Datasol (Bangalore) Ltd Files DRHP for BSE SME IPO: Fresh Issue of 39.2 Lakh Shares

Bengaluru | October 3, 2025: Datasol (Bangalore) Ltd, a Bengaluru-based company specialising in embedded electronics and precision engineering, has filed its Draft Red Herring Prospectus (DRHP) with BSE SME to launch an initial public offering (IPO). The IPO comprises a 100% fresh issue of 39,20,000 equity shares with a face value of ₹10 each. Importantly, the offering does not include an Offer for Sale (OFS) component, making it entirely a fundraising exercise.

The company has appointed Finshore Management Services Ltd as the Book Running Lead Manager (BRLM) and Integrated Registry Management Services Pvt Ltd as the registrar. The bids, as well as the details of the price band, will be announced before the issue opening in the Red Herring Prospectus (RHP).

Headquartered in Bengaluru, Datasol (Bangalore) Ltd designs and manufactures embedded systems, PCB assemblies, display, and sensor modules, along with turnkey product engineering solutions. Its clientele includes the defence, space, and industrial automation sectors.

The company operates from an 11,072 sq. ft. facility in Peenya, Bengaluru, and is also AS9100D and ISO 9001:2015 certified, conforming to stringent aerospace and defence quality requirements.

Datasol Bangalore Ltd IPO Financial Performance

The company has recorded steady growth in both sales and profitability over the past three fiscal years. Its revenue from operations more than doubled, rising from ₹2,218.24 lakh in FY23 to ₹5,178.40 lakh in FY25. Profit after tax (PAT) also grew significantly, jumping from ₹46.41 lakh in FY23 to ₹548.40 lakh in FY25. This strong performance was mirrored in earnings per share (EPS), which surged from ₹0.42 in FY23 to ₹5.02 in FY25, underscoring improved profitability. On the balance sheet front, net worth strengthened from ₹1,876.94 lakh in FY23 to ₹2,803.25 lakh in FY25, while borrowings were brought down substantially from ₹383.02 lakh to just ₹74.72 lakh over the same period. Together, these figures highlight the company’s expanding scale of operations and its growing financial strength ahead of the listing.

Datasol Bangalore Ltd IPO Objects of the Issue

The proceeds of the IPO shall be utilized for:

• Capital Expenditure: ₹846.12 lakh on the acquisition of new plant and machinery.
• Working Capital: ₹1,335.13 lakh for financing the operations.
• General Corporate Objectives: Maintain utilisation within regulatory standards.

Datasol Bangalore Ltd IPO Promoters & shareholding

Promoters of Datasol are:

• Mr. Satish Reddy
• Mr. Balakuntlam Sathyanarayana Sureshkumar
• Dr. Basavanna Palli Ambika Son
• Mrs. Shylaja Ram

The promoters currently hold 98,27,958 shares, representing 90% of the pre-issue equity. With no Offer for Sale (OFS) component in the IPO, the entire issue is fresh equity. The company also undertook a bonus issue in May 2025, which has been duly factored into its EPS and NAV disclosures.

Datasol Bangalore Ltd IPO Strengths

• Expertise in defence, aeronautics, and industrial electronics solutions.
• Strong quality certifications (AS9100D and ISO 9001:2015).
• Revenue increased more than twice in two years as profitability inched up.
• Debt repayment through borrowings reduced to ₹74.72 lakh in FY25.

Datasol Bangalore Ltd IPO Risks

• Customer concentration: Its top 10 customers accounted for 89.62% during FY25.
• Import dependency: Exposures to forex as well as supply chain risk.
• Working capital intensive: High inventory and receivables cycles.
• Contingent liabilities: ₹635 lakh as of FY25 end.

The upcoming IPO of Datasol is entirely a fresh issue, aimed at funding capacity expansion and meeting working capital requirements. With steadily growing presence in defence, space, and industrial electronics, the company has managed to reduce its leverage over recent years. Details regarding the issue price band, lot size, and subscription dates will be disclosed in the Red Herring Prospectus (RHP) and statutory advertisements prior to the public offering. The shares are proposed to be listed on the BSE SME platform.

REF: https://www.bsesme.com/download/362308/SME_IPO InPrinciple/DRHP_Datasol_BSE_30092025_Final_20250930225714.pdf

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