A Bengaluru-based IT operations and service-management software company is raising Rs 48.46 crore through a BSE SME issue.
EverestIMS Technologies is an enterprise software company. Its products help businesses run their IT infrastructure: monitoring networks, servers and applications, managing service desks and assets, and reducing downtime.
The company was incorporated in April 2017. It sells both Software-as-a-Service (SaaS) and on-premises versions of its products, which lets it serve customers who prefer a cloud subscription as well as those, typically larger or regulated organisations, who need software running inside their own data centres.
The product suite is built around its flagship platform, Infraon Infinity. It covers AI for IT Operations (AIOps), Generative-AI-powered IT Service Management (ITSM), IT Infrastructure Management (ITIM), Network Change and Configuration Management (NCCM), IT Asset Management (ITAM) and Operations Support Systems (OSS).
Together these let clients remotely monitor critical devices, servers and applications, automate incident handling and streamline service delivery. Adding generative AI to service management lines up with where enterprise IT spending is heading.
The SaaS products are cloud-hosted and sold on subscription through a web browser, with no local installation needed, which can build recurring revenue over time.
On-premises deployments are installed and maintained on the customer’s own infrastructure. They give clients more control and customisation, but revenue tends to be lumpier and more project-based.
The go-to-market model combines direct and channel sales. ETL sells directly and through its US subsidiary, Infraon Corp, and relies on domestic and international channel partners, distributors and sales agents, who often own the customer relationship.
This gives the company broader reach without a large sales force, but it also puts partners between ETL and its end customers. The company had 230 employees as of March 31, 2026.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 29, 2026 |
| Issue Closes | October 5, 2026 |
| Allotment (expected) | October 6, 2026 |
| Listing | BSE SME |
| Listing Date (tentative) | October 8, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 80 – Rs 85 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 48.46 crore (57,00,800 shares) |
| Fresh Issue | 45,93,600 shares (Rs 39.05 crore) |
| Offer for Sale | 11,07,200 shares (Rs 9.41 crore) |
| Lot Size | 1,600 shares |
| Min. Retail Application | 3,200 shares (2 lots) |
| Min. Retail Investment | Rs 2,72,000 |
| Post-IPO Market Cap | Rs 183.92 crore |
| IPO as % of Post-IPO Capital | 26.35% |
| Lead Manager | Oneview Corporate Advisors Pvt Ltd |
| Market Maker | KG Stock Broking Pvt Ltd |
| Registrar | Maashitla Securities Pvt Ltd |
| Syndicate Member | Basan Equity Broking Ltd |
This is a combined issue: about 81% fresh equity and 19% offer for sale. From the net proceeds of the fresh issue, ETL will use Rs 24.00 crore for working capital and Rs 5.66 crore to buy IT hardware for an AI Innovation and Experience Laboratory, with the rest going to general corporate purposes.
Post-IPO, paid-up equity capital rises from Rs 17.04 crore to Rs 21.64 crore.
Price Band
At the Rs 85 upper band, with FY26 earnings attributed to the fully diluted post-IPO equity, the issue is valued at a P/E of about 14.00x, or 13.06x on FY25 earnings. The FY25-based multiple is lower because profit fell in FY26. The Rs 183.92 crore market cap is about 2.8 times FY26 total income.
For a profitable software company, a 14x P/E doesn’t look demanding on its own. Analysts nonetheless read the issue as fully priced on recent average earnings. Their reasons are that FY26 profit declined, margins are compressing and receivables are building, all of which cast doubt on how durable the earlier growth is.
GMP Watch
Grey-market readings range from zero to modestly positive at ₹8, or about 9.4%, implying a listing near ₹93, rising from ₹0 on September 25.
As always, GMP is unofficial, unregulated and unendorsed.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 45.62 | 57.78 | 65.91 |
| Net Profit (PAT) | 10.83 | 14.08 | 13.14 |
| PAT Margin (%) | 23.74 | 24.36 | 19.93 |
| RoCE (%) | 56.56 | 48.63 | 36.15 |
The revenue trend is healthy, but profit has slipped. Total income grew about 27% in FY25 and 14% in FY26, so growth is continuing but slowing. Net profit rose about 30% in FY25 and then fell about 7% in FY26, even though revenue kept rising. The PAT margin dropped more than four percentage points, from 24.36% to 19.93%.
RoCE has also dropped sharply, from 56.56% to 36.15% over two years.
Year-on-year rising trade receivables are rising. Over three years, the company reported an average EPS of Rs 7.71 and an average RoNW of 26.34%. It has paid no dividends during the reported periods.
Peer Comparison
| Company | P/E (x) |
|---|---|
| EverestIMS Technologies (FY26, post-IPO) | 14.00 |
| Newgen Software | 20.2 |
Peer P/E as of September 25, 2026.
Newgen Software is ETL’s only listed peer. ETL’s discount to Newgen reflects its size, SME listing and less proven earnings record, and is not necessarily a sign of undervaluation.
Risks to Consider
Falling profitability. FY26 profit fell about 7% on 14% higher revenue, and margins compressed from over 24% to under 20%. If the drivers are structural, such as competition or cost inflation, the earnings base the valuation relies on could weaken further.
Receivables and working capital. Receivables are rising, and the largest single use of the proceeds is working capital, which is unusual for a software company. Slow collections, particularly through channel partners and larger enterprise clients, could keep cash flow well below reported profit.
A crowded, fast-moving market. IT operations and service management is highly competitive and fragmented, with global platforms at the top end and many niche vendors below. Analysts expect rising competition to keep pressure on margins. The fast pace of AI change also means the product needs constant investment to stay relevant.
Dependence on channel partners. Partners and distributors often manage the customer relationship, which can limit pricing power and make revenue depend on partners’ priorities. Overseas sales through the US subsidiary add currency and execution risk.
