Mangal Compusolution IPO Opens for Subscription with Focus on IT Hardware Solutions
The Mangal Compusolution Initial Public Offering (IPO) is set to open for public subscription on Tuesday, November 12, and will remain open until Thursday, November 14. This IPO presents an opportunity for investors to participate in a leading provider of IT hardware solutions in India, particularly in the high-demand Maharashtra region. Below are the key details of the IPO, as well as an overview of Mangal Compusolution’s business model and financial performance.
IPO Details and Structure
The IPO price band is set at ₹45 per equity share, each with a face value of ₹10. Investors can place bids for a minimum of 3,000 shares, with subsequent bids in multiples of 3,000 shares. The offering consists of a fresh issue of 3,606,000 equity shares, amounting to ₹16.23 crore, with no Offer for Sale (OFS) component. Jawa Capital Services Private Limited is serving as the lead manager for this IPO, with Kfin Technologies Limited as the registrar, and Rikhav Securities as the market maker.
The IPO aims to generate capital to fund various corporate needs, including capital expenditures to support business expansion. As per the tentative schedule, the IPO share allotment will be finalized on Monday, November 18, with refunds and share credits to demat accounts expected by Tuesday, November 19. The shares are anticipated to debut on the BSE SME platform on Wednesday, November 20.
Grey Market Premium (GMP) Analysis
The current grey market premium (GMP) for Mangal Compusolution shares stands at ₹3, signaling a promising reception among investors. Based on the upper end of the IPO price band and the grey market trends, the shares are projected to list at approximately ₹48, which is 6.67% above the issue price. Notably, the GMP has fluctuated between ₹2 and ₹3 over the past five days, indicating consistent demand and suggesting an optimistic outlook for the listing day.
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Business Overview of Mangal Compusolution
Founded on April 11, 2011, originally as Pathik Computer Systems Private Limited, Mangal Compusolution rebranded in June 2012 to reflect its growing IT-focused portfolio. The company specializes in IT hardware solutions tailored to diverse business needs and offers a comprehensive range of products and services, primarily through IT hardware rentals.
Mangal Compusolution provides:
- Rental Income from leasing IT equipment.
- Sales Revenue from the sale of IT hardware.
- Maintenance Service Fees for both rented and sold equipment.
This diverse revenue model enables Mangal Compusolution to cater to companies across various industries, with Maharashtra being the dominant market, contributing 96.87% of total revenue as of June 30, 2024.
Financial Performance and Industry Position
As highlighted in the company’s red herring prospectus (RHP), Mangal Compusolution’s revenue experienced a 32.69% decrease between March 31, 2023, and March 31, 2024, while Profit After Tax (PAT) declined by 45.21% during the same period. Mangal Compusolution is valued with a Price-to-Earnings (P/E) ratio of 11.66, in contrast to its sole listed competitor, Silicon Rental Solution Ltd, which has a P/E ratio of 20.22.
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Strategic Market Position and Future Outlook
Mangal Compusolution’s specialized focus on IT hardware rentals and maintenance services positions it as a reliable partner for organizations navigating the digital transformation era. The company’s stronghold in Maharashtra, coupled with its efforts to expand across India, aligns with its strategic vision for growth. With a commitment to providing quality IT equipment and services, Mangal Compusolution is positioned to leverage the growing demand for IT solutions across sectors.
The Mangal Compusolution IPO offers investors a chance to support a key player in India’s IT hardware rental market. With strong regional presence, consistent demand for its services, and a promising listing outlook, the IPO represents a compelling option for investors interested in the IT sector.
Disclaimer:
The News Ton does not endorse or recommend any investment or financial products, including IPOs or stock market investments. Investors are advised to conduct their own due diligence, carefully review the prospectus and relevant financial information, and seek advice from qualified financial experts before making any investment decisions. All investments carry risk, and past performance is not indicative of future results.
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