The IPO, priced between Rs 200 and Rs 204 per share, has already created healthy buzz in the gray market, with the GMP (grey market premium) hovering around Rs 25 per share, or about 12% above the upper price range, a sign of positive sentiment towards the company’s growth prospects and niche positioning in the cloud technology segment.
IPO structure and use of proceeds
The issue includes a fresh equity issue worth Rs 59.34 crore and an offer for sale (OFS) of equity shares worth Rs 10.50 crore by existing shareholders. Post the issue, the total share base will increase to 1.29 crore shares, compared to 1 crore shares before the issue.
Of the total proceeds, the company plans to use Rs 8.6 crore to repay loans, Rs 29.2 crore to fund working capital needs and the balance for general corporate purposes. The IPO has portions reserved for retail, non-institutional and institutional investors, with Giriraj Stock Broking acting as market maker.
Anchor investors have already shown confidence in the issue. Workmates raised Rs 19.58 crore in its anchor book on November 10, with participation from institutional buyers.
The fast growing cloud services company in India
Workmates Core2Cloud has emerged as one of India’s leading AWS Premier Consulting Partners, offering services in cloud migration, DevOps, cybersecurity, data analytics and emerging technologies such as AI, ML, IoT and blockchain. The company has completed more than 350 projects for more than 200 clients across industries including financial, healthcare, retail, media and e-commerce.Its expertise spans end-to-end cloud lifecycle management – from architecture design and migration to automation and managed services. Workmates has also developed niche capabilities in SAP infrastructure management on AWS, targeting large enterprise workloads moving to the cloud.
Workmates has achieved tremendous growth over the past two years. Between FY24 and FY25, revenues more than doubled from Rs 53.5 crore to Rs 108.4 crore, while profit after tax (PAT) rose 160% to Rs 13.9 crore.
Subscription details and lot size
Investors can bid for a minimum of 1,200 shares (two lots), which requires an investment of Rs 2.44 lakh in the higher price band. For high net worth investors (HNIs), the minimum application size is three lots (1,800 shares) worth Rs 3.67 lakh.
A total of 34.23 lakh shares will be offered in the IPO, of which 47% will be reserved for qualified institutional buyers (QIBs), 14% for non-institutional investors and 33% for retail investors.
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