3i Info RI review - (Not Rated)

•    The company is providing IT related solutions and services to domestic as well as international clients.
•    It has reported inconsistency in its top lines for the reported periods with severe setback in bottom lines for FY24.
•    Based on its recent financial data, the issue is aggressively priced.
•    With the strength of its 25 subsidiaries, it is poised for bright prospects ahead.
•    Well-informed/cash surplus/risk seekers may park funds for medium to long term.

ABOUT COMPANY:
3i Infotech Ltd. (3iIL) was established in 1993, originating from ICICI Bank Limited, and began its IT Services business for external customers in 1999. 3i Infotech is a global information technology company committed to accelerating digital transformation for enterprises. With over 4300+ employees, 250+ active global clients, and a 30-year legacy, the company delivers industry leading IT services, software products, cloud, and cybersecurity solutions. Originally born out of a banking institution, 3i Infotech has evolved into a dynamic technology provider catering to BFSI, Telecom, Healthcare, Retail, Government, and Manufacturing industries. 

The company maintains a global presence with operations in India, North America (NA), the Middle East & Africa (MEA), and Asia-Pacific (APAC), positioning it across key international markets. 3i Infotech operates across multiple service pillars, offering solutions in digital transformation, managed services, automation, analytics, and cloud technologies. It has 25 subsidiaries (8 in India and 17 international).

One of the key offerings under DIMS is Hybrid IT Managed Services, which covers various components such as servers, networks, storage, databases, end-user support, network operations centers (NOC), and security operations centers (SOC). Understanding that most businesses operate in a hybrid model, 3i Infotech helps organizations manage their IT infrastructure seamlessly across both on-premises data centers and cloud environments. While some workloads require the control and security of on-premises systems, others benefit from the scalability and agility of the cloud. Acting as a bridge, 3i Infotech provides the necessary expertise and tools to manage this complexity effectively.

As part of their Hybrid IT Managed Services, they offer Onsite Facilities Management Services (FMS) along with Data Center Hardware and Facilities (H&F) Support. This means that 3i Infotech deploys its own IT professionals directly to the client's location, where they oversee the management of the physical data center. Their responsibilities include handling the hardware such as servers, storage, and networking equipment, as well as ensuring the facility's power, cooling, security, and environmental monitoring are well-maintained. The detailed activities within this service encompass hardware installation, maintenance, and repair, as well as power and cooling management. Additionally, they manage physical security and access control to ensure the safety of data center assets. 

Environmental monitoring, which includes tracking temperature and humidity levels, is another crucial function to maintain optimal operating conditions. Furthermore, 3i Infotech provides capacity planning and management to ensure infrastructure scalability, along with data center infrastructure optimization to enhance efficiency and performance. 3i Infotech offers Remote Infrastructure, Application, and Security Monitoring services, where its expert team monitors clients’ IT infrastructure, including servers, networks, databases, applications, and security systems, from a remote location such as a Network Operations Center (NOC) or Security Operations Center (SOC). Using sophisticated monitoring tools, they detect potential issues and threats. Their activities include 24/7 monitoring of servers, networks, and applications, performance monitoring and analysis, security event monitoring and threat detection, alerting and incident management, as well as log analysis and reporting.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 37708165 equity shares of Re. 10 each at a fixed price of Rs. 17 per share to mobilize Rs. 64.10 cr. The RI opens for subscription on October 07, 2025, and will close on October 27, 2025. The company is offering RI in the ratio of 2 for 9 to its eligible stakeholders as of the record date of September 26, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 0.64 cr. for this RI process, and from the net proceeds, it will utilize Rs. 48.08 cr. for working capital, and Rs. 15.38 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and Skyline Financial Services Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 169.69 cr. will stand enhanced to Rs. 207.39 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 352.57 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 729.11 cr. / Rs. 1.37 cr. (FY23), Rs. 813.88 cr. / Rs. – (313.58) cr. (FY24), and Rs. 725.76 cr. / Rs. 25.35 cr. (FY25). It marked inconsistency in its top lines and a severe setback for FY24 in its bottom line.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, offer document is silent on its dividend policy.

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 532628 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 23.93 on September 25, 2025, and opened on an ex-right basis at Rs. 22.54 on September 26, 2025. Since then, it has marked a high/low of Rs. 22.58 / Rs. 20.87. The scrip last closed at Rs. 21.38 as of October 06, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 33.15 / Rs. 18.94. 

The promoters’ holding has been constant at 0.00% for the last three quarters ended with June 30, 2025. RI is at a discount of around 20.48% based on its last traded price of Rs. 21.38 as of October 06, 2025. The counter is well maintained above the RI price to tempt investors. 

DISCLAIMER NOTE: Our family has small holding in this company, and may consider applying for RI for the eligible quantity.