Logiciel Solutions

• Logiciel Solutions is coming out with an initial public offering (IPO) of 20,67,600 shares in a price band of Rs 183-193 per equity share. 
• The issue will open on November 28, 2025 and will close on December 02, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 18.30 times of its face value on the lower side and 19.30 times on the higher side.
• Book running lead manager to the issue is Fintellectual Corporate Advisors.
• Compliance Officer for the issue is Geetanjali Nerchehal.

Profile of the company

Logiciel Solutions has grown into an offshore software development partner, empowering startups and growing businesses to transform visionary ideas into scalable, secure, and high-performance digital platforms. With over a decade of consistent delivery excellence, it specializes in creating tailored, robust, and future ready software solutions across web, mobile, and cloud-native technologies. The company is an experienced outsourced software development firm, delivering end-to-end custom software solutions to enterprises and startups worldwide. Its expertise spans Cloud Engineering, AI/ML, UI/UX Design, and Application Development, leveraging cutting-edge technologies to build high-performing digital solutions.

The company’s core operations are anchored at its central development center in Ludhiana, Punjab, which houses the majority of its engineering and delivery teams. While a large portion of its workforce operates from its primary development center, it also maintains a strategically structured remote engineering workforce across India. This hybrid model allows it to leverage the best of office-based and remote work environments, ensuring strong team cohesion and quality control from its office-based teams, while also tapping into a versatile and geographically diverse talent pool through remote contributors.

At the forefront of its innovation journey is a focused and pragmatic embrace of Artificial Intelligence (AI). Recognizing AI’s transformative impact on software development, the company is actively integrating AI tools across the lifecycle from code generation and automated testing to UI/UX enhancement and intelligent project management. While AI remains an evolving space, it is moving fast to harness its capabilities and deliver greater speed, efficiency, and insight for its clients. The company’s long-term value as a technology partner is reflected in its enduring client relationships. Many of its clients have grown with it over multiple years, with its longest ongoing engagement now entering its 12th year - a testament to its reliability, impact, and alignment with client goals.

Proceed is being used for:

• Capital expenditure towards upgrading of physical infrastructure
• Investment in human resources through manpower hiring
• Capital expenditure towards upgradation of IT infrastructure
• Funding for business development and marketing activities
• General corporate purpose

Industry Overview

India's Information Technology (IT) and Business Process Management (BPM) sector has emerged as a global leader, contributing significantly to the country's economy. The industry has played a crucial role in positioning India as a preferred outsourcing destination, with robust capabilities in IT services, software development, and digital transformation solutions. The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.5% of India’s GDP, as of FY23 and is projected to hit 10% by FY25. As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the Internet.

The Indian IT industry’s revenue touched $227 billion in FY22, a 15.5% YoY growth and was estimated to have touched $245 billion in FY23. The IT spending in India is estimated to record a double-digit growth of 11.1% in 2024, totalling $138.6 billion up from US$ 124.7 billion last year. By 2025, the Indian software product industry is projected to hit Rs 8,68,700 crore ($100 billion) as companies seek to expand globally. The Indian software product industry is expected to reach $100 billion by 2025. Indian companies are focusing on investing internationally to expand their global footprint and enhance their global delivery centres. The data annotation market in India stood at $250 million in FY20, of which the US market contributed 60% to the overall value. The market is expected to reach $7 billion by 2030 due to accelerated domestic demand for AI.

India's IT industry is likely to hit the $350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP). India’s IT export revenue rose by 9% in constant currency terms to US$ 194 billion in FY23. Exports from the Indian IT services industry stood at $199 billion in FY24. The export of IT services has been the major contributor, accounting for more than 53% of total IT exports (including hardware). India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The IT spending in India is estimated to record a double-digit growth of 11.1% in 2024, totalling $138.6 billion up from $124.7 billion last year. India’s public cloud services market grew to $3.8 billion in the first half of 2023, expected to reach $17.8 billion by 2027. By 2026, widespread cloud utilisation can provide employment opportunities to 14 million people and add $380 billion to India's GDP. 

Pros and strengths

Startup & growth venture expertise: The company has experiences partnering with both startup founders and technology leaders such as CTOs, Heads of Engineering, and Product Executives to support the full software lifecycle from MVP to scale. Its teams are skilled at adapting to evolving business needs while delivering strong technical execution. This includes enabling i) Rapid MVP development and investor-ready demo platforms to support early-stage fundraising and market Validation, ii) It builds software that is scalable that can grow with business, well documented, enterprise grade and has long time Maintainability and iii) Deployment of high-performing software teams that integrate seamlessly with internal stakeholders and consistently deliver on quality, speed, and reliability.

