Icodex Publishing Solutions
- Icodex Publishing Solutions is coming out with an initial public offering (IPO) of 41,20,800 equity shares in a price band Rs 98-102 per equity share.
- The issue will open on August 11, 2025 and will close on August 13, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 9.80 times of its face value on the lower side and 10.02 times on the higher side.
- Book running lead manager to the issue is Indcap Advisors.
- Compliance Officer for the issue is Mohini Ajay Talhar.
Profile of the company
Icodex Publishing Solutions was incorporated in 2018 with a focus to provide software products to the scholarly and academic publishing industry. Since inception, the company is engaged in the business of Software Product Development for Scholarly Publishing. The company’s Software products help in publication of research papers, studies and academic articles; that help researchers, academicians, and scholars in their field of work. It specializes in a developing and providing publishing products and software, which support the publishing process, i.e., from manuscript preparation till print and digital content distribution.
The company also provides Business Process Management services that support the publishing process with activities like Quality assurance checks, editorial services and back-end support to its Global Publishing Client. The company also provides IT support services which includes installation of all kinds of hardware and peripherals and back-end support.
The company operates as a software service provider for a Global Publishing Company (Client) headquartered in the United States (US) that provides content and services for research, education and professional development. The Client publishes books, journals, reference works and other materials in print and online in scientific, technical, medical and scholarly fields. Its software service includes providing various software to the authors, publishers and peer reviewers in the publishing ecosystem using which all the three stakeholders can ease their individual level of work in the publication of ultimate articles and/or research papers vide reduction in time and ease of use.
Proceed is being used for:
- Capital expenditure for a) Purchase of new office premises; and b) Purchase of hardware for new office
- Working capital requirements of the company
- General corporate purposes
Industry Overview
The publishing market size is forecast to increase by $19.37 billion at a CAGR of 1.2% between 2023 and 2028. The market is experiencing significant shifts, driven by several key trends. The increasing demand for diversity in content reflects a growing recognition of the importance of representation and inclusivity. The India publishing market is a rapidly growing and lucrative industry. It is estimated to grow at a CAGR of 10.3% during the forecast period 2020-2026. The Indian publishing sector has been in existence for centuries, and continues to be an important part of the cultural landscape today. Traditional publishing houses in India have seen significant growth over recent years due to the increased demand for books in regional languages as well as a rise in digital content consumption across various platforms such as e-books, videos, audio books etc., which are made available online through major Indian publishers like Amazon Kindle, Flipkart Books, among others.
The last few decades have witnessed an unprecedented use of technology and the recent advent of artificial intelligence tools marks a paradigm shift in the Printing Revolution pioneered by Gutenberg almost 500 years ago. It has radically transformed the traditional methods of printing, publishing and distribution of work and has given new dimensions to the knowledge and creative economy. Hence, the book publishing and reading landscape has significantly transformed the way it read, write, publish and distribute its publications. The digital landscape while on one hand opens up new avenues for distributors and authors to directly interact with the readers, it presents an ambivalent situation for the publication houses leaving them with no alternatives but to adapt and evolve with the digital era.
The Digital transformation for sure has revolutionized the traditional method of business and is encouraging the companies to try the untested waters. The huge paradigm shift that it is witnessing has led to numerous experiments and explorations in the eBook market. With unprecedented penetration of the internet and accessibility of smart phones, the dynamics of publishing and reading has completely changed and now with the advent of artificial technology it is witnessing new platforms for online reading every day. The Launch of Kindle by Amazon, Nook by Barnes & Noble and Sony eReader goes on to substantiate this. The traditional role of publishers in processing and distributing the content has also been modified in the current era where they are now entrusted with the task of managing and distributing the content on digital platforms as well. Additionally, it opens up new avenues for them to generate income by adopting strategies such as putting a single chapter for sale or incorporating advertisements between chapters.
Pros and strengths
Domain expertise: The company has a thorough understanding of the publishing industry ecosystem and its products are designed in a manner that addresses the concerns of the stakeholders. Its employees are from technical backgrounds who design its products with a deep understanding of researchers’ needs, ensuring tools that effectively support their publishing journey. It has analysed feedback from various authors, enabling it to tailor solutions that directly enhances the user experience.
End to end publishing solution provider in the publishing ecosystem: Its End-to-End Publishing Workflow Solutions are a significant strength, ensuring a seamless, efficient, and integrated publishing experience. By providing a comprehensive suite of services that span the entire publishing lifecycle - from manuscript submission to final publication - it enables publishers to manage their workflow effortlessly. One of its key offerings in this space is its HTML-based publishing platform, which simplifies the production process while ensuring high-quality outputs for both print and digital formats. This platform supports seamless integration with various stages of publishing, such as content creation, editing, peer review, layout, and distribution.
Technology focussed business model: The company prioritizes superior quality by employing the latest technology and a fast-track development approach. Its use of agile methodologies and cutting-edge technology ensures efficient execution and adaptability. This dedication has led to its products being rated well by researchers during the last three years in author satisfaction surveys.
Risks and concerns
Maximum revenue comes from limited customers: The company is dependent on few customers who have contributed to a substantial portion of its total revenue from operations. Till March 31, 2024, the business of the company was entirely dependent on a single Client, however, in order to mitigate this risk of revenue concentration, it has from FY 2024-25 started making domestic sales to few more clients. There is no guarantee that it will retain the business from its existing key customers or maintain the current level of business with each of these customers. Reliance on a limited number of customers may involve several risks. These risks may include, but are not limited to, reduction, delay or cancellation of orders from its key customers or failure to negotiate favourable terms. Loss of any of these customers will have a material adverse effect on its business, financial condition, results of operations and future prospects.
Substantial portion of revenues is dependent on a Global Publishing Company based in USA: The company has historically derived a significant portion of its revenues from a Global Publishing Company based out of USA. Revenue from operations from this USA based client amounted to Rs 912.21 lakh, Rs 1040.07 lakh, Rs 953.67 lakh for the financial years ended March 31, 2025, March 31, 2024 & March 31, 2023 respectively, and represented 41.70%, 100.00%, & 100.00% of its revenue from operations, in such years, respectively. Consequently, in the event of any economic slowdown and/or any other factor affecting the economy of USA may have an adverse impact on its business. The company is highly dependent on provision of service to Global Publishing Company based out of United States of America. In case of any change in the Government regulations and policies vis-a-vis supply of services to USA its resultant service will be hampered which may have a material adverse effect on its business, profitability and results of operations.
High working capital requirement: The company’s business demands working capital requirements. In case there are insufficient cash flows to meet its working capital requirement or it is unable to arrange the same from other sources or there are delays in disbursement of arranged funds, or it is unable to procure funds on favorable terms, it may result into its inability to finance its working capital needs on a timely basis which may have an adverse effect on its operations, profitability and growth prospects. It intends to continue growing by expanding its business operations. This may result in increase in the quantum of its current assets. Its inability to maintain sufficient cash flow, credit facility and other sources of fund, in a timely manner, or at all, to meet the requirement of working capital could adversely affect its financial condition and result of its operations.
Outlook
Icodex Publishing Solutions is engaged in the business of Software Product Development for Scholarly Publishing. The company develops software products that assist in publishing research papers and academic articles, supporting the entire process from manuscript preparation to print and digital content distribution. The company has end-to-end publishing solution provider in the publishing ecosystem. It has technology Focused business model. On the concern side, the company is highly dependent on few customers for its business and revenues. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations of the company. Substantial portion of its revenues is dependent on a Global Publishing Company based out of United States of America (USA). Any economic slowdown and/or any other factor affecting the economy of USA may have an adverse impact on its business.
The company is coming out with a maiden IPO of 41,20,800 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 98-102 per equity share. The aggregate size of the offer is around Rs 40.38 crore to Rs 42.03 crore based on lower and upper price band respectively. On performance front, the company has reported 110.35% rise its revenue from operations at Rs 2,187.74 lakh in FY25 as compared to Rs 1,040.07 lakh in FY24. Moreover, the company has reported 103.68% rise in its net profit at Rs 895.62 lakh in FY25 as compared to Rs 439.70 lakh in FY24.
The company aims to bridge the infrastructure gap in Indian Research Publishing. India, despite its global reputation as a hub for services, has long struggled to establish itself as a leader in scholarly publishing. Unlike international institutions, Indian universities, research societies, and academic institutions lack the necessary infrastructure and advanced technology to create and sustain globally reputed journals. As a result, Indian researchers, including students, PhD scholars, and professional researchers, often find themselves aspiring to publish their work with international publishers, perceiving it as a mark of prestige. This reliance on external platforms underscores a critical gap: Indian institutions are not equipped to support their researchers effectively, limiting their ability to build and manage globally recognized journals. The company aims to transform this narrative by providing Indian institutions with cutting-edge technology that empowers them to become self-reliant in research and publishing. Its flagship solutions - iCAPP and PaperPerfect - are designed to address the core challenges faced by Indian researchers and institutions, enabling them to compete on a global stage.
