Logiciel Solutions IPO Overview
AI-first offshore software development firm raising ₹39.90 cr (₹36.30 cr) via fresh issue ₹32.70 cr + OFS ₹3.60 cr of 20.68L shares. Price: ₹183-193. Lot: 600 shares (₹2.32L min). Funds for physical infra (₹1.86 cr), HR/manpower (₹15.28 cr), IT infra, marketing, corporate purposes.
Lead: Fintellectual. Aggressive pricing, US tariff risk, tiny post-IPO equity, competitive space. Analyst: “Risk seekers only, others skip”. Competes with UST, Genpact, KPIT, Tata Elxsi.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 28 November 2025 (Thursday) |
| IPO Close Date | 2 December 2025 (Monday) |
| Allotment Date | 3 December 2025 (Tuesday) – Expected |
| Credit to Demat | 4 December 2025 (Wednesday) – Expected |
| Refund Initiation | TBD |
| Listing Date | 5 December 2025 (Thursday) – Tentative |
| Price Band | ₹183 – ₹193 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Min Investment (Retail) | ₹2,31,600 (1,200 shares / 2 lots at upper band) |
| sHNI Investment | ₹3,47,400 (1,800 shares / 3 lots) minimum |
| bHNI Investment | TBD |
| Issue Size | ₹39.90 crore (RHP: ₹36.30 crore actual) |
| Fresh Issue | ₹32.70 crore (90%) – 16,94,560 shares |
| Offer for Sale (OFS) | ₹3.60 crore (10%) – 1,86,600 shares by Umesh Sharma & Ajay Sharma |
| Total Shares Offered | 20,67,600 equity shares (18,81,000 per some sources) |
| Listing | BSE SME (Emerge Platform) |
| Post-Issue Market Cap | ~₹84 crore (at upper price band) |
| P/E Ratio | ~35-37x (FY25 annualized basis) |
| EPS | ₹5.15-5.80 (range) |
Issue Break-up
| Category | Allocation | Shares |
| QIB (Qualified Institutional Buyers) | 1,00,200 shares | 4.85% (50% allocation category) |
| NII (Non-Institutional Investors) | 9,28,800 shares | 44.92% (15% allocation category) |
| Retail Individual Investors | 9,34,800 shares | 45.21% (35% allocation category) |
| Market Maker | 1,03,800 shares | ~5% |
Note: SME IPO with high retail+NII allocation (90%) vs QIB (5%). Anchor portion not mentioned.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹32.70 crore / ₹3,270 lakhs) will be used for:
- Capital Expenditure on Upgrading Physical Infrastructure – ₹1.86 crore (5.7%)
- Office space upgrades and facilities
- Physical infrastructure improvements
- Investment in Human Resources and Manpower Hiring – ₹15.28 crore (46.7%)
- Hiring software engineers, developers, AI/ML specialists
- Talent acquisition for scaling operations
- Training and development
- Capital Expenditure Towards Upgrading IT Infrastructure – Amount TBD
- Technology stack modernization
- Cloud infrastructure, tools, licenses
- AI/ML development platforms
- Funding for Business Development & Marketing Activities – Amount TBD
- Sales and marketing initiatives
- Brand building, customer acquisition
- General Corporate Purposes – Balance amount
- Strategic initiatives, working capital
OFS Proceeds (₹3.60 crore):
- Goes to selling promoters Umesh Sharma and Ajay Sharma
- Partial exit/liquidity for promoters
- 1,86,600 shares being sold
Strategic Focus:
- Heavy focus on manpower (46.7%) – people-intensive business
- Scaling engineering team to meet demand
- Infrastructure upgrades for capacity expansion
- Sales and marketing for client acquisition
Note: 90% fresh issue for growth, 10% OFS for promoter exit.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- Fintellectual Corporate Advisors Private Limited
- Address: B-20, Second Floor, Sector-1, Noida – 201301, Uttar Pradesh
- Phone: +91 120 4266080
- Website: www.fintellectualadvisors.com
Registrar:
- Maashitla Securities Private Limited
- Address: 451, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, Delhi – 110034
- Phone: 011-45121795-96
- Website: www.maashitla.com
Market Maker:
- Prabhat Financial Services Limited
Promoters & Management
Key Promoters – Sharma Family (4 Promoters):
- Mr. Umesh Sharma – Managing Director
- Key leadership position overseeing strategy and operations
- Selling shares in OFS – Partial exit at IPO
- Mr. Ajay Sharma – Promoter
- Selling shares in OFS – Partial exit at IPO
- Mr. Prem Lal Sharma – Promoter
- Family promoter
- Mrs. Lateesh Sharma – Promoter
- Family promoter
Company History:
