Fujita Corporation-backed Neilsoft refiles draft IPO papers with Sebi

Neilsoft Ltd, backed by Tokyo-based Fujita Corporation, has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) seeking to raise funds through an initial public offering (IPO). The offering includes a fresh issue of shares up to Rs 90 crore and an offer-for-sale of up to 8 million shares. The proceeds are intended for capital expenditures and general corporate purposes.

The IPO is structured with key allocations: 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail individual investors. The equity shares will be listed on NSE and BSE, with Equirus Capital Private Limited and IIFL Capital Services Limited serving as the book-running lead managers.

Established in 1991, Neilsoft is a technology-driven company in the engineering research and development sector. It specialises in engineering services and solutions, addressing digitalisation, digitisation, and automation needs across architecture, engineering, and construction (AEC), manufacturing, and industrial plant segments.

The company operates delivery centres in Pune, Ahmedabad, Bengaluru, Bad Soden, and Tokyo, with sales teams across India, Canada, and the UK.

Neilsoft's financial performance has shown growth, with revenue from operations rising 11.96% to Rs 325.85 crore in fiscal 2024 from Rs 291.03 crore in fiscal 2023. Profit after tax increased by 24.05% to Rs 57.85 crore over the same period. For the nine months ending December 31, 2024, the company reported revenue of Rs 289.06 crore and a profit after tax of Rs 41.28 crore.

The company intends to utilise the fresh issue proceeds, amounting to Rs 63.52 crore, primarily for funding capital expenditures and meeting general corporate purposes. A potential pre-IPO placement, not exceeding 20% of the fresh issue, is also being considered.

Neilsoft serves a diverse client base across the Americas, Europe, Asia-Pacific, and India, with notable clients including NBBJ Architecture, Praj Industries, Hilti AG, and others. Its operations are supported by subsidiaries in Germany, Switzerland, Japan, and the United States, with R&D and product development functions based in Pune and Bad Soden.

The IPO is being conducted through a book-building process, a standard method for determining the price of the shares based on demand. This strategic move is expected to support Neilsoft’s expansion and operational goals in the rapidly evolving engineering services sector.