Fujita Corporation backed Neilsoft files DRHP for IPO

Tokyo-based Fujita Corporation backed Neilsoft, a technology-driven, pure-play engineering services and solutions (ER&D) company with over 20 years of experience in servicing global customers, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).

The IPO, with a face value of Rs 5, is a mix of fresh issue of shares up to Rs 100 crore and an offer-for-sale for sale up to 8 million shares by promoters and other selling shareholders.

Offer for sale consists of shareholders selling shares up to 1,145,384 by Rupa Harish Shah jointly with Harishkumar Shah, up to 1,255,784 equity shares by Netsophy Private Limited, up to 147,764 equity shares by Nishit Shah jointly with Rupa Harish Shah, up to 41,376 equity shares by Harishkumar Shah jointly with Rupa Harish Shah, up to 2,440,884 equity shares by Small Industries Development Bank of India, up to 1,854,808 equity shares by SICOM Limited and other selling shareholders.


Equirus Capital Private Limited and IIFL Capital Services Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue.

The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

The company, in consultation with the BRLMS, may consider a pre-IPO placement of specified securities. The pre-IPO placement shall not exceed 20% of the fresh issue, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The proceeds from the fresh issue to the extent of Rs 69.63 crore will be used for funding of capital expenditure and general corporate purposes.

The offer is being made through the book-building process, wherein not less than 75% of the Offer is allocated to qualified institutional buyers, and not less than 15% and 10% of the net offer is assigned to non-institutional and retail individual bidders respectively.

Neilsoft, founded in 1991 and commencing operations in Fiscal 1992, was established by Ketan Champaklal Bakshi and Rupa Harish Shah. With over 20 years of experience, the company specializes in serving global customers across the AEC, Manufacturing, and Industrial Plant sectors by addressing their needs for digitalization (leveraging digital technologies to transform businesses and processes), digitization (converting analog data into digital formats), and automation.

Neilsoft provides customized engineering services, including AEC design solutions, industrial plant design, and manufacturing equipment and production line design. It also offers Engineering Process Outsourcing (EPO) services and develops tailored software applications to enable digital transformation.

The company’s proprietary solutions include CADISON®, a planning and design system for plant engineering, and E&I Electrical Designer, an electrical design solution.

Neilsoft acts as a value-added reseller of design, collaboration, and BIM software for the AEC, Manufacturing, and Process Plant industries in India, supported by strategic partnerships with Autodesk, Inc. and Bluebeam, Inc.

The company's revenue from operations increased by 11.96% from Rs 291.03 crore in fiscal 2023 to Rs 325.85 crore in fiscal 2024. Profit after tax increased by 24.05% from Rs 46.64 crore in fiscal 2023 to Rs 57.85 crore in fiscal 2024.

For the three months ended June 30, 2024, revenue from operations stood at Rs 88.24 crore, and profit after tax stood at Rs 14.09 crore.

The India outsourced ER&D services market is on a dynamic growth trajectory, reflecting the country's strategic importance in the global ER&D sector. In 2023, the market was valued at USD 51 billion and is projected to escalate to USD 189 billion by 2030, exhibiting a robust CAGR of 20.7%. (Source: F&S Report).

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