TechD Cybersecurity IPO: A New Era in Digital Defense Investments

TechD Cybersecurity IPO

To know more about TechD Cybersecurity company before investing its IPO

• The company was earlier known as TechDefence Labs Solutions, now renamed TechD Cybersecurity Limited.
• Founded in 2017, headquartered in Ahmedabad, Gujarat.
• It operates in the cybersecurity domain, offering a wide service portfolio: Managed Security Services (MSSP), vulnerability assessment & penetration testing (VAPT), compliance services, specialized cybersecurity services, and staff augmentation.
• The clientele includes big names (or reasonably well known companies) like Adani Group, Zensar Technologies, Astral, and some international clients.

TechD Cybersecurity Limited IPO Basics

Parameter	Details
IPO Type	SME IPO; fully fresh issue (no Offer For Sale)
Size	Approximately ₹38.99 crore
Shares Offered	20,20,200 equity shares of face value ₹10 each.
Price Band	₹183 to ₹193 per share
Lot Size	600 shares per lot; minimum investment (2 lots for retail) is high (≈ ₹1,15,800 at upper end).
Subscription Period	Bidding opens on 15 September 2025, closes on 17 September 2025.
Allotment & Listing	Allotment date: 18 September. Shares credited: 19 September. Listing on NSE–SME (“NSE Emerge”) likely on 22 September 2025.

Use of Proceeds

How the company plans to use the money raised:

• Human Resources: ~₹26.09 crore (≈ 67%) is earmarked for building out the team.
• GSOC (Global Security Operations Centre) in Ahmedabad: ~₹5.89 crore (≈ 15%) to invest in infrastructure.
• General Corporate Purposes: ~₹7.01 crore (≈ 18%) for general needs.

Financials & Growth

The financials show strong growth over recent years:

Fiscal Year Ending March	Revenue from Operations (₹ Crore)	Profit After Tax (₹ Crore)	EBITDA (₹ Crore)	Other Notes
FY 2022-23	~7.59	~0.94	~1.36	Starting smaller base.
FY 2023-24	~15.36	~3.24	~4.91	Almost 2× growth in revenue; profit also picking up.
FY 2024-25	~30.23	~8.40	~12.24	Very healthy growth; shows the business is scaling.

The net worth and reserves & surplus have also increased significantly over these years.

The TechD Cybersecurity appears profitable (PAT positive) in FY25.

Market Response & Sentiment

• As of the second day of bidding, the IPO was very strongly subscribed: ~88.9 times overall.
  • Retail portion: ~39.66×
  • Non-institutional investors: ~32.61×
  • QIB portion much less subscribed (0.43×) as of that time.
• Grey Market Premium (GMP) is showing strong positive interest: on the order of ₹158 over issue price, implying market expects a significant listing gain.
• Brokerage / analyst views seem broadly positive. There’s buzz around domestic cybersecurity demand, certifications, and the backing of known names (e.g., Vijay Kedia).

Strengths / Positives

1. Strong growth track record – Revenue and profits have been rising significantly. The scaling ability is demonstrated.
2. Full fresh issue – No promoter share sales, so the dilution is clear but company raising capital for its own expansion.
3. Growing cybersecurity demand – Both in India and globally, the need for security services, compliance, VAPT, etc. is increasing. TechD is well placed in this sector.
4. Certifications – The company is CERT-In empanelled and ISO 27001 certified. That gives credibility.
5. Well-known investor backing – Vijay Kedia holds ~7%; that sometimes helps in terms of market confidence.

Risks / Things to Watch Out For

1. High minimum investment for retail – To apply you need to commit ~ ₹1,15,800 (600 shares × upper price band) which is a big ticket for many retail investors. It may limit the retail pool.
2. QIB subscription weak so far – Institutions seem cautious; low subscription in that category could signal concerns about the valuation or comparables.
3. Competition – Cybersecurity is a hot space; there are many players, both local and global. Maintaining margin and differentiation will be key.
4. Dependency on talent – As with most service-oriented cybersecurity firms, growth depends heavily on skilled personnel. Retaining and acquiring talent may be costly and challenging.
5. Regulatory / legal risks – Laws around data protection, privacy, security are evolving. There could be compliance costs, regulatory challenges.
6. Promoter concentration – Pre-IPO promoters (Sunny Piyushkumar Vaghela & partner) have a very large stake; post-IPO they’ll still hold majority or significant control. That’s normal in smaller SMEs, but it may concern some investors.

Decision / Verdict

Putting it all together, TechD Cybersecurity IPO looks like a promising play for investors who:

• believe in the growth of cybersecurity in India and globally;
• are okay with SME IPOs (which tend to carry more volatility and risk than large cap offerings);
• can commit the required amount and are not looking for “safe” or very conservative investments;
• are thinking of medium to long-term gains rather than short-term quick flips (though the grey market suggests a listing gain is likely).

Disclaimer: This views and above recommendation made above are only for informational purpose. We advise investors to check with certified experts of share markets before making any decision. We are not responsible for any loss or profit.