Navigating the landscape of Initial Public Offerings requires a thorough examination of a company’s business model, financial health, and market prospects. For investors guided by Islamic principles, an essential step involves assessing an investment’s adherence to Shariah compliance. Here, we provide an in-depth analysis of the MetaInfotech Ltd. IPO, covering its operations, financial performance, IPO specifics, and, significantly, its Shariah status.
Table of Contents
Crucial Shariah Status: MetaInfotech is Shariah Compliant
For Muslim investors, ensuring an investment aligns with Islamic Shariah principles is a fundamental consideration. Based on the detailed screening, MetaInfotech Ltd. is categorized as Shariah Compliant.
- The company’s business in cybersecurity passes the Shariah screening.
- Its impermissible income to total revenue ratio passes.
- The interest-bearing debt to total assets ratio passes the screening.
- The illiquid assets to total assets ratio passes.
- The net liquid assets v market capitalisation passes.
- The non-compliant investments to total assets also pass.
MetaInfotech is a cybersecurity solutions provider demonstrating strong growth: FY 2025 revenue reached ₹220 crore (up from ₹153 crore), with profit after tax (PAT) rising to ₹14.5 crore. Profit margins stand around 6-7%, and the company has manageable debt (debt-to-equity 0.4x). It also holds a strong order book (₹573 crore) and is investing in office expansion. Free cash flows dipped recently, but earnings and growth trends are positive.
Therefore, for Muslim investors prioritizing Shariah compliance, MetaInfotech Ltd. IPO is considered a Shariah-compliant investment option.
About MetaInfotech Ltd.: Cybersecurity Solutions Leader
MetaInfotech Limited, incorporated in 1998, is engaged in the business of cybersecurity solutions for various industries, including banking, IT, and manufacturing. The company offers services such as consulting, implementation, and sustenance, focusing on protecting and maintaining the integrity of information and systems. They are authorized resellers of cybersecurity products from international OEMs, providing solutions for secure access and cloud workload protection.
- Meta Infotech provides end-to-end cybersecurity solutions for industries like banking, IT, insurance, and manufacturing.
- The company optimizes and secures network resources, ensuring reliable, scalable connectivity for digital infrastructure management.
- It has been providing IT solutions and services to very large corporates in India consistently for the last 26 years.
- Meta has achieved distinction as a hyper-focused Cyber Security Solutions provider in India due to unique propositions and a legacy of working with large enterprises.
- The company prides itself on hiring only industry-based experts and utilizing its Training Institute to skill and upskill resources.
- As of March 31, 2025, the company has employed around 265 employees at various levels of the organization.
Service offers:
- Cybersecurity Solutions: The company provides comprehensive cybersecurity solutions, including Secure Access Service Edge (SASE), database security, endpoint detection, data protection, application security, cloud security, identity management, network security, and email security. Specific cybersecurity products and OEMs include Zscaler, Imperva, Broadcom, Palo Alto, Solace, Colortokens, Orca, Cymulate, Armis, Security Scorecard, Versa, Crowdstrike, Rapid 7, Proofpoint, Cato, Check Point, Forcepoint, Silverfort, CyberArk, and Senital One. IT/OT Security is also offered.
- Services: The company provides 24/7 management, professional services, managed security, Annual Maintenance Contract (AMC), implementation, and in-house training to ensure smooth operation, security, and expert guidance for cybersecurity solutions and end-customer support. Additional services include consulting services, sustenance services, and professional services. They also operate an authorized training centre.
Competitive Strengths:
- “One Stop Shop” for safeguarding digital assets and infrastructure.
- Experienced Management Team and Qualified Pool of Employees.
- Long-standing relationship with marquee customer base.
- Catering to a wide range of end-use industries.
- Long-standing relationships with various Cybersecurity OEM Developers.
- Strong customer retention, with engagement driven by the knowledge and value provided by their teams.
- Commitment to customer delight by walking the extra mile for rock-solid security deployments and thorough analysis of customer use-cases.
- Zero compromise on solutions, treating all deployments seriously and ensuring they happen without loopholes and as per compliance standards.
- Advisory services emphasize transparency, ensuring customers are clear on solution outcomes and only suggesting solutions that are genuinely beneficial.
Our Vision:
- “To Be India’s Largest Cyber Security Professional Services Provider By 2025”.
- The company’s focus on having only the best trained and skilled resources on Enterprise Cyber Security solutions has made it a respected name in the cybersecurity space with large enterprises.
