What You Must Know About Share Samadhan IPO: Price Band ₹70 to ₹74 Per Share

Incorporated in 2011, Share Samadhan Limited (formerly Tiger Island Hospitality Private Limited) is a one-stop solution provider offering a wide range of services to help clients protect and retrieve their investments efficiently.

Share Samadhan Limited operates through three main business lines:

Investment Retrieval Services (Share Samadhan Limited):

• Advisory services for unlocking value and resolving investor issues
• Assistance with various financial assets (equity shares, mutual funds, debentures, bonds, insurance, provident funds, deposits, etc.)
• Recovery of unclaimed dividends and interests
• Handling issues with old, lost, forgotten, or damaged financial instrument
• Wealth Protection Services (Wealth Samadhan Pvt Limited): Wealth Samadhan Card - A comprehensive digital investment repository solutions
• Litigation Funding Solutions (Nyaya Mitra Limited): Tailored litigation funding solutions for various legal disputes

Key Highlights of Share Samadhan Limited's operations include:

• Comprehensive services covering investment retrieval, wealth protection, and litigation funding
• Focus on resolving investor grievances and unlocking value in various asset classes
• Digital solutions for investment information protection
• 48 employees as of 28th August 2024

The Objectives of the Issue

Share Samadhan Limited intends to utilise the net proceeds from the IPO for the following purposes:

• Technology Investment: To meet expenses for investment in technology.
• Acquisitions: To fund unidentified acquisitions for the company (in India or abroad).
• Working Capital: To meet the working capital requirements of the company.
• General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.
• Issue Expenses: To cover the costs associated with the IPO process.

Highlights of Share Samadhan IPO

The Share Samadhan IPO is set to launch with a book-built issue of ₹24.06 crores, consisting entirely of a fresh issue of 32.51 lakh shares. Here are the key details:

• The IPO opens for subscription on 9th September 2024 and closes on 11th September 2024.
• The allotment is expected to be finalised on 12th September 2024.
• Refunds will be initiated on 13th September 2024.
• Credit of shares to Demat accounts is also expected on 13th September 2024.
• The company will tentatively list on BSE SME on 16th September 2024.
• The price band is set at ₹70 to ₹74 per share.
• The minimum lot size for the application is 1600 shares.
• Retail investors need to invest a minimum of ₹118,400.
• The minimum investment for HNI is 2 lots (3,200 shares), amounting to ₹236,800.
• Narnolia Financial Services Ltd is the book-running lead manager for the IPO.
• Skyline Financial Services Private Ltd serves as the registrar.
• Nikunj Stock Brokers is the market maker responsible for 163,200 shares.

Share Samadhan IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 11th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.
 

Share Samadhan IPO Issue Details/Capital History

The Share Samadhan IPO is scheduled from 9th September to 11th September 2024, with a price band of ₹70 to ₹74 per share and a face value of ₹10. The total issue size is 3,251,200 shares, raising up to ₹24.06 crores through a fresh issue. The IPO will be listed on the BSE SME, with the shareholding increasing from 9,018,903 pre-issue to 12,270,103 post-issue. Nikunj Stock Brokers is the market maker responsible for 163,200 shares within the issue.

Share Samadhan 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 1600 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: Share Samadhan Ltd

Strengths:

• Comprehensive service offering covering investment retrieval, wealth protection, and litigation funding
• Diverse client base across various financial asset classes
• Digital solutions for investment information protection
• Strong revenue and profit growth in recent years

Weaknesses:

• Relatively small employee base of 48, potentially limiting scalability
• Dependence on success fees model, which may lead to revenue volatility
• Limited geographical presence

Opportunities:

• Growing awareness about unclaimed investments and the need for wealth protection
• Potential for expansion into new geographical markets
• Increasing demand for litigation funding solutions

Threats:

• Regulatory changes affecting investment retrieval or litigation funding practices
• Intense competition in the financial services sector
• Economic downturns affecting client willingness to pursue investment retrieval or litigation

Financial Highlights: Share Samadhan Ltd

Below are the consolidated financial results for the Fiscal years FY24, FY23, and FY22:

Share Samadhan Limited has demonstrated exceptional financial growth over the past three fiscal years. The company's assets have grown dramatically, increasing from ₹425.54 lakhs in FY22 to ₹1,422.30 lakhs in FY24, representing an impressive growth of 234.2% over two years. This substantial increase in assets indicates significant expansion in the company's operational capabilities and financial strength.

Revenue has shown remarkable growth, rising from ₹242.13 lakhs in FY22 to ₹996.12 lakhs in FY24, marking an extraordinary increase of 311.4% over two years. The year-over-year growth from FY23 to FY24 was particularly impressive at 261%, indicating strong market demand for the company's services.

The company's profitability has seen a similar upward trajectory. Profit after tax rose significantly from ₹60.6 lakhs in FY22 to ₹391.01 lakhs in FY24, representing an extraordinary growth of 545.2% over two years. It's worth noting that there was a dip in PAT in FY23 to ₹47.92 lakhs before the substantial increase in FY24, showing some volatility in profitability.

Net worth has shown consistent and strong growth, increasing from ₹313.84 lakhs in FY22 to ₹1,128.78 lakhs in FY24, a growth of about 259.7% over two years. This substantial increase reflects the company's ability to generate and retain earnings, significantly strengthening its financial position.

Interestingly, the company's total borrowings have remained relatively low, increasing from ₹60.38 lakhs in FY22 to ₹87.09 lakhs in FY24, despite the rapid growth in operations. This suggests that the company has been able to fund its growth largely through internal accruals and efficient working capital management.