The Bombay Stock Exchange has approved the IPO application of Alphalogic under their BSE Startup Platform. The company has already unveiled its Draft Red Herring Prospectus (DRHP), which has been uploaded to the BSE Startup Portal.
Now startups in India can raise funds through initial public offerings! This fact will be substantiated when Alphalogic Techsys Limited will come up with its IPO in the last of week of this month. It is expected that Alphalogic will be the first startup to be listed on the BSE Startup Platform. BSE has approved the IPO applications of the first two companies till date, since the launch of the platform in December 2018.
Alphalogic is a boutique software company based in Pune, and it has been growing at the rate of CAGR 40% in the last 4 years. In FY 2018-19, the company clocked a stupendous growth rate of 120 per cent. The IPO is going to further fuel the growth rate and will play a pivotal role in the company's future expansion.
Anshu Goel, who is the Managing Director of Alphalogic, exalts about the company's future plans, and states, "We have plans to expand our business to the Western European nations, and also going to hire fresh talents in India and abroad. We are focusing on the latest technologies, such as artificial intelligence, machine learning, cloud computing and so on. The capital raised through the market will enable us to expand globally and in a more productive manner."
The company has its clientele in more than 12 countries around the world, and has already worked on some major projects for the US Government, Payback Card, Merck India and other companies. With a team of seasoned technocrats, the company is capable of delivering cutting-edge technological solutions for its clients.
When asked what made him to think about going the IPO way for funding, Anshu Goel opines, "It's always more sensible to raise capital from the market than queuing up before VCs and institutional investors. When you raise funds through IPO, you gain a complete control on your finances, which may not be the case when getting funds from a VC. Moreover, the BSE has created this wonderful platform for startups, like ours, and we must take advantage of it."
Many startup consultants believe that the BSE will have a tough time ahead screening a lot many applications from prospective startups. Alphalogic has shown the way and startups will now dare to tread on it.