Methodhub Software Limited Makes Weak Debut with 20.00% Decline, Lists at ₹155.20 Against Strong Subscription

Methodhub Software Limited, incorporated in 2016 as information technology services provider offering next-generation business solutions for digital transformation serving banking, financial services, insurance, oil and gas, energy, healthcare, life sciences, telecom, tech infrastructure, automotive, transport, and IT consulting sectors providing cloud services, data and AI services, cybersecurity, ERP and CRM integration, IT infrastructure, and recruitment delivery services, made a weak debut on BSE SME on December 12, 2025. After closing its IPO bidding between December 5-9, 2025, the company commenced trading with a decline of 20.00% opening at ₹155.20 and touched ₹162.90 (down 16.03%).

Methodhub Software Limited Listing Details

Methodhub Software launched its IPO at ₹194 per share with minimum investment of 1,200 shares costing ₹2,32,800. The IPO received strong response with subscription of 28.91 times - individual investors at 21.54 times, QIB at 27.55 times, NII at 47.97 times.

First-Day Trading Performance

Listing Price: Methodhub Software opened at ₹155.20 representing decline of 20.00% from issue price of ₹194.00, touched high of ₹162.90 (down 16.03% hitting upper circuit) and low of ₹147.45 (down 24.00% hitting lower circuit), with VWAP at ₹155.41, reflecting severe negative market reception despite strong subscription of 28.91 times and exceptional revenue growth of 136%.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Growth Trajectory: Revenue surged 136% from ₹57.59 crore in FY24 to ₹136.01 crore in FY25, PAT increased 113% from ₹5.41 crore to ₹11.50 crore, exceptional ROE of 42.57%, robust ROCE of 25.71%, RoNW of 26.92%.

Diversified Service Portfolio: Comprehensive IT and consulting services including data and AI services, cloud services, cybersecurity, ERP and CRM integration, IT infrastructure, and recruitment delivery services, catering to six industrial verticals including BFSI, oil and gas, healthcare, telecom, automotive, and IT consulting.

Market Positioning: Long-term relationships with renowned clients around world, experienced leadership and skilled workforce of 294 employees and consultants, scalable business model serving 29 customers globally.

Challenges:

Severe Listing Discount: Opening decline of 20.00% representing significant investor loss despite strong subscription of 28.91 times, stock hit both upper and lower circuits during trading.

Operational Concerns: Debt-to-equity of 0.75, total borrowings of ₹32.16 crore, ₹13.60 crore of IPO proceeds allocated to debt repayment.

Utilisation of IPO Proceeds

Working Capital and Expansion: ₹25.00 crore for augmentation of long-term working capital requirements, ₹4.00 crore for investment in wholly owned subsidiary MethodHub Consulting Inc. USA for working capital augmentation.

Debt Repayment: ₹13.60 crore for repayment and prepayment of outstanding loans including foreclosure charges strengthening balance sheet and reducing financial leverage.

Strategic Growth: ₹30.59 crore for unidentified inorganic acquisitions and general corporate purposes supporting business expansion through mergers, acquisitions, and strategic initiatives.

Financial Performance

Revenue: ₹136.01 crore for FY25, exceptional growth of 136% from ₹57.59 crore in FY24, reflecting rapid expansion in IT services delivery across cloud, data and AI, cybersecurity, ERP and CRM, infrastructure, and recruitment services globally.

Net Profit: ₹11.50 crore in FY25, strong growth of 113% from ₹5.41 crore in FY24, demonstrating operational leverage and improving profitability through better project margins, utilization rates, and operational efficiency gains.

Financial Metrics: Exceptional ROE of 42.57%, robust ROCE of 25.71%, debt-to-equity of 0.75, RoNW of 26.92%, PAT margin of 8.46%, EBITDA margin of 12.61%, price-to-book of 5.37x, post-issue EPS of ₹10.98, P/E of 17.67x, net worth of ₹42.72 crore, total borrowings of ₹32.16 crore, and market capitalisation of ₹307.12 crore representing significant discount from pre-listing expectations.