SRIT India shares hit 5% upper circuit after strong debut, jump 19% from IPO price. Should you buy, sell or hold?

SRIT India shares jumped 5% to hit the upper circuit on Tuesday after listing at Rs 148 apiece on the NSE, a 14% premium over the IPO price of Rs 130.

The stock clocked an intraday high of Rs 155.09, up more than 19% from the issue price.

Analysts have highlighted key factors for long-term investors to watch.


The sharp gains added nearly Rs 46 crore to the company’s market capitalisation within minutes of listing, taking it to Rs 997 crore. Its market cap stood at Rs 951 crore at debut.

Also read | SRIT India shares list at 14% premium over IPO price on NSE

SRIT India’s listing performance vs grey market estimates

Despite a strong debut premium, SRIT India fell short of grey market expectations. Ahead of listing, the company’s unlisted shares were trading at a grey market premium (GMP) of around 42% over the IPO price.

The company’s Rs 218 crore IPO, entirely comprising a fresh issue of 1.68 crore shares, saw strong investor demand during the three-day bidding period. The issue was subscribed more than 125 times, with the NII portion booked 313 times.

The company fixed the IPO price band at Rs 123–130 per share, with a lot size of 115 shares. Retail investors could apply for a minimum of one lot. At the upper end of the price band, the minimum investment was Rs 14,950.

Should you buy, sell or hold SRIT India shares?

SRIT India, incorporated in 1999, is a Bengaluru-headquartered Information Technology and Information Technology enabled Services (IT/ITeS) solutions company offering digital solutions and automations of systems through custom application development and integration services, said Ravi Singh, Chief Research Officer from Master Capital Services.

He noted that the company has a track record of twenty-six years in designing, implementing and operating digital platforms for Government entities and Enterprises in India and select overseas markets. It has successfully implemented large-scale, mission-critical projects for both central and state government bodies across India.

In the last decade, SRIT India has executed more than 103 projects with a total order value of Rs 12,347.16 million across healthcare, electronic governance and telecommunication and broadband sectors catering to both government as well as enterprises, the analyst said, adding that the Indian SaaS industry is projected to grow at a strong CAGR of 18.3% between FY 2022 and FY 2030, expanding from $13 billion to $50 billion.

“This rapid growth is attributed to the rising adoption of cloud-based solutions, growing digitalisation across industries, and a global shift toward scalable subscription-based software models. The key factors to track will be whether the company can sustain revenue growth, improve profitability and execute its expansion plans while maintaining healthy cash flows. Long-term investors may continue to track the company’s IT and digital technology services business, supported by increasing demand for digital transformation and technology infrastructure,” according to Singh.

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Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.