Aricent Technologies unlisted Shares I Pre IPO

Aricent Technologies

₹610.00
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Available in Depository:
NSDL
CDSL

Available for Investment:
Primary
Secondary

RATING

RECOMMENDATION

Speculative Investment

Business Type

Traditional Business

Investment Checklist

Management

Accounting Practice

Profitability

Solvency

Growth

Valuation

RATING

RECOMMENDATION

Speculative Investment

Business Type

Traditional Business

Aricent Technologies Unlisted Shares Essentials
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Discover and get a complete analysis on Aricent Technologies Pre IPO - Aricent Management Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on Aricent Financial Statements.

ISIN

INE272I01010

Face Value

₹10.00

Total Share

13,11,96,104

Total Income

₹2,610.00 Cr

Profit After Tax

₹196.00 Cr

EPS

₹15.00

P/E

40.67

P/B

3.14

Market Capitalisation

₹8,002.96 Cr

Enterprise Value

₹7,140.96 Cr

Book Value

₹194.54

Intrinsic Value

₹378.95

Earnings Yield

2.46 %

Sector

Technology

Sub-sector

IT Services & Consulting

Aricent Technologies Growth

About Aricent Technologies

Aricent Technologies designs and developes communication software for the communications industry. The company offers middleware, consumer and enterprise applications, network management, service provisioning, and billing mediation.
The company was a step-down subsidiary of Altran group, a listed entity formed and registered under the laws of France.
Capgemini SE acquired Altran Technologies SAS in 2020 which was the parent company of Aricent Technologies since 2018. The Capgemini India group holds 98.25% stake in Aricent Technologies holding Limited as of March 2021.
The company was founded in 1991 and heads its operations from its office in Gurugram, Harayana in India.

Aricent Technologies IPO Details

Presently there is no news for Aricent Technologies upcoming IPO.

Aricent Technologies Merger & Acquisition

Acquisition

On 10th June 2022, Capgemini Technology Services India Limited has proposed to their shareholder that they will be acquiring their subsidiary Aricent Technologies (Holding) Limited by taking over the remaining public shares available. The voting for the same will take place from 28th June 2022 till 29 July 2022. In the proposal, the company has accounted that they will be giving 1 share of Capgemini Technology Services India Limited for 17 shares of Aricent Technologies (Holding) Limited.
On 8 April 2020, Capgemini completed the acquisition of Altran(the ultimate holding company of Aricent Technologies) and acquired 110,571,163 shares for $4.1 billion. Capgemini will hold 98.15% of Altran’s share capital and at least 98.03% of Altran’s voting rights upon settlement. This acquisition offered Capgemini a lead position with a whole stack of capabilities across research and development (R&D) strategy, digital design, product engineering, manufacturing services, software development, and integration.
In March 2011, Ambience Limited and Domestic Fund 4, a fund of Indiareit Fund Advisors Pvt. Ltd(Piramal Fund Management Pvt.) paid INR 2.1 billion to Aricent Technologies (Holdings) Limited for a 17.63-acre land on the Old Gurgaon Highway. Jones Lang LaSalle India represented Aricent Technologies.

Aricent Technologies Subsidiaries

The company has no subsidiaries as of 31st, March 2021.

Aricent Technologies Business Model

Aricent Technologies designs and develops communication software for the communications industry. The company offers middleware, consumer and enterprise applications, network management, service provisioning, and billing mediation.

Aricent Technologies Revenue Segmentation

Product License Contract
Other income

Fixed Price Contract
Time and Material Contract

Maintenance Contract

Aricent Technologies Product & Services

The company provides the following services:

outsourced product developments

product support services

licensable software frameworks

As well as Aricent’s service offerings provide a comprehensive product lifecycle of services for:

communications networks

applications

mobile services

Aricent Technologies Assets

As of 31st December 2021 company's fixed assets are bifurcated as follows:

Tangible Assets (in cr.)

Leasehold Improvments	36.6
Plant and Equipments	3.7
Computer Equipments	35.5
Furniture and Fixtures	2.4
Office Equipments	5.7
Vechicles	0.1
Capital-in-progress	2.6
Right of use assets	169.4

Intangible Assets (in cr.)

Goodwill	780.3
Software	7.9
Customer relationships	31.2

Aricent Technologies Industry Overview

Industry Statistics

Introduction:

The IT service market combines the BPO service market, the SAAS service market, and the infrastructure services market.
The BPO services market is defined as the revenues from services related to customer relationship management (CRM), finance and accounting, human resources, knowledge process outsourcing, and procurement and supply chain. The SAAS services market is defined as the revenues from services related to application development, application management, and performance monitoring. The infrastructure services market is defined as the revenues from services related to cloud computing, data center & hosting services, IT management, security, and storage.

