TAC Infosec Secures Anchor Book Funding Ahead of IPO

TAC Infosec, a cybersecurity solutions provider also known as TAC Security, has successfully garnered INR 8.55 crore through its anchor book issue ahead of its initial public offering (IPO). This initial investment signifies strong investor interest in the company’s growth potential.

IPO Details and Anchor Investor Participation

The upcoming IPO will consist entirely of a fresh issue of 28,29,600 equity shares. The price band for the offering has been set at INR 100-106 per share, with the company aiming to raise approximately INR 29.9 crore at the upper end of the price range. Investors can participate in lots of 1,200 shares each.

TAC Infosec secured significant backing from prominent investors. Anchor investors received 8,06,400 equity shares from the company at a price of INR 106 each. Notably, Vijay Kedia, a renowned investor, is a significant shareholder in the company.

The list of anchor investors includes esteemed names like NAV Capital VCC – NAV Capital Emerging Star Fund, Astorne Capital VCC, Beacon Stone Capital VCC – Beacon Stone I, Zinnia Global Fund VCC and LC Radiance Fund PCC, or Cell Dewcap Fund.

Subscription Dates and Share Allocation

The IPO subscription window will be open from today, March 27, and will close on April 2. The company has reserved specific quotas for different investor categories. These include 1.41 lakh shares for market makers, 4.03 lakh shares for non-institutional investors, and 13.44 lakh shares for qualified institutional buyers (QIBs), encompassing the anchor investors.

Growth Plans and Fund Utilization

TAC Infosec, established in 2016 by Trishneet Arora, provides a comprehensive suite of cybersecurity solutions. Their offerings include risk-based vulnerability management and assessment, cybersecurity quantification, and penetration testing, all delivered through a convenient SaaS model.

The company intends to utilize the net proceeds from the IPO to bolster its growth strategy. A portion of the funds will be directed towards investments in human resources and product development, propelling organic expansion within India. Additionally, TAC Infosec plans to allocate capital towards their US-based entity, TAC Security INC, with a focus on international market expansion. The remaining funds will be used for various other corporate requirements.

Beeline Capital Advisors Private Limited is serving as the lead manager for the IPO.

Leadership and Revenue Streams

74% of the company is owned by founder and CEO Arora, with investor Vijay Kedia holding a 15% share. Other shareholders include Ankit Vijay Kedia, Charanjit Singh, and Subinder Jeet Singh Khurana.

TAC Infosec derives a significant portion of its revenue from global markets. The company plans to maintain its focus on promoting and selling its products and solutions to international users by investing in brand building, advertising, and expanding its marketing operations.

Financial Performance and Industry Landscape

The startup has demonstrated promising financial performance, reporting a total revenue of INR 5.31 crore in the first half of FY24 and a profit (PAT) of INR 1.94 crore. In FY23, their PAT stood at INR 5.07 crore on a revenue of INR 10.14 crore.

It is noteworthy that recent years have witnessed a surge in new-age tech startups seeking listings on SME platforms. Examples include Yudiz Solutions, a blockchain and IT development company, which listed on the NSE SME platform in 2023, and DroneAcharya Aerial Innovations, a drone startup, which listed on the BSE SME platform in 2022.

TAC Infosec’s successful anchor book placement and upcoming IPO position them for continued growth and solidify their position as a key player in the cybersecurity solutions landscape.