Methodhub Software Set for BSE SME Platform Listing
Bengaluru-based Methodhub Software, a prominent player in IT services and digital transformation, is poised to debut on the BSE SME platform on December 12.
The company’s initial public offering (IPO), which garnered substantial interest, has seen a grey market premium stabilise at 9%, suggesting measured anticipations ahead of the listing.
The IPO, valued at ₹102.49 crore, was active from December 5 to December 9, comprising a fresh issuance of ₹87.50 crore alongside an offer for sale worth ₹14.99 crore.
Share pricing fell within the range of ₹190 to ₹194, culminating in a significant pre-listing valuation of approximately ₹365 crore, with the post-issue share capital projected to reach 1.88 crore shares.
Impressive Subscription Figures
Methodhub’s IPO achieved a remarkable overall subscription rate of 28.91 times, marking it as one of the most fervently sought-after SME IPOs of the quarter. Notably, the non-institutional investor (NII) segment led the charge with a subscription rate of 47.97 times.
Qualified institutional buyers (QIBs) exhibited a noteworthy appetite, subscribing at a rate of 27.55 times—a rarity for offerings on SME platforms.
Retail investors also demonstrated considerable enthusiasm, achieving a subscription rate of 21.54 times, underscoring robust optimism for scalable IT service firms with an international footprint.
Funding and Growth Prospects
On December 4, Methodhub successfully raised ₹29.17 crore from anchor investors, ensuring institutional backing until January and March under customary 30- and 90-day lock-in regulations. This anchor interest serves as an indicator of broader demand during the subscription window.
Methodhub Software’s operational spectrum encompasses cloud services, data and AI, cybersecurity, ERP/CRM integration, IT infrastructure, and recruitment delivery services.
The company’s client portfolio spans various sectors, including banking, financial services and insurance (BFSI), healthcare, energy, telecommunications, and automotive industries.
As of October 2025, Methodhub and its subsidiaries cater to 29 clients, bolstered by a workforce of nearly 300 employees and consultants. The firm’s business model emphasises long-term client retention, domain expertise, and scalable delivery solutions.
Robust Financial Performance
Financial indicators reveal a vigorous trajectory of growth; revenue surged by 136% in FY25, reaching ₹136.01 crore compared to ₹57.59 crore in FY24. Profit after tax also reflected significant progress, doubling to ₹11.50 crore from ₹5.41 crore.
The first quarter of FY26 alone contributed an additional ₹80.22 crore in revenue and ₹10.35 crore in profit, demonstrating sustained upward momentum.
Utilisation of IPO Proceeds
Proceeds from the IPO are earmarked for loan repayments, bolstering working capital, investing in the U.S. subsidiary MethodHub Consulting Inc., and exploring potential acquisitions.
The company’s strategic growth agenda focuses on enhancing delivery capacity, fortifying onshore capabilities within the U.S., and diversifying its enterprise service offerings.
Despite the overwhelming subscription levels, the grey market premium of 9% suggests that the market does not anticipate a significant listing surge.
Instead, traders seem to brace for a prudent debut, which will be shaped by institutional involvement, scalable earnings, and the prevailing sentiment within the SME IT sector.
Source link: M.economictimes.com.
