Mangal Compusolution, a company specializing in IT hardware rental and sales, launched its SME IPO today on the NSE SME platform.
The IPO aims to raise Rs 16 crore, offering investors a chance to participate in a growing sector that plays a crucial role in India’s IT industry. The IPO is set to close on November 14, with the listing date expected on November 20.
Mangal Compusolution IPO Key Details
| Details | Information |
|---|---|
| Issue Size | Rs 16 crore |
| Price Band | Rs 45 per share |
| Lot Size | 3000 shares |
| IPO Opening Date | November 12, 2024 |
| IPO Closing Date | November 14, 2024 |
| Listing Date (Expected) | November 20, 2024 |
| Platform | NSE SME |
IPO Structure and Subscription Details
Mangal Compusolution’s IPO consists entirely of a fresh equity sale, with 36.06 lakh shares on offer. The issue is structured to reserve:
- 50% for Retail Investors
- 50% for Non-Institutional Investors (NIIs)
This balanced structure aims to attract a diverse pool of investors, leveraging the growing interest in the SME IPO segment.
Grey Market Premium (GMP) and Market Sentiment
In the unlisted market, Mangal Compusolution shares are currently trading at a GMP of Rs 5, indicating an 11% premium over the issue price of Rs 45 per share. This suggests a positive sentiment among investors, despite broader market volatility.
The strong GMP could be driven by the company’s unique business model and its focus on IT hardware services, which are in high demand across various industries.
Company Overview: What Does Mangal Compusolution Do?
Mangal Compusolution operates in the IT hardware rental and sales segment, offering a comprehensive range of services across India. The company’s portfolio includes:
- Servers and Workstations
- Laptops and Desktops
- Printers and Projectors
- Routers, Switches, and Networking Devices
- Plasma/LCD TVs and PA Systems
The company caters to corporate clients, educational institutions, and government agencies, providing both short-term rentals and long-term sales of high-quality IT equipment.
Mangal Compusolution Product Offerings
| Category | Products Offered |
|---|---|
| Computing | Servers, Laptops, Desktops, Workstations |
| Printing | Printers, Projectors |
| Networking | Routers, Switches, Accessories |
| Display & Audio | Plasma/LCD TVs, PA Systems |
Industry Outlook: Growth Opportunities in IT & BPM Sector
The IT and Business Process Management (BPM) sector has become a significant contributor to India’s GDP, accounting for 7.4% in FY22.
The industry is expected to contribute 10% of India’s GDP by 2025, driven by increasing digital transformation and demand for IT infrastructure. Mangal Compusolution, with its focus on IT hardware rental and sales, is well-positioned to capitalize on these trends.
Financial Performance Snapshot
For the period ended June 2024, Mangal Compusolution reported total revenues of Rs 4.08 crore and a net profit of Rs 80 lakh. The company’s steady financial performance, coupled with its strong product portfolio, highlights its potential for growth in the rapidly expanding IT sector.
Mangal Compusolution Financial Summary (June 2024)
| Metric | Value |
|---|---|
| Total Revenue | Rs 4.08 crore |
| Net Profit | Rs 80 lakh |
| Net Profit Margin | 19.6% |
Objects of the Offer
The proceeds from the IPO will be allocated towards:
- Capital Expenditure: Expanding the company’s inventory of IT equipment to meet rising demand.
- General Corporate Purposes: Strengthening the company’s balance sheet and enhancing its operational capabilities.
Lead Managers and Registrar
Jawa Capital Services is acting as the lead manager for the IPO, while Kfin Technologies has been appointed as the registrar. This partnership aims to ensure a smooth and efficient process for both institutional and retail investors.
Should You Invest in Mangal Compusolution IPO?
Investing in Mangal Compusolution’s IPO could be a promising opportunity for investors looking to tap into the growing IT hardware market. However, it’s essential to consider the following:
- Positive Aspects:
- Strong demand for IT hardware rentals amid increasing digital adoption.
- Healthy financial performance with consistent profit margins.
- Growing industry outlook, with the IT sector expected to expand significantly by 2025.
- Risk Factors:
- Market volatility could impact stock performance post-listing.
- Heavy reliance on the rental business, which could face demand fluctuations.
Expert Opinion
Market analysts have a positive outlook on Mangal Compusolution’s IPO, citing the company’s strategic focus on the IT hardware rental segment. “Investors should consider subscribing to this IPO given the company’s strong financials and the robust growth prospects of the IT sector,” says Rajesh Jain, a senior market analyst.
Conclusion
Mangal Compusolution’s IPO offers a compelling investment opportunity, especially for those looking to diversify their portfolios with exposure to the IT hardware sector. The company’s focus on rental services and its strong market position make it an attractive choice for investors seeking growth in a rapidly evolving industry.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.
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