Method Hub Software Limited IPO – SME Board
About the Company
Method Hub Software Limited is an IT services company founded in 2016. They help businesses modernize their technology. Think of them as a “tech doctor” for companies—they offer cloud services, data & AI solutions, cybersecurity, and software integration (ERP/CRM).
They have a strong global presence with offices in four Indian cities and subsidiaries in the USA and Canada. They serve around 40 customers worldwide, providing them with custom IT solutions and dedicated tech teams to manage their systems.
What They Do: Provide IT consulting, cloud services, AI/Data solutions, and cybersecurity to global clients.
READ FULL DRHP HERE: |SEBI DRHP METHODHUB|
IPO Details Table
| Detail | Explanation | Data |
|---|---|---|
| IPO Opening Date | Buy shares from | 5 Dec 2025 |
| IPO Closing Date | Last date to apply | 9 Dec 2025 |
| Price Band | Price range for shares | ₹190 – ₹194 per share |
| Lot Size | Min. shares to buy | 600 shares (~₹1,16,400 at upper band) |
| Total Issue Size | Max money raised | ₹103.02 Crore |
| Fresh Issue | New shares, money goes to company | ₹87.50 Crore (45.10 lakh shares) |
| Offer for Sale (OFS) | Old owners sell shares | ₹15.52 Crore (8.00 lakh shares) |
| Total Shares Offered | How many shares | 53.10 lakh shares |
| Listing Date | Shares start trading | 12 Dec 2025 (Tentative) |
| Listing Exchange | Where it trades | BSE SME (Small & Medium Enterprise) |
| Face Value | Company unit value | ₹10 per share |
| Registrar | Share allocation handler | Maashitla Securities Pvt. Ltd. |
| Book Manager | IPO arranger | Horizon Management Pvt. Ltd. |
What Will the IPO Money Be Used For?
The company is raising ₹87.50 Crore (Fresh Issue) to use for:
- Loan Repayment: ₹13.60 Cr to pay off company debts.
- Working Capital: ₹25.00 Cr for daily business needs (salaries, operations).
- Investment in US Subsidiary: ₹4.00 Cr to fund their US arm (MethodHub Consulting Inc.) for expansion.
- Acquisitions: Money set aside to buy smaller companies (inorganic growth).
- General Corporate Purposes: Remaining amount for other business needs.
Note: The remaining ₹15.52 Crore (OFS) goes to the selling shareholders, not the company.
IPO Timeline
| Event | Date | What Happens |
|---|---|---|
| IPO Opens | 5 Dec 2025 | Start buying shares |
| IPO Closes | 9 Dec 2025 (5 PM) | Last date to buy shares |
| Allotment Date | 10 Dec 2025 | Find out if you got shares |
| Refunds Issued | 11 Dec 2025 | Get money back if not allotted |
| Shares to Demat | 11 Dec 2025 | Shares show in account |
| Listing Date | 12 Dec 2025 | Market trading starts on BSE SME |
Business Model & Revenue Structure
How They Make Money:
- IT Services: Earning fees for consulting, cloud migration, and cybersecurity services.
- Staffing/Recruitment: Providing dedicated IT teams to clients on a contract basis.
- Global Clients: A significant portion of revenue comes from international clients (US/Canada).
Key Financial Metrics (Simple Numbers)
| Metric | FY23 | FY24 | FY25 | H1 FY26 (Sep '25) | Trend |
|---|---|---|---|---|---|
| Revenue | ₹35.92 Cr | ₹57.59 Cr | ₹136.01 Cr | ₹80.22 Cr | Massive Growth (Revenue doubled in FY25) |
| Net Profit (PAT) | ₹1.34 Cr | ₹5.41 Cr | ₹11.50 Cr | ₹10.35 Cr | Profit doubled every year |
| PAT Margin | 3.78% | 9.52% | 8.53% | 13.07% | Margins are expanding significantly |
| EBITDA | ₹5.74 Cr | ₹9.04 Cr | ₹17.00 Cr | ₹14.79 Cr | Strong operational performance |
| EBITDA Margin | 16.17% | 15.92% | 12.62% | 18.83% | Healthy margins in H1 FY26 |
| Debt-to-Equity | - | - | 0.75 | - | Moderate debt levels |
| ROE | - | - | 26.92% | 42.57% (H1) | Excellent return on equity |
- Valuation: The P/E ratio is around 17.67x (Post-IPO based on FY25 earnings), which is quite attractive given the 100%+ growth rate.
- Market Cap: The company will be valued at approx ₹365 Crore after listing.
Cost of Acquisition – For Promoters
- Promoter Holding: Pre-IPO holding is 35.29%, which will dilute to 26.84% post-IPO. This is unusually low promoter holding.
- Acquisition Cost: Not explicitly detailed, but promoters typically hold shares at face value.
- Promoter Selling: Yes, there is an OFS of ₹15.52 Cr, meaning existing shareholders are booking profits.
Industry Outlook
- IT Sector Boom: Demand for Cloud, AI, and Cybersecurity is skyrocketing globally.
- US Market Dependence: Since they have a US subsidiary, their growth is tied to US tech spending. Any recession in the US could impact them.
Key Risks & Concerns (Read Carefully)
- Low Promoter Holding: Post-IPO, promoters will own only 26.84% of the company. This is a red flag as it means they have less “skin in the game” compared to typical companies (usually >50%).
- Competition: They face intense competition from giants like TCS/Infosys as well as other mid-sized IT firms.
- Global Risk: Operations in US/Canada expose them to foreign laws, tax rules, and currency fluctuations.
- SME Liquidity: This is an SME IPO. You must trade in lots of 600 shares. It is harder to exit quickly compared to mainboard stocks
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.