The Indian capital markets are buzzing with anticipation for the next SME Initial Public Offering (IPO) set to hit the bourses. Methodhub Software Ltd., an established player in the IT services domain, is launching its public issue, offering a fantastic opportunity for investors looking to tap into the growth story of digital transformation enablers. Before you decide where to deploy your capital, a deep dive into the specifics of this book-built issue is essential. Let's break down every critical detail of the Methodhub Software IPO.
Methodhub Software: An Overview of the IT Solutions Provider
Incorporated in 2016, Methodhub Software Ltd. has carved a niche for itself as a dynamic Information Technology (IT) services provider. The company focuses on delivering next-generation business solutions designed to accelerate the digital transformation journeys of its global clientele. They serve critical sectors, showcasing versatility and deep domain knowledge.
Key Operational Focus Areas:
- Catering to high-growth industries including BFSI (Banking, Financial Services, and Insurance), Energy, Healthcare, Telecom, and Automotive.
- Offering a diverse suite of IT and Consulting Services, emphasizing future-ready technologies.
Core Service Offerings:
- Data and Artificial Intelligence (AI) Services
- Robust IT Infrastructure management
- Cloud Services implementation and support
- Specialized Recruitment Delivery Services
- Advanced Cybersecurity solutions
As of late 2025, the company, alongside its subsidiaries, supported 29 customers, leveraging the expertise of 294 dedicated employees and independent consultants.
Methodhub Software IPO: The Offer Details
This is a book-built issue structured to raise capital through a combination of fresh issuance and existing shareholder divestment.
IPO Summary Snapshot
| Detail | Value |
|---|---|
| Total Issue Size (Aggregating) | ₹103.02 Crores |
| Fresh Issue Component | ₹87.50 Crores (0.45 Crore Shares) |
| Offer for Sale (OFS) Component | ₹15.52 Crores (0.08 Crore Shares) |
| Listing Venue | BSE SME |
Pricing and Application Details:
| Parameter | Details |
|---|---|
| Price Band (Per Share) | ₹190.00 to ₹194.00 |
| Face Value | ₹10.00 |
| Standard Lot Size | 600 Shares |
Investor Investment Requirements (Retail - Upper Price Band):
| Category | Minimum Lots | Minimum Shares | Minimum Investment (Approx.) |
|---|---|---|---|
| Retail Investor (Minimum) | 2 | 1,200 | ₹2,32,800.00 |
| HNI (Minimum Bid) | 3 | 1,800 | ₹3,49,200.00 |
Critical IPO Timeline: Mark Your Calendar
The SME IPO subscription window is brief. Here is the crucial schedule:
Methodhub Software IPO Schedule
Note: The cut-off time for UPI mandate confirmation is 5 PM on December 9, 2025.
Financial Health and Valuation Check
Analyzing the recent financial trajectory is crucial for any prospective investor. Methodhub Software shows robust growth in recent fiscal years.
Performance Highlights (YoY Growth FY24 vs FY25):
- Revenue saw an impressive increase of 136%.
- Profit After Tax (PAT) jumped by 113%.
Consolidated Financial Snapshot (Amounts in ₹ Crore):
| Metric | Mar '24 | Mar '25 | Sep '25 (Half Year) |
|---|---|---|---|
| Total Income | 57.59 | 136.01 | 80.22 |
| Profit After Tax (PAT) | 5.41 | 11.50 | 10.35 |
| Net Worth | 11.32 | 42.72 | 57.74 |
Key Profitability Ratios (as of Mar '25):
| Key Indicator | Value |
|---|---|
| Return on Equity (ROE) | 42.57% |
| Return on Capital Employed (ROCE) | 25.71% |
| Debt/Equity Ratio | 0.75 |
Valuation Metrics Comparison:
| Metric | Pre-IPO EPS (Rs.) | Post-Issue P/E (x) |
|---|---|---|
| Methodhub Software | 8.02 | 17.67 |
The implied market capitalization based on the upper band price is approximately ₹365.76 Crore.
Understanding Promoter Landscape and Use of Funds
Promoter Stake Changes:
- Promoters: Ahobilam Nagasundaram and Jayakumar Ammasaikutty.
- Pre-Issue Holding: 35.29%
- Post-Issue Holding: 26.84% (Indicating stake dilution due to fresh issue and OFS).
How the IPO Proceeds Will Be Utilized:
| Objective | Allocated Amount (₹ Crores) |
|---|---|
| Loan Repayment / Prepayment | 13.60 |
| Working Capital Augmentation (Parent Co.) | 25.00 |
| Investment in US Subsidiary (Working Capital) | 4.00 |
| General Corporate Purposes & Unidentified Acquisitions | Balance |
A significant portion is earmarked for strengthening the working capital, both domestically and internationally via its US subsidiary, alongside debt management.
SWOT Analysis: Weighing the Opportunity
Strengths (Internal Positives):
- Proven track record of cultivating long-term relationships with clients.
- A highly skilled workforce and experienced leadership team driving innovation.
- Business model exhibits strong scalability potential to handle increasing demand.
- Service diversification across multiple critical industrial verticals minimizes sector-specific risk.
Weaknesses (Internal Concerns):
- Reliance on a relatively concentrated customer base (29 customers as of Oct 2025).
- The Debt/Equity ratio of 0.75 suggests moderate leverage that needs close monitoring.
- The offering includes a substantial Offer for Sale component, which benefits existing investors more than pure growth funding.
Opportunities (External Potential):
- The global demand for digital transformation, AI, and Cloud services remains exceptionally high, offering large addressable markets.
- Funds raised will support potential inorganic growth through strategic acquisitions.
Threats (External Challenges):
- Intense competition within the IT services and consulting space, especially from larger, established players.
- Rapid technological obsolescence requires continuous investment in upskilling and new infrastructure.
Navigating the Application Process: Brokerage & Compliance
To participate in this SME IPO, you will need a Demat account linked to a broker offering UPI or ASBA services. For those utilizing popular discount brokers:
How to Bid via a Retail Broker (e.g., Zerodha Users):
- Log into your broker's online portal or mobile application.
- Navigate to the IPO section.
- Select the 'Methodhub Software IPO' and enter your application details (price, quantity).
- Confirm the application using your linked UPI ID.
- Approve the mandate prompt received in your UPI application to finalize the bid.
It is vital to ensure the UPI mandate is authorized promptly, as strict cut-off times apply for bid acceptance.
Key Intermediaries for the Issue
Reliable oversight is maintained by the appointed lead manager and registrar.
Registrar and Lead Manager Details
- Book Running Lead Manager: Horizon Management Pvt.Ltd.
- Issue Registrar: Maashitla Securities Pvt.Ltd. (Contact for allotment/refund queries).
Final Thoughts on Methodhub Software IPO
Methodhub Software presents an IPO from a company demonstrating aggressive financial expansion within the vital technology services sector. The listing is on the BSE SME platform, suggesting a focus on tapping capital for scale. While the financials show impressive recent growth and healthy profitability ratios like high ROE, investors must weigh this against the competitive landscape inherent in IT consulting and the existing debt levels. Thorough due diligence of the Offer Document and alignment with your personal risk appetite are the final steps before bidding.