Takyon Networks
- Takyon Networks is coming out with an initial public offering (IPO) of 37,92,000 equity shares in a price band Rs 51-54 per equity share.
- The issue will open on July 30, 2025 and will close on August 1, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 5.10 times of its face value on the lower side and 5.40 times on the higher side.
- Book running lead manager to the issue is HEM Securities.
- Compliance Officer for the issue is Pooja Sharma.
Profile of the company
Takyon Networks is in the business of providing comprehensive networking and IT infrastructure solutions, serving a diverse range of clients, including government agencies and corporate enterprises. Its services include IT networking solutions, data center solutions, IT security and surveillance, cloud and managed services. It also offers maintenance and support services to its clients through formal contracts, providing expert technical support.
Its range of customized offerings and its ability to specifically tailor solutions to the specific needs of customers have enabled it to garner prominent customers across different industries. Its clients include major players in sectors like Telecom, IT & ITes, Energy, Public administration enterprise, Education, Railways, and Defense. It undertakes various activities related to IT infrastructure including infrastructure design and consulting services, turnkey systems integration of large network and data center infrastructures including supply of associated equipment and software; on-site and remote facilities management of multi-location infrastructure of domestic clients. Its key differentiators include an end-to-end services and solutions driven model with a strong focus on quality in every aspect of service and product delivery.
Its business operations are, currently, concentrated in India, and its revenues are predominately generated from India. It operates out of its headquarters and corporate office situated in Lucknow - Uttar Pradesh. Its infrastructure includes adequate office space, high grade desktops for development, support and testing, firewall, IPS and IDS Systems for safeguarding data and systems, redundant internet leased lines, uninterrupted power supply. Additionally, it also has a branch located in New Delhi.
Proceed is being used for:
- Meeting working capital requirements
- Repayment of a portion of certain borrowing availed by the company
- General corporate purpose
Industry Overview
The IT industry accounted for 7.5% of India’s GDP, as of FY23. India's IT industry is likely to hit the $350 billion mark by 2026 and contribute 10% towards the country’s GDP. The IT industry added 2.9 lakh new jobs taking the industry’s workforce tally to 5.4 million people in FY23. India's IT industry is likely to hit the $350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP). The Indian IT industry’s revenue touched $227 billion in FY22, a 15.5% YoY growth and was estimated to have touched $245 billion in FY23. Further, India is expected to have nine times more digitally skilled workers by 2025. This indicates that a total of 3.9 billion digital skill trainings is expected by 2025. India will need 30 million digitally skilled professionals by 2026.
Direct employment in the IT services and BPO/ITeS segment was estimated to reach 5.4 million in FY23 with an addition of 290,000 people. Exports from the Indian IT services industry stood at $199 billion in FY24. This push towards cloud services has boosted hyper-scale data centre investments, with global investments estimated to exceed $200 billion annually by 2025. India is expected to gain a significant share in the global market, with the country's investment expected to hit $5 billion annually by 2025. This push towards cloud services has boosted hyper-scale data centre investments, with global investments estimated to exceed $200 billion annually by 2025. India is expected to gain a significant share in the global market, with the country's investment expected to hit $5 billion annually by 2025.
As Indian IT- ITes sector transitions from low-cost service delivery to strategic, high-value, outcome-based services infused with AI/cloud capabilities, India is expected to remain the preeminent global IT sourcing powerhouse for years to come. Besides, the country’s IT dominance is built on a robust ecosystem featuring global IT majors, BPO champions, and captive global capability centres (GCCs) across metros and emerging tech cities. At present, the IT-ITeS industry not only showcases India’s technological capabilities but also represents its integration into the global digital economy. But, the future growth of the sector will hinge on its ability to adapt to emerging technologies, invest in talent development, and innovate service delivery models. Increased focus on product development and platform-based services will also be crucial for sustaining export competitiveness.
Pros and strengths
End to End IT services: The company provides end-to-end IT - services to its customers that support their software applications and businesses throughout the full business life-cycle. At each stage of the business life-cycle, it offers services designed to address the customers’ specific needs as businesses move from different stages of maturity. These offerings are suitable for companies of all sizes. Its services ranges from enterprise networking, network security, Audio-Visual (AV) & collaboration services, security & surveillance, data centers and cloud solutions, and managed services. The company’s end-to-end IT services and solutions enables it to grow its client relationships and scope of engagements, as well as instill its clients with confidence in its ability to address their diverse and dynamic business needs.
