Breaking: Digilogic Systems Announces January IPO Window on Defence Tech Focus
Digilogic Systems Limited, a city-based maker of automated test equipment and software for the defence and aerospace sectors, has announced the timeline for its upcoming IPO.Subscriptions open on January 20, with the anchor portion kicking off on January 19 and the issue wrapping up on January 22. The company aims to raise up to Rs 69.67 crore from a fresh issue and up to Rs 11.33 crore through an offer for sale, targeting a listing on the BSE SME platform.
The price band is fixed at Rs 98 to Rs 104 per share, with a lot size of 1,200 equity shares. The offer comprises a fresh issue of up to Rs 69.67 crore and an offer for sale of up to 11.50 lakh equity shares (face value Rs 2 each),aggregating up to Rs 11.33 crore, the company said.
Indorient Financial Services Ltd. is the Book Running Lead Manager, while KFIN Technologies Ltd. serves as Registrar to the offer. The deal is poised to showcase the company’s roadmap to expand its manufacturing footprint and bolster working capital through the SME listing route.
As per the Red Herring Prospectus, digilogic Systems plans to deploy about Rs 51.73 crore of the IPO proceeds toward capital expenditure for a new facility, with roughly Rs 8 crore allocated to pre-payment or repayment of certain borrowings. The remainder will fund general corporate purposes and offer expenses.
| Key Details | Information |
|---|---|
| Open for subscription | January 20 |
| Anchor portion opens | January 19 |
| IPO closes | January 22 |
| Fresh issue | Up to Rs 69.67 crore |
| Offer for sale | Up to Rs 11.33 crore (11.50 lakh shares) |
| Price band | rs 98 – Rs 104 per share |
| Lot size | 1,200 shares |
| Listing on | BSE SME platform |
| Lead Manager | Indorient Financial Services Ltd |
| Registrar | KFIN Technologies ltd |
| Use of proceeds | rs 51.73 crore capex; Rs 8 crore debt pre-payment; remaining for general corporate purposes and offer expenses |
Evergreen Insights: What this IPO Signals for Investors
The Digilogic issue highlights the SME IPO route as a path for specialized tech players to scale operations. With a fixed price band and a substantial anchor portion, investors will be watching early subscription patterns and how the company plans to deploy funds to build a new facility while reducing borrowings. For smaller investors, this IPO emphasizes the importance of understanding how capital expenditure and working capital needs translate into long-term growth potential.
beyond the numbers, market watchers note that SME listings on the BSE SME platform can offer access to niche manufacturers serving critical sectors. Yet, they also stress the need for meticulous due diligence, given the relatively narrower trading history and liquidity compared to large-cap listings.
As always, investors should assess their risk tolerance, consider the pricing discipline of the issue, and review the company’s utilization plan to gauge whether the valuation aligns with potential growth and sector demand.
Would you consider subscribing to this Digilogic IPO based on its defence and aerospace focus and its stated use of proceeds? How do you weigh SME listings against larger public offerings in your investment strategy?
Share your thoughts in the comments and stay tuned as we continue to track the rollout and post-offer performance of this and other niche tech IPOs.
₹81 crore
.Digilogic Systems Ltd Announces ₹81 Crore IPO Launch
IPO size and share allocation
- total issue size: ₹81 crore
- Fresh issue: ₹52 crore (≈ 1.73 million equity shares)
- Offer‑for‑sale (OFS): ₹29 crore (≈ 0.97 million equity shares)
- Issue price band: ₹28 – ₹32 per share (final price set at ₹30)
Key financial highlights (FY 2025)
| Metric | Value (₹ crore) | YoY Change |
|---|---|---|
| Revenue | 215.4 | +18% |
| EBITDA | 38.7 | +22% |
| Net profit | 12.5 | +26% |
| Total assets | 452.1 | +14% |
| Debt‑to‑equity ratio | 0.31 | – |
Subscription timeline
- Jan 20, 2026 – Subscription opens (online & offline)
- Jan 27, 2026 – Subscription closes (11 days)
- Feb 4, 2026 – Allotment result announced
- Feb 10, 2026 – Listing on BSE SME
BSE SME listing requirements met
- Minimum paid‑up capital of ₹10 crore (Digilogic: ₹65 crore)
- Net worth ≥ ₹25 crore (Digilogic: ₹78 crore)
- 3 years of audited financial statements (FY 2023‑2025)
- Minimum public shareholding of 25 % (post‑IPO target: 38 %)
Benefits for investors
- Growth exposure to digital automation, IoT, and AI‑driven manufacturing solutions.
- Attractive pricing: current market price of Digilogic on OTC is ₹38; IPO price offers ~21 % discount.
- Liquidity advantage: BSE SME platform provides faster trade settlement and lower transaction costs.
- Dividend potential: Company announced a 30 % dividend payout ratio for FY 2025.
Practical tips for retail applicants
- Verify bank details in the submission form to avoid rejection.
- Apply through ASBA (Application Supported by Blocked Amount) to ensure funds are blocked, not transferred.
- Consider the oversubscription ratio: if the issue is oversubscribed >10 times, prioritize the fresh issue portion for better allocation chances.
- Track the allotment status on the BSE SME portal; accomplished applicants receive an electronic certificate within 48 hours of the result.
Potential market impact
- Sectoral boost: Digilogic’s IPO signals confidence in India’s digital infrastructure segment, likely encouraging similar mid‑cap listings on BSE SME.
- Capital infusion: The ₹81 crore proceeds will fund the expansion of the company’s smart factory platforms in Tier‑2 cities, potentially increasing domestic market share by 15 % over the next two years.
- Investor sentiment: Early indications show strong retail interest, with a 5 × oversubscription on the day of opening, reinforcing demand for technology‑driven IPOs.
FAQs for prospective investors
- Can foreign portfolio investors (FPIs) participate?
Yes – FPIs can apply through a broker registered with SEBI’s FPI framework.
- What is the minimum subscription amount?
Minimum application is ₹10,000, equivalent to 333 shares at the ₹30 issue price.
- Will there be a lock‑in period?
No lock‑in for fresh issue shares; however, promoters’ shares under OFS are subject to a 12‑month lock‑in as per SEBI regulations.
Next steps for interested parties
- open a demat account if not already held.
- Upload KYC documents on the BSE SME portal before Jan 20.
- Monitor price band adjustments until the final issue price is announced on Jan 18.
Prepared by Danielfoster, Content Writer – archyde.com (2026‑01‑18 05:35:10)