Lytus IPO: When is this IT services provider going public?

Highlights 

• Lytus Technologies Holdings PTV. Ltd. is an IT services company that provides content streaming and telecasting services.     
• Lytus has a strong network base in India but expects to grow globally by expanding in the US, the UK, Africa, and Indonesia.
• For this offering, Aegis Capital Corp. is the underwriter.

Lytus Technologies Holdings PTV. Ltd., an information technology (IT) services provider, is looking to go public in the US equities markets.

The company offers services like content streaming, telecasting services and covers telemedicine services through local support in the health centers.  

Currently, the company has a strong network base in India but expects to grow globally by expanding in the US, the UK, Africa, and Indonesia.  

IPO Details:

The company initially applied for the initial public offering on Form F-1 on March 31, 2021. 

It has upsized the IPO and aims to offer 3,246,754 units, each unit consisting of one common share and one warrant.

An additional 487,013 units are available for the underwriters to purchase within 45 days from the prospectus date in case of overallotment.

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These common shares and warrants are immediately separable and will be issued separately in the offering. The warrants will have the exercise price per common share equal to the 100% of the offering price per unit, and the warrants will expire five years from the date of issuance. 

There will be a total of 37,400,816 common shares outstanding after the offering. 

As per the latest filing on March 30, the company had received the listing approval for the common shares under the ticker symbol ‘LYT’, whereas approval for warrants was under process to be listed under the ticker symbol ‘LYTWW’. The initial public offering securities are to be listed on NASDAQ Capital Market. 

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For this offering, Aegis Capital Corp. is appointed as the underwriter. The price range for the public offering is US$4.75 to US$6.75, and the expected date of the IPO is April 5, 2022.

The company plans to use the proceeds from the offering for working capital and general corporate purposes such as acquiring assets and developing telemedicine services.

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All you need to know about Lytus:

Lytus’s proprietary platform uses digital communication technologies, including medical monitoring devices, video capabilities and data capture methodologies, conversational computing, machine learning (ML), and intelligent robotic process automation (iRPA).

The company has two Indian subsidiaries, Lytus India and DDC and has a more than 75% stake in Global Health Sciences inc. (GHSI), a US company.

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According to the service agreement, the platform provides services to customers ranging from service providers to various other businesses by providing them access to a network of 25,000 kilometers of deployed fiber and broadband infrastructure.

Lytus has plans to offer additional value-added services, including MedTech IOI, in the future by upgrading to its existing cable networks.

For the fiscal year ended March 31, 2021, the company booked revenue of US$1.9 million, a net income attributable to the common shareholders of US$1.15 million or US$0.05 per share diluted.

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Bottom line:

2022 has been shy of bringing in initial public offerings compared to the previous year. The reasons could be an uncertain market with interest rate hikes and other global factors. Many companies are delaying their IPOs, but Lytus is expected to list on April 5, 2022.

However, investors must exercise caution while investing in the stock market.