Xtranet Technologies IPO opens today; grey market signals 10% listing premium
The IPO is a fresh issue of 1.31 crore equity shares, aiming to raise Rs 166.8 crore, making it another addition to an active primary market.
By Ritesh Presswala, ETMarkets.com |
ANI
The initial public offering (IPO) of Xtranet Technologies will open for subscription on Thursday, July 23, kicking off a three-day bidding window that will close on July 27. Ahead of the issue, the company's shares are commanding a 10% premium in the grey market, indicating a potentially positive listing if current sentiment holds.
The IPO is a fresh issue of 1.31 crore equity shares, aiming to raise Rs 166.8 crore, making it another addition to an active primary market.
Xtranet Technologies has fixed the IPO price band at Rs 120-127 per share. The company's shares are proposed to be listed on both the BSE and NSE, with a tentative listing date of July 30.
The basis of allotment is expected to be finalised on July 28, while refunds and credit of shares to successful applicants are likely on July 29.
Xtranet Technologies IPO: Key details
Since the issue comprises only a fresh issue with no offer for sale (OFS), the entire proceeds will be used by the company for its business requirements.
Retail investors can bid for a minimum of 110 shares, requiring an investment of Rs 13,970 at the upper end of the price band. They can apply for up to 14 lots (1,540 shares), translating into a maximum investment of Rs 1.96 lakh.
For small non-institutional investors (sNII), the minimum application size is 15 lots (1,650 shares) worth Rs 2.10 lakh, while big NIIs (bNII) must apply for at least 72 lots (7,920 shares), amounting to Rs 10.06 lakh.
As per the allocation structure, up to 50% of the issue is reserved for qualified institutional buyers (QIBs), while 35% is earmarked for retail investors and 15% for non-institutional investors (NIIs).
Share India Capital Services is the book-running lead manager to the issue, while KFin Technologies is acting as the registrar.
Xtranet Technologies IPO grey market premium in focus
With the shares currently trading at around a 10% premium in the grey market over the upper price band of Rs 127, investor sentiment appears constructive ahead of the issue. However, grey market premiums are unofficial and can fluctuate sharply before listing.
What does Xtranet Technologies do?
Founded in 2002, Xtranet Technologies is an integrated IT solutions provider offering enterprise technology services across digital transformation, cloud computing, managed services, cybersecurity and IT infrastructure.
Its offerings include ERP implementation, system integration, network and security solutions, cloud integration, virtualisation, data centre management, application development and infrastructure management.
The company also provides cloud-based services through Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) models.
Among its proprietary products are Synergy, a low-code digital transformation platform, and XtraTrust.
Xtranet generates revenue through fixed-price contracts, time-and-material engagements and recurring service agreements, with a significant portion of its business coming from government departments and public sector enterprises (PSUs).
As of April 30, 2026, the company employed 504 permanent staff.
Financial performance
Xtranet Technologies reported healthy growth in FY26, driven by higher revenue and improved profitability.
Total income rose 32% year-on-year to Rs 366.01 crore from Rs 276.53 crore in FY25. Profit after tax (PAT) increased 36% to Rs 40.73 crore, while EBITDA climbed to Rs 63.18 crore from Rs 47.20 crore a year earlier.
At the upper end of the price band, the company is valued at a pre-IPO market capitalisation of Rs 664.03 crore.
How will the IPO proceeds be used?
Xtranet Technologies plans to deploy the IPO proceeds across multiple business priorities:
The company plans to utilize Rs 102 crore from the proceeds to meet its working capital requirements. An additional Rs 21.99 crore has been earmarked for the repayment or prepayment of existing borrowings, while Rs 7.30 crore will be invested in capital expenditure towards upgrading systems and hardware. The remaining funds will be allocated for general corporate purposes.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The IPO is a fresh issue of 1.31 crore equity shares, aiming to raise Rs 166.8 crore, making it another addition to an active primary market.
Xtranet Technologies has fixed the IPO price band at Rs 120-127 per share. The company's shares are proposed to be listed on both the BSE and NSE, with a tentative listing date of July 30.
The basis of allotment is expected to be finalised on July 28, while refunds and credit of shares to successful applicants are likely on July 29.
Xtranet Technologies IPO: Key details
Since the issue comprises only a fresh issue with no offer for sale (OFS), the entire proceeds will be used by the company for its business requirements.
Retail investors can bid for a minimum of 110 shares, requiring an investment of Rs 13,970 at the upper end of the price band. They can apply for up to 14 lots (1,540 shares), translating into a maximum investment of Rs 1.96 lakh.
ADVERTISEMENT
For small non-institutional investors (sNII), the minimum application size is 15 lots (1,650 shares) worth Rs 2.10 lakh, while big NIIs (bNII) must apply for at least 72 lots (7,920 shares), amounting to Rs 10.06 lakh.
As per the allocation structure, up to 50% of the issue is reserved for qualified institutional buyers (QIBs), while 35% is earmarked for retail investors and 15% for non-institutional investors (NIIs).
Share India Capital Services is the book-running lead manager to the issue, while KFin Technologies is acting as the registrar.
Xtranet Technologies IPO grey market premium in focus
With the shares currently trading at around a 10% premium in the grey market over the upper price band of Rs 127, investor sentiment appears constructive ahead of the issue. However, grey market premiums are unofficial and can fluctuate sharply before listing.
ADVERTISEMENT
What does Xtranet Technologies do?
Founded in 2002, Xtranet Technologies is an integrated IT solutions provider offering enterprise technology services across digital transformation, cloud computing, managed services, cybersecurity and IT infrastructure.
Its offerings include ERP implementation, system integration, network and security solutions, cloud integration, virtualisation, data centre management, application development and infrastructure management.
ADVERTISEMENT
The company also provides cloud-based services through Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS) models.
Among its proprietary products are Synergy, a low-code digital transformation platform, and XtraTrust.
Xtranet generates revenue through fixed-price contracts, time-and-material engagements and recurring service agreements, with a significant portion of its business coming from government departments and public sector enterprises (PSUs).
As of April 30, 2026, the company employed 504 permanent staff.
Financial performance
Xtranet Technologies reported healthy growth in FY26, driven by higher revenue and improved profitability.
Total income rose 32% year-on-year to Rs 366.01 crore from Rs 276.53 crore in FY25. Profit after tax (PAT) increased 36% to Rs 40.73 crore, while EBITDA climbed to Rs 63.18 crore from Rs 47.20 crore a year earlier.
At the upper end of the price band, the company is valued at a pre-IPO market capitalisation of Rs 664.03 crore.
How will the IPO proceeds be used?
Xtranet Technologies plans to deploy the IPO proceeds across multiple business priorities:
The company plans to utilize Rs 102 crore from the proceeds to meet its working capital requirements. An additional Rs 21.99 crore has been earmarked for the repayment or prepayment of existing borrowings, while Rs 7.30 crore will be invested in capital expenditure towards upgrading systems and hardware. The remaining funds will be allocated for general corporate purposes.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
