As the Indian economy moves closer to its dream of being a USD 5 trillion economy, the role of Small and Medium Enterprises becomes even more crucial. In the recent past, these SMEs have forayed further into the path of progress with their exploits at Dalal Street.
Another entity is all set to join the long list of SME IPOs in a month that has already seen a bumper number of new IPOs being floated.
About The Company
Sahasra Electronics Solutions is a Delhi-based company that specialises in electronic system design and manufacturing ("ESDM"). It produces its services from its plant in the industrial hub of Noida.
What Is On Offer?
This SME has a book-built issue of Rs 186.16 crore. The IPO has a face value of Rs 10 per individual share. The issue's price band is greater than previous SMEs. The band stands at Rs 269 to RS 283 per individual share. The public offer has a lot size of 400 shares. This IPO brings a fresh issue amounting to 6,078,000 shares.
This fresh issue translates to Rs 172.01 crore. The latest GMP, or Grey Market Price, as of September 25, 11:26 IST, is Rs 180 (details are subject to deviations). In addition, the minimum retail investment amount required by retail investors is Rs ₹113,200. Retail investors can bid for a minimum of 400 shares.
Dates To Remember
The issue will be opened to investors for subscription on Thursday, September 26. The process of the subscription will be available and will conclude in the next trading week. The IPO will draw curtains on Monday, September 30. The tentative date for allotment is Tuesday, October 1.
The initiation of refunds would come to pass next month, on Thursday, October 3. The shares would then be credited to the Demat accounts of investors on Thursday, October 3.
Finally, the tentative date for the listing of the IPO is estimated to be Friday, October 4. The entity will be listed on the National Stock Exchange (NSE) SME.
Key Factors
The company is headed by Arunima Manwani, Amrit Lal Manwani, and Varun Manwani.
In the recently concluded fiscal year, the South Delhi-based company's saw its revenue increase by 866 per cent.
In addition, the profit after tax (PAT) also jumped by 1315 per cent, between the financial year ending with March 31, 2024 and March 31.
The company has a market capitalisation of Rs 707.3 crore.
Objectives
In addition to the usual 'General Corporate Purposes', the company intends to deploy the resources generated in the installation of additional plant and machinery at a new manufacturing facility. This new facility will come up in Bhiwadi, Rajasthan
Apart from that, the company would also use the resource in the investment in its subsidiary, Sahasra Semiconductors Private Limited.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in IPOs involves risks and potential volatility. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred by readers.