- Founded July 2011 (Incorporated) – 14 years old
- 100% Export Oriented Unit (EOU) – Tax benefits for export-focused operations
- Evolution: From software development to comprehensive AI-first offshore engineering partner
- Geographic Footprint: Ludhiana (Punjab) HQ + distributed remote team across India
- Workforce: 107 employees (as of October 31, 2025)
- Infrastructure: Main development center in Ludhiana
Company Contact:
- Registered Office: H.NO. 9-A, Main Road, Sunder Nagar, Ludhiana, Punjab – 141007
- Phone: +91-161-4600060
- Website: www.logiciel.io
- Workforce: 107 employees (14-year track record)
COMPANY OVERVIEW
Establishment & Background:
- Incorporated in July 2011 (14 years old)
- Industry: Offshore Software Development & IT Services – AI-First Engineering
- Headquartered in Ludhiana, Punjab (Main development center)
- 100% Export Oriented Unit (EOU) status
- Workforce: 107 employees (as of Oct 31, 2025)
- Distributed hybrid workforce model: Central development center + remote engineering team across India
- ISO 9001:2015 certified (quality management)
Business Model:
- AI-First Offshore Software Development Partner serving global startups and enterprises
- Core Services:
- Custom Software Development – End-to-end product engineering
- Cloud Engineering – AWS, Azure, GCP-based solutions, serverless, microservices
- AI/ML Solutions – Machine learning models, predictive analytics, NLP, computer vision
- UI/UX Design – User experience design, prototyping, interface development
- Application Development – Web apps, mobile apps (iOS/Android), Progressive Web Apps
- Big Data & Analytics – Data engineering, ETL pipelines, business intelligence
- MVP Development – Rapid prototyping for startups, investor-ready demos
- Team Augmentation – Dedicated offshore teams integrated with client operations
- AI Integration Across Development Lifecycle:
- AI-driven code generation (Cursor, Microsoft Copilot, Windsurf)
- Automated testing and bug detection
- AI-powered prototyping and wireframing
- Predictive analytics for project management (JIRA, ClickUp integration)
- Natural language processing for documentation
- Cloud monitoring and optimization
- Target Industries:
- Home improvement
- Energy
- Marketing technology (MarTech)
- AI & software development
- Real estate
- Retail
- Healthcare
- FinTech
- Geographic Revenue Mix:
- USA: 96.48% of revenue (FY25)
- Canada: 3.52% of revenue (FY25)
- 100% export-focused – No domestic India revenue
- Delivery Model: Hybrid workforce combining office-based core team with distributed remote engineers for flexibility, speed, and quality control
Market Position:
- Positioned as AI-first offshore development partner
- Competing in highly competitive global IT services outsourcing market
- Niche player among giants like UST, Genpact, KPIT Technologies, Tata Elxsi
- Serving primarily startups and SMEs in North America
- Long-standing client relationships (23+ years with some clients per testimonials)
Operations:
- Main Development Center: Ludhiana, Punjab (9-A, Main Road, Sunder Nagar)
- Workforce Structure: 107 employees – mix of software engineers, AI/ML specialists, designers, QA, project managers
- Technology Stack: Cloud-native technologies, AI/ML frameworks, modern dev tools (Cursor, Copilot, Windsurf)
- Project Onboarding: Claims 1-2 week team deployment for new projects
- Quality: ISO 9001:2015 certified processes
Company Strengths
- Strong Revenue & Profit Growth – Revenue +24%, PAT +38% (FY24 to FY25):
- FY25 revenue: ₹21.20 cr (+23.98% vs ₹17.10 cr FY24)
- FY25 PAT: ₹5.47 cr (+37.78% vs ₹3.97 cr FY24)
- Consistent growth trajectory demonstrating market demand
- Healthy profit margins: PAT margin 25.8% (FY25) vs 23.2% (FY24) – improving profitability
- Three-year track record of growth and profitability
- Annualized basis shows strong performance
- 100% Export Oriented Unit (EOU) – Tax Benefits & Global Focus:
- EOU status provides significant tax advantages and duty exemptions
- 96.48% USA + 3.52% Canada = 100% export revenue
- Zero domestic India dependency – pure-play offshore model
- Access to high-value global markets (North America)
- EOU benefits include customs duty exemptions, tax holidays
