Sotefin Bharat Ltd. IPO

Sotefin Bharat

• Sotefin Bharat is coming out with an initial public offering (IPO) of 48,00,000 shares in a price band of Rs 178- 187 per equity share.
• The issue will open on July 16, 2026 and will close on July 20, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 17.80 times of its face value on the lower side and 18.70 times on the higher side.
• Book running lead manager to the issue is Choice Capital Advisors.
• Compliance officer for the issue is Biswajit Das.

Profile of the company

The company is engaged in the business of providing mechanised and automated parking solutions, delivering comprehensive turnkey services. Its offerings integrate advanced automated parking technologies with the requisite supporting infrastructure to ensure seamless, end-to-end execution for its customers. Its order book reflects a diversified customer base, comprising private real estate developers as well as government bodies across various Indian cities.

The company operates in India with technology support from Sotefin SA, Switzerland, a global innovator in automated parking systems since 1956. Sotefin SA pioneered the trolley-based vehicle transfer system and, since 1959, has held various patents through its subsidiaries and associates in the field of robotic parking systems. They bring over six decades of engineering expertise to complement its business operations in the Indian market. Leveraging this legacy, it provides end-to-end automated parking solutions, including system design, manufacturing, installation, and O&M services. Incorporated in 2012, it addresses India’s growing urban mobility and infrastructure needs through advanced, space-optimized, and reliable parking technologies that adhere to global standards.

The company manufactures key structural components in-house at its manufacturing facility at Bagnan, Howrah enabling greater control over quality, timelines and costs. Its electro-mechanical components are sourced from reputed European vendors including Leuze Electronic and Nord Drivesystems while paints are sourced from Jotun Indian. Its patented robotic solution, the SILOMAT Dolly (Robotic Dolly) is currently sourced from Sotefin SA. Its product portfolio comprises a comprehensive range of automated parking systems customized to maximize efficiency, address space constraints, and cater to the specific requirements of the Indian market through tailored and customised solutions.

Proceed is being used for:

• Funding capital expenditure requirements for setting up a manufacturing facility in Kolkata, West Bengal
• Funding capital expenditure requirements for the proposed new office premises
• Funding working capital requirements of the company
• General corporate purposes

Industry overview

India’s rapid urbanization, growing population, and increasing vehicle ownership are exerting immense pressure on existing parking infrastructure, particularly in metropolitan and Tier-I cities. With limited land availability and high real estate costs, urban planners and developers are now facing the dual challenge of accommodating more vehicles while optimizing land usage. This has led to a growing interest in automated parking systems (APS) as a viable and efficient solution to the country’s parking woes. The surge in automobile sales is a key contributing factor, driven by rising per capita income, increased affordability of vehicles, and a growing preference for personal mobility-especially in the post-pandemic era where health and hygiene concerns have reshaped commuting choices. Cities like Delhi, Mumbai, Bengaluru, and Hyderabad are witnessing a steep rise in private vehicle ownership, which has compounded traffic congestion and led to a scarcity of conventional parking spaces.

By the mid-2020s, the Automated Parking System (APS) market in India transitioned into a robust growth phase, driven by rapid advancements in technology and changing urban mobility needs. The integration of automation, IoT (Internet of Things), and AI-powered smart parking solutions has significantly enhanced the efficiency, scalability, and user experience of APS installations. These technologies enable real-time vehicle tracking, automated ticketing, predictive space allocation, and data analytics, making parking systems smarter and more responsive to user demand. With urban centers becoming more congested and land costs continuing to rise, APS has emerged as a viable solution to optimize limited urban space, reduce parking-related traffic congestion, and enhance convenience in high-density zones.

The India Automated Parking System (APS) market has shown steady growth from USD 586.7 million in CY 2021 to $655.2 million in CY 2024, registering a CAGR of 3.7%. This consistent rise reflects growing urbanization, increased vehicle ownership, and the pressing need to optimize limited parking spaces in Indian cities. The push for smart city initiatives, coupled with advancements in automation, IoT, and AI, is gradually driving adoption. While growth has been moderate, it signals a maturing market with strong potential, especially as developers and municipalities increasingly prioritize space-efficient, tech-enabled parking solutions.

Pros and strengths

Swiss engineering excellence adapted for India: The company benefits from its long - standing association with Sotefin SA, Switzerland, a pioneer in automated parking technology since 1956 and the developer of the world’s first patented automatic parking system in 1959. Through this association, it has access to established Swiss engineering expertise, proven system architectures and globally benchmarked designs. These technologies are adapted by its in-house engineering and manufacturing teams at its facility in Bagnan, West Bengal to align with Indian infrastructural conditions, regulatory requirements, and cost considerations.

