Transline Technologies planning its IPO

New Delhi, August 8, 2025 – Transline Technologies, a video surveillance and biometrics solutions company based in Delhi,  Limited, has announced plans for a 100% book-built initial public offering, consisting solely of an offer for sale (OFS) of up to 16,191,500 equity shares of face value ₹2 each. The company will not issue new shares, and proceeds will go directly to the selling shareholders.

The promoters currently hold a 70.81% stake in the company. The remaining shares are held by 437 different shareholders, including Ramesh Damani, Green Portfolio, Altius Investech, and Chryseum Advisors. The company’s nearest rivals include Nelco, Orient Technologies, and Allied Digital Services. The company has expertise in designing, developing, and deploying integrated security and surveillance systems, biometric authentication platforms, and AI-powered software products.

Offer Details

In the offer, promoters Amita Gupta, RKG Enterprises Pvt Ltd, and Arun Gupta HUF, along with shareholder Rahul Jain, are offloading a combined stake through the sale of 16,191,500 shares. The weighted average acquisition cost ranges from ₹0.97 to ₹54.00 per share. Post-offer, the company’s paid-up equity share capital will remain at 89,675,000 shares, with public shareholding increasing proportionately.

Financial Performance (Standalone)

Allied Digital Services reported strong growth in FY25, with revenue rising to ₹3,710.78 million from ₹2,258.93 million in FY24. PAT increased to ₹483.33 million, maintaining healthy margins despite a slight dip in EBITDA margin to 21.39%. ROE declined to 36.86% from 62.36% due to a higher net worth, which more than doubled. Debt levels rose to ₹860.84 million, keeping the debt-equity ratio stable at 0.48. Overall, the company demonstrated robust expansion with controlled leverage.

Business Overview

The company operates in four different verticals, including:

1. Video Surveillance Solutions: offering proprietary products StorePulse, CheckCam, and CamStore.
2. Biometric Solutions: for identity verification and Aadhaar-linked applications.
3. IT Infrastructure: including data centre and network integration projects.
4. Services: comprising SaaS products and managed support.

Almost 66% of the company’s revenue was derived from government and PSU contracts, as it serves both private and public sector clients.

Key Risks

There are multiple risks that the company currently faces. First, the revenue is highly concentrated, with the top 10 customers contributing about 81% of the total sales, which makes it somewhat risky. A large part of the revenues is derived from government tenders, which can have procurement and payment risks. The operations are working capital-intensive with a 165-day cycle in FY25. Since it is an offer for sale, there would not be any fresh funds available for the company after the issue.

About the Company

Transline Technologies Limited is a Delhi-based technology solutions provider with over two decades of experience, delivering surveillance, biometric, IT infrastructure, and managed services to clients across India.

REF: https://www.bseindia.com/corporates/download/348035/IPO Prior/TTL_DRHP_20250807173504.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations