Logiciel Solutions Limited Makes Subdued Debut with 20.00% Decline, Lists at ₹154.40 Against Weak Subscription

Logiciel Solutions Limited, a 100% export-oriented unit providing outsourced software development services delivering end-to-end custom technology solutions including cloud engineering, artificial intelligence and machine learning, UI/UX design, application development, infrastructure and cloud services, big data analytics, software testing, MVP development, and mobile app development serving startups and enterprises across home improvement, energy, marketing technology, real estate, and retail sector, made a subdued debut on BSE SME on December 5, 2025. After closing its IPO bidding between November 28 - December 2, 2025, the company commenced trading with a decline of 20.00% opening at ₹154.40 and touched ₹154.40 (down 20.00%).

Logiciel Solutions Limited Listing Details

Logiciel Solutions launched its IPO at ₹193 per share with minimum investment of 1,200 shares costing ₹2,31,600. The IPO received weak response with subscription of 2.04 times - individual investors at 3.43 times, QIB at 1.32 times, NII at 0.73 times.

First-Day Trading Performance

Listing Price: Logiciel Solutions opened at ₹154.40 representing decline of 20.00% from issue price of ₹193.00, touched high of ₹154.40 (down 20.00%) and low of ₹146.70 (down 24.00%), with VWAP at ₹148.78.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Performance: Revenue increased 24% and PAT rose 38% between FY24 and FY25, exceptional ROE of 32.80%, robust ROCE of 31.95%, RoNW of 32.80%, outstanding PAT margin of 26.19%, impressive EBITDA margin of 38.95% demonstrating operational efficiency.

Specialized Capabilities: Startup and growth venture expertise with AI-augmented software development capabilities, rapid team onboarding, operational cost efficiency providing competitive advantage, long-term client retention and value expansion demonstrating customer satisfaction.

Comprehensive Service Portfolio: End-to-end custom technology solutions including cloud engineering, artificial intelligence and machine learning, UI/UX design, application development, big data analytics, software testing, MVP development, and mobile app development serving diverse industry sectors.

Challenges:

Geopolitical Risks: Operating as 100% export-oriented unit creating vulnerability to US tariff policies and international trade tensions, analyst review highlighting U.S. tariff imbroglio looming large on future prospects creating significant business uncertainty.

Weak Market Reception: Severe listing decline of 20.00%, weak subscription of 2.04 times with bNII at 0.43 times.

Operational Concerns: Aggressive valuation with post-issue P/E of 20.27x, tiny paid-up capital post-IPO of ₹7.47 crore indicating longer gestation period for mainboard migration, significant promoter dilution from 82.78% to 59.00%, limited scale with 107 employees.

Utilisation of IPO Proceeds

Human Resources: ₹15.28 crore for investment in human resources through manpower hiring supporting business expansion and capacity enhancement to serve growing client base across international markets.
Infrastructure Investment: ₹1.86 crore for capital expenditure on upgrading physical infrastructure, ₹4.17 crore for capital expenditure towards upgrading IT infrastructure enhancing operational capabilities and service delivery efficiency.

Business Development: ₹2.50 crore for funding business development and marketing activities expanding client acquisition, ₹4.87 crore for general corporate purposes.

Financial Performance

Revenue: ₹21.20 crore for FY25, growth of 24% from ₹17.10 crore in FY24, reflecting expanding client base across startups and enterprises in home improvement, energy, marketing technology, real estate, and retail sectors.

Net Profit: ₹5.47 crore in FY25, growth of 38% from ₹3.97 crore in FY24, demonstrating operational leverage and improving profitability through better project margins, efficient resource utilization, and operational efficiency gains.

Financial Metrics: Exceptional ROE of 32.80%, robust ROCE of 31.95%, zero debt-to-equity, RoNW of 32.80%, outstanding PAT margin of 26.19%, impressive EBITDA margin of 38.95%, price-to-book of 4.70x, post-issue EPS of ₹9.52, P/E of 20.27x, negligible borrowings, net worth of ₹23.72 crore, and market capitalisation of ₹109.55 crore.