This Vijay Kedia-backed firm rallied over 400% in nearly three months; Find out the key things to know about this newly-listed firm

Several recently-listed SME firms have generated substantial returns to investors lately. TAC Infosec, a cybersecurity firm backed by the well-known equity investor Vijay Kedia, is one of them. Shares of the company have rallied 442% to Rs 575 on June 24 against the issue price of Rs 106. TAC Infosec got listed on the NSE SME exchange on April 5, 2024.

Data available with Tracxn shows that Kedia and his son Ankit Vijay Kedia acquired a 20% stake in the firm in 2016 for Rs 45 lakh. At the current market capitalisation of Rs 602 crore, the present value of his investment in the company stands at more than Rs 100 crore.

For the year ended March 2024, TAC Infosec reported a net profit of Rs 6.33 crore against Rs 5.13 crore last year. On the other hand, gross sales of the company increased to Rs 11.62 crore in FY24 against Rs 10 crore a year ago.

On being asked why he invests in start-ups when he can play in the universe of listed companies, Kedia said, “An individual investor requires a small amount to invest in a start-up. If the venture becomes successful, it may deliver 100x or multi-fold returns. That is why I invest in start-ups.” He added that tracking and identifying start-ups help him learn new things.

“But the risk is huge. It is a zero or a multi-bagger game,” he said.

In general, India is seeing a rise in cybercrimes and the government is focussed on fighting this threat. There has been a substantial increase in funding for cybersecurity in the Interim Budget 2024, with the figure touching Rs 999 crore—nearly five times the Budget allocation (actual) in FY23. And there’s good reason for it. According to recent figures released by the home ministry, Indians incurred losses totalling Rs 7,500 crore due to cyber frauds in 2023. PwC’s 27th Annual Global CEO Survey also ranked cyber threats as the second most serious risk in the country, behind inflation.

Trishneet Arora, Founder, TAC Infosec, said, Vijay Kedia’s decision to invest was driven by his vision to “support and elevate innovative ventures that promise robust growth and substantial impact.”

Of course, getting a respected investor like Kedia on board was great for TAC. “It not only validates our mission and strategies but also instills a deep sense of trust and credibility among other potential investors and partners,” he said.