Digilogic Systems IPO

Digilogic Systems IPO overview

• Digilogic Systems Limited, incorporated in 2011, provides test solutions and simulation systems for the defence and aerospace sectors, offering end‑to‑end design, development, integration, manufacturing and supply.​
• Key solution segments:
  • Test systems – automated test equipment (ATE), checkout systems, radar and electronic warfare (EW) simulators.
  • Application software – data collection platforms and ready‑made technology components.
  • Services – system integration, upgrades and lifecycle support.​
• The company builds Automated Test Equipment and Data Acquisition Systems using open bus architectures like cPCI, PXI, VXI, VME and LXI, and operates two facilities totalling about 10,688 sq ft in Hyderabad.​

Key IPO details, dates and lot size

• IPO opens on 20 January 2026 and closes on 22 January 2026; basis of allotment is on 23 January, refunds and Demat credit on 27 January, and listing on 28 January 2026 (cut‑off 5 PM on closing day).​
• Face Value :- Rs 2 per share
• Price Band :- Rs 98 to Rs 104
• Sale type :- Fresh capital & OFS
• Total issue size :- Rs 81 Cr.
• Fresh Issue:- Rs 66 Cr
• OFS :- Rs 11 Cr

Lot size :-

• Minimum market lot: 2,400 shares with an application amount of ₹2,49,600; retail can apply only for this single slot, categorising it as a high‑ticket SME IPO.​

Reservation pattern:

• • QIBs (ex‑anchor): 50%.
  • NIIs: 15%.
  • Retail: 35%.​
• Anchor investors:
  • Anchor bidding date: 19 January 2026.
  • Anchor shares: 22,18,800.
  • Anchor size: ₹23.08 crore.
  • Lock‑in: 50% till 22 February 2026 (30 days) and balance 50% till 23 April 2026 (90 days).​
• Promoters: Madhusudhan Varma Jetty, Radhika Varma Jetty, Shashank Varma Jetty and Hitesh Varma Jetty; promoter holding pre‑issue 2,22,52,630 shares (88.50%), post‑issue 2,89,52,226 shares (percentage not disclosed).​
• Objects of the issue:
  • Capex for a new facility – ₹51.74 crore.
  • Pre‑payment/repayment of certain outstanding borrowings – ₹8.00 crore.
  • General corporate purposes.​

Financials and valuation snapshot

• Financial performance (₹ in crore):

Strengths

• Focused niche in defence and aerospace test solutions, including automated test equipment, radar/EW simulators and checkout systems, aligned with India’s defence indigenisation push.​
• End‑to‑end capabilities from design, development and integration to manufacturing and supply, positioning Digilogic as a solutions partner rather than only a product vendor.​
• Healthy FY2025 profitability with EBITDA margin of 18.60% and PAT margin of 11.26%, strong for a specialised engineering company.​
• High return ratios – ROE and RoNW at 34.57%, ROCE at 34.27% in FY2025 – indicate efficient capital use and a solid earnings profile.​
• Revenue ramp‑up from ₹51.71 crore in FY2024 to ₹72.19 crore in FY2025 shows growth momentum returning after a soft FY2024.​

Risks

• SME‑style IPO with high minimum application (2,400 shares, ₹2,49,600) restricts participation to higher‑ticket retail and HNI investors.​
• Revenue base remains modest (₹72.19 crore FY2025) compared with listed defence peers, making large contracts or delays significantly impact numbers.​
• Business heavily dependent on defence and aerospace capex cycles, government orders and PSU/DRDO spending patterns.​
• Client and project concentration risk typical of defence contracts; any delay in approvals, clearances or payments can affect cash flows.​
• Valuation risk as P/E is not disclosed in the shared extract; investors must rely on external sources to compare with high‑multiple defence peers.​

How To Apply for the IPO ?

• Login or Open demat account with JM Financial Services / JM PRO app: Open the JM PRO app or JM Financial Services website and log in with your credentials. 
• Locate the IPO Section: Navigate to the 'IPO' section on the platform. 
• Select IPO: Find and select the IPO from the list of open IPOs. 
• Enter the Lot Size: Specify the number of lots you want to bid for. 
• Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application. 
• Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN. 

How To Check the Allotment Status of IPO?

Steps to check IPO allotment status on JM Pro app: 

• Log in to the JM Pro app. 
• Go to the IPO Section and then to IPO Orders. 
• Select the individual IPO that you had applied for and check the allotment status. 

JM Financial Services will notify you of your IPO allotment status via push notification and email