AI-augmented software development: While no organization has fully mastered AI, it is among the early adopters actively integrating AI across the software delivery lifecycle. The company’s teams use AI tools Such as Cursor, Microsoft CoPilot, Windsurf for: Automated code generation and refactoring to improve development velocity; AI-driven test coverage to increase reliability and reduce manual effort; Bug detection, code reviews, and performance optimization via AI-enhanced static analysis; and Project planning and sprint forecasting using AI-powered Project Management tools such as JIRA & Clickup.

Rapid team onboarding: The company understands the importance of time in high-growth environments. Its onboarding process is designed for speed and precision: Dedicated teams can be deployed within 1- 2 weeks, with a deep understanding of project goals and required technologies; and its onboarding framework includes immediate alignment on architecture, development workflows, and communication protocols.

Risks and concerns

Concentrated customer base driving majority of sales: The company derives a significant portion of its revenue from a select group of valued customers, reflecting strong ongoing relationships. In the previous periods, its top 10 customers contributed over 97% of its total sales, with its single largest customer accounting for more than 50% of its revenue from operations over the last three financial years and stub period. Consequently, the loss of any of these key customers, or a significant reduction in the volume of business from them, could have a material adverse impact on its business, financial condition, and results of operations.

Heavy geographic concentration in the US market: The company’s revenue from operations is heavily concentrated in the United States of America, making it highly susceptible to economic, political, and regulatory developments in that region. For the period ended September 30, 2025 and for Fiscal 2025, Fiscal 2024, and Fiscal 2023, customers based in the United States contributed approximately 96.28%, 96.48%, 99.60%, and 98.60% of its revenue from operations, respectively. Given this high concentration, any adverse economic developments such as a recession, inflationary pressures, interest rate fluctuations, or tightening of fiscal policies in the USA could materially impact its business performance and financial condition.

Significant exposure to home improvement & construction clients: A substantial portion of the company’s revenue is concentrated from services related to companies which are part of Home Improvement & Construction which provides services pertaining to residential remodeling, roofing, HVAC, solar installation, and exterior renovations. The revenue contribution from the services related to Home Improvement & Construction is Rs 743.52 lakh, Rs 1 451.55 lakh, Rs 1181.41 lakh and Rs 1054.24 lakh for the period ended September 30, 2025 and for financial year ended on March 31, 2025, 2024 and 2023 respectively. The company offers custom software development services that cater to the specific needs of the business and provide a tailored solution that meets business objectives. A loss of customer of this segment may affect its revenue and profitability of the business.

Outlook

Logiciel Solutions is an outsourced software development partner, delivering end-to-end custom technology solutions to startups and enterprises around the world. The company has startup & growth venture expertise. It has AI-Augmented software development. On the concern side, the company derives a substantial portion of its revenue from a limited number of customers. Consequently, the loss of any of these key customers, or a significant reduction in the volume of business from them, could have a material adverse impact on its business, financial condition, and results of operations. Moreover, its revenues from operations are heavily dependent on customers located in the United States of America (USA). Worsening economic conditions or factors that negatively affect the economic conditions of the USA could materially adversely affect its business, financial condition and results of operations. 

The company is coming out with a maiden IPO of 20,67,600 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 183-193 per equity share. The aggregate size of the offer is around Rs 37.84 crore to Rs 39.90 crore based on lower and upper price band respectively. On performance front, the company has reported 23.44% rise in revenue from operations to Rs 2,090.55 lakh in FY25 as compared to Rs 1,693.62 lakh in FY24. The company net profit surged 37.80% to Rs 547.43 lakh in FY25 as compared to Rs 397.26 lakh in FY24. 

Recognizing that the company’s success relies on a highly skilled workforce, it places significant emphasis on attracting, training, and retaining top talent. Through structured learning programs, leadership development initiatives, and upskilling opportunities, it ensures that its employees remain at the forefront of technological advancements. A performance based compensation structure, coupled with a culture of innovation, helps it to foster motivation and alignment with the company goals. Expanding its talent acquisition strategy further enables it to onboard specialized professionals in AI, DevOps, cybersecurity, and SaaS product development.