Since its debut on the NSE SME platform on April 5, 2023, TAC Infosec, a company backed by renowned investor Vijay Kedia, has witnessed an exceptional surge in its share price, climbing over 400% in less than a month. This remarkable growth has generated significant returns for investors, with those who received shares at the time of the IPO potentially earning approximately 6.36 lakhs.
TAC Infosec’s share price continued its upward trajectory today, locked at a 10% upper circuit. The stock opened at 518 apiece on the NSE, touching an intraday high of 530.05 and an intraday low of 509. This impressive performance marks a continuation of its strong debut this month, when it opened at 290, a substantial 173.58% higher than its issue price of 106. The stock closed with a significant listing gain of 187.3%.
On the fourth day of its IPO subscription period, TAC Infosec garnered an overwhelming response, with its issue being oversubscribed by 422.03 times. According to data from chittorgarh.com, the issue received exceptional support from non-institutional investors, whose portion was subscribed 768.89 times, and retail investors, whose portion was subscribed 433.80 times. Qualified institutional buyers (QIBs) also participated, with subscriptions reaching 141.29 times.
TAC Infosec’s strong fundamentals have played a significant role in its robust performance. The company recently joined the App Defense Alliance (ADA) as a Cyber Security Assessor, solidifying its position as a major player in app security across platforms. ADA, an initiative initially launched by Google in 2019 to combat fraudulent Android apps, is currently transitioning to the Joint Development Foundation (JDF) under the Linux Foundation. TAC Security’s inclusion in the alliance alongside industry leaders like ESET, Lookout, and Zimperium bolsters ADA’s efforts to protect against emerging digital threats. The alliance’s steering group now includes tech giants Microsoft and Meta (formerly Facebook), underscoring the collaborative approach to developing app security standards and practices.
Commenting on the partnership, Trishneet Arora, Founder and CEO of TAC Security, expressed pride in the collaboration with Microsoft and Meta’s App Defense Alliance to enhance app security globally. He emphasized their commitment to creating a safer digital environment for users worldwide through their expertise and cooperative efforts within the ADA framework.
While TAC Infosec’s financial performance has been strong in recent years, financial experts like Dr. Ravi Singh of Religare Broking Ltd. caution investors about the company’s current valuation being overextended. The company’s net profit has not exhibited consistent growth over the past three years, and its cash flow remains relatively low. As a result, investors are advised to exercise caution and conduct thorough research before making any investment decisions.
TAC Infosec’s IPO, valued at approximately 29.99 crore, consisted solely of fresh issuance of 2,829,600 equity shares with a face value of 10. The funds raised through the IPO were earmarked for various purposes, including the acquisition of TAC Security Inc. (Delaware, USA) to establish it as a fully-owned subsidiary, as well as investments in product development, human resources, and general business goals. Charanjit Singh and Trishneet Arora serve as the promoters of the firm. Trishneet Arora, the company’s CEO and founder, holds a significant 74% stake in TAC Security. Renowned stock market investor Vijay Kishanlal Kedia owns a substantial 15% of the firm, while Ankit Vijay Kedia holds 5%, Charanjit Singh holds 4%, and Subinder Jeet Singh Khurana holds 2%.
In conclusion, TAC Infosec’s remarkable share price surge underscores its strong fundamentals and the market’s recognition of its expertise in app security. However, investors are advised to proceed with caution given the company’s current valuation and financial performance.
