solutions. It is dependent upon the business relationships it has developed with certain of its clients, and its business, financial condition and continued results of operations would depend significantly upon its ability to retain such clients.

Maximum revenue come from software industry: The company is engaged in the business of software designing, development, customization, implementation, dealing in computer software & solutions and therefore, its revenues are highly dependent on its customers from the software industry and the loss of any of its customers from any industry which it caters to may adversely affect its sales and consequently on its business and results of operations. Further, in the event, there takes place a shift of practice of developing its products in-house in the software industries, it may have an adverse impact on the demand for its products. Similarly, in the event of any new breakthrough in the development of a novel product or raw material by its competitors or customers, its products may become obsolete or be substituted by such alternatives; thereby impacting its revenues and profitability adversely. It may also happen that its competitors are able to improve the efficiency of their developing process or their distribution or software sourcing process and thereby offer their similar or high quality products at lower price the company may be unable to adequately react to such developments which may affect its revenues and profitability.

Unable to grow its business in additional markets: The company seeks to grow its market reach domestically to explore untapped markets and segments; however, it cannot assures that it will be able to grow its business as planned. Infrastructure and logistical challenges in addition to the advancement of research and development in the IT industry, changing customers’ taste and preferences may prevent it from expanding presence or increasing the penetration of its products. Further, customers may be price conscious and it may be unable to compete effectively with the products of its competitors. If it is unable to grow its business in these new markets effectively, its business prospects, results of operations and financial condition may be adversely affected. It may face various risks, including legal and regulatory restrictions, increased advertising and brand building expenditure, challenges caused by distance, language and cultural differences, in addition to its limited experience with such markets. 

Outlook

Quicktouch Technologies is an information technology, helps customers do business better by leveraging industry-wide experience, deep technology expertise, comprehensive portfolio of services and robust business model. The company is in the business of Software IT Solution and Consulting Services, IT Product / Software Development and Software Commercial Training, Web designing. On the concern side, the company’s revenues are highly dependent on its customers from the software industry and the loss of any of its customers from any industry which it caters to may adversely affect its sales and consequently on its business and results of operations. It is dependent upon the business relationships it has developed with certain of its clients, and its business, financial condition and continued results of operations would depend significantly upon its ability to retain such clients.

The company is coming out with a IPO of 15,30,000 equity shares of Rs 10 each at a fixed price of Rs 61 per share to mobilize Rs 9.33 crore. On performance front, the company’s revenue from operations increased by 249.00% to Rs 2,545.16 lakh for the financial year 2021-22 from Rs 727.26 lakh for the financial year 2020-21. The increase was mainly due to expansion of its business & also added few new customers, in line with that, its revenue from sale of Software Support & Services has also increased by Rs 1,715.49 lakh and income from sale of Software Products also increased by Rs 102.40 lakh in financial year 2021-22.  Moreover, Net Profit has increased by 319.03% from profit of Rs 52.78 lakh of financial year ended March 31, 2021 to profit of Rs 221.15 lakh in the financial year ended March 31, 2022.

Going forward, the company is planning to expand its operations globally in the coming years and accordingly expanding its team as per the scope and exposures in the different regions. Expansion basically is depending on the reach of the company’s services/products to the customers located in different regions which according to the management can be done by marketing the services & products of the company digitally as well as with the help of competent and motivate sales team.