Canarys Automations Ltd IPO Timeline

Canarys Automations Ltd IPO opens on 27-Sep-2023, and closes on 03-Oct-2023. The Canarys Automations Ltd IPO bid date is from 27-Sep-2023 to 03-Oct-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Canarys Automations Ltd IPO Opening Date 27-Sep-2023
Canarys Automations Ltd IPO Closing Date 03-Oct-2023
Basis of Allotment 06-Oct-2023
Initiation of Refunds 09-Oct-2023
Credit of Shares to Demat 10-Oct-2023
Canarys Automations Ltd IPO Listing Date 11-Oct-2023

Canarys Automations Ltd IPO Lot Size

Canarys Automations Ltd IPO lot size is 4000 shares. A retail-individual investor can apply for up to 1 lots (4000 shares or 124000).

Application Lots Shares Amount
Minimum 1 4000 ₹124000
Maximum 1 4000 ₹124000

Canarys Automations Ltd IPO Details

Canarys Automations Ltd IPO Date 27-Sep-2023 to 03-Oct-2023
Canarys Automations Ltd IPO Face Value Shares of ₹2 per share
Canarys Automations Ltd IPO Price ₹29 to ₹31 per share
Canarys Automations Ltd IPO Lot Size 4000
Issue Size Shares of ₹2 (aggregating up to ₹47.03 Cr)
Fresh Issue Shares of ₹2 (aggregating up to ₹47.03 Cr)
Offer for Sale -
Issue Type Book Building - SME
Listing At NSE - SME
QIB Shares Offered -
Retail Shares Offered -
NII (HNI) Shares Offered -
Company Promoters Metikurke Ramaswamy Raman Subb, Danavadi Krishnamurthy Arun, Raghu Chandrashekhariah.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Funding of expenditure relating to solutions development for digital transformation and water resources management solutions
  • 2 Creation of new delivery centre including infrastructure thereof and upgrading existing facilities
  • 3 Funding working capital requirements of the company
  • 4 General corporate purposes

