Upcoming IPO: Engineering services firm Neilsoft files DRHP documents with Sebi

Neilsoft Ltd, the Tokyo-based engineering services and solutions (ER&D) company backed by Fujita Corporation, has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise funds through an initial public offering (IPO). .

Neilsoft’s IPO is a mix of new issuance of shares up to ₹100 crore and an offer for sale (OFS) of up to 80 lakh shares by promoters and other selling shareholders.

In Neilsoft’s IPO, the OFS shareholding consists of shareholders holding up to 11,45,384 shares held by Rupa Shah jointly with Harishkumar Shah, 1,255,784 shares held by Netsophy Private Limited, 147,764 shares held by Nishit Shah jointly with Rupa Shah and up to 41,376 shares of Harishkumar, Shah together with Rupa Shah sell 2,440,884 shares of the Small Industries Development Bank of India, 1,854,808 shares from SICOM Limited and other selling shareholders, the company said in a press release.

Neilsoft Ltd proposes to use the issue proceeds to the extent of ₹69.63 crore to finance capital expenditure and general corporate purposes.

Around 75% of the shares in the Neilsoft IPO will be allocated to Qualified Institutional Buyers (QIB) and not less than 15% and 10% of the net offering will be allocated to Non-Institutional Investors (NII) and Private Retail Investors, respectively.

Equirus Capital and IIFL Capital Services are the underwriters of the Neilsoft IPO and Link Intime India is the IPO registrar. Neilsoft shares are proposed to be listed on the National Stock Exchange of India and BSE.

About Neilsoft Ltd

Neilsoft was founded in 1991 and began operations in fiscal year 1992. The company provides customized engineering services including AEC design solutions, industrial plant design, and manufacturing equipment and production line design.

The company also offers engineering process outsourcing (EPO) services and develops customized software applications to enable digital transformation.

The company’s operating revenue increased by 11.96% ₹291.03 crore in the financial year 2023 to ₹325.85 crore in FY2024. Profit after tax increased by 24.05% from ₹46.64 crore in the financial year 2023 to ₹57.85 crore in FY2024. For the three months ended June 30, 2024, revenue from operations was ₹88.24 crore and the profit after tax stood at ₹14.09 Crore.