Globtier Info BSE SME IPO review (Not Rated)

•    The company is engaged in providing related services in Managed IT and SAP Support Service of a wide range.
•    It posted growth in its top and bottom lines for the reported periods, as it operates in a highly competitive and fragmented segment.
•    Boosted top and bottom lines in a pre-IPO year raise eyebrows.
•    Based on its recent financial data, the IPO appears fully priced.
•    Well-informed investors may park moderate funds for medium term.

ABOUT COMPANY:
Globtier Infotech Ltd. (GIL) is a Managed IT and SAP Support Service provider, empowering businesses with IT solutions. Its offerings cover a wide range of IT services tailored to the needs of businesses of all sizes, from Small and Medium-Sized Enterprises (SMEs) to larger organizations across various industries. The company focuses on delivering solutions that help clients adapt to industry changes, improve processes, and achieve their growth objectives from IT services.

GIL’s approach combines IT industry knowledge and technical capabilities to ensure that each client receives solutions specifically aligned with their needs. Its commitment to quality in all services is supported by adherence to established IT practices, which allows it to deliver reliable results. Its journey in the business of IT services began in 2004. As the demand for specialized and managed IT services grew, it diversified offerings to include Managed IT Services, enhanced application support, and custom application development. Recognizing that technology was advancing rapidly, the company upskilled its team in evolving technologies. 

This dedicated space allowed team to research and develop tools, resulting in solutions with sophisticated IT support services. As part of its client-centric approach, the company developed a business model that emphasizes personalized, proactive engagement with client, aligning services to their unique needs. In recent years, it has strengthened cybersecurity services, ensuring comprehensive protection across offerings. In addition, it has introduced cost-saving strategies for clients, such as process automation and streamlined resource management, designed to optimize efficiency. 

These strategies enable clients to achieve their business optimisation while benefiting from efficient use of resources. As of the date of this Prospectus, it has two subsidiaries, namely, Globtier USA, LLC and BOTGO Technologies Private Limited. GIL supports organizations by providing management, troubleshooting, and optimization of IT applications throughout their contract period. It offers tailored application development solutions designed to meet the needs of businesses of all sizes. Its services include application development, native and hybrid mobile app development, and SAP RICEFW objects, providing a comprehensive approach to address diverse requirements. By leveraging modern technologies, it aims to deliver solutions that enhance performance. On a consolidated basis, as of March 31, 2025, it had 714 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden combo IPO of 4312000 equity shares of Rs. 10 each at a fixed price of Rs. 72 per share to mobilize Rs. 31.05 cr. at the upper cap. The issue consists of 3811200 fresh equity shares worth Rs. 27.44 cr. and an Offer for Sale (OFS) of 500800 equity shares worth Rs. 3.61 cr. The IPO opens for subscription on August 25, 2025, and will close on August 28, 2025. The minimum application to be made is for 3200 shares and in multiple of 1600 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 28.52% of post-IPO paid-up equity capital of the company. The company is spending Rs. 3.55 cr. for the fresh equity issue process, and from the net proceeds of the issue, the company will utilize Rs. 8.30 cr. for repayment/prepayment of certain loans, Rs. 11.50 cr. for working capital, and Rs. 4.09 for general corporate purposes.

The IPO is solely lead managed by Shannon Advisors Pvt. Ltd., while Skyline Financial Services Pvt. Ltd. is the registrar to the issue. Nikunj Stock Brokers Ltd. is the market maker. The issue is underwritten to the tune of 15.03% by Shannon Advisors and 84.97% by Nikunj Stock Brokers.

The company has issued entire initial equity shares at par, and issued bonus shares in the ratio of 51 for 1 in March 2021, and 2 for 1 in November 2024. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 0.05, Rs. 0.06 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 11.31 cr. will stand enhanced to Rs. 15.12 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 108.87 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted total Revenue/Net Profit of Rs. 86.62 cr. / Rs. 3.35 cr. (FY23), Rs. 88.27 cr. / Rs. 3.74 cr. (FY24), and Rs. 94.81 cr. / Rs. 5.50 cr. (FY25). Higher top and bottom lines for FY25 raise eyebrows and concern over its sustainability going forward, as it is operating in a highly competitive and fragmented segment.

For the last three fiscals, the company has reported an average EPS of Rs. 4.02, and an average RoNW of 31.69%. The issue is priced at a P/BV of 4.01 based on its NAV of Rs. 17.94 as of March 31, 2025, and at P/BV of 2.28 based on its post-IPO NAV of Rs. 31.56 per share.

If we attribute its FY25 super earnings on post-IPO expanded equity base, then the asking price is at a P/E of 19.78, and based on its FY24 earnings, the P/E stands at 29.15. Thus, based on its recent financial data, the issue appears fully priced.

The company has posted PAT margins of 3.88% (FY23), 4.24% (FY24), 5.82% (FY25), and RoCE Margins of 51.07%, 45.39%, 47.68%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not declared any dividends for any reported periods of the offer documents. It has adopted a dividend policy in October 2024, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Dev Info, and Sattrix Info, as their listed peer. They are trading at a P/E of around 20.4 and 33.7 (as of August 21, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.

MERCHANT BANKER’S TRACK RECORDS:
This is the 1st mandate from Shannon Advisors in the ongoing fiscal. It has no past track record so far.