About Osel Devices IPO: Open 16th-19th Sept 2024 at ₹155-160 Per Share; Invest Now!

Osel Devices Limited, formerly Innovative Infratech Solutions Private Limited, was founded in 2006 and manufactures a comprehensive range of LED display systems and hearing aids. The company manufactures LED display systems, including all major components for commercial use, such as advertising media, billboards, corporate boardrooms, presentations, display promotions, command centres, and front signs. The company also manufactures hearing aids, commonly known as health aids, to assist people with disabilities, the elderly, and the chronically ill with low hearing levels. Osel's manufacturing facility in Greater Noida has a production capacity of 15,000 square feet of LED display per year and 4,00,000 units of hearing aids per year. As of 31st March 2024, the company employed 68 employees.

The Objectives of the Issue

Osel Devices Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Prepayment or repayment of certain loans availed by the Company;
2. Funding of working capital requirements of the Company; and
3. General Corporate Purposes.

Highlights of Osel Devices IPO

Osel Devices IPO is set to launch with a book-built issue of ₹70.66 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 16th September 2024 and closes on 19th September 2024.
• The allotment is expected to be finalised on 20th September 2024.
• Refunds will be initiated on 20th September 2024.
• Credit of shares to Demat accounts is also expected on 20th September 2024.
• The company will tentatively list on NSE SME on 23rd September 2024.
• The price band is set at ₹155 to ₹160 per share.
• The fresh issue comprises 44.16 lakh shares, aggregating to ₹70.66 crores.
• The minimum lot size for the application is 800 shares.
• Retail investors need to invest a minimum of ₹128,000.
• The minimum investment for HNI is 2 lots (1,600 shares), amounting to ₹256,000.
• Horizon Management Private Limited is the book-running lead manager for the IPO.
• Mas Services Limited serves as the registrar.
• Giriraj Stock Broking is the market maker for the IPO.

Osel Devices IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 19th 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.

Osel Devices IPO Issue Details/Capital History

The Osel Devices IPO is scheduled from 16th September to 19th September 2024, with a price band of ₹155 to ₹160 per share and a face value of ₹10. The total issue size is 44,16,000 shares, raising up to ₹70.66 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 11,713,200 shares.

Osel Devices 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 800 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: Osel Devices Ltd

Strengths:

• Manufacturer of LED display systems and hearing aids with a long-standing market presence
• Geographical presence
• Quality assurance and quality control of our products
• Strong, cordial and long-term relationships with customers
• Cost-efficient production and punctual order processing
• Experienced management team
• Customers of the brand
• Service and support after the sale

Weaknesses:

• Limited product range compared to larger competitors
• Dependence on specific sectors for revenue

Opportunities:

• Growing demand for LED display systems in various sectors
• Increasing awareness and adoption of hearing aids
• Potential for expansion into new geographical markets

Threats:

• Intense competition in the LED display and hearing aid markets
• Rapid technological changes requiring constant innovation
• Economic fluctuations affecting customer spending

Financial Highlights: Osel Devices Ltd

Osel Devices Limited has demonstrated strong financial growth, particularly in the most recent fiscal year. The company's revenue increased by 62% and profit after tax (PAT) rose by 180% between the financial year ending with 31st March 2024 and 31st March 2023. 

Assets have shown significant growth, increasing from ₹3,312.17 lakhs in FY22 to ₹9,864.2 lakhs in FY24, representing a growth of about 197.8% over two years. This increase in assets indicates expansion in the company's operational capabilities.

Revenue has seen substantial growth, especially in FY24. It rose from ₹6,555.49 lakhs in FY22 to ₹13,268.52 lakhs in FY24, marking an impressive increase of 102.4% over two years. The year-over-year growth from FY23 to FY24 was particularly notable at 62%, indicating strong sales performance and project completions.

The company's profitability has seen a substantial improvement. Profit after tax increased from ₹212.31 lakhs in FY22 to ₹1,305.21 lakhs in FY24, representing a growth of 514.8% over two years. The year-over-year growth in PAT from FY23 to FY24 was 180%, showing improved operational efficiency and successful project deliveries.

Net worth has shown consistent growth, increasing from ₹763 lakhs in FY22 to ₹2,534.21 lakhs in FY24, a growth of about 232.1% over two years. This increase reflects the company's ability to generate and retain earnings, strengthening its financial position.

Total borrowings have increased over the years, from ₹862.87 lakhs in FY22 to ₹2,545.23 lakhs in FY24. This increase in borrowings, coupled with increasing assets and profitability, suggests expansion activities and investments in growth.