SRIT India's IPO closes today, 30 September 2026. The order book looks good. The cash flow deserves a closer look.
The ₹218.4 Cr issue is entirely fresh shares, priced at ₹123 to ₹130. Allotment is expected on 1 October, listing on 6 October.
Where the book stands
Day 2 snapshot (29 September):
- Overall subscription: 4.16x
- Retail: 6.04x
- HNI / NII: 5.25x
- QIB: 0.03x
- Grey market premium: around ₹33, about 25% of the upper band. Unofficial, and subject to change.
Retail and HNIs are in. Institutions, so far, are not.
The business case
SRIT is a 26-year-old Bengaluru IT company, CMMI Level 5, that builds and runs digital systems for governments: hospital automation across 2,200 or more facilities, e-governance portals, telecom and broadband networks. It has delivered 103 or more projects across 12 states and 8 countries. Its reported order book stood at about ₹1,205 Cr as of June 2026, roughly 2.7 years of revenue.
Brokerage reports point to healthy return ratios, low leverage and a growing business. Return on net worth is 30%, the highest among the peers named in the RHP. Debt is ₹36 Cr on ₹193 Cr of net worth, so interest is not a concern.
But there are two structural risks.
Customer concentration. Government clients account for around 89% of FY26 revenue, and the top 10 customers contribute a similar share. Client names are not disclosed. Execution leans on subcontractors.
Cash conversion. FY26 operating cash flow was negative despite reported profitability. Large receivables and unbilled revenue make collections and working-capital discipline critical.
There is also a valuation distinction worth noting: the IPO has been cited at roughly 13.7x FY26 earnings pre-issue versus 19.3x post-issue, reflecting the dilution from the fresh shares. On the post-issue number it sits alongside Protean eGov (19.8x) and RailTel (24x), and above Mastek (12.5x).
The detail, from the RHP
| ₹ Cr | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 282.2 | 400.5 | 462.5 |
| EBITDA | 41.0 | 49.8 | 64.8 |
| PAT | 29.1 | 33.6 | 43.3 |
| Operating cash flow | +34.2 | +18.0 | −12.1 |
| Net worth | 80.5 | 93.2 | 193.3 |
| Borrowings | 22.3 | 51.3 | 36.2 |
Profit rose 29% in FY26 and cash from operations turned negative. Governments pay in five to eight months. Trade receivables are ₹235 Cr and unbilled contract assets another ₹154 Cr, so ₹389 Cr is owed against ₹450 Cr of operating revenue. ₹13.6 Cr of receivables is more than three years old. Return on capital employed has slipped from 47.5% to 37.4% to 28.8% over the three years.
Use of funds. ₹124 Cr goes to working capital (₹80.6 Cr in FY27, ₹43.4 Cr in FY28). ₹12.9 Cr goes to product modernisation. The balance, about ₹80 Cr, is for acquisitions with no target named and general corporate purposes, each capped at 25%. Nothing goes to debt.
Promoters and price history. Dr Nambiar Raghavan Madhusoodan (MD and CEO), Prasaktha Vakkiyl Nambiar and Martin Poovakkulam Chacko hold 84.9% before the issue and 62.7% after. Their average cost of acquisition is ₹0 and ₹2.60 a share. No private equity or venture investor is on the cap table. Shares were issued at par from 2001, with a 5:1 bonus in 2005 and later issuances between ₹9.25 and ₹95, the ₹95 round as recently as November 2025. That round is what doubled net worth from ₹93 Cr to ₹193 Cr (FY26 profit accounts for only ₹43 Cr of the increase). Ten months later the public is offered ₹130.
Anchor book. ₹65.5 Cr from nine investors: Taurus Ethical Fund (₹10 Cr, the only mutual fund), Abakkus Venture Opportunities, Founders Collective and Saint Capital (₹10 Cr each), Meru Investment Fund (₹5.5 Cr, FPI), and Smart Horizon, Steptrade Revolution, Abundantia Capital and Holani Venture Capital (₹5 Cr each). No insurer. Four investors at exactly ₹10 Cr each. The 30-day lock-in on half the anchor shares ends 31 October.
Contingent liabilities. ₹63.4 Cr as of March 2026, about a third of net worth. The nature is not spelt out in the public summaries.
Brokers. Religare and BP Equities say subscribe, Swastika and Ventura are neutral, Capital Market says avoid.
Foreign money in IT
NSDL fortnightly data for the Information Technology sector shows FPIs net sellers of about ₹7,700 Cr since mid-March, around 2% of their holdings in the sector. They sold every fortnight from March to June (₹6,733 Cr in the first half of June alone), bought through July and August (about ₹7,400 Cr), and turned sellers again in the first half of September (₹960 Cr). This month's bulk and block deal file shows FII net selling of ₹1,580 Cr in IT names. Foreign institutions are not in this sector right now, and the anchor list reflects it.
Where it lands
The order book offers visibility, but it does not guarantee timely cash collection. This company books government revenue it collects five to eight months later, and more than half the IPO is being raised to fund that gap. I would want to see operating cash flow recover before treating the growth story as fully validated.
A listing gain, if any, is a separate trade from the long-term investment case. The float is small and demand is 4x, so a pop is plausible. Holding it means owning the government's payment cycle.
Sources: SRIT India RHP figures as reported by Chittorgarh, IPO Watch, IPO Premium and INDmoney; anchor allocation via Paterson Capital; broker views via Business Today and IPO Guru; subscription and GMP data as of 29 September 2026; NSDL fortnightly FPI sector flows and NSE bulk/block deal data via Intrynsic.ai. Figures rounded.
For educational purposes only. Not investment advice. Intrynsic.ai is not a SEBI-registered investment adviser.