Sahasra Electronics Solutions IPO is set at ₹269 to ₹283 Per Share

Incorporated in February 2023, Sahasra Electronic Solutions Limited is an Electronic System Design and Manufacturing company that provides electronic system design and manufacturing ("ESDM") services at its Noida plant. The company provides products and solutions such as printed circuit board ("PCB") assembly, Box Build, and LED lighting. Memory, IT accessories, computer and IT hardware. During FY 2024, the company exported over 80% of its products and solutions to global manufacturers in various countries. As of March 2024, the company had 160 permanent employees.

The Objectives of the Issue

Sahasra Electronics Solutions Limited intends to utilise the net proceeds from the issue towards the following objectives:

1. Funding Capital Expenditure towards the installation of additional plant and machinery at a new manufacturing facility situated at Bhiwadi, Rajasthan
2. Investment in the Subsidiary, Sahasra Semiconductors Private Limited, for financing its capital expenditure requirements for the installation of additional plant and machinery
3. To Meet Working Capital Requirements
4. General Corporate Purposes

Highlights of Sahasra Electronics Solutions IPO

Sahasra Electronics Solutions IPO is set to launch with a book-built issue of ₹186.16 crores. The issue is entirely fresh. Here are the key details of the IPO:
 

• The IPO opens for subscription on 26th September 2024 and closes on 30th September 2024.
• The allotment is expected to be finalised on 1st October 2024.
• Refunds will be initiated on 3rd October 2024.
• Credit of shares to Demat accounts is also expected on 3rd October 2024.
• The company will tentatively list on NSE SME on 4th October 2024.
• The price band is set at ₹269 to ₹283 per share.
• The fresh issue comprises 65.78 lakh shares, aggregating to ₹186.16 crores.
• The minimum lot size for the application is 400 shares.
• Retail investors need to invest a minimum of ₹113,200.
• The minimum investment for HNI is 2 lots (800 shares), amounting to ₹226,400.
• Hem Securities Limited is the book-running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.

Sahasra Electronics Solutions IPO Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 30th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Sahasra Electronics Solutions IPO Issue Details/Capital History

Sahasra Electronics Solutions IPO is scheduled from 26th September to 30th September 2024, with a price band of ₹269 to ₹283 per share and a face value of ₹10. The total issue size is 65,78,000 shares, raising up to ₹186.16 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,89,14,763 shares.

Sahasra Electronics Solutions IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 400 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.
 

SWOT Analysis: Sahasra Electronics Solutions Ltd

Strengths:

• Diverse solutions, including PCB assembly, box build assemblies, and design solutions
• Established relationships with customers across various countries
• Manufacturing facility in a special economic zone, providing tax benefits
• ERP platform meeting high-quality standards
• Experienced Board of Directors and management team

Weaknesses:

• The relatively new company, incorporated in February 2023
• High dependence on exports, with over 80% of products exported

Opportunities:

• Growing demand for electronic manufacturing services globally
• Potential for expansion into new markets and product lines
• Government initiatives supporting electronics manufacturing in India

Threats:

• Intense competition in the ESDM sector
• Fluctuations in raw material prices
• Geopolitical risks affecting international trade

Financial Highlights: Sahasra Electronics Solutions Ltd

Below are the financial highlights for FY24 and FY23:

Sahasra Electronics Solutions Limited has shown remarkable growth in its first full year of operations. The company's revenue increased by 866% and profit after tax (PAT) rose by 1315% between the financial year ending with March 31, 2024 and March 31, 2023.

Assets have shown significant growth, increasing from ₹4,820.23 lakhs in FY23 to ₹10,804.36 lakhs in FY24, representing a growth of about 124% in just one year.

Revenue has seen substantial growth, rising from ₹1,063.91 lakhs in FY23 to ₹10,278.79 lakhs in FY24, marking an impressive increase of 866% year-over-year.

The company's profitability has improved significantly. Profit After Tax increased from ₹230.55 lakhs in FY23 to ₹3,262.77 lakhs in FY24, representing a substantial growth of 1315% in one year.

Net Worth has shown strong growth, increasing from ₹2,027.5 lakhs in FY23 to ₹6,031.69 lakhs in FY24, a growth of about 197% in one year.

Total Borrowings have increased from ₹689.84 lakhs in FY23 to ₹2,171.89 lakhs in FY24, which represents an increase of about 215%. This increase in borrowings, coupled with the significant growth in assets and revenue, suggests that the company is in a rapid expansion phase.

The company's financial performance shows a trend of exceptionally strong revenue growth and improving profitability. However, investors should note that as the company was incorporated in February 2023, the FY23 figures represent only a partial year of operations. The substantial increase in all financial metrics indicates a company in a high-growth phase, which can present both opportunities and risks. Investors should consider these trends along with the company's growth strategy and the evolving ESDM market when evaluating the IPO.