- Focused on serving lucrative international clients
- AI-First Approach – Differentiator in Competitive Market:
- Early adopter of AI tools across entire development lifecycle
- AI-driven code generation (Cursor, Microsoft Copilot, Windsurf)
- Automated testing, bug detection, code reviews
- AI-powered project forecasting and management
- Predictive analytics for delivery optimization
- Positions company at forefront of AI-augmented software development trend
- Higher productivity and faster delivery compared to traditional development
- Hybrid Delivery Model – Office + Distributed Team Flexibility:
- Central development center in Ludhiana for core team stability
- Distributed remote engineering team across India for scalability
- Best of both worlds: Quality control + cost efficiency + flexibility
- Rapid team scaling (1-2 week onboarding claim)
- Enables 24×7 coverage for global clients
- Cost-effective compared to pure office-based model
- 14-Year Operating History – Established Business (Since 2011):
- Unlike many SME IPOs, company has 14 years of operating history
- Survived economic cycles, technology shifts, competition
- Long-standing client relationships (23+ years with some per testimonials)
- Repeat business and referrals indicate client satisfaction
- Track record provides some credibility
- ISO 9001:2015 certification demonstrates process maturity
- Diversified Service Portfolio – End-to-End Capabilities:
- Comprehensive offerings: Custom development, cloud, AI/ML, UI/UX, app development, big data
- One-stop-shop for clients – reduces vendor management complexity
- Ability to handle entire product lifecycle from MVP to scale
- Multiple revenue streams reducing dependency on single service
- Serves diverse industries: Home improvement, energy, MarTech, real estate, retail
- Cross-selling and upselling opportunities with existing clients
- High-Margin Business – Asset-Light Model:
- PAT margins: 25.8% (FY25), 23.2% (FY24) – healthy profitability
- Asset-light model – primary assets are people and IP
- Low capital intensity – doesn’t require heavy machinery or inventory
- Scalable business model with operating leverage
- High return on capital employed (ROCE) typical of IT services
- Strong cash generation potential
Key Risks & Challenges
- Flat GMP (₹0) – Zero Grey Market Interest & Confidence:
- GMP at ₹0 as of Nov 25-28 – completely flat, no premium
- Zero grey market enthusiasm or speculation
- Indicates extreme market skepticism about issue
- Expected listing price = issue price (₹193) with no gains
- High risk of flat or negative listing
- Investors showing no confidence in pricing or fundamentals
- Aggressive Pricing – P/E 35-37x for SME Outsourcing Firm:
- Issue priced at P/E of 35-37x (FY25 annualized basis)
- Analyst Dilip Davda verdict: “Issue appears aggressively priced“
- Recommendation: “Only well-informed/risk seekers may park moderate funds for medium term, others may skip“
- IT services typically trade at 15-25x P/E
- Premium valuation for SME with limited scale
- Comparable listed peers trade at lower multiples despite larger size
- Limited margin of safety at current pricing
- Tiny Post-IPO Equity – “Longer Gestation for Migration” Warning:
- Critical Analyst Warning: “Tiny paid-up capital post-IPO indicates longer gestation for migration“
- Small equity base post-listing
- Suggests difficulty in graduating to mainboard
- Limited free float and liquidity
- May remain SME listing for extended period
- Institutional investors may avoid due to size
- Exit opportunities limited
- Extreme US Revenue Concentration – 96.48% from Single Geography:
- United States: 96.48% of total revenue (FY25)
- Canada: Only 3.52% – minimal diversification
- 100% export-dependent – zero domestic India revenue
- Vulnerable to US economic slowdown, recession
- Analyst concern: “Current US Tariff imbroglio looming large on its future prospects“
- Trump administration tariff policies could impact outsourcing
- Geopolitical risks (H1-B visa restrictions, protectionism)
- Currency risk – 100% USD/CAD exposure
- Single-country dependency = catastrophic risk if US business declines
- US Tariff & Protectionism Risk – “Imbroglio Looming Large”:
