Precision in Progress: Unpacking the Digilogic Systems Limited IPO

Admin
Jan 20
3 min read

Today, we’re spotlighting a high-precision player in the Indian defense and aerospace landscape: Digilogic Systems Limited.

Operating in a sector that demands mission-critical reliability, Digilogic is making its debut on the BSE SME platform. With the government's aggressive push for Atmanirbhar Bharat (Self-Reliant India) in defense, this IPO comes at a time of significant strategic tailwinds.

Company Profile: The Engineering Behind the Defense

Established in 2007, Hyderabad-based Digilogic Systems is a technology-led company specializing in Automated Test Equipment (ATE), radar and electronic warfare simulators, and embedded signal processing solutions.

Their systems are used to test and validate complex defense hardware, ensuring that everything from radar systems to propulsion motors functions perfectly before deployment. Their marquee clientele includes major defense PSUs, government laboratories, and aerospace giants.

Digilogic Systems IPO: Key Details at a Glance

The issue is a mix of a fresh issue and an offer for sale, aimed at scaling their manufacturing capabilities.

Detail	Information
IPO Dates	January 20, 2026 – January 22, 2026
Price Band	₹98 – ₹104 per share
Lot Size	1,200 Equity Shares
Min. Retail Investment	₹2,49,600 (for 2,400 shares)*
Issue Size	₹81.01 Crore
Listing Platform	BSE SME
Face Value	₹2 per share

Note on Application: While the bid lot is 1,200 shares, the minimum application for retail investors is 2,400 shares (amounting to ₹2,49,600 at the upper price band), which is standard for higher-value SME offerings.

Financial Snapshot

The company has shown a healthy growth trajectory, transitioning from a private entity to a public-ready powerhouse.

Revenue: Scaled from ₹55.96 Cr in FY23 to ₹72.19 Cr in FY25.
Profit After Tax (PAT): Witnessed a significant jump from ₹2.18 Cr in FY23 to ₹8.11 Cr in FY25.
ROE & ROCE: Both ratios stand strong at ~33-35% (FY25), indicating high capital efficiency.

Use of Proceeds: Scaling New Heights

The company plans to utilize the ₹69.68 Cr raised through the fresh issue for:

Capital Expenditure: Approximately ₹51.74 Cr is earmarked for setting up a sophisticated new manufacturing and R&D facility.
Debt Repayment: ₹8.00 Cr will be used to clear existing borrowings, strengthening the balance sheet.
General Corporate Purposes: The remainder will support operational overheads and business development.

Grey Market Premium (GMP) & Sentiment

As of January 20, 2026, the Grey Market Premium (GMP) for Digilogic Systems is hovering around ₹0 to ₹5.

This suggests a muted to cautious sentiment in the unlisted market. While the fundamentals of the company are strong, the lack of a high premium indicates that investors are waiting to see the subscription numbers before committing heavily.

Investment Recommendation: Our Take

Digilogic Systems operates in a high-entry-barrier niche with a project-driven model. Their alignment with "Make in India" initiatives and strong financial performance make them an attractive long-term prospect.

For Long-Term Investors:

If you have a high-risk appetite and are looking to play the defense-tech theme, Digilogic offers a solid fundamental story. The shift to profitability and the expansion into a new facility suggest a company in its "growth phase."

For Listing Gain Seekers:

The current low GMP suggests that significant listing gains may be unlikely. Conservative investors might prefer to watch the post-listing price discovery before entering.

Recommendation: Subscribe with a Long-Term Perspective. The company’s niche expertise and healthy return ratios outweigh the temporary lack of grey market buzz.