Vijay Kedia backed IPO with 125% GMP to keep an eye on

Amid the ongoing IPO craze and back-to-back market launches, one company is starting to stand out as Investors and market watchers everywhere seem to be talking about it, as renowned investor Vijay Kedia seems to hold a significant stake in it.

Exato Technologies Limited, with a book build issue of Rs. 37.45 crores, is backed by a renowned ace investor, Vijay Kishanlal Kedia, who holds a 4.5 percent stake. The issue comprises a fresh issue of 0.23 crore shares aggregating Rs. 31.85 crore, along with an offer for sale of 0.04 crore shares worth Rs. 5.6 crore.

The IPO opened for subscription on 28th November 2025 and closed on 2nd December  2025. The basis of allotment is on 3rd December 2025, and the stock is scheduled to list on the BSE SME on 5th December 2025.

The price band has been set at Rs. 133-Rs. 140 per share. The issue witnessed an overwhelming response, being oversubscribed 880.96 times on the final day, with a GMP of 125 percent. According to BSE data, NIIs (Non-Institutional Investors) subscribed 1,102.37 times, RIIs (Retail Individual Investors) subscribed 1,068.74 times, and the QIB category was oversubscribed 327.08 times.

Overview of Exato Technologies

Exato Technologies is a Customer Transformation Partner that helps businesses improve how they serve and communicate with their consumers. Its offerings are built around Customer Experience-as-a-Service (CXaaS) and AI-as-a-Service, helping organisations enhance customer engagement, streamline operations, and achieve measurable business outcomes by leveraging technologies such as artificial intelligence (AI), automation, and cloud platforms.

More than 40 percent of the company’s revenue comes from long-term service contracts exceeding five years, underscoring the stability and continuity of its client relationships.

Exato Technologies works with well-known clients such as MakeMyTrip, RBL Bank, IGT Solutions, IKS and WNS, and serves key sectors including BFSI, healthcare, retail, telecom, manufacturing and IT/ITeS/BPO/KPO through technology-driven solutions tailored to specific business needs.

The company’s business model is built on a balanced revenue mix of recurring service contracts and perpetual licenses. Through Average Recurring Revenue (ARR) from long-term engagements, Exato ensures cash flow stability and customer stickiness, while perpetual licensing provides upfront revenues and flexibility for enterprises preferring ownership-based deployment.

Objectives of the IPO Offer

The proposed utilisation of the Net Proceeds and Pre-IPO Proceeds by Exato Technologies Limited is planned across four key areas. The company intends to allocate up to ~Rs. 15.73 crores towards meeting its working capital requirements, up to Rs. 6.8 crores for investment in product development, and up to Rs. 2.53 crores for repayment or prepayment of certain borrowings. A portion of the proceeds will also be earmarked for general corporate purposes, which caps this allocation at the lower of 15 percent of the total amount raised or Rs. 10 crores. 

The implementation schedule spans FY26 and FY27. During FY26, the company proposes to deploy up to Rs. 5 crores for working capital, Rs. 1.36 crores for product development, and Rs. 2.53 crores for loan repayment. 

In FY27, the planned deployment includes up to Rs. 10.7 crores for working capital requirements and up to Rs. 5.44 crores for product development, while no further allocation is planned for loan repayment. Funds reserved for general corporate purposes will be utilised across the implementation period as required.

Financial Performance

Exato Tech experienced a marginal growth in its revenue from operations by around 9 percent YoY from Rs. 114 crores in FY24 to Rs. 124.2 crores in FY25, while the net profit registered a stronger performance, growing by about 89 percent YoY from Rs. 5.3 crores to Rs. 10 crores.

For H1 FY26, Exato reported revenue from operations of Rs. 71 crore and a net profit of Rs. 7.3 crore. The company delivered an EBITDA of Rs. 11.4 crore, reflecting an EBITDA margin of 16.02 percent, while the PAT margin stood at 10.22 percent. Key return ratios remained healthy, with Return on Equity (ROE) at 15.81 percent and RoCE at 19.27 percent, alongside a debt-equity ratio of 0.56.

Exato Technologies Strengths and Weaknesses:

Exato Technologies’ strengths lie in its ability to offer integrated, end-to-end solutions across AI, automation, CXaaS and cybersecurity. The company benefits from strong global partnerships, including NICE Platinum Partner status and collaborations with Mitel, UiPath and Autonom8. 

A significant portion of its business, over 40% of revenue, comes from long-term contracts exceeding five years, ensuring predictable growth and client stickiness. The company also possesses deep domain expertise spanning BFSI, healthcare, retail, telecom, IT/ITeS and manufacturing. 

Its leadership team brings extensive global CXO-level experience from organisations such as NICE and Wipro, strengthening strategic direction and execution capabilities.

Its current scale limits restrict its ability to execute very large global projects. There is also considerable dependence on key partners such as NICE and Mitel, meaning any changes in partnership terms could affect profitability.

The company has limited proprietary IP, with its own products still under development, which may affect differentiation in a competitive market. Additionally, Exato’s revenue remains concentrated in India, with its U.S. and global presence still at an early stage of development.

Written by Shivani Singh

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