Workmates Core2Cloud Solution IPO Makes Exceptional Debut with 80.51% Premium, Lists at ₹368.25

Workmates Core2Cloud Solution Limited, a Kolkata-based AWS Premier Consulting Partner founded in 2018 known for scalable and innovative cloud solutions completing over 350 projects for more than 200 clients across finance, healthcare, retail, e-commerce, and media industries, specialising in cloud migration, managed services, DevOps, automation, cybersecurity, analytics, application development, SAP infrastructure support, and emerging technologies. The company commenced trading with massive premium of 90.00% opening at ₹387.60 and settled at ₹368.25 with outstanding gains of 80.51%, reflecting extraordinarily positive investor sentiment.

Workmates Core2Cloud Solution Limited Listing Details

Workmates Core2Cloud IPO launched at ₹204 per share with minimum investment of 1,200 shares costing ₹2,44,800. The IPO received exceptional response with subscription of 141.38 times - retail at outstanding 111.64 times, QIB at impressive 147.03 times, and NII at extraordinary 202.96 times.

First-Day Trading Performance

Listing Price: Workmates Core2Cloud opened at ₹387.60 representing massive premium of 90.00% from issue price of ₹204.00, touched high of ₹405.00 (up 98.53%) hitting upper circuit and settled at ₹368.25 (up 80.51%), with VWAP at ₹384.37, delivering exceptional gains of ₹164.25 per share reflecting extraordinarily positive sentiment.

Growth Drivers and Challenges

Growth Drivers:

• AWS Premier Partner with Strong Track Record: AWS Premier Consulting Partner status, completed over 350 projects for 200+ clients across diverse industries, comprehensive services including cloud migration, DevOps, cybersecurity, analytics, SAP infrastructure, and emerging technologies like AI/ML, IoT, Blockchain.
• AI and Gen AI Growth Opportunity: Positioned for bright prospects with rising AI and Gen AI initiatives per expert review, scalable capital-efficient business model, customer satisfaction and long-standing relationships, experienced promoters and proven leadership.
• Exceptional Financial Growth: Revenue increased 102% and PAT surged 160% between FY24 and FY25, exceptional ROE of 67.44%, outstanding ROCE of 64.61%, RoNW of 60.85%, PAT margin of 12.85%, EBITDA margin of 17.58%.

Challenges:

• Extreme Premium Raising Valuation Concerns: Massive 80.51% premium with opening at 90.00% and high at ₹405.00 (up 98.53%) creating potentially unsustainable valuations, market capitalization surged to ₹475.73 crore significantly higher than pre-IPO estimate of ₹263.54 crore.
• Small Scale and Competition: Relatively small with 129 employees and ₹108.39 crore FY25 revenue, moderate debt-to-equity of 0.38, operating in competitive cloud services market with established players.
• Promoter Dilution: Significant dilution from 98.10% to 72.02%, offer for sale of ₹10.50 crore indicating partial exit, dependence on AWS partnership creating platform concentration risk.

Utilisation of IPO Proceeds

Debt Reduction: ₹8.60 crore for prepayment/repayment of secured loans improving financial flexibility.
Working Capital: ₹29.20 crore funding working capital supporting business expansion in cloud services and emerging technologies, plus general corporate purposes and ₹10.50 crore through offer for sale.

Financial Performance

• Revenue: ₹108.39 crore for FY25, impressive growth of 102% from ₹53.53 crore in FY24, reflecting rapid expansion.
• Net Profit: ₹13.93 crore in FY25, exceptional growth of 160% from ₹5.35 crore in FY24.
• Financial Metrics: Exceptional ROE of 67.44%, outstanding ROCE of 64.61%, moderate debt-to-equity of 0.38, RoNW of 60.85%, PAT margin of 12.85%, EBITDA margin of 17.58%, price-to-book of 8.92x, post-issue EPS of ₹13.41, P/E of 15.21x, and market capitalisation of ₹475.73 crore.