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Methodhub Software IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details
About Methodhub Software Limited
MethodHub is an India-based IT services and consulting firm delivering Cloud, Data & AI, Cybersecurity, ERP/CRM integration, IT infrastructure and staffing solutions to mainly North American clients. It earns revenue from time-and-material and outcome-based services, onsite delivery and managed services, with end-markets including BFSI, healthcare, telecom and energy.
Key clients and manufacturing / delivery facilities
MethodHub serves ~40 customers, with top client revenue disclosed (largest client ₹256.53 million). Delivery footprint comprises offices in four Indian cities and subsidiaries in USA and Canada; it operates delivery centres, an AI/LLM CoE and on-site presence via its US WOS to support contractual client engagements.
Product / service portfolio, product lifecycle & order book
Services are grouped into Data & AI, Cloud, Cybersecurity, IT Infrastructure, ERP/CRM and Staffing — each provides lifecycle support from PoC to production and managed operations, shortening client time-to-value. Consolidated order book / pipeline is highlighted (order book ₹692.37 million), with execution managed via blended on-site/off-shore teams and subsidiaries to accelerate delivery.
M&A, capex and expansion plans
MethodHub has completed inorganic moves (e.g., ZORTech / North America acquisitions) to scale presence in Canada/USA and plans further strategic acquisitions. IPO proceeds will fund capex (office fit-outs, CoE scaling), working capital for its US WOS and funds for inorganic growth
Employees & banker
As of 31 August 2025, the company had 296 employees. The Banker to the Company is HDFC Bank Limited, Axis Bank Limited.
Management, vision and funding for growth
Management positions MethodHub as a mid-tier, North-America-focused IT services player aiming to scale AI, data and on-site consulting capabilities. Near-term targets: strengthen on-site client contracts, reduce receivable days and scale revenues via cross-selling. Long-term: build domain-specific delivery for BFSI, healthcare and telecom and pursue targeted acquisitions to broaden capability and geography. Funding for capex/expansion will come from IPO net proceeds (allocated to working capital, capex and inorganic growth), supplemented by internal accruals and selective debt if needed.
Industry overview, size and growth
- India IT spending (2024): US$138.6 billion; growth ~11.1% in 2024.
- India IT exports: projected ~₹17,95,920 crore (US$210 billion) in FY25; sector growth expectation ~5–6% in FY26.
- Global context: tech services are being reshaped by GenAI and cloud modernization; North America remains the largest end market and key growth driver for Indian exports. Industry reports referenced in the RHP (NASSCOM, IBEF, Mordor Intelligence) underpin these forecasts.
risk factors
- Client concentration — A few large clients contribute material revenue (largest client ~₹256.53 million); losing or reduced spend by a major client would materially affect revenue and margins.
- Order execution & receivables — Historically long trade receivable cycles (management targets reducing to ~120 days). Prolonged collections could strain liquidity and working capital.
- Integration / inorganic risk — Acquisitions (e.g., ZORTech) require smooth integration; failed integration could dilute synergies and raise costs.
- Talent retention / wage inflation — Business depends on skilled employees; attrition or rising hiring costs could raise operating expense and affect delivery.
- Market / technology disruption — Rapid changes (GenAI, cloud) require continuous investment; failure to adapt could reduce competitiveness.
- Regulatory & cross-border risks — Operating in North America exposes the company to varied compliance, data and labour rules; breaches could lead to penalties and reputational damage.
- Funding / IPO execution risk — Net proceeds are central to capex and working capital plans; shortfall or market volatility at IPO could delay growth initiatives.
Key strengths, moat and near-term opportunities
- North America focus with on-site presence — Subsidiaries in USA/Canada and on-site teams improve direct client access, enabling contract enforceability and higher margin on-site work.
- Diverse service portfolio — Data & AI, Cloud, Cybersecurity, ERP/CRM and staffing offerings let the company cross-sell and capture larger wallet share per client.
- Certifications & CoE — ISO 27001, ISO 9001 and a Hyderabad AI/LLM CoE strengthen trust and capability in high-value engagements (security and AI).
- Track record of inorganic growth — Prior acquisitions (ZORTech, MethodHub Consulting Inc.) demonstrate ability to use M&A to access clients and geographies.
- Improving scale and revenue trajectory — Consolidated revenue growth (noted uptick after acquisitions) and a defined plan to reduce receivables suggest operational leverage potential.
- Clear use of IPO proceeds — Funds earmarked for working capital, capex and acquisitions target pain points that, if executed, will accelerate growth and margin improvement.





