TechD Cybersecurity IPO Opens on September 15: Key Details, Financials, Strengths and Risks

Ahmedabad, September 11, 2025 – TechD Cybersecurity Limited, previously known as Techdefence Labs Solutions, will launch its initial public offering (IPO) on September 15, 2025, and close the issue on September 17. The provider of cybersecurity services will raise money through a fresh issue of 20.20 lakh equity shares, out of which 1.01 lakh is a market maker portion (total issue size ₹38.99 crore)

The investors will have to confirm UPI mandates by 5:00 p.m. on September 17 to participate. The promoters of the company, including Sunny Piyushkumar Vaghela and Vaghela Piyush Rasiklal, will still have a large holding post-issue.

TechD Cybersecurity will use the proceeds mainly to enhance its human resource pool and establish a Global Security Operations Centre (GSOC) in Ahmedabad, well-positioned for robust growth in India’s fast-changing digital security market.

IPO Key Details

The public issue will open for subscription from September 15, 2025, and will end on September 17, 2025. The IPO is proceeding via a 100% book-building route, providing price discovery to the investors within the specified band.

The firm aims to raise capital through the issuance of 20,20,200 new equity shares, with a market maker component of 1,01,400 shares. The price band is set at ₹183–₹193 per share with a face value of ₹10. Retail investors will be required to apply in a lot size of 600 shares.

Post-listing, the shares will be listed on NSE EMERGE, the SME platform of the National Stock Exchange. Mr. Sunny Piyushkumar Vaghela and Mr. Vaghela Piyush Rasiklal are leading the issue.

Financial Performance (Restated)

The company has shown a striking scale-up in performance for the last three financial years, characterized by robust revenue growth, widening margins, and strengthening balance sheet.

Operating revenue increased from ₹755.78 lakh in FY23 to ₹1,506.90 lakh in FY24, and then to ₹2,979.52 lakh in FY25, almost doubling every year of the last two years. Year-on-year revenue growth was 214.5% in FY23, 99.4% in FY24, and 97.7% in FY25. Total income exhibited the same trend, increasing from ₹758.51 lakh in FY23 to ₹3,022.65 lakh in FY25.

EBITDA increased drastically from ₹135.62 lakh in FY23 to ₹1,223.57 lakh in FY25, translating into a rise in EBITDA margin from 17.9% in FY23 to 40.5% in FY25. Profitability improved with PAT growing almost nine times in two years from ₹94.11 lakh in FY23 to ₹839.61 lakh in FY25. PAT margin, correspondingly, increased from 12.5% in FY23 to 28.2% in FY25.

On the back profile, ROE remained strong, reaching 101.89% in FY24 before declining to 62.33% in FY25 as the equity base grew. Meanwhile, leverage reduced sharply, with debt to equity improving from 1.05 in FY23 to merely 0.01 in FY25. Overall, the restated numbers of the company indicate a period of fast growth, margin improvement, and deleveraging, placing it well ahead of its listing.

Use of IPO Proceeds

The company will utilize the funds raised via the issue to invest in strategic areas focused on enhancing operations and long-term growth. Notably, a significant portion of the funds up to ₹2,609.23 lakh – will be allocated towards investments in human resources, underscoring the company’s emphasis on talent-building and expanding its workforce to drive scale.

Approximately ₹588.82 lakh will be used to establish a Global Security Operations Centre (GSOC) in Ahmedabad, which should boost the technological capabilities of the company and enhance client servicing. The balance funds shall be utilized for general corporate purposes and will offer financial flexibility for future business needs.

Strengths

• Solid top-line growth with margins rising significantly in the past three years.
• CERT-In is empanelled and ISO 27001 certified, which implies adherence to leading security standards.
• Customer base comprising marquee clients like Adani Group, Zensar Technologies, and Astral Limited.
• Promoter Sunny Vaghela has a renowned reputation as a cybersecurity professional with experience in high-profile cybercrime cases.
• Strategic emphasis on talent creation through university tie-ups, creating a consistent pipeline of high-quality professionals.

Risks

• The company has a strong dependence on a few clients, with the top 10 accounting for nearly half of the revenues in FY25.
• High labour costs and attrition pressure in a highly competitive industry.
• There is a heavy regional concentration, with Gujarat and Maharashtra contributing more than 70% of revenues.
• Dependence on a few OEM partners for software licenses and key inputs.
• The history of statutory compliance lags, and the disqualification of promoters is mentioned.

Lead Manager and Registrar

TechD Cybersecurity IPO is being handled by GYR Capital Advisors Pvt Ltd as Book Running Lead Manager. Purva Sharegistry (India) Pvt Ltd has been appointed as Registrar, and Giriraj Stock Broking Pvt Ltd shall perform market-making obligations.

About TechD Cybersecurity

TechD Cybersecurity Limited, established in 2017 and based in Ahmedabad, provides end-to-end cybersecurity solutions such as managed security, compliance, VAPT, and digital forensics. TechD is empanelled at CERT-In and ISO 27001 certified, catering to BFSI, manufacturing, healthcare, aviation, and government segments. With a fast-expanding domestic and overseas presence, TechD has the Adani Group, Zensar Technologies, Astral Limited, Kedia Capital, and ETO Gruppe GmbH on its client base.

REF: https://nsearchives.nseindia.com/content/ipo/RHP_TECHD.zip

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