Kratikal Tech IPO Review

Live Status

This has been the blockbuster SME issue of the week, and the grey market keeps getting more excited as listing day approaches.

• Massive oversubscription. The issue closed on 2 July subscribed 220.71 times overall, with HNI at a stunning 324.64x, retail at 218.48x and institutions at 145.82x. Demand came from every category, not just one.
• GMP is surging. The grey market premium has climbed from around Rs 14 before the issue opened to Rs 66 as of 4 July, pointing to an estimated listing near Rs 201, roughly 49% above the Rs 135 issue price.
• Lists Monday, 7 July, on BSE SME.

With numbers this hot, allotment was a lottery. The question now is what the stock is worth after the listing pop, and whether the business justifies holding beyond it.

About the Company

What it does. Kratikal Tech, incorporated in November 2013 and based in Noida, is an AI driven cybersecurity company selling Software as a Service based cyber risk management through two proprietary platforms. Threatcop handles people security management, training employees against phishing and human error, the weakest link in most breaches. AutoSecT is an AI powered vulnerability management, detection and response platform for automated security testing.

Beyond the platforms. The Kratikal brand side offers consulting services including vulnerability assessments and penetration testing, red team exercises, compliance audits and virtual CISO advisory. The company is a CERT-In empanelled security auditor and is also empanelled by NSE to conduct system audits of trading members, real regulatory credibility in a trust driven industry. You can follow its live GMP, subscription and listing updates on the IPO GMP Live homepage.

Who it serves. Clients span BFSI, fintech, telecom, IT, healthcare, pharma, manufacturing and ecommerce, in India and abroad, with subsidiaries in the UAE and USA. Export revenue has grown from about 13% of the total in FY24 to nearly 30% in FY26. The company has around 200 employees and is debt free.

Financial Snapshot

Genuine, fast growth. Revenue nearly tripled in two years, from Rs 13 crore in FY24 to Rs 21 crore in FY25 and Rs 37 crore in FY26. Profit followed, from Rs 3.20 crore to Rs 3.81 crore to Rs 6.14 crore, and the balance sheet carries no debt. Unlike some recent SME issues where profit suddenly appears just before listing, this growth curve is steady across all three reported years, and the rising export share adds credibility.

Healthy margins for a services and SaaS mix. A PAT margin around 17% and an EBITDA margin near 25% in FY26 reflect the value added nature of cybersecurity work, a world away from the 3 to 4% margins of the commodity manufacturers that dominate the SME pipeline.

The valuation question. At Rs 135, the post issue P/E works out to roughly 24 to 25 times FY26 earnings. Veteran reviewer Dilip Davda judged the issue fully priced on its recent financials, while still suggesting well informed investors may park funds for the medium to long term. And if the stock actually lists near the Rs 201 the grey market implies, the multiple stretches to around 36 times, which prices in a lot of future growth for a company with Rs 37 crore of revenue.

Where the money goes. Notably, the largest chunk, about Rs 23 crore, is being invested into its UAE and USA subsidiaries for sales, marketing and hiring, with another Rs 9 crore into product development including a secure email gateway and a GRC automation product. This is a genuine global expansion bet, which cuts both ways, big opportunity, real execution risk.

Strengths

There is more substance here than in most SME issues:

• A real, growing niche with tailwinds. Cybersecurity spending is rising globally and in India, driven by regulation, digitisation and attack frequency, and Kratikal owns proprietary platforms rather than just reselling others' tools.
• Consistent, multi year growth. Revenue nearly tripling over three reported years, with profit roughly doubling and zero debt, is a clean trajectory, not a pre IPO spike.
• Regulatory credibility. CERT-In empanelment and NSE audit empanelment are hard earned credentials that matter enormously when selling security services to banks, brokers and regulated enterprises.
• Rising international revenue. Export share growing from 13% to 30% of revenue in two years, backed by UAE and USA subsidiaries, shows the products travel beyond India, and the IPO money directly funds that push.

Risks

The cautions here are about price and scale rather than the business itself:

• The valuation is full, and the listing will stretch it further. At 24 to 25 times earnings at issue, and potentially 36 times at the implied listing price, the stock needs years of continued fast growth just to justify the price, and any stumble would compress the multiple hard.
• It is still a very small company. Rs 37 crore of revenue and 200 employees is tiny in a global industry dominated by giants, and larger competitors with deeper pockets can outspend it on product and sales.
• Overseas expansion is unproven. Most of the IPO money funds building sales teams in the UAE and USA, markets where the company is a newcomer against entrenched players, and that spending will hit costs before it produces revenue.
• Post listing froth risk. A 220x subscription and a GMP that has quadrupled in a week reflect scarcity and momentum as much as fundamentals, and SME stocks that list on this kind of frenzy often see sharp corrections once the initial excitement fades.

Should You Buy, Hold, or Sell?

The issue has closed, allotment is done, and it lists on 7 July with the grey market pointing to a roughly 49% pop.

• If you were allotted shares: A genuine dilemma of the good kind. Booking part of the gain on listing while holding the rest is a sensible middle path, the business quality argues for holding, the frothy entry multiple argues for taking something off the table.
• If you are thinking of buying on listing day: Patience is the better move. Paying around 36 times earnings for a Rs 37 crore revenue company amid a 220x subscription frenzy is buying at maximum excitement. A better entry will likely come once the froth settles.
• For the watchlist: This is one of the few recent SME issues genuinely worth tracking long term. If the UAE and USA expansion shows results over the next few quarters, the growth story has real room to run.

Honest take. This is the rare SME IPO where the hype has a real business underneath it, steady multi year growth, proprietary products, regulatory credentials and no debt. The problem is purely the price. Fully valued at issue by an experienced reviewer's judgment, it will likely list at a level that assumes everything goes right. Allottees have earned their gain, but chasing it at Rs 200 means paying today for growth the company still has to deliver.

IPO Objects of the Issue

This was a fully fresh issue with no offer for sale, so all proceeds go to the company. The largest allocation, about Rs 23.08 crore, is investment into its subsidiaries Threatcop FZ LLC in the UAE and Threatcop AI Inc in the USA, funding sales, marketing and workforce building for international expansion. Another Rs 9.23 crore goes into product development, including new offerings like a secure email gateway and GRC automation, with the balance for general corporate purposes. In short, this is expansion capital, aimed at taking the products global.

Contact Details

• Company: Kratikal Tech Ltd.
• Location: Noida, Uttar Pradesh
• Business: AI driven SaaS cybersecurity, Threatcop people security platform, AutoSecT vulnerability management, VAPT and compliance services
• Promoters: Pavan Kumar, Paratosh Kumar, Dip Jung Thapa
• Registrar: KFin Technologies Ltd.
• Lead Manager: Beeline Capital Advisors Pvt. Ltd.
• Listing: BSE SME

This page is not investment advice. GMP is indicative only and unofficial. Please consult a SEBI registered financial advisor before investing.