EverestIMS IPO

Easy to miss in the prospectus

• Two FY26 revenue figures circulate and they are not interchangeable. Revenue from operations is ₹65.12 Cr; total income, which adds ₹0.79 Cr of other income, is ₹65.91 Cr. The RHP computes both EBITDA margin and PAT margin on total income, so the 35.41% and 19.93% quoted here would be 35.84% and 20.18% measured on revenue from operations. This record stores revenue from operations throughout.
• The RoNW of 21.69% is computed on closing net worth, which the RHP states explicitly. The same ₹13.14 Cr of profit on average shareholders' equity gives 24.33%, which the prospectus reports separately as 'RoE'. Both figures are in the document and they describe different things.
• The headline 148.63× QIB subscription is struck against a net QIB portion of only 10,88,000 shares, because anchors had already taken 16,12,800 — 28.3% of the entire offer and more than half the QIB book. The 294.22× total is likewise measured on 38,01,600 shares, excluding both the anchor and market-maker portions.
• Grey market quotes for this issue disagreed materially with one another — ₹20 and ₹42 per share were both reported for 5 October by different aggregators — so this record carries no GMP series at all rather than pick one.
• The equity base is overwhelmingly bonus stock. Of the 1,70,44,578 pre-offer shares, 1,51,50,736 were issued as an 8:1 bonus on 9 November 2024, three weeks after 1,89,38,420 shares of ₹1 face value were consolidated into 18,93,842 shares of ₹10 on 22 October 2024. EPS for all three years is restated for both events.
• The company reports no segments at all under AS-17 — the RHP says so in terms. The three lines shown here are the revenue-from-operations breakup disclosed in 'Our Business', not reportable segments, and the hardware line within it did not exist before FY26.
• The ₹29.66 Cr figure that appears in some reporting is the sum of the two identified objects — ₹24.00 Cr of working capital and ₹5.66 Cr for the AI laboratory — not the fresh issue, which is ₹39.05 Cr at the ₹85 offer price. The balance falls to general corporate purposes, capped at the lower of 15% of the raise or ₹10.00 Cr.
• Four-fifths of the identified spend repairs working capital rather than building anything. The AI Innovation and Experience Laboratory is itemised in the RHP down to individual MacBooks and a ₹157.35 lakh HPE ProLiant DL380a server, and will occupy about 1,500 sq ft inside premises the company already leases.
• There is no controlling shareholder. Eight promoters sit on a twelve-member board, seven of them holding 9.64% each pre-offer and Satish Kumar Vijayaragavan 12.92%, and all eight sold in the offer for sale in near-equal tranches.
• ₹9.41 Cr of the ₹48.46 Cr raised never reaches the company. The thirteen selling shareholders take it, and the issue is only ₹39.05 Cr of fresh capital.
• The international growth story is one country. Software exports tripled from ₹1.09 Cr to ₹3.30 Cr in FY26, but they are still only 6.6% of software product revenue, and the UAE moving from 1.72% to 4.68% of total revenue accounts for nearly all of it — Malaysia went the other way, from 2.10% to 0.52%.
• As a BSE SME scrip the stock depends on KG Stock Broking, the designated market maker holding 2,86,400 shares, for two-way quotes, and it trades within a 5% daily band — two of its first three sessions after listing closed at or near the lower limit.