METAINFOTECH IPO: Key Details
The Initial Public Offering of Meta Infotech Ltd. is structured as a Bookbuilding IPO. The IPO opens on Friday, July 4, 2025, and is scheduled to close on Tuesday, July 8, 2025. The total issue size is 49,80,000 shares, aggregating up to ₹80.18 Crores. This includes a Fresh Capital-Cum-Offer for Sale component.
- IPO Open Date: July 4, 2025 (Friday)
- IPO Close Date: July 8, 2025 (Tuesday)
- Face Value: ₹10 per share
- Issue Price Band: ₹153 to ₹161 per share
- Lot Size: 800 Shares
- Minimum Investment (Retail): 1 lots (800 shares) amounting to ₹1,28,800
- Fresh Issue: 9,93,000 shares (aggregating up to ₹15.99 Crores)
- Offer for Sale: 37,35,000 shares (aggregating up to ₹60.13 Crores)
- Net Offered to Public: 47,28,000 shares (aggregating up to ₹76.12 Crores)
- Employee Discount: ₹10.00
- Issue Type: Bookbuilding IPO
- Listing At: BSE SME
- Tentative Allotment Date: Wednesday, July 9, 2025
- Initiation of Refunds: Thursday, July 10, 2025
- Credit of Shares to Demat: Thursday, July 10, 2025
- Tentative Listing Date: Friday, July 11, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 8, 2025
The promoter of the company is Venu Gopal Peruri. Share holding pre issue is 1,76,36,400 shares and post issue is 1,88,81,400 shares.
Financial Performance: A Snapshot of Meta Infotech Ltd.
Meta Infotech Limited’s revenue increased by 44% and profit after tax (PAT) rose by 38% between the financial year ending March 31, 2025, and March 31, 2024.
- Assets: Decreased from ₹76.41 Crores in March 2023 to ₹74.38 Crores in March 2025.
- Revenue: Grew from ₹109.54 Crores in March 2023 to ₹220.02 Crores in March 2025.
- Profit After Tax: Showed consistent improvement, from ₹6.54 Crores in March 2023 to ₹14.50 Crores in March 2025.
- EBITDA: Increased from ₹9.20 Crores in March 2023 to ₹22.24 Crores in March 2025.
- Net Worth: Grew from ₹19.54 Crores in March 2023 to ₹44.55 Crores in March 2025.
- Reserves and Surplus: Increased from ₹18.77 Crores to ₹26.91 Crores in the same period.
- Total Borrowing: Fluctuated, from ₹7.60 Crores in March 2023 to ₹17.35 Crores in March 2025, with a low of ₹0.77 Crores in March 2024.
Key Performance Indicator (KPI): Meta Infotech Ltd.
Key Performance Indicators offer insights into Meta Infotech Ltd.’s efficiency and valuation as of Sunday, March 31, 2024.
- The market capitalization of Meta Infotech IPO is ₹303.99 Cr..
- ROE (Return on Equity): 38.88%.
- ROCE (Return on Capital Employed): 37.81%.
- Debt/Equity: 0.39.
- RoNW (Return on Net Worth): 32.55%.
- PAT Margin: 6.63%.
- EBITDA Margin: 10.17%.
- Price to Book Value: 6.37.
Objects of the Issue: Purpose of the IPO Funds
The company Meta Infotech IPO proposes to utilise the Net Proceeds from the issue towards the following objectives:
- Repayment in full or in part, of certain of the outstanding borrowings: ₹16.70 Crores.
- Funding capital expenditure towards establishment of new office premises at Unit no 911, 9th Floor, MINT Sahar, Andheri – Kurla Road, Andheri East, Mumbai: ₹1.20 Crores.
- Setup of an interactive experience centre at our registered office situated at Unit no 118 and 119, 1st Floor, Ackruti Star, MIDC, Andheri East, Mumbai 400093: ₹0.91 Crores.
- General Corporate Purpose.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Meta Infotech BSE SME on 3rd July 2025 is ₹29, which is approximately 18.01% over the issue price. This suggests a potential listing price of ₹190 (₹161 upper band + ₹29 GMP). GMP is an unofficial indicator that reflects market sentiment and can fluctuate.
Conclusion and Investor Outlook
Meta Infotech Ltd. operates in the critical and growing cybersecurity sector, providing essential solutions and services to large corporates. The company has demonstrated impressive financial growth and strong operational efficiency, backed by a clear vision and experienced management. Importantly for many, it is confirmed as Shariah Compliant.
For all investors, a thorough review of the Red Herring Prospectus (RHP) is essential to understand the company’s detailed business model, risk factors, and future strategies. An informed investment decision is always based on comprehensive research aligned with individual investment goals and risk tolerance.
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