Unified Data-Tech listed at ₹285 price with a premium of 4.40%

Unified Data-Tech Solutions Limited is an expanding technology services company that is based in Mumbai. The company’s stock was listed for sale on the BSE SME platform from May 22 to May 26, 2025. The company supports advanced technology, offering solutions to integrate systems, enhance cybersecurity, and utilise data centre services.

The company offers services to clients in the banking, finance, and IT sectors. By operating in multiple cities and providing reliable service, the company ensures that clients meet their IT needs within their available budget options.

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Unified Data-Tech IPO Listing Details

The price per share for the IPO ranged from ₹260 to ₹273, and people were required to purchase at least 400 shares. Because these shares were worth only ₹1,09,200, retail investors had to invest that much to be part of them. Given the oversubscription, it was advised to bid exactly at the cutoff price.

Listing Price: Unified Data-Tech IPO share price is listed on the BSE SME platform on May 29, 2025, a ₹285 per share. The estimated market capitalisation at listing stood at ₹548.46 crore.

Investor Sentiment: A strong financial performance, no debt, good return rates, and profits of ₹31.68 crore by February 2025 have attracted investors to the company’s IPO.

First-Day Trading Performance Outlook

In the BSE SME, Unified Data-Tech is listed at an initial ₹285 per share, meeting market predictions of a steady to powerful debut. Because of the firm’s strong finances, lack of debt, and steady increase in IT services, investors were happy with the company. Nonetheless, a post-issue P/E of 15.87 gives some investors pause, as dependable profits will remain hard to earn for the company because technology keeps evolving.

Market Sentiment and Analysis

Unified Data-Tech was established in the year  2010 and offers a wide range of IT services, including system integration, cybersecurity, and data centre solutions. Its strong client base, zero-debt model, and partnerships with leading OEMs have supported steady growth across sectors.

Investor Response: Investors showed strong interest due to the company’s rising profits, impressive ROE of 48.81%, and consistent financial performance.

Financial Strength: Unified Data-Tech reported a net profit of ₹31.68 crore as of February 2025 and improved its earnings per share (EPS) from ₹12.51 to ₹17.20 post-IPO, reflecting strong growth in profitability and operational efficiency.

Growth Drivers and Challenges

Unified Data-Tech has shown strong financial growth and operational efficiency, making it attractive to investors. However, it also faces certain challenges that could impact its long-term sustainability and market positioning. Here are some key growth drivers and challenges to consider:

Growth Drivers:

• Zero Debt Company: Strong financial position with no borrowings enhances operational flexibility.
• High Return Ratios: ROE of 48.81% and ROCE of 52.55% indicate efficient capital utilisation.
• Robust Client Base: Serving 1,000+ clients across banking, finance, and IT ensures stable revenue.
• OEM Partnerships: Ties with top technology vendors boost credibility and service quality.
• Pan-India Presence: Offices in Mumbai, Pune, and Ahmedabad improve customer reach and support.
   

Challenges:

• Entirely Offer for Sale: No fresh capital raised for future growth or expansion plans.
• Sustainability of Margins: The recent profit spike may not be consistent in the long term.
• Highly Competitive Sector: Operates in a fragmented and price-sensitive IT services market.
• Valuation Concerns: Post-issue P/E of 15.87 may offer limited upside if growth slows down.

Utilisation of IPO Proceeds

Unified Data-Tech Solutions Limited’s IPO is entirely an Offer for Sale of 52.92 lakh shares, worth ₹144.47 crore. The company will not receive any funds from this issue. Here’s how the funds will be utilised:

• No Fresh Capital Raised: Since no new shares are issued, the company will not get any money for operations or growth.
• Proceeds to Promoters: The full amount will go to selling shareholders, including promoter Hiren Rajendra Mehta.
• Listing Benefits: Listing on the BSE SME platform will help improve the company’s visibility and make future fundraising easier.
   

Financial Performance of Unified Data-Tech

Unified Data-Tech Solutions Limited has demonstrated strong and consistent financial growth over the last few years, reflecting its operational efficiency and expanding business footprint in the IT services sector. Below are some key financial highlights:

• Strong Revenue Growth: Revenue grew from ₹112.81 crore in FY23 to ₹266.80 crore in FY24.
• Rising Profits: Net profit increased from ₹10.40 crore in FY23 to ₹31.68 crore (Feb 2025).
• Debt-Free Company: The company has zero borrowings, indicating strong financial health.
   

Unified Data-Tech Solutions achieved impressive financials and high returns and operates debt-free, positioning it well in IT. The Offer for Sale IPO was well-received because of the company’s steady progress. The business will be more visible and trusted after achieving this goal. In the future, continual success and a strong place in the market will determine how well the company does.