Dove Soft
What they do: Asset-light services business focused on bulk messaging and digital communication services, with working-capital intensity driven by prepaid/postpaid vendor arrangements and receivables from enterprise customers.
By IPO Milega Research · Published
Dove Soft Limited shows strong top-line growth, healthy profitability, and improving operating scale, with moderate leverage and a clear working-capital-driven IPO use.
- Listing gain
- -0.63%
- Listed at ₹110.3
- Subscribed
- 1.38x
- Total
- Retail odds
- 100%
- 1 in 1
GMP is an unofficial grey market indication. GMP updated 11 Oct, 18:05 IST.
- Price band
- ₹104-111
- Lot size
- 2400 shares
- Min. investment
- ₹2,66,400
- Issue size
- 73.26 Cr.
- Open30 Sept 2026
- Close5 Oct 2026
- Allotment6 Oct 2026
- Listing8 Oct 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 1x
- NII
- 1.96x
- Retail
- 0.81x
₹111 (+0.00%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹55 Cr
- Fresh issue
- To selling shareholders
- ₹14 Cr
- Offer for sale
- Funding working capital requirements of the Company₹46 Cr62%
- General Corporate Purposes₹3.71 Cr5%
- Issue Expenses₹10.89 Cr15%
- Offer for sale: goes to selling shareholders₹14 Cr19%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance7.0
- Flexibility6.0
- Timing6.0
- Risk4.0
GMP is indicated at 111 with 0.00% premium, suggesting negligible listing upside in the grey market. While the company has strong revenue and PAT growth, healthy profitability, and low leverage, the IPO is partly driven by working-capital needs, receivables intensity, customer/vendor concentration, and offer-for-sale dilution, which temper near-term listing enthusiasm.
Strengths5
- Expanded revenue from ₹11,972.69 lakhs in FY2024 to ₹27,398.01 lakhs in FY2026.
- Maintained PAT margin above 8% across all three years.
- Improved operating metrics such as customer churn to 19.44% from 29.16% in earlier periods.
- Built recurring revenue base of ₹15,662.68 lakhs.
- Diversified offering across SMS, RCS, Voice, WhatsApp and Email channels.
Concerns5
- Dependence on IT/ERP systems creates cyber, outage, disaster and data-breach risk.
- Offer for Sale proceeds will not flow to the company, limiting immediate funding.
- New products may not gain market acceptance or commercial success.
- Changing laws, taxes, and regulatory requirements may increase compliance burden and costs.
- Significant income-tax and equalisation levy disputes exist for the company, promoters, directors, and group entities.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,66,4002 lots, 2400 shares
- Retail Maximum2,66,4002 lots, 2400 shares
- S-HNI Minimum3,99,6003 lots, 3600 shares
- S-HNI Maximum9,32,4007 lots, 8400 shares
- B-HNI Minimum10,65,6008 lots, 9600 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 2400 | 2,66,400 |
| Retail Maximum | 2 | 2400 | 2,66,400 |
| S-HNI Minimum | 3 | 3600 | 3,99,600 |
| S-HNI Maximum | 7 | 8400 | 9,32,400 |
| B-HNI Minimum | 8 | 9600 | 10,65,600 |
Timing
6.0/10Strategically, the offer aligns with favorable sector demand and the company’s need to scale operations, improve liquidity, and support direct vendor relationships. That said, the timing is not exceptional because the raise looks more necessity-driven than opportunistic, and the business still faces working-capital intensity and collection-cycle pressure that reduce the immediacy of the timing advantage.
- Time to market
- The company is entering the market at a moment when its sector is benefiting from digital transformation and omnichannel enterprise communication adoption. This is constructive, but the offer is not especially compelling on timing because proceeds are needed to support ongoing operating cash needs rather than to fund a clear inflection point or valuation window.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 6.0
- Listing on
- BSE SME
Key milestones
- 30 Sept 2026IPO Opens
- 5 Oct 2026IPO Closes
- 6 Oct 2026Basis of Allotment
- 7 Oct 2026Refunds Initiated
- 7 Oct 2026Credit to Demat Account
- 8 Oct 2026Listing Date
Financials
7.0/10- Revenue
- ₹275 Cr
- +45.9%
- Profit after tax
- ₹23.4 Cr
- +41.5%
- Net margin
- 8.5%
- -0.3 pts
- Assets
- ₹164 Cr
- +50.8%
- Return on equity
- 25.3%
- Debt to equity
- 0.1
- Revenue CAGR
- 48.66%
- ROCE
- 33.81%
- Return on net worth
- 29.79%
- NAV per share (₹)
- 47.43
- Price to book
- 3.17
Financial performance trend
Amount ₹ in croresDove Soft Limited shows strong top-line growth, healthy profitability, and improving operating scale, with moderate leverage and a clear working-capital-driven IPO use. Key caution is a receivables-heavy model and modest, but rising, borrowings.
Total borrowings are moderate at about ₹9.30 Cr, split between long-term and short-term borrowings. The IPO proceeds are for working capital and general corporate purposes, not stated for debt repayment, so leverage is not a major concern.
Fresh issue goes to the company. OFS goes to the selling shareholders.
Selling shareholders are present, but names and split are not specified in the provided text.