- Analyst Dilip Davda explicitly warns: “The current US Tariff imbroglio looming large on its future prospects“
- Trump administration’s “America First” policies
- Potential tariffs on IT services outsourcing
- H1-B visa restrictions impacting onsite/offshore coordination
- Political pressure for reshoring jobs to USA
- Future US regulations could severely impact offshore outsourcing model
- 96.48% USA revenue makes company extremely vulnerable
- Policy changes = existential threat to business model
- Highly Competitive Segment – Overcrowded IT Services Space:
- Analyst notes: Company “operating in a highly competitive segment“
- Competing with giants: UST, Genpact, 1&1 IONOS (top competitors per Tracxn)
- Also competing with: KPIT Technologies, Tata Elxsi, Cyient, Persistent Systems, Coforge, Affle India
- Plus thousands of boutique offshore development shops
- Low barriers to entry – anyone can start software services firm
- Price-based competition eroding margins
- Client bargaining power high
- Differentiation difficult – AI-first claim may not sustain as everyone adopts AI
- Promoter Exit via OFS – ₹3.60 Cr Partial Exit at IPO:
- Umesh Sharma (MD) and Ajay Sharma selling 1,86,600 shares
- OFS of ₹3.60 cr (10% of issue size)
- Promoters taking money off the table at IPO itself
- Raises questions: Why exit now if business poised for explosive growth?
- Signal of reduced confidence in future valuations?
- Only 90% proceeds go to company for genuine growth
- Partial promoter exit at listing not ideal for investor confidence
- Heavy Manpower Dependency – 46.7% IPO for HR Hiring:
- ₹15.28 cr (46.7% of fresh issue) allocated to manpower hiring
- People-intensive business model
- Attrition risk – IT services industry has 15-25% annual attrition
- Wage inflation pressure – continuous salary hikes needed
- Talent competition from larger firms offering better packages
- Scaling challenges – maintaining quality while rapidly hiring
- Training costs for new hires
- Key man risk if critical engineers/managers leave
- Client Concentration Risk – Typical of Boutique IT Firms:
- While not explicitly disclosed, boutique IT services firms typically have high client concentration
- Top 5-10 clients likely account for 60-80% of revenue
- Loss of major client = significant revenue impact
- Project-based business – no guaranteed recurring revenue
- Client relationship dependent on key account managers
- No long-term contracts mentioned
- Client switching costs low – can move to competitors anytime
- Currency & Forex Risk – 100% USD/CAD Revenue:
- Entire revenue in USD (96.48%) and CAD (3.52%)
- Rupee appreciation = margin erosion
- Most costs in INR (salaries, infrastructure) but revenue in USD/CAD
- Natural hedge limited – expenses not proportionate to forex revenue
- Forex volatility impacts profitability
- May need hedging strategies increasing complexity and costs
- Scalability Questions – Small Size Post-IPO:
- Post-IPO market cap only ~₹84 crore
- 107 employees currently
- Competing with firms having 10,000+ employees
- Ability to win and execute large enterprise deals questionable
- Enterprise clients prefer larger, established vendors
- Brand recognition limited compared to tier-1 IT services firms
- Growth runway may be limited without significant scaling
CRITICAL CONCERNS: Analyst Dilip Davda explicitly warns issue is “aggressively priced” and recommends “Only well-informed/risk seekers may park moderate funds for medium term, others may skip.” States “Current US Tariff imbroglio looming large on its future prospects” and “Tiny paid-up capital post-IPO indicates longer gestation for migration.” Flat GMP (₹0) indicates zero market interest. Extreme US revenue concentration (96.48%), highly competitive segment, promoter partial exit (₹3.60 cr OFS), heavy manpower dependency (46.7% IPO for hiring). P/E of 35-37x is aggressive for SME outsourcing firm. 100% EOU but vulnerable to US policy changes and tariffs. SME investments carry higher risks than mainboard listings.
Disclaimer: This information is based on publicly available sources including SEBI RHP filings, analyst reports, and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results.