Company Financials

Canarys Automations Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 55.90 74.56 9.38
03-2022 43.46 52.24 4.31
03-2021 19.75 25.35 2.18
Amount in ₹ Crore
  • High Quality Standards.
  • Value Creation Approach.
  • Sustainability Focus.
  • Customer Centric Approach.
  • Skilled and Experienced Team.
  • The company commercial success is largely dependent upon its ability to successfully anticipate market needs and utilize and manage the company resources to upgrade and enhance existing solutions and services, develop and introduce new services and solutions that meet the end users' needs on a timely basis. Any failure to do so, might impact its ability to compete effectively and could make the company solutions obsolete, thereby adversely affecting of the revenue, reputation, financial conditions, results of operations and cash flow.
  • Failure to offer customer support in a timely and effective manner may adversely affect the company relationships with its customers.
  • The company revenues from operations are highly dependent on customers located in the United States of America (USA/US). Adverse economic conditions or factors that negatively affect the economic situation of that country could materially adversely affect its business, financial condition and results of operations.
  • The company generate a significant portion of its revenues from a small number of customers, and any loss or reduction of business from these customers could reduce the company revenues and materially adversely affect its business, financial condition, and results of operations.
  • If the company is unable to recover its dues from the customers, the company results of operations and cash flows could be materially adversely affected.
  • The company global operations expose it to numerous and sometimes conflicting legal and regulatory requirements, and any failure to comply with these laws and regulations could impose significant civil, criminal or monetary liability.
  • The company does not have long-term commitments with its customers, and the customers may terminate contracts before completion, negotiate adverse terms of the contract or choose not to renew contracts, which could materially adversely affect its business, financial condition and results of operations.
  • The company's business is dependent on the contractual arrangements entered into by it. Many of its client contracts can be terminated with or without cause by providing notice and without termination-related penalties.
  • The company contracts may become unprofitable. This may materially adversely affect its business, financial condition and results of operations.
  • The company is dependent on authorities of the Central government and State governments for a substantial proportion of its business and revenue. These authorities are highly dependent on state/central grants/budget allocation to fund various water resource management projects. Any decline in the budgetary allocation towards Water resource management projects] will have a material adverse impact on the business, financial condition, and results of operations.
  • Projects relating to water resources management solutions are typically awarded on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. the company business and its financial condition may be adversely affected if its are unsuccessful in bidding for new projects.
  • The company actual cost in executing any contract pertaining to water resources management solutions business may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have an adverse effect on its business, financial condition, results of operations, and prospects.
  • The timely and cost effective execution of the company water resource management solutions projects is dependent on the adequate and timely supply of key materials such as Data Loggers, UHF transmitters, Charge Controllers, Radar Sensors, Rotary Gate Position sensors.
  • If the company fail to keep pace with technical and technological developments in the water resource management solutions industry, it could adversely affect its business and results of operations.
  • If the company is unable to attract new clients or its existing clients do not renew their contract, the growth of the company business and cash flows will be adversely affected.
  • If the company fail to attract and retain highly skilled IT professionals, its may not have the necessary resources to properly staff projects, and failure to successfully compete for such IT professionals could materially adversely affect the company business, financial condition and results of operations.
  • Increases in wages and other employee benefits expense for the company IT professionals could prevent it from sustaining our competitive advantage.
  • The company investments in human capital and technology may not yield the intended results.
  • The company profitability will suffer if its are not able to maintain the company resource utilisation levels and productivity levels.
  • The company may be liable to its clients for damages caused by system failures, disclosure of confidential information or data security breaches, which could harm its reputation and cause us to lose clients.
  • If the company solutions and services do not effectively inter-operate with its users existing or future IT infrastructures, installations could be delayed or cancelled, which would could materially affect the company business, financial condition and results of operations.
  • Certain contracts that the company has entered into may have warranties that could result in liabilities in the future.
  • The company partner with large global IT solutions companies for implementing their solutions for its clients, and any adverse change in terms of business with them may impact the company business and results of operations may be adversely affected.
  • Increases in operational costs could adversely affect the company results of operations.
  • Failure to perform or observe any contractual obligations could result in cancellation or non-renewal of a contract, which could cause it to experience a higher than expected number of unassigned employees and an increase in the company expenses as a percentage of revenues, until its are able to reduce or reallocate the company headcount and may adversely affect of the business, results of operations and financial condition.
  • The company has in the past experienced, and may in the future experience, a longer sales closure process and implementation cycle with respect to certain projects that require it to make significant resource commitments prior to realising revenue for the company services.
  • The company may not be able to recognise revenues in the period in which its services are performed, which may cause the company margins to fluctuate.
  • The company revenues are highly dependent on a limited number of industry verticals, and any decrease in demand for outsourced services in these industry verticals could reduce its revenues and materially adversely affect of the business, financial condition and results of operations.
  • The company incorporate third-party open source software into its customer deliverables and the company failure to comply with the terms of the underlying open source software licenses could adversely impact its customers and create potential liability on it.
  • The company use third-party software, hardware and Software-As-A-Service (SaaS), technologies from third parties that may be difficult to replace or that may cause errors or defects in, or failures of, the services or solutions we provide.
  • The company relies on certain third-party software to conduct its business. Its may face intellectual property infringement claims that could be time- consuming and costly to defend. If the company fail to defend ourselves against such claims, its may lose significant intellectual property rights and may be unable to continue providing the company existing services.
  • The Company had incurred losses in the past. Any loss in future could adversely affect its operations and financial conditions and the trading price of the company Equity Shares.
  • There may be potential conflict of interests between the Company and other entities promoted by its directors or Promoter Group Members/ Entities or Subsidiaries.
  • Failure or delays in obtaining third party certifications and accreditations may cause delays in the company delivery schedules and disruptions in its business which may adversely affect the company business, financial condition and results of operations.
  • The company is subject to laws and regulations in the United States and other countries in which its operate concerning the company operations, including export restrictions, U.S. economic sanctions and the Foreign Corrupt Practices Act, or FCPA, and similar anti-bribery laws. If its are not in compliance with applicable legal requirements, the company may be subject to civil or criminal penalties and other remedial measures, which could materially adversely affect its business, financial condition and results of operations.
  • The company face risks associated with currency exchange rate fluctuations.
  • Employee fraud or misconduct could harm it by impairing the company ability to attract and retain clients and subject it to significant legal liability and reputational harm.
  • Intellectual property rights are important to the company business. Failure to get approval for intellectual property rights may adversely affect its business. The company may be unable to protect them from being infringed by others, including its current and / or future competitors/employees which may adversely affect the company business value, financial condition and results of operations.
  • The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
  • The company expansion into new solutions and services categories and an increase in the number of solutions and services offered by it may expose it to new challenges and more risks.
  • Undetected software design defects, errors or failures may result in loss of or delay in market acceptance of the company services or in liabilities that could materially adversely affect its business, financial condition and results of operations.
  • The company inability to receive or renew the necessary licenses, approvals and registrations in a timely manner or at all may lead to interruption of the Company's operations.
  • Industry information included in this Draft Red Herring Prospectus has been derived from third party websites and sources.
  • The company does not own its registered office and the premises where of the conduct the company operations and the said premises have been taken on leave and licence or lease. Any termination of these agreements may require it to vacate such premises and adversely affect its business operations:
  • Data networks are vulnerable to attacks, unauthorised access and disruptions. Losses or liabilities that are incurred as a result of any of the foregoing could materially adversely affect the company business, financial condition and results of operations.
  • The company is dependent on the company Promoters and Directors for the execution of its business strategy. The company is also dependent on a number of Key Managerial Personnel and its senior management, and the loss of, or the company inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.
  • There are certain discrepancies/errors noticed in some of the company corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013.
  • The company has had certain inaccuracy in relation to regulatory filings and the company has made non-compliances of certain provision under applicable law.
  • Any deficiency in the company solutions and services could make the Company liable for customer claims, which in turn could affect its Company's results of operations.
  • The company face competition from onshore and offshore IT services companies, and increased competition, Its inability to compete successfully against competitors, pricing pressures or loss of market share could materially adversely affect the company business, financial condition and results of operations.
  • The company may not be able to successfully manage the growth of its business if the company are unable to maintain adequate internal systems, processes and controls.
  • Brand recognition is important to the success of the company business, and its inability to build and maintain of the brand names will harm the company business, financial condition and results of operation.
  • The company Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
  • The company Promoters/Directors have given personal guarantees and properties in relation to certain debt facilities provided to the Company by its lender. In event of default of the debt obligations, the personal guarantees may be invoked thereby adversely affecting the company Promoter's ability to manage the affairs of the Company and the Company's profitability and consequently this may impact its business, prospects, financial condition and results of operations.
  • The unsecured loan availed by the Company from a related party may be recalled at any given point of time.
  • The company ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
  • The company has issued equity shares (excluding Bonus issue) during the last 12 months at a price which may be below the Issue Price.
  • The company Subsidiaries and Joint Venture have incurred losses in the past.
  • The agreements executed by the Company with lenders for financial arrangements contain restrictive covenants for certain activities and if its are unable to get their approval, it might restrict the company scope of activities and impede its growth plans.
  • There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.
  • The Company has a negative cash flow in its operating activities in previous three financial years details of which are given below.
  • The Company's management will have flexibility in utilizing the Net Proceeds, subject to certain approvals. There is no assurance that the Objects of the Issue will be achieved within the timeframe expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment. Further, the funding plan has not been appraised by any bank or financial institution.
  • The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency.
  • The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, business operations and financial condition.
  • The company may need to seek additional financing in the future to support its growth strategies. Any failure to raise additional financing could have an adverse effect on the company business, results of operations, financial condition and cash flows.
  • The company has in past entered into related party transactions and its may continue to do so in the future.
  • In addition to the existing indebtedness the Company, may incur further indebtedness during the course of business.
  • The company future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
  • International expansion.
  • Market specific technology offerings.
  • Expansion of Water Resource Management Solutions business.

