Navigating the Exato Technologies SME IPO: Details, Analysis, and Investor Insights

The primary market buzz is heating up with the upcoming Initial Public Offering (IPO) of Exato Technologies Ltd., set to launch on the BSE SME platform. For investors keen on small and medium enterprises showcasing strong growth potential, this book-build issue presents an opportunity to examine a player in the customer transformation and technology solutions space. This in-depth analysis breaks down every crucial aspect of the Exato Technologies IPO, ensuring you are well-informed before subscribing.

Understanding Exato Technologies: Core Business and Strengths

Established in 2016, Exato Technologies functions as a dedicated customer transformation partner. They specialize in delivering technology-driven solutions designed to elevate customer engagement and streamline operational efficiency across various industries.

Key Service Offerings:

• CX & Analytics: Focused on crafting seamless customer journeys and deriving actionable intelligence for business growth.
• Conversational AI: Developing agent-less contact center solutions to boost chatbot self-sufficiency and reduce operational expenditures.
• Automation as a Service: Utilizing Robotic Process Automation (RPA) to enhance productivity and business agility in areas like finance and HR.
• Workforce Management: Providing tools for smarter scheduling and resource allocation to improve team satisfaction and operational smoothness.

Competitive Advantages:

The company claims several distinct advantages in a competitive technology landscape:

• Offers integrated solutions spanning AI, Automation, CXaaS, and Cybersecurity.
• Maintains robust partnerships with industry leaders such as NICE, Mitel, and UiPath.
• A significant portion of revenue (over 40%) is secured through long-term Annual Recurring Revenue (ARR) contracts exceeding five years.
• Possesses deep domain expertise across critical sectors including BFSI, Healthcare, and Telecom.

Exato Technologies IPO Key Financial Health Snapshot

A look at the historical financial data provides context for the company’s recent performance. Notably, the company has demonstrated significant profit growth recently.

Financial Summary (Amounts in ₹ Crore):

Valuation and Efficiency Metrics (As of Mar 31, 2025):

When analyzing the Earnings Per Share (EPS) pre- and post-issue, we see a favorable dilution impact based on the latest reported earnings, suggesting potential value capture if the post-listing price reflects this improvement.

The IPO Structure: Dates, Price, and Allocation

Exato Technologies is launching a book-build issue aiming to raise a total of ₹37.45 crores, composed of both a fresh issue of shares and an Offer for Sale (OFS).

IPO Timetable at a Glance:

The following table outlines the key dates for the subscription window:

A simplified visual timeline:

Pricing and Lot Size Details:

The price band for the IPO has been set, which dictates the minimum investment required.

• Price Band: ₹133.00 to ₹140.00 per equity share.
• Face Value: ₹10 per share.
• Lot Size: Applications must be made in multiples of 1,000 shares.

Minimum Investment Requirements (Based on the Upper Price Band of ₹140):

Shareholding Structure and IPO Objectives:

The IPO involves both fresh capital infusion and the sale of existing shares by promoters.

• Promoter Holding Pre-Issue: 75.85%
• Promoter Holding Post-Issue: Will be finalized based on the final share allotment, reflecting dilution.

The primary utilization of the net proceeds is directed towards key growth and stability areas:

Reservation Quota Breakdown:

The total issue size of 26,75,000 shares is distributed across investor categories:

Pre-IPO Anchor Investor Activity

The company secured a significant commitment from anchor investors prior to the main subscription window.

• Anchor Investor Funding Raised: ₹10.65 crore.
• Anchor Investor Shares: 7,61,000 shares.
• Lock-in Period: 50% of shares are locked in until January 2, 2026 (30 days), and the remaining 50% until March 3, 2026 (90 days).

SWOT Analysis of Exato Technologies IPO

To provide a balanced view, here is a quick assessment of the company's internal and external factors relevant to its public offering.

Strengths (Internal Positive Factors):

• High profitability growth demonstrated in the latest fiscal period.
• Strong revenue base derived from long-term contracts (40%+ from 5+ year contracts).
• Strategic partnerships with established technology providers.

Weaknesses (Internal Negative Factors):

• Reliance on debt funding has increased, reflected in the Total Borrowing figures.
• The company operates in a highly dynamic technology sector requiring continuous, heavy investment.

Opportunities (External Positive Factors):

• Growing global demand for digital transformation, AI, and automation services.
• Expansion potential into new international markets beyond current US and Singapore operations.

Threats (External Negative Factors):

• Intense competition from larger, established global IT service firms.
• Risk of technology obsolescence necessitating rapid adaptation of service offerings.

Key Intermediaries for the IPO Process

Smooth execution of the IPO relies on competent management and administration by appointed entities.

Management Team:

The company is promoted by Mr. Appuorv K Sinha and Mrs. Swati Sinha.

Lead Manager and Registrar:

Investor Guidance: Applying for the Exato Technologies IPO

Investors typically use UPI-based applications or ASBA through their bank accounts to bid in SME IPOs.

Application Method via Discount Brokers (General Steps):

For those using popular discount brokers, the process generally involves accessing the broker’s dedicated online portal or application.

1. Log into your brokerage account (e.g., Console or similar platform).
2. Navigate to the IPO section within your portfolio management area.
3. Select the Exato Technologies IPO and choose the 'Bid' option.
4. Specify the number of lots you wish to apply for (minimum of 2 lots for retail).
5. Enter your registered UPI ID accurately.
6. Submit the application, and then approve the mandate notification received in your UPI app (Net Banking or UPI application) before the cutoff time.

It is crucial to ensure sufficient funds are available in the linked bank account to cover the application amount, as mandates are typically blocked until allotment.

Contact Information for Further Queries

Should you require direct details from the company or the registrar:

Exato Technologies Ltd. Contact:

• Address: A-33, 02nd Floor, Sector-2, Noida, Gautam Buddha Nagar, Uttar Pradesh, 201301
• Email: compliance@exato.ai
• Website: https://www.exato.ai/

Registrar Contact Details:

• Registrar: Kfin Technologies Ltd.
• Phone: 04067162222, 04079611000
• Email: exato.ipo@kfintech.com

Concluding Thoughts on the Exato Technologies SME IPO

The Exato Technologies IPO offers a glimpse into a growing SME specializing in critical customer technology services. With a clear mandate to use fresh proceeds for working capital and product enhancement, the company shows ambition for scaling up. Potential investors should weigh the company's strong recent PAT growth and robust client relationships against the inherent risks associated with SME listings and intense market competition. Thorough review of the Red Herring Prospectus (RHP) remains the most authoritative step before committing capital.