SRIT India IPO - QuickView

SRIT India IPO — QuickView

I went through the RHP, and honestly, this is not a “story-only” IPO.

SRIT has been in the IT business since 1999, working across e-governance, telecom & healthcare, with government/public-sector clients and a 26-year operating track record.

Financials look decent:
Revenue grew from ₹271 Cr → ₹450 Cr and PAT from ₹29 Cr → ₹43 Cr between FY24–FY26.At the ₹123–130 price band, FY26 EPS of ₹9.47 implies roughly 13.0–13.7x P/E. The disclosed peer average is 18.3x, so the headline valuation doesn't look stretched.

Promoters: RHP does not disclose criminal proceedings, SEBI penalties, regulatory actions or material civil proceedings against the promoters. That’s a positive from a governance-screening perspective

.But here’s what I don't want to ignore:

FY26 operating cash flow was negative ₹12 Cr despite ₹43 Cr PAT. The company also has a sizeable working-capital requirement, which is why ₹124 Cr of IPO proceeds is earmarked for working capital.

Total fresh issue at ₹130 = around ₹218 Cr:· ₹12.9 Cr → capex/modernisation· ₹124 Cr → working capital· Balance → acquisitions/strategic initiatives/general corporate purposes, subject to the limits disclosed in the RHP.There are also ongoing contractual/tax/GST matters, although nothing in the RHP points to promoter-level criminal wrongdoing.

My takeaway:
The business is genuine and has an established track record. Valuation looks reasonable on the disclosed peer comparison. But for a long-term investor, cash conversion + working-capital discipline + customer concentration are the three things I would track closely.

Not a “blind subscribe” IPO for me — the business deserves attention, but the cash-flow quality deserves equal attention.