Neilsoft Ltd, an engineering services and solutions company backed by Tokyo-based Fujita Corporation, has taken a step toward listing on Indian stock exchanges. The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise funds through an Initial Public Offering (IPO).

The IPO comprises a mix of a fresh issue of shares worth Rs 100 crore and an offer-for-sale (OFS) of up to 80 lakh equity shares by its promoters and other shareholders.

IPO Details
The fresh issue proceeds will primarily fund Neilsoft’s capital expenditure, with Rs 69.63 crore earmarked for this purpose, alongside allocations for general corporate needs. The IPO structure has been designed to attract a diverse range of investors.
Qualified Institutional Buyers (QIBs): 75% of the shares are reserved for QIBs.
Non-Institutional Investors (NIIs): At least 15% of the shares will be allocated to this segment.
Retail Individual Investors: The remaining 10% of the shares are set aside for retail participants.

The offer-for-sale portion sees significant participation from key stakeholders. Rupa Shah (jointly with Harishkumar Shah) plans to sell 11,45,384 shares, Netsophy Private Limited will offer 12,55,784 shares, Nishit Shah (jointly with Rupa Shah) will sell 1,47,764 shares., Harishkumar Shah (jointly with Rupa Shah) intends to sell 41,376 shares, The Small Industries Development Bank of India (SIDBI) will offload 24,40,884 shares, and SICOM Limited will sell 18,54,808 shares.

Equirus Capital and IIFL Capital Services are the book-running lead managers for the IPO, while Link Intime India has been appointed as the IPO registrar. Neilsoft shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

About Neilsoft
Founded in 1991 and commencing operations in Fiscal 1992, Neilsoft has emerged as a player in the engineering research and development (ER&D) sector. The company specializes in customized engineering solutions, spanning various domains like architecture, engineering, and construction (AEC) Design Solutions, Industrial plant design, and manufacturing equipment and production line design.

In addition to engineering services, Neilsoft provides Engineering Process Outsourcing (EPO) and develops bespoke software applications.

Financial Performance
Neilsoft’s financial performance underscores its growth trajectory. The company’s revenue from operations witnessed an 11.96% jump, rising from Rs 291.03 crore in Fiscal 2023 to Rs 325.85 crore in Fiscal 2024.

Profit after tax also demonstrated growth, increasing by 24.05% from Rs 46.64 crore in Fiscal 2023 to Rs 57.85 crore in Fiscal 2024. For the quarter ended June 30, 2024, Neilsoft reported revenues of Rs 88.24 crore and a profit after tax of Rs 14.09 crore.

Vision & Market Position
The IPO marks a crucial moment for Neilsoft, enabling the company to enhance its infrastructure and continue delivering innovative solutions. The company’s service offerings and its emphasis on digital transformation position it as a key player in the engineering and technology space.