Sahasra Electronic Solutions Ltd IPO: GMP, Lot Size, Company Details, and Opening-Closing Dates – Equitypandit
The Sahasra Electronics Solutions Initial Public Offering (IPO) is a book-built offering amounting to Rs 186.16 crores. It comprises a fresh issue of 60.78 lakh shares valued at Rs 172.01 crores and an offer for sale (OFS) for 5 lakh shares totalling Rs 14.15 crores.
Subscription for the Sahasra Electronics Solutions IPO commences on September 26, 2024, and concludes on September 30, 2024.
Allotment for this IPO is anticipated to be finalised on Tuesday, October 1, 2024, and the listing on the National Stock Exchange (NSE) for Small and Medium-Sized Enterprises (SME) is tentatively scheduled for Friday, October 4, 2024.
The price band for the Sahasra Electronics Solutions IPO is between Rs 269 and Rs 283 per share. The minimum lot size for retail investors is 400 shares, equivalent to Rs 1,13,200. High-net-worth individuals (HNI) must invest in at least 2 lots (800 shares), amounting to Rs 2,26,400.
Hem Securities Limited is the book-running lead manager for the Sahasra Electronics Solutions IPO, Bigshare Services Pvt Ltd is the registrar, and Hem Finlease is the market maker.
Summary of the IPO Details
Timeline for some fixed and tentative dates of the IPO
| Particulars | Details |
| IPO Open Date | Thursday, September 26, 2024 |
| IPO Close Date | Monday, September 30, 2024 |
| Basis of Allotment | Tuesday, October 1, 2024 |
| Initiation of Refunds | Thursday, October 3, 2024 |
| Credit of Shares to Demat | Thursday, October 3, 2024 |
| Listing Date | Friday, October 4, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 30, 2024 |
Investors’ categories and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net Issue |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Lot size, shares applied, and their values
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 400 | Rs 1,13,200 |
| Retail (Max) | 1 | 400 | Rs 1,13,200 |
| HNI (Min) | 2 | 800 | Rs 2,26,400 |
The last observed grey market premium (GMP) for the Sahasra Electronics Solutions SME IPO stands at Rs 180 as of the latest update on September 25, 2024, at 10:27 AM IST. The IPO has a price band of Rs 283.00.
Considering the current GMP, the estimated listing price for the Sahasra Electronics Solutions SME IPO is projected to be Rs 463 (the cap price plus today’s GMP). This suggests a potential percentage gain or loss per share of 63.60%. Additionally, the Retail Subject to Sauda for the Sahasra Electronics Solutions SME IPO amounts to Rs 54,700.
Sahasra Electronic Solutions Limited was established in February 2023 as a company specializing in Electronic System Design and Manufacturing. It offers ESDM services at its Noida facility.
The company’s extensive product line encompasses PCB assembly, Box Build, LED lighting, memory, IT accessories, and computer and IT hardware, showcasing its adaptability and comprehensive solutions.
In the fiscal year 2024, the company’s strong presence in the global market was evident as it shipped more than 80% of its products and solutions to manufacturers in the United States of America, Rwanda, Tunisia, the United Kingdom, Germany, Canada, Austria, and Belgium.
The company operates a manufacturing facility in Noida that is EN 9100:2018 certified and has a production capacity of 1.8 million units.
The company’s product portfolio consists of:
1. The company’s PCBAs are used in products made for the automotive, medical, industrial, IT, and consumer sectors, including box-build products such as laptops and tablets.
2. LED lighting solutions encompass the LED chip, power supply, printed circuit board, and housing.
3. Computer and IT accessories comprise motherboards, DRAM modules, solid-state drives (SSDs), USB drives, and other memory products and accessories.
The company holds certification under 9100:2018 (equivalent to AS 9100D and JISQ 9100:2016, including ISO 9001:2015) for Quality Management Systems for manufacturing PCB assemblies.
Extract from the financial statements for the last two financial years ended March 31, 2024.
| Particulars | As of 31-03-2024 (Rs in lakhs) | As of 31-03-2023 (Rs in lakhs) |
| Assets | 10,804.36 | 4,820.23 |
| Revenue | 10,278.79 | 1,063.91 |
| Profit After Tax | 3,262.77 | 230.55 |
| Net Worth | 6,031.69 | 2,027.50 |
| Reserves and Surplus | 4,140.21 | 230.55 |
| Total Borrowing | 2,171.89 | 689.84 |
Key ratios as on March 31, 2024
| KPI (key performance indicator) | Values as of March 31, 2024 |
| ROE | 54.09% |
| ROCE | 42.50% |
| Debt/Equity | 0.36:1 |
| RoNW | 54.09% |
| PAT Margin (%) | 32.26 |
Where, the key performance indicator ROE stands for Return on Equity; ROCE stands for Return on Capital Employed; RoNW stands for Return on Net Worth; and PAT stands for Profit After Tax.
The Red Herring Prospectus or RHP of the IPO consists of some risks, which are as below.
Risks related to Customers
The business is dependent on the sale of its products to its key customers. Any loss of revenue from these customers may result in adverse effect to the business financials and operations.
Risks related to its significant Product
The business is majorly dependent on the sale of PCBA. It contributes to the major proportion of its sale. Any hindrance in its production or if the company is not able to maintain its grade quality, then the sales of PCBA might suffer. Thus, majorly impacting the company’s business.
Risks related to historical performance
The company is recently incorporated and has taken over the running business of the firm M/s Sahasra Electronic Solutions. Thus, the company has limited operating history. This means that it will be difficult for the investors to evaluate the company’s historical performance and prospects.
Risks relative to Inventory management
Trade receivables and Inventories form a significant part of the working capital. Inability or non-timely management of the same, may lead to problems related to cash flows, liquidity, sales, and their profitability.
Risk related to supply of raw materials
Any reduction, delay or interruption in the supply of raw materials used by the company, could substantially hinder the running of the operations and its financial conditions.
When is the Sahasra Electronic Solutions Ltd IPO Opening date?
The opening date of the above IPO subscription is September 26, 2024.
When is the Sahasra Electronic Solutions Ltd IPO closing date?
The closing date of the above IPO subscription is September 30, 2024.
Who are the Sahasra Electronic Solutions Ltd competitors?
Cyient DLM Ltd., RIR Power Electronics Ltd., Marine Electricals (India) Ltd., MIC Electronics Ltd., Centum Electronics Ltd., Eco Recycling Ltd., etc are some of the top competitors to the above company.
Mention the Sahasra Electronic Solutions Ltd IPO subscription period.
The subscription period of the above IPO is from September 26, 2024 to September 30, 2024.
What is the Sahasra Electronic Solutions Ltd IPO share price?
The share price or the price band of the above IPO ranges from Rs 269 to Rs 283 per share.
What is the Sahasra Electronic Solutions Ltd IPO Lot size?
The minimum lot size of the above IPO for retail investors is 400 shares for one lot.
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