International quality and safety certifications: The company has achieved ISO 9001:2015 certification (UKAS-accredited) for the design and manufacture of mechanized car parking systems and CE certification (TUV) evidencing compliance with applicable European safety and quality standards. These certifications provide third-party validation of its Quality Management System, structural design processes and safety controls. Such accreditations have enabled it to secure projects with institutional stakeholders such as the Ministry of Transport in New Delhi and large-scale smart infrastructure projects under the Central Vista Redevelopment.

Domain expertise in automated and smart parking solutions: Its management and technical teams possess deep domain expertise spanning automated parking technologies, robotics, urban infrastructure development, and smart mobility solutions. Its Promoter, Arup Choudhuri, has over 25 years of experience in the parking industry supported by a team of 147 permanent employees. These experiences enable the company to address site-specific engineering challenges, optimize space utilization, and implement automation driven, innovative and cost-effective solutions. It continues to upgrade and adopt advanced technologies to enhance system efficiency, reliability, and sustainability aligned with evolving urban mobility requirements.

Risks and concerns

Dependence on critical third-party technology from Sotefin SA: The company’s leverage advanced technology and source critical patented parking robot from Sotefin SA, Switzerland, which are integral to its fully automated robotic parking systems powered by Sotefin’s Silomat shuttle and dolly technology. Any disruption in this supply arrangement, whether due to geopolitical factors, trade restrictions, logistical challenges, or changes in Sotefin’s business operations, could materially adversely affect its business, financial condition, results of operations, and prospects. Its limited registered intellectual property and dependence on third-party proprietary systems reduce its ability to protect its technology and product design from replication.

A significant portion of revenue is derived from top ten customers: Its revenues are dependent on demand from its major customers. Its revenue from operations is highly concentrated, with its top ten customers contributing 91.77%, 84.85% and 87.30% for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. A decline in orders from key customers could also impact its bargaining power, pricing, payment terms and working capital cycle. Any significant reduction or loss of business from one or more of its major customers could therefore materially and adversely affect its business, financial condition, results of operations and prospects.

Dependence on third-party suppliers and product quality risks: The company depends on third-party suppliers for raw materials and components, and any disruption in supply, price volatility, or quality issues could adversely affect its operations. Additionally, any latent defects in its products may increase its after-sales costs or result in losses due to product replacements or recalls. Additionally, the company may not have long-term supply agreements with all key suppliers, which limits its ability to secure assured pricing, quality, delivery schedules or supply volumes. Any of these factors could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.

Outlook

Sotefin Bharat is engaged in the design & implementation of automated car parking systems, with expertise in developing solutions of various scales-ranging from small installations to large, high-capacity parking structures capable of accommodating thousands of vehicles. On the concern side, its revenue is generated from projects undertaken with Government agencies. Such project / contracts is awarded on the basis of certain pre-qualification criteria and competitive selection process and are usually in a standard form, restricting its ability to negotiate the terms and conditions. Any change in the Government policies or focus and/or it is unable to recover payments in a timely manner, would adversely affect its business and result of operations.

The company is coming out with a maiden IPO of 48,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 178-187 per equity share. The aggregate size of the offer is around Rs 85.44 crore to Rs 89.76 crore based on lower and upper price band respectively. On performance front, its total income has increased by 25.57% to Rs 11,822.63 lakh in Fiscal 2026 from Rs 9,415.48 lakh in Fiscal 2025. Profit after tax increased by 53.60% from Rs 1,130.79 lakh in Fiscal 2025 to Rs 1,736.86 lakh in Fiscal 2026.

Meanwhile, the company is pursuing a dual-market growth strategy by strengthening its presence in Indian Market while selectively expanding into high-potential international markets. In India, its focus areas include metropolitan cities, smart city initiatives, metro rail infrastructure projects, and public sector contracts with entities such as BMC, CPWD, NBCC, and Delhi Metro. With over 55 projects and 12,000 parking spaces already delivered, its execution track record provides a platform to participate in future urban infrastructure developments. Internationally, it is prioritizing the markets in the Middle East, South-East Asia, North America where demand for automated and high-capacity parking solutions is supported by large-scale urban development initiatives and huge demand for premium mobility solutions. Its strategy is to leverage Swiss-origin technology capabilities together with Indian manufacturing and execution expertise, to serve these fertile markets.