Diversified customer base: The company serves a diversified client base catering to various industries belonging to sectors including the Government Sector, Esteemed Universities and Institute of National Importance, Hospitality, Renowned names from the banking industry, etc. It has developed long-standing relationships with some of these customers, who have been with it for over years. Its existing client relationship helps it to get repeat business from its clients. Its relationship with the existing clients represents a competitive advantage in its business strategy and to the growth of its business.
Qualified and experienced management team: The company’s Promoters Manish Kumar Sharma, Chairman & Managing Director has more than 23 years of experience and Neeraj Kumar, Chief Executive Officer & Whole Time Director; has more than 26 years of experience, in the IT Infrastructure industry. Its Board of Directors is supported by a team of highly experienced and qualified personnel who guide the company in its pursuit of corporate excellence and technological innovation. Its management’s experience, talent, and vision help it to achieve its goal of delivering superior customer value and enable it to capitalize on both current and future market opportunities.
Risks and concerns
Dependent on few vendors/suppliers: The company is heavily reliant on few vendors/suppliers for purchase of inter alia IT equipment such as switches, routers, wireless devices, Wi-Fi devices, security devices in order to cater the needs of its customers and provide its tailored IT solutions across various Customer Industries. During the period ended in Fiscal 2025, Fiscal 2024 and Fiscal 2023, cost of purchase of inter alia IT products, spare parts and related accessories and cloud space, from its top 10 vendors/suppliers aggregated Rs 4470.92 lakh, Rs 4,325.66 lakh, and Rs 3,532.63 lakh, constituting 72.20%, 64.16% and 71.15% respectively. Any loss of such vendors / suppliers or any increase in the price will have a material adverse impact on its business and its revenue.
Significant proportion of it orders are from government related entities: The company’s business is substantially dependent on contracts undertaken by various government bodies, government entities, and government institutions of the government of India (Government customers) including, inter alia, various public sector undertakings and other entities funded by the Government. A vast majority of contract awarded by Government Customers are tender based. It competes with various companies while submitting the tender for these contracts. The company has bagged 61.25%, 59.36% and 65.11% of its orders from government related entities in FY25, FY24 and FY23 respectively. The company’s performance could be adversely affected if it is not able to successfully bid for these contracts or required to lower its bid value.
High working capital requirements: The company’s business requires significant amount of working capital and major portion of its working capital is utilized towards debtors and inventories. Its trade receivables for the period ended March 31, 2025, March 31, 2024 and March 31, 2023 were Rs 5,993.71 lakh, Rs 3,937.51 lakh and Rs 3,050.20 lakh its inventories for the period ended March 31, 2025, March 31, 2024 and March 31, 2023 were Rs 827.13 lakh, Rs 1,180.43 lakh and Rs 1,739.89 lakh respectively. A liquidity crunch may also result in increased working capital borrowings and, consequently, higher finance cost which will adversely impact its profitability.
Outlook
Takyon Networks is engaged in the business of IT solutions provider specializing in digital transformation services. The company offers a comprehensive range of services, including IT infrastructure, system integration, video conferencing, surveillance and security, network security, power conditioning, and customized software solutions. The company has diversified customer base coupled with strong order book. On the concern side, the company depends on few Customer Industries for majority of its revenue from operations. Loss of customers in these Customer industries may result in an adverse effect on its business, revenue from operations and financial conditions. The company is heavily reliant on a few vendors/ suppliers and it typically does not enter into long term contracts or arrangements with its vendors. Any loss of such vendors / suppliers or any increase in the price will have a material adverse impact on its business and its revenue.
The company is coming out with a maiden IPO of 37,92,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 51-54 per equity share. The aggregate size of the offer is around Rs 19.34 crore to Rs 20.48 crore based on lower and upper price band respectively. On performance front, during FY 2024-25, revenue from operations decreased to Rs 10,312.07 lakh as against Rs 10,750.09 lakh in FY 2023-24, representing a decrease of 4.07%. The decline was mainly attributable to reduced sales of IT infrastructure solutions and allied services. Restated profit after Tax for the financial year 2024-25 was Rs 695.75 lakh as compared to Restated profit after tax of Rs 522.31 lakh during the financial year 2023-24.
The company regularly tracks new technologies, industry segments, and market trends in the IT sector. It plans to expand its service offerings to include IoT and Artificial Intelligence. Currently, it is working on applying IoT to solar panels for climate and weather monitoring. It is also exploring opportunities in cybersecurity to establish Security Operations Centres for various departments. Its aim is to gain expertise in emerging technology platforms, providing value-added services, cost competitiveness, speed, and user-friendly solutions. The company is committed to leveraging innovative ideas and concepts to meet the performance parameters set by clients in their daily business processes.
