Xtranet Technologies IPO Day 3: Issue subscribed 4x so far. Should you apply or avoid?

Xtranet Technologies IPO will close for bidding on Monday, 27 July. The mainboard issue has received stellar response from investors across all segments.

Founded in 2002, Xtranet Technologies is an integrated IT solutions provider that offers a comprehensive suite of enterprise technology services aimed at driving digital transformation, cloud adoption, managed services, cybersecurity, and IT infrastructure modernization.

Its service portfolio includes ERP implementation, system integration, network and security solutions, cloud integration, virtualization, data center management, application development, and IT infrastructure management.

The company also provides cloud-based services through Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) offerings.

Xtranet Technologies IPO subscription status

The IPO attracted robust investor interest, with the issue being subscribed 4.29 times so far compared to the 91.93 lakh shares on offer.

According to data available on BSE, the retail portion was subscribed 4.73 times against the 45.96 lakh shares allocated. Meanwhile, the NII segment saw bids worth 7.17 times the 19.70 lakh shares reserved. The QIB portion was subscribed 93% against the 26.26 lakh shares set aside for institutional investors.

Xtranet Technologies IPO GMP today

Xtranet Technologies IPO is commanding a grey market premium (GMP) of ₹8 today. Based on the upper end of the price band and the prevailing GMP, the estimated listing price of the shares is ₹134 apiece, indicating a potential listing gain of 5.50% over the issue price of ₹127.

According to market observers, the IPO's grey market trend has been weakening over the past eight sessions and is expected to soften further. During this period, the GMP has ranged between ₹8 and ₹26, reflecting a gradual decline in investor sentiment in the unofficial market.

Xtranet Technologies IPO review

SBI Securities has given the Xtranet Technologies IPO a "Neutral" rating, citing the company's solid execution track record in government-focused IT projects and strong financial performance. The brokerage highlighted that the company's revenue, EBITDA, and profit after tax grew at a CAGR of 25%, 83%, and 91%, respectively, between FY24 and FY26. At the upper price band of ₹127, the IPO is priced at 16.6x FY26 earnings, which it believes is reasonable relative to peers. However, SBI Securities pointed to customer concentration, reliance on government contracts, and a prolonged receivables cycle as key concerns, saying it would prefer to assess the company's cash flow generation and execution consistency after listing.

Swastika Investmart, meanwhile, has recommended subscribing to the IPO with a medium-term investment horizon and a moderate allocation. The brokerage noted that Xtranet Technologies had an order book of ₹356.96 crore as of April 30, 2026, along with a consistent record of revenue and profit growth. It considers the issue fairly valued based on the company's recent financial performance but advised investors to remain mindful of the execution-related risks.

Xtranet Technologies IPO details

Xtranet Technologies IPO is a fresh issue of 1.31 crore equity shares worth ₹166.8 crore, with no Offer for Sale (OFS). Since the IPO comprises only newly issued shares, the entire proceeds from the issue will go to the company.

The Xtranet Technologies IPO opened for subscription on July 23 and will close on July 27. The company has fixed the price band at ₹120-127 per share, and its shares are proposed to be listed on the BSE and NSE, with the tentative listing date set for July 30.

Investors can bid in lots of 110 shares and in multiples thereof. At the upper price band of ₹127 per share, the minimum investment for retail investors is ₹13,970. Retail investors can apply for a maximum of 14 lots (1,540 shares), requiring an investment of ₹1,95,580.

For small non-institutional investors (sNIIs), the minimum application is 15 lots (1,650 shares), amounting to ₹2,09,550. Big non-institutional investors (bNIIs) must apply for at least 72 lots (7,920 shares), which translates to a minimum investment of ₹10,05,840.

As per the allocation structure, up to 50% of the net issue has been earmarked for Qualified Institutional Buyers (QIBs), at least 35% for Retail Individual Investors (RIIs), and at least 15% for Non-Institutional Investors (NIIs).

Share India Capital Services is the book-running lead manager for the IPO, while KFin Technologies has been appointed as the registrar to the issue.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.