Canarys Automations Ltd IPO Promoter Holding

Pre Issue Share Holding 73.94%
Post Issue Share Holding 53.97%

Canarys Automations Ltd IPO Subscription Status (Bidding Detail)

The Canarys Automations Ltd IPO is subscribed - times on Oct 03, 2023 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) - - - - -

Canarys Automations Ltd IPO Prospectus

Canarys Automations Ltd IPO Listing Date

Listing Date 11 Oct 23
BSE Script 91876
NSE Symbol CANARYS
Listing In NSE - SME
ISIN INE0QG301017
IPO Price ₹31
Face Value ₹2

Canarys Automations Ltd IPO Registrar

Link Intime India Pvt Ltd

Phone: +91- 810 811 4949
Email: canarys.ipo@linkintime.co.in
Website: www.linkintime.co.in

Canarys Automations Ltd IPO Lead Manager(s)

  1. Indorient Financial Services Ltd

FAQs on Canarys Automations Ltd IPO

Canarys Automations Ltd IPO, which opens for subscription from 27-Sep-2023 to 03-Oct-2023 has an issue size of ₹47.03 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Canarys Automations Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Canarys Automations Ltd IPO Opens for subscription from 27-Sep-2023 to 03-Oct-2023.

The lot size of Canarys Automations Ltd is 4000 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹124000 and ₹124000 respectively.

Allotment date for Canarys Automations Ltd is 06-Oct-2023 and refund of application amount (in case allotment is not received) will begin from 09-Oct-2023. If your allotment goes through, then shares will be credited in your Demat account by 10-Oct-2023.

The registrar for Canarys Automations Ltd IPO is Link Intime India Pvt Ltd. You can check your IPO allotment status on the registrar's website.

The shares of Canarys Automations Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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