Indian IT firm Xtranet launches Rs 166.8 crore IPO

Xtranet Technologies has set the dates for its initial public offering, looking to raise up to Rs 166.8 crore by issuing 1.31 crore new shares. The Indian IT solutions provider has fixed a price band with an upper limit of Rs 127 per share, giving the business a pre-IPO market capitalisation of Rs 664.03 crore. Share allotment is scheduled for July 28, with refunds and the crediting of shares expected the following day.

The offering contains no offer-for-sale component, meaning all capital raised will flow directly to the company rather than to early backers. Retail investors must bid for a minimum of 110 shares, requiring a minimum outlay of Rs 13,970 at the top end of the price band, with a maximum application size of 14 lots. Non-institutional investors face substantially higher entry thresholds, starting at 15 lots for small non-institutional bidders and 72 lots for larger participants.

Founded in 2002, Xtranet supplies a range of IT infrastructure and software services, including ERP implementation, network security, cloud integration and data centre management. The company also delivers digital services across infrastructure-as-a-service, platform-as-a-service and software-as-a-service models. A significant portion of its revenue is derived from government and public sector undertaking clients, supported by a workforce of 504 permanent employees as of April 30.

The firm is approaching the public markets after posting accelerated growth for the fiscal year ending in 2026. Total income increased 32% to Rs 366.01 crore, up from Rs 276.53 crore the previous year. Profit after tax grew 36% to Rs 40.73 crore, while EBITDA rose to Rs 63.18 crore from Rs 47.20 crore.

Xtranet intends to allocate the largest chunk of the net proceeds, Rs 102 crore, towards working capital requirements. An additional Rs 21.99 crore will be used to repay borrowings, and Rs 7.30 crore is earmarked for capital expenditure on systems and hardware. The flotation will serve as a closely watched gauge of current investor appetite for Indian IT listings, a segment that has delivered mixed pricing performance on the mainboard recently.