Fresh issue funds working capital and general corporate purposes. The OFS is existing shareholders’ exit; company receives no proceeds from it.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks4
- Market risks4
- Operational risks4
- Regulatory risks4
Operational dependence on IT systems, no offer proceeds, litigation/tax exposures, regulatory changes, and market volatility could affect growth, liquidity, compliance, and valuation.
How the company offsets these
Cyber controls, disaster recovery, backups, employee training, and legal/tax compliance processes may reduce but not eliminate these risks.
Financial risks4
- No proceeds from Offer for Sale may limit working capital and financing flexibility.
- Failure of new products to succeed may adversely affect revenues and profitability.
- Tax demands, penalties, and potential liabilities may impact financial condition.
- Market volatility and weak economic conditions may affect valuation and liquidity.
Market risks4
- New products may not achieve market acceptance.
- Equity share trading price may be volatile after listing.
- Industry and global economic weakness may reduce client demand and receivable collections.
- Political instability, global financial instability, and natural disasters may affect markets and business sentiment.
Operational risks4
- Reliance on IT/ERP systems exposes operations to cyber-attacks, outages, disasters, and data breaches.
- Inability to recruit or retain skilled IT personnel may cause inefficiencies or disruption.
- Listed-company reporting, disclosure, and governance requirements may divert management attention.
- Technology changes may make current systems obsolete or require costly upgrades.
Regulatory risks4
- Changing laws, rules, tax regimes, and enforcement may adversely affect operations and profitability.
- Outstanding tax proceedings involving the company and related persons may result in adverse outcomes.
- BSE may not grant in-principle listing approval.
- Foreign investment, pre-emptive rights, anti-takeover provisions, and tax rules may constrain investors and transactions.
Performance
7.0/10Dove Soft has delivered strong top-line growth over FY2024-FY2026, with revenue rising from ₹11,972.69 lakhs to ₹27,398.01 lakhs and PAT from ₹1,027.18 lakhs to ₹2,340.42 lakhs. Profitability has remained healthy and stable, but margins are modestly compressed, and the business remains highly concentrated in SMS and telecom-linked revenue with heavy dependence on a few service providers and customers. Operational execution appears solid, though working-capital volatility and procurement concentration are notable risks.
- Historical growth
- Revenue from operations grew 56.81% in FY2025 and 45.94% in FY2026; PAT grew 61.09% in FY2025 and 41.52% in FY2026., Strong multi-year growth; revenue CAGR from FY2024 to FY2026 is roughly 52.4%, while PAT CAGR is roughly 53.4%.
- Market comparison
- The company appears to be a scaled mid-sized CPaaS player in India, but its revenue mix is still heavily SMS-led (88.61%) and telecom-dependent (87.05%). Compared with broader CPaaS peers, the business looks execution-strong on growth and profitability, but less diversified and more operationally concentrated than larger platform-led peers with broader enterprise adoption and lower supplier dependence.
- Future potential
- Positive, supported by India’s digital adoption, enterprise communication demand, and expansion of omnichannel offerings; however, future growth may be constrained by customer concentration, reliance on MNOs/cloud providers, and competitive pressure.
- Operational consistency
- The company has operated since FY2011-12 and shows consistent business expansion, yet operating cash flow was negative in FY2025 and positive only modestly in FY2026, indicating working-capital sensitivity despite stable earnings growth.
- Experience
- CEO Mukesh Narula was appointed on April 08, 2024 and has over 30 years of experience in marketing and management.
- Track record
- The company states there were no changes in senior management personnel during the last three years; however, the CEO is relatively newly appointed, so long-term company-level leadership continuity is limited in the disclosed period.
Key achievements
- 01Expanded revenue from ₹11,972.69 lakhs in FY2024 to ₹27,398.01 lakhs in FY2026.
- 02Maintained PAT margin above 8% across all three years.
- 03Improved operating metrics such as customer churn to 19.44% from 29.16% in earlier periods.
- 04Built recurring revenue base of ₹15,662.68 lakhs.
- 05Diversified offering across SMS, RCS, Voice, WhatsApp and Email channels.
Flexibility
6.0/10Good product-market fit across enterprise communication use cases and multiple industries, with recent expansion into WhatsApp, RCS, voice, email, and Dubai. However, revenue remains heavily concentrated in Telecom and a few customers, limiting resilience.
The company is profitable, has low leverage (debt-to-equity 0.10 in FY26), and healthy returns, but working capital intensity is high with receivables at 146 days and IPO proceeds required for liquidity support.
Cloud-based delivery, APIs, white-labelled dashboards, and recurring service arrangements support operational agility. Yet execution depends on a concentrated set of service providers and telecom operator relationships, which reduces flexibility.
Dove Soft shows moderate flexibility: it operates an asset-light CPaaS model with multiple communication channels and some geographic expansion, but adaptability is constrained by high customer and vendor concentration, long receivable cycles, and reliance on working capital support.
- Product diversification
- The company has diversified beyond SMS into Voice, WhatsApp, Email, RCS, and digital services such as Map My Business, but SMS still contributes the bulk of revenue and Telecom remains the dominant end-market.
- Future adaptability
- Moderate to good. The company has room to scale through new channels, AI-enabled digital tools, cross-sell to existing clients, and overseas expansion, but future adaptability will depend on improving receivable conversion, reducing customer concentration, and maintaining access to working capital.
Latest on Dove Soft IPO
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.