Market size:

According to Marketline, the Indian IT services industry grew by 9.5% in 2021 to reach a value of $30.1 billion compared to $ 27.5 Billion in 2020. The compound annual growth rate (CAGR) of the industry in the period 2017–21 was 8.8%. The growth is primarily driven by increased adoption of digital IT services along with the increased prevalence of IT infrastructure in the region. The Indian IT industry contributes to around 8% of the country's GDP and is the most significant contributor to total services exports.
As per Department for Promotion of Industry and Internal Trade (DPIIT), the sector ranked 2nd in FDI inflows.

Key Trends:

The key trends in the market include new advancements for a better future like the Internet of Things, Blockchain, Machine Learning, Artificial Intelligence, Augmented Reality, Data advancement like 5G, and so on. The key players in these advancements in India include Bharti Airtel Ltd, Happiest Minds Technologies Ltd, Larsen & Turbo Infotech Ltd, HCL Technologies Ltd, and Tata Elxsi Ltd
These technological advancements have given rise to a pool of opportunities like VR/AR gaming, Metaverse, web3, robotics, web-tech, food-tech, mobile apps, and so on.

Major Players:

The four key players in the Indian IT sector are Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies, and Wipro Ltd. They are blue chip scrips with the industry's most extensive client base and revenue.

Listed Peers:

The listed peers of Aricent Technologies (Holdings) Limited, as per its market capitalization and portfolio sizes, are Sonata software ltd, Birlasoft ltd and Zensar technologies ltd . Aricent technologies specialse in engineering R&D , connectivity & harnessing Data and software services, the closest competitior for ATHL is TCS Ltd and Wipro Ltd

Future Prospects

Continued growth in artificial intelligence, big data analytics, and cloud computing. Big data and AI are the keys for future growth. Also internet security and privacy are prioritized nowadays as the world is going digital, leading to increased security concerns like cyber attacks.
Rising demand from businesses across all IT segments, with a pronounced acceleration in demand for cloud services, providing considerable monetization opportunity to the company in the future as it is already working in the segment.
According to Marketline in 2026, the Indian IT services industry is forecast to have a value of approximately $45.4 billion, an increase of 50.8% since 2021. The compound annual growth rate of the industry in the period 2021–26 is predicted to be 8.5%. Growth will be driven by increased digitization alongside increased consumer expectations of digital services and infrastructure. Additionally, the continued push towards remote and distance working will further incite demand in the market through increased investment in digital services and infrastructure

Government Initiatives

The IT sector is governed by the Ministry of Electronics and Information Technology (MietY)
An executive department of the Union Government of the Republic of India is the Ministry of Electronics and Information Technology (MeitY). On July 19, 2016, it was separated from the Ministry of Communications and Information Technology to become a separate ministerial organization in charge of IT policy, strategy, and the growth of the electronics sector.
In July 2015, the Government of India launched a ‘Digital India Programme’, with a vision of propelling the efforts to transform India into a digitally empowered society and knowledge economy. Further, it was envisaged that the digital ecosystem could generate an economic value of USD 1 trillion, which would play a crucial role in achieving the USD 5 trillion economy target by 2025.
Government push for data localization requirements will provide domestic data storage providers with a shot.
Government and enterprises are showing an appetite for cloud computing services, including Infrastructure-as-a-Service and Software-as-a-Service, which has attracted significant inward investment from global leading vendors, creating a virtuous circle.
The government push for developing the Internet of Things industry will create opportunities for networking, software, and services vendors in India over the medium term.

Aricent Technologies Strengths

The has been acquired by Capgemini SE, which gives the company the strength to acquire new clients because of the brand value associated with Capgemini Group.
The company's free cash flows have been growing at a CAGR of 28.36% over the past five years, which is higher than the industry benchmark.
With healthy cash and other short-term investments worth Rs 1,043 Cr, the company is maintaining a solid balance sheet that enables them to concentrate on growth possibilities to increase the Topline and the bottom line.

Aricent Technologies Shortcomings

The company EBIT and PBT margins are declining for past 5 years consistently which is a major red flag as the company is struggling to grow while the whole sector is in an upward trajectory.
The ROE and ROCE of the company are lower compared to other listed peers. This is basically due to a significant decrease in the net income year to year (y-o-y).

