Vijay Kedia-Backed TAC Security Raises INR 8.55 Cr From Anchor Investors Before IPO

SUMMARY

TAC Security's robust anchor book issue, backed by reputable investors, sets a promising stage for its upcoming IPO. With strong investor interest and a strategic growth plan, the company is poised for success in the cybersecurity landscape.

As it embarks on its IPO journey, TAC Security aims to leverage the funds to fortify its market presence, drive innovation, and expand its global footprint. With its proven track record and ambitious vision, TAC Security exemplifies the potential of new-age tech startups in the SME IPO arena, marking a significant milestone in its growth trajectory.

Bengaluru, India – SaaS-based cybersecurity firm TAC Security, backed by prominent investor Vijay Kedia, is inching closer to its initial public offering (IPO) after garnering INR 8.55 crore through its anchor book issue. This strong investor interest bodes well for the company's public debut, scheduled to begin today (March 27th) and close on April 2nd.

Attracting Reputable Investors

TAC Security strategically allocated 8,06,400 equity shares to a distinguished group of anchor investors at INR 106 per share. This illustrious list includes NAV Capital VCC – NAV Capital Emerging Star Fund, Astorne Capital VCC, Beacon Stone Capital VCC – Beacon Stone I, Zinnia Global Fund PCC – Cell Dewcap Fund, and LC Radiance Fund VCC.

The significant participation from these established venture capital firms underscores the confidence in TAC Security's growth potential and its innovative cybersecurity solutions. Notably, NAV Capital VCC led the pack, contributing nearly 29.46% of the total anchor book subscription.

IPO Details and Growth Strategy

The IPO aims to raise approximately INR 29.9 crore at the upper end of the price band, set between INR 100 and INR 106 per share. The minimum lot size for subscription is 1,200 equity shares.

TAC Security plans to utilize the net proceeds from the IPO strategically. A significant portion will be directed towards bolstering its human resources and product development teams to fuel organic growth within India. The company also has its sights set on international expansion, with plans to allocate capital towards its US-based entity, TAC Security INC. Remaining funds will be used to address other corporate needs.

Established Market Presence and Global Ambitions

Founded in 2016 by Trishneet Arora, TAC Security has carved a niche in the cybersecurity domain. Through its SaaS model, the company offers risk-based solutions for vulnerability management and assessment, cybersecurity quantification, and penetration testing to organizations of all sizes. Notably, the majority of TAC Security's revenue currently stems from the global market.

The company's financial performance reflects its growing traction. In the first half of FY24, TAC Security reported a total revenue of INR 5.31 crore and a net profit (PAT) of INR 1.94 crore. This follows a successful FY23 that saw a PAT of INR 5.07 crore on a revenue of INR 10.14 crore.

Riding the SME IPO Wave

TAC Security's impending IPO aligns with the growing trend of new-age tech startups seeking public listings on SME platforms. This follows recent successful SME listings like blockchain and IT development startup Yudiz Solutions on NSE SME in 2023 and drone startup DroneAcharya Aerial Innovations on BSE SME in 2022.