Fujita Corporation backed Neilsoft Limited files DRHP for IPO

Tokyo-based Fujita Corporation backed Neilsoft Limited, a technology-driven, pure-play engineering services and solutions (ER&D) company with over 20 years of experience in servicing global customers, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).

The IPO, with a face value of Rs 5, is a mix of fresh issue of shares up to Rs 100 crore and an offer-for-sale for sale up to 8 million shares by Promoters and Other Selling Shareholders.

Offer for sale consists of shareholders selling shares up to 1,145,384 by Rupa Harish Shah jointly with Harishkumar Shah, up to 1,255,784 equity shares by Netsophy Private Limited, up to 147,764 equity shares by Nishit Shah jointly with Rupa Harish Shah, up to 41,376 equity shares by Harishkumar Shah jointly with Rupa Harish Shah, up to 2,440,884 equity shares by Small Industries Development Bank of India, up to 1,854,808 equity shares by SICOM Limited and other selling shareholders.

The company, in consultation with the BRLMS, may consider a pre-IPO placement of specified securities. The pre-IPO placement shall not exceed 20% of the fresh issue, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The proceeds from the fresh issue to the extent of Rs 69.63 crore will be used for funding of capital expenditure and general corporate purposes.

The Offer is being made through the book-building process, wherein not less than 75% of the Offer is allocated to qualified institutional buyers, and not less than 15% and 10% of the net offer is assigned to non-institutional and retail individual bidders respectively.

Neilsoft, founded in 1991 and commencing operations in Fiscal 1992, was established by Ketan Champaklal Bakshi and Rupa Harish Shah. With over 20 years of experience, the company specializes in serving global customers across the AEC, Manufacturing, and Industrial Plant sectors by addressing their needs for digitalization (leveraging digital technologies to transform businesses and processes), digitization (converting analog data into digital formats), and automation.

Neilsoft provides customized engineering services, including AEC design solutions, industrial plant design, and manufacturing equipment and production line design. It also offers Engineering Process Outsourcing (EPO) services and develops tailored software applications to enable digital transformation. The company’s proprietary solutions include CADISON®, a planning and design system for plant engineering, and E&I Electrical Designer, an electrical design solution. Neilsoft acts as a value-added reseller of design, collaboration, and BIM software for the AEC, Manufacturing, and Process Plant industries in India, supported by strategic partnerships with Autodesk, Inc. and Bluebeam, Inc.

Over the years, Neilsoft has collaborated with marquee clients such as NBBJ Architecture PLLC, Praj Industries Limited, Fujita Corporation, Hilti AG, Küttner & Martin GmbH, Incotec SRL, RIDA T.S., and Sigmetrix LLC, serving customers across the Americas, Europe, Asia Pacific, and India.

Headquartered in Pune, Maharashtra, Neilsoft operates delivery centers in Pune, Ahmedabad, Bengaluru, Bad Soden (Germany), and Tokyo (Japan), with sales and account management teams in India (Pune, Mumbai, Delhi, Bengaluru, Chennai, and Ahmedabad) and overseas offices in Canada, the UK, and subsidiaries in Germany, Switzerland, Japan, and the US. The company’s R&D and product development teams, based in Pune and Bad Soden, comprise 48 experts as of August 31, 2024. These teams focus on leveraging emerging technologies such as AI, ML, IoT, Computer Vision, and Scan-to-Model to create innovative, cost-effective engineering solutions that enhance value-added services and operational efficiency.

As of August 31, 2024, Neilsoft employs 1,429 permanent staff, including 1,171 in Engineering Services, 106 in Engineering Solutions, and 152 in corporate functions, R&D, product development, and management. The company’s commitment to innovation, sustainability, and customer-centric solutions positions it as a trusted partner for businesses seeking to enhance their efficiency and leverage digital technologies.

The Company's revenue from operations increased by 11.96% from ₹291.03 crore in Fiscal 2023 to ₹325.85 crore in Fiscal 2024. Profit after tax increased by 24.05% from ₹46.64 crore in Fiscal 2023 to ₹57.85 crore in Fiscal 2024.

For the three months ended June 30, 2024, revenue from operations stood at Rs 88.24 crore, and profit after tax stood at Rs 14.09 crore.

The India outsourced ER&D services market is on a dynamic growth trajectory, reflecting the country's strategic importance in the global ER&D sector. In 2023, the market was valued at USD 51 billion and is projected to escalate to USD 189 billion by 2030, exhibiting a robust CAGR of 20.7%. (Source: F&S Report).

Equirus Capital Private Limited and IIFL Capital Services Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.