Praruh Technologies
- Praruh Technologies is coming out with an initial public offering (IPO) of 37,30,000 equity shares in a price band of Rs 60-63 per equity share.
- The issue will open on September 24, 2025 and will close on September 26, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 6.00 times of its face value on the lower side and 6.30 times on the higher side.
- Book running lead manager to the issue is Corporate Makers Capital.
- Compliance Officer for the issue is Geeta Kumari.
Profile of the company
Praruh Technologies was founded with the goal of assisting businesses in growing by addressing their unique IT and data needs through end-to-end system Integration solutions and exceptional service experience. The company provides turnkey solutions and best practices in Information and Communication Technology (ICT) systems and infrastructure to a wide range of industries and organizations. It is an ICT system integration firm dedicated to transforming businesses and driving growth through comprehensive technology solutions. The company specializes in a broad spectrum of services, including Hardware, Applications, Data Centre, Networking, Storage, Security, Audio-Video Integration and Collaboration Solutions. By offering turnkey solutions and leveraging best practices in ICT systems and infrastructure, Praruh addresses the diverse needs of various industries and organizations, ensuring that each solution is both effective and aligned with the client's business strategy.
What sets the company apart is its consulting-led approach, which combines deep technical expertise with a focus on exceptional service delivery. The company's extensive investment in developing technical capabilities, support infrastructure, and engineering services allows it to manage complex IT projects with precision. This commitment is particularly evident in its data center consolidation projects and similar initiatives, where the company’s expertise proves invaluable.
Service quality is a cornerstone of the company’s philosophy. The company boasts a highly certified and trained team of consulting sales and services professionals who provide 24/7 support, ensuring that any IT challenge is met with prompt and effective solutions. This dedication to service excellence has earned the company a strong reputation across both the private and public sectors, where its turnkey solutions have consistently delivered maximum value and satisfaction.
Proceed is being used for:
- Repayment of certain borrowings
- Unidentified acquisitions in India
- Funding of working capital requirement of the company
- General corporate purposes
Industry Overview
Information Technology and Information Technology Services (IT/ITES) industry plays a key role by contributing in positioning the country as a preferred investment destination for global investors. Information Technology Services helps organisations in the creation, management, and optimization of access to information and business processes. IT/ITES provide technical expertise to standardize and streamline business processes and enable organisations to enhance and easily access information. The industry also creates large scale employment and generates significant export revenues. Emerging technologies and rise in demand for collaborative applications, application platforms, security software, system & service management software, and content workflow & management applications now offers an entire gamut of opportunities for top IT firms through cost effectiveness, speedy deliveries, high reliability, great quality. Increasing digitisation and rise in demand for emerging technologies like 5G, Advanced Data Analytics, Artificial Intelligence (AI), Cloud Computing, Cyber-Security, Robotics and Blockchain provide growth opportunities for IT/ITEs firms.
The Indian IT industry is major contributor to India’s economy and accounts for about 8% of the country’s GDP, along with being the largest contributor in total services exports. Indian tech industry revenue is estimated to be at $253.9 billion in FY24, according to NASSCOM with an incremental revenue of $9.3 billion over FY23. The IT industry has seen a rising demand with emerging technologies like collaboration applications, application platforms, security software, system & service management software, and content workflow & management applications now offers an entire gamut of opportunities for top IT firms in India through cost-effectiveness, speedy deliveries, high reliability, and great quality.
Within the IT-BPM sector, IT services constitutes the majority share (51%). Its share has been consistent over the last many years. IT-BPM revenues registered YoY growth of 8.4% during FY23 compared to 15.5% growth in FY22, with all sub-sectors showing significant revenue growth, however the y-o-y growth is expected to decline to 3.8% in FY24. Within the IT-BPM sector, IT services constitute the majority share. Exports (excluding hardware) is expected to witness a growth of 3.3% in FY24 compared to 9.6% growth in FY23, owing to the increased reliance of businesses on technology, the roll-out of cost-reducing deals and the use of core operations. Growth in exports was seen across all the major markets, with the USA, Europe (excl. UK), and the UK continues to be the major markets. Many firms are now focusing on new markets, more prominently the Middle East and Latin America leading to market diversification which will increase the IT-BPM sector’s resilience in the coming years.
Pros and strengths
Established track record: The company has been engaged in the IT consultancy, system integration, networking solutions, IT training and other similar services since 2019 and has an established track record in successfully delivering of the IT projects viz. successfully implemented and delivered the Training institute and Video management and surveillance for Delhi Metro Rail Corporation, Network Augmentation for Airport Authority of India and other similar projects for various public sector and private entities.
