Tac Security, a burgeoning cybersecurity firm, is on the cusp of a significant milestone as it prepares for its highly anticipated initial public offering (IPO) scheduled to commence on March 27.
With an ambitious fundraising target of Rs 29.99 crore, this IPO is poised to become a landmark event, signifying the debut of the first exclusively focused cybersecurity company to be listed on Indian stock exchanges. Backed by the astute investment of Vijay Kedia, Tac Security aims to leverage this opportunity to propel its growth trajectory and solidify its position in the dynamic cybersecurity landscape.
Ownership Structure and Stakeholder Distribution
As Tac Security ventures into the public market arena, founder Trishneet Arora is slated to retain a commanding ownership stake of 54.02 percent in the company, underscoring his unwavering commitment to the firm’s mission and vision.
Noteworthy stakeholders include Vijay Kedia, whose strategic backing has been instrumental in Tac Security’s journey, holding a substantial 10.95 percent stake, along with his son Ankit, who holds 3.65 percent. Additionally, Charanjit Singh and Subinder Jeet Singh Khurana are poised to hold 2.92 percent and 1.46 percent stakes, respectively.
The IPO comprises an entirely fresh issuance of 28.3 lakh shares, with a price band set at Rs 100-106 per share, reflecting the company’s confidence in its value proposition and growth potential.
IPO Proceeds of Tac Security
Tac Security has outlined a comprehensive strategy for deploying the net proceeds from the IPO, aimed at fortifying its operational capabilities and driving sustained expansion.
A significant portion of the funds will be channeled towards augmenting the company’s human resources and bolstering product development efforts, thereby enhancing its ability to innovate and adapt to evolving cybersecurity threats.
Moreover, Tac Security is poised to embark on an ambitious international expansion initiative, with plans to invest in Tac Security INC, its subsidiary based in Delaware, USA. This strategic move aims to tap into lucrative overseas markets and recruit skilled personnel to spearhead the company’s growth trajectory beyond Indian shores.
The remaining capital raised will be allocated for general corporate purposes, ensuring the company’s financial stability and agility in navigating market dynamics.
Financial Performance and Operational Focus
While Tac Security’s IPO heralds a new chapter in its corporate journey, the company’s financial performance and operational focus serve as key indicators of its resilience and growth potential. Notably, Tac Security’s revenue stream exhibits a degree of concentration, with a few key clients accounting for a significant portion of its revenue.
As of September 2023, one client contributes 82.55 percent of the company’s revenue, highlighting the importance of diversifying its client base to mitigate risks associated with dependency on individual customers.
Despite this concentration risk, Tac Security has demonstrated commendable financial performance, reporting a total revenue of Rs 5.02 crore in the first half of FY24, coupled with a robust profit after tax (PAT) of Rs 1.94 crore. In FY23, the company achieved a PAT of Rs 5.07 crore on a revenue of Rs 10 crore, underscoring its ability to generate sustainable returns and create value for its stakeholders.
Tac Security’s success can be attributed to its unwavering commitment to operational excellence and its ability to deliver cutting-edge cybersecurity solutions tailored to the unique needs of its diverse clientele.
As a leading provider of risk-based vulnerability management and assessment solutions, Tac Security leverages state-of-the-art technologies and best practices to safeguard organizations against an ever-expanding array of cyber threats.
Additionally, the company offers cybersecurity quantification services and penetration testing, empowering clients to proactively identify and mitigate vulnerabilities in their digital infrastructure. By embracing a Software as a Service (SaaS) model, Tac Security ensures seamless access to its suite of cybersecurity solutions, catering to organizations of all sizes and industries, both domestically and internationally.
Tac Security’s forthcoming IPO represents a significant milestone in the Indian cybersecurity landscape, underscoring the growing importance of cyber resilience in an increasingly digitized world. With a robust ownership structure, a clear roadmap for deploying IPO proceeds, and a track record of financial performance, Tac Security is poised to capitalize on emerging opportunities and consolidate its position as a trusted partner in safeguarding digital assets.
As the company embarks on this exciting new chapter, its commitment to innovation, operational excellence, and customer-centricity will continue to drive its success in the dynamic cybersecurity domain.
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