Sahasra Electronics Solutions Set to Launch Rs.186 Crore IPO on September 26

Sahasra Electronics Solutions, an electronics system design and manufacturing company, is set up to launch its Rs.186.16-crore initial public offering (IPO) for subscription from September 26 to September 30, 2024. The company is the second largest SME public issue of 2024, following KP Green Engineering’s Rs.189.5-crore issue earlier this year.

IPO Details 

The IPO consists of a fresh issue of 60.78 lakh shares worth Rs.172.01 crore and an offer-for-sale (OFS) of 5 lakh shares worth Rs.14.15 crore, with promoter Amrit Lal Manwani selling part of his 94.98% stake. The price band for the IPO has been set at Rs.269-283 per share, and investors can apply for lots of 400 shares, with an investment of Rs.1,13,200 for retail investors.

The company has allocated 50% of the net offer to qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (HNIs). Trading in the company’s shares will begin on the NSE Emerge on October 4, 2024.

Utilization of Funds

Sahasra Electronics plans to use Rs.65.97 crore from the fresh issue for installing additional plant and machinery at its new facility in Bhiwadi, Rajasthan. Another Rs.22.93 crore will be invested in its subsidiary, Sahasra Semiconductors, for similar expansions. Additionally, Rs.40 crore will be for working capital, with the rest allocated to general corporate purposes.

Financials & Export Success

The company reported a sharp increase in revenue and profits in FY24, with revenue rising to Rs.10,278.79 lakh from Rs.1,063.91 lakh in FY23, and PAT soaring to Rs.3,262.77 lakh from Rs.230.55 lakh. Sahasra exports over 80% of its products to global markets, including the USA, Germany, and the UK, positioning it as a key player in the electronics design sector.

Conclusion: With a good financial growth and ambitious expansion plans, Sahasra Electronics Solutions’ upcoming IPO offers a potential investment opportunity, especially for those looking to support India’s growing electronics manufacturing sector. Its entry will definitely be interesting to watch.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.