Quality assurance and quality control of its services products: Quality Assurance and Quality Control are integral part of its operations. Quality is an ongoing process of building and sustaining relationship. Its IT engineers inspect the entire process ensuring quality of its services is maintained. The company has experienced and qualified staff to carry out quality check, commissioning and inspections at all the stages of its services delivery process. Keeping in view of the expectations of its customers for the quality of its services, it takes special care from procuring finished goods and its implementation for successful and satisfactory delivery of the customers.
Tailored IT solutions: The company’s ability to craft customized IT solutions that align with the strategic objectives and operational intricacies of its clients is a key differentiator. The company designs solutions that enhance efficiency, scalability, and drive measurable business outcomes, ensuring long-term success and growth for its clients.
Risks and concerns
Maximum revenue comes from few customers: For the financial year ended March 31, 2025, the company’s top five customers accounted for around 95.97% of its revenue from operations. The loss of any significant client would have a material effect on its financial results. It cannot assure that it can maintain the historical levels of business from these clients or that it will be able to replace these clients in case it loses any of them. Furthermore, major events affecting its clients, such as changes in government policies (in case of railways) and bankruptcy, change of management, mergers and acquisitions in other cases could impact its business.
Depend on third parties for the supply of finished goods or products: It does not have firm commitments for supply of finished goods and relies on regular purchase orders and delivery schedules for the procurement of all materials. It procures raw materials by way of general purchase orders wherein the pricing, scheduling and delivery details are set out. It depends on third-party suppliers for all its materials and has no binding or general agreements with them and they could give defective and/or delayed supplies due to which the company could face losses or loss of reputation in the market for defective or delayed supplies. Further, a failure to maintain a continuous supply of materials may result in its inability to supply products to its customers on a timely basis which could have a material and adverse effect on its business, results of operations and overall financial condition.
Face strong competition from onshore and offshore IT services companies: The market for IT services that it operates, is highly competitive, and it expects competition to persist and intensify. The principal competitive factors in its markets are reputation and track record, industry expertise, breadth and depth of software products offerings, quality of the software products offered, language, marketing and selling skills, scalability of infrastructure, ability to address customers’ timing requirements and price. It faces competition from offshore IT services providers in emerging outsourcing destinations with low wage costs or with a more favourable time zone for US customers as well as competition from large, global consulting and outsourcing firms and in-house IT departments of large corporations. The company’s inability to compete successfully against competitors, pricing pressures or loss of market share could materially adversely affect its business, financial condition and results of operations.
Outlook
Praruh Technologies is an ICT System Integration firm and digital transformation solutions provider. The company provides hardware, applications, data centers, networking, security, and audio-video solutions. It offers turnkey ICT solutions, ensuring effective, industry-specific services aligned with client's business strategies. The company has diverse clientele with established track record. On the concern side, substantial portion of the company’s revenue has been dependent upon its few customers. The loss of any one or more of its major clients would have a material effect on its business operations and profitability. Moreover, changes in technology may render its current technologies obsolete or require it to make substantial capital investments.
The company is coming out with a maiden IPO of 37,30,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 60-63 per equity share. The aggregate size of the offer is around Rs 22.38 crore to Rs 23.50 crore based on lower and upper price band respectively. On performance front, total revenue from operations increased from Rs 6,143.82 lakh in year ended March 31, 2024 to Rs 6,188.60 lakh in year ended March 31, 2025 with a resultant increase of 0.73% in year ended March 31, 2025 mainly due to increase in sale of services, goods and export of services. Moreover, net profit after tax increased from Rs 217.56 lakh in year ended March 31, 2023 to Rs 649.72 lakh in year ended March 31, 2024 with a resultant increase of 198.64% in year ended March 31, 2024.
Developing and maintaining cordial relationships with its suppliers, customers, and employees is a fundamental pillar of the company's success and growth. Strong, mutually beneficial partnerships are essential for sustaining its business and driving continuous development. With suppliers, the company focuses on building long-term, transparent relationships that ensure a steady supply of materials, which is crucial for its manufacturing processes. These strategic partnerships also allow it to negotiate better terms, enhancing cost efficiency across its supply chain. Similarly, its customer relationships are built on trust and a commitment to delivering products, which has led to repeat business and customer loyalty. Additionally, it places great value on its employees, fostering a positive and inclusive work environment that encourages their growth, engagement, and contribution to the company’s success. By integrating these relationships into the company’s business strategy, it enhances operational efficiency, reduce costs, and sustainable growth and long-term success.
