Vijay Kedia-Backed TAC Security Secures INR 8.55 Cr From Anchor Investors Ahead Of IPO

SaaS cybersecurity startup TAC Infosec, also known as TAC Security, has garnered INR 8.55 Cr through its anchor book issue ahead of its initial public offering (IPO).

The IPO will comprise a fresh issue of 28,29,600 equity shares. The price band for the IPO has been set at INR 100-106 per share and the startup is looking to raise about INR 29.9 Cr at the upper end of the price band. The lot size has been fixed at 1,200 equity shares.

The Vijay Kedia-Backed company allocated 8,06,400 equity shares to anchor investors at INR 106 per share, as per a statement.

The anchor investors list included 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 IPO of TAC Security is set to open for subscription today (March 27) and will close on Tuesday (April 2).

While NAV Capital VCC – NAV Capital Emerging Star Fund contributed to 29.46% of the total anchor book subscription, Astorne Capital VCC and Beacon Stone Capital VCC – Beacon Stone I subscribed 23.51% each and Zinnia Global Fund PCC – Cell Dewcap Fund and LC Radiance Fund VCC subscribed 11.76% each of the anchor book, the statement added.

The startup has reserved 1.41 Lakh shares for market maker, 4.03 Lakh shares for non-institutional investors, 13.44 Lakh shares for qualified institutional buyers (QIBs), including anchor investors.

TAC Infosec filed its draft red herring prospectus (DRHP) in January this year to list on the NSE’s small and medium enterprises (SME) focussed-platform NSE Emerge.

Founded by Trishneet Arora in 2016, TAC Infosec offers risk-based vulnerability management and assessment solutions, cybersecurity quantification and penetration testing to organisations of any scale, size, and business through the SaaS model.

The startup plans to use the net proceeds from the IPO to invest in human resources and product development to support organic growth in India. Besides, it will also use a part of the capital raised to invest in its US-based entity TAC Security INC with an eye on expansion outside India. The remaining capital will be deployed towards meeting other corporate needs. 

Beeline Capital Advisors Private Limited is the book running lead manager for the issue. 

Founder and CEO Arora is the largest shareholder in the startup with a 74% stake, followed by ace investor Vijay Kedia who owns a 15% stake. Ankit Vijay Kedia, Charanjit Singh and Subinder Jeet Singh Khurana hold 5%, 4% and 2% stakes, respectively.

TAC Infosec earns most of the revenue from the global markets. It aims to sustain its efforts in promoting and selling its products and solutions to users in these markets by investing in building its brand, advertising, and expanding its marketing operations. 

The startup reported a total revenue of INR 5.31 Cr in the first half of FY24 and a profit (PAT) of INR 1.94 Cr. In FY23, its PAT stood at INR 5.07 Cr on a revenue of INR 10.14 Cr.

It is pertinent to note that a number of new-age tech startups have listed on the SME platforms in the last few years. While blockchain and IT development startup Yudiz Solutions listed on the NSE SME platform in 2023, drone startup DroneAcharya Aerial Innovations listed on the BSE SME platform in 2022.