Aricent Technologies Opportunities

New specializations are opening up in areas like artificial intelligence(AI), machine learning, blockchain, telemedicine, robotics, etc., in the IT services industry. The company should reposition itself and explore these avenues for its future growth.
In the 2021/22 budget, the government earmarked around USD7.3bn for IT and telecoms sector investments.
In demand for automation and digitalization in each segment of the economy is an ample opportunity for the IT sector, and it can grow the service and product range. It is forecasted to grow to several $45.4 billion by 2026, which means a lot of scale to growth in just five years.

Aricent Technologies Threats

As companies are moving towards new technologies, such as mobile computing, IoT, and cloud computing, they are more prone to sophisticated targeted attacks, ransomware threats, malware, data leakage, and other security failures
There’s a significant disruption driven by technology. It is essential for the company to continuously review and upgrade its technology, resources, and processes to mitigate technical obsolescence

The company faces tough competition from other well-established names like Tata Consultancy Services, Wipro, Infosys, Cognizant, Tech Mahindra, and Accenture.
As being a part of the IT services industry requires highly skilled labour. In India, there is a shortage of such kind of workforce, and the portion of labour that is skilled comes at a higher cost which will increase company operating costs and hamper the company's growth.

Aricent Technologies Rating

RECOMMENDATION

Speculative Investment

Aricent Technologies Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

09/07/2022

Registered Date

14/06/2006

Planify Ticker

ARI

Reg Office: 5, Jain Mandir Marg (Annexe.), Connaught New Delhi DL 110001 India

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Frequently Ask Questions

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• 1. You confirm booking of stock_name_auto Unlisted Shares with us at a trading price.

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• 3. We will provide the bank details.

• 4. You need to transfer funds in that account.

• 5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.

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Important Note: Please note that the lock-in period for selling stock_name_auto Unlisted Shares is 6 months after listing. Hence you can’t sell stock_name_auto Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date.

Please find below the procedure for selling stock_name_auto Unlisted Shares at Planify.

• 1. We will confirm our buying price of stock_name_auto Unlisted Shares.

• 2. We will give you our client master report and you will transfer the stock_name_auto Unlisted Shares to our demat account.

• 3. We will ask for bank details of yours once the stock_name_auto Unlisted Shares are received in our demat account..

• 4. We will transfer the funds in your bank account within 24 hrs of receiving the stock_name_auto Unlisted Shares.

• 5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.

• 6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of stock_name_auto Unlisted Shares depends upon category of investors.

• 1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of stock_name_auto Unlisted Shares.

• 2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of stock_name_auto Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the stock_name_auto Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.

• a. ISIN number of stock_name_auto Unlisted Shares.

• b. Name of stock_name_auto Unlisted Shares

• c. Quantity of stock_name_auto Unlisted Shares

• d. Cosideration Amount

• e. Target DP ID and Client ID

• f. Annexure

2. Online DIS - Some of the broker these days gives facility of transferring the stock_name_auto Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the stock_name_auto Unlisted Shares by filling the details similar to Ofline-DIS.

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. Generally via our Planify platform, if somebody wants to buy Unlisted Shares then minimum investment would be 35-50k.To know about the minimum lot size of stock_name_auto, kindly click on this hyperlink - stock_name_auto.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable.

If you buy stock_name_auto Unlisted Shares from Planify then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of stock_name_auto Unlisted Shares Instantly?

• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.

• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.

• Demat Account = DP ID + Client ID. (16 Characters )

• "DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.

• Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.

• In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.

• Example:

• CDSL = 12345678(DP ID) and 91234567(Client ID).

• NSDL = IN123456 (DP ID) and 78912345(Client ID).

• Check in brokers application?

• Credit of stock_name_auto Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The stock_name_auto Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of stock_name_auto Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on Planify.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

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We at Planify do the valuation based on 2 methods.

• 1. We check the last funding that is being done in the stock_name_auto Unlisted Shares to ascertain the benchmark valuation.

• 2. If there is no funding happened in the company, then we try to find a business similar to stock_name_auto Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their stock_name_auto Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their stock_name_auto Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about stock_name_auto Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of stock_name_auto Ltd unlisted share.

We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of stock_name_auto Ltd unlisted shares with us.

The financials of stock_name_auto Ltd which includes the P/L of stock_name_auto Ltd and the Balance Sheet of stock_name_auto Ltd is in the financials section.

The annual report of stock_name_auto Ltd is available in the annual report section.