Upcoming IPO: Xtranet Technologies IPO to hit Dalal Street on 23 July. GMP hints 20% listing pop. Should you buy?

Xtranet Technologies IPO is set to hit the primary market next week, adding to the busy mainboard IPO calendar. The Xtranet Technologies IPO date is scheduled from 23 July to 27 July, with the company fixing the Xtranet Technologies IPO price band at ₹120-127 per equity share. The shares are proposed to be listed on both the BSE and NSE, with a tentative listing date of 30 July.

The Xtranet Technologies IPO is a completely fresh issue of 1.31 crore equity shares, aggregating ₹166.8 crore, with no offer for sale (OFS) component. As the issue consists entirely of fresh shares, the net proceeds will accrue to the company. The basis of allotment is expected to be finalised on 28 July, while refunds and credit of shares to successful bidders' demat accounts are likely on 29 July.

For the Xtranet Technologies IPO, investors can bid in multiples of 110 shares. At the upper end of the Xtranet Technologies IPO price band of ₹127 per share, the minimum investment for retail investors works out to ₹13,970. Retail investors can apply for up to 14 lots (1,540 shares), requiring an investment of ₹1,95,580.

For small non-institutional investors (sNII), the minimum application size is 15 lots (1,650 shares), amounting to ₹2,09,550, while big non-institutional investors (bNII) will need to apply for at least 72 lots (7,920 shares), translating into an investment of ₹10,05,840.

Under the issue structure, up to 50% of the net offer has been reserved for Qualified Institutional Buyers (QIBs), at least 35% for Retail Individual Investors (RIIs), and at least 15% for Non-Institutional Investors (NIIs).

Share India Capital Services is the book-running lead manager to the issue, while KFin Technologies has been appointed as the registrar.

Xtranet Technologies IPO GMP today is +26. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Xtranet Technologies share was ₹153 apiece, which is 20.47% higher than the IPO price of ₹127.

According to recent grey market activity over the past five sessions, the IPO's GMP is showing an upward trend today, suggesting anticipation for a robust listing. Throughout this period, the GMP fluctuated between ₹25 and ₹26, according to expert opinions.

SBI Securities has assigned a "Neutral" rating to the Xtranet Technologies IPO. The brokerage said the company is a government-focused IT solutions provider with a strong execution track record and healthy earnings growth, with revenue, EBITDA and PAT clocking a CAGR of 25%, 83% and 91%, respectively, during FY24-FY26.

At the upper end of the price band of ₹127, SBI Securities noted that the IPO is valued at 16.6x FY26 post-issue earnings, which it considers reasonable compared with listed peers. However, the brokerage highlighted key risks, including customer concentration, dependence on government contracts and a stretched receivables cycle, which could impact the quality and sustainability of earnings. It said it would prefer to monitor the company's cash flow generation and execution consistency after listing, and therefore maintained a "Neutral" stance on the issue.

Incorporated in 2002, Xtranet Technologies is an integrated IT solutions provider offering enterprise applications, digital transformation services, managed services, proprietary platforms, and strategic technology partnerships to clients across industries.

The company reported steady financial growth in FY26, with total income rising 32% year-on-year to ₹366.01 crore from ₹276.53 crore in FY25. Profit after tax (PAT) increased 36% to ₹40.73 crore, while EBITDA grew to ₹63.18 crore from ₹47.20 crore in the previous financial year.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

Dhanya Nagasundaram works as...