Praruh Technologies Makes Modest Debut with 0.32% Premium, Lists at ₹63.20 Against Weak Subscription

Praruh Technologies Limited, the ICT system integration firm and digital transformation solutions provider, made a tepid debut on BSE SME on October 1, 2025. After closing its IPO bidding between September 24-26, 2025, the company commenced trading flat at ₹63 and rose marginally to ₹63.20 with gains of just 0.32%, reflecting muted investor sentiment towards the IT system integration sector backed by weak subscription response.

Praruh Technologies Listing Details

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Praruh Technologies Limited launched its IPO at ₹63 per share with a minimum investment of 4,000 shares costing ₹2,52,000. The IPO received weak response with a subscription of just 1.21 times - individual investors at disappointing 0.93 times, QIB at modest 1.01 times, and NII at moderate 2.14 times, indicating poor investor confidence in the ICT system integration business with particularly weak retail participation.

First-Day Trading Performance Outlook

• Listing Price: Praruh Technologies share price opened at ₹63 representing no premium from the issue price of ₹63, and rose marginally to ₹63.20, delivering minimal gains of 0.32% for investors reflecting muted market sentiment towards IT integration sector.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive ICT Solutions Portfolio: End-to-end system integration services spanning hardware, applications, data centers, networking, security, and audio-video solutions with tailored IT strategies covering cloud, risk management, disaster recovery, and strategic planning.
• Diversified Service Offerings: Wide-ranging solutions including endpoint security, network security, LAN/WAN design, network auditing, video conferencing, load balancing, and data center deployments backed by advanced technologies and leading OEM partnerships.
• Strong Financial Metrics: Exceptional ROE of 46.08%, outstanding ROCE of 53.62%, healthy PAT margin of 10.96%, solid EBITDA margin of 16.92%, and established track record with diverse clientele demonstrating operational efficiency.

Challenges:

• Extremely Weak Market Reception: Poor listing with minimal 0.32% premium, dismal subscription of just 1.21 times, and disappointing retail participation at 0.93 times reflecting severe investor skepticism about business model and competitive positioning.
• Modest Growth Trajectory: Sluggish revenue growth of just 2% to ₹62.62 crore and PAT growth of only 4% to ₹6.79 crore in FY25 indicating limited business momentum in highly competitive and fragmented IT system integration segment.
• High Risk Profile: Post-issue P/E of 12.93x with lead manager's poor track record for past mandates, elevated debt-to-equity ratio of 0.94, and operating in fragmented segment with intense competition amplifying execution risks.

Utilisation of IPO Proceeds

• Debt Reduction: ₹6.33 crore for repayment of certain borrowings improving financial leverage, reducing interest burden, and strengthening balance sheet for sustainable business operations.
• Working Capital Requirements: ₹11.00 crore for funding working capital requirements supporting business expansion, operational scale-up, and day-to-day operations across ICT system integration services.
• Unidentified Acquisitions: ₹1.00 crore for potential acquisitions in India enabling inorganic growth opportunities and market expansion in competitive IT system integration landscape.
• General Corporate Purposes: Supporting business operations, strategic initiatives, and expansion activities for sustained growth in fragmented ICT system integration segment.

Financial Performance of Praruh Technologies

• Revenue: ₹62.62 crore for FY25, showing modest growth of just 2% from ₹61.66 crore in FY24, reflecting limited business momentum and intense competitive pressures in IT system integration industry.
• Net Profit: ₹6.79 crore in FY25, representing marginal growth of 4% from ₹6.50 crore in FY24, indicating minimal operational leverage and challenges in scaling profitability amid competition.
• Financial Metrics: Exceptional ROE of 46.08%, outstanding ROCE of 53.62%, elevated debt-to-equity ratio of 0.94, healthy PAT margin of 10.96%, solid EBITDA margin of 16.92%, and estimated market capitalisation of ₹88.04 crore.