Osel Devices IPO: Review, valuation, Date & GMP

Osel Devices IPO-Complete Overview

Osel Devices IPO an SME IPO is a book built issue of Rs.70.66 crore by Osel Devices Ltd. formerly Innovative Infratech Solutions Private Limited which was founded in 2006 and produces a wide variety of hearing aids and LED display solutions.

The company produces a wide array of LED display systems, including all the essential parts needed for commercial applications, including front signs, billboards, corporate boardrooms, presentations, display promotions, and advertising media. The content management system installed in the company's LED display systems enables them to be displayed on a screen when connected to a computer or phone.

To help the elderly, those with chronic illnesses, and those with disabilities who have low hearing, the company also makes health aids, sometimes known as hearing aids. The Artificial Limbs Manufacturing Corporation of India is the company's principal supplier of hearing aids. The business produces both non-programmable and digitally programmable hearing aids.

Shri Pratap Sarangi, a former union minister, officially opened Osel's production plant in Greater Noida. 4,00,000 hearing aids and 15000 square feet of LED displays can be produced annually at this site.

This new SME IPO is to be launched on 16 September 2024, and its ‘initial public offering’ will end on 19 September 2024. 

Osel Devices Product Portfolio

The company currently designs and manufactures LED Solutions and hearing aids.

1)  Outdoor LED Solutions: 

LED display systems for outdoor use are intended for outdoor advertising and displays. They are made to withstand a variety of environmental factors and deliver crisp, brilliant images for displays, information, and advertising.

LED Display installed by the Company-

 2) Hearing Aids

BTE hearing aids are ideal for people with mild to profound hearing loss and fit comfortably behind the ear. To suit varied tastes and degrees of hearing loss, they are available in a variety of sizes and styles. 

The company currently produces both non-programmable and digital programmable hearing aids.

Behind the Ear (BTE) hearing Aids by the Company-

1-Digital Programmable

2- Non-Programmable 

 

Osel Devices IPO Overview

The Rs.70.66 crore Osel Devices Ltd. IPO consists of an entirely fresh issue of 44.16 lac Shares. This SME IPO date is from September 16-September 19, 2024. The expected IPO listing date is Tuesday, September 24, 2024, on NSE and SME. The IPO price band is Rs.155 to Rs.160 for each Share.The IPO with a Face Value of Rs.10 per Share offers a total issue size of 4,416,000 Shares (aggregating up to Rs.70.66 Cr.).

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company's revenue grew by 62% and PAT increased by 180% between the FYs concluded 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.9,864.2 lac.

• The total revenue of the company is Rs.13,268.52 lac.

• The company’s PAT is Rs.1,305.21 lac.

• The net worth of the company is Rs.2,534.21 lac.

• The company’s EBITDA is Rs.2,288.29 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

State-wise Revenue Breakdown of Sales During The Last Three Fiscals 

(Amount in lac)

 

Geography-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Full or partial prepayment of some outstanding loans that the company has taken out

• Meeting the company's needs for working capital

• General corporate purposes.

Peers of Osel Devices Ltd. 

There are no listed companies in India engaged in the same business of comparable size.

 

Evaluation

Osel Devices IPO price is Rs.155 to Rs.160 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.11.31 from the last year, the resulting P/E ratio is 14.15x.

Considering the weighted EPS of Rs.7.31 for the last three years, the P/E ratio is 21.89x.Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

 

Comparative Analysis With Listed Peers

No listed companies. So it is not possible to provide industry comparison.

 

IPO's Strengths 

• Producers have a long history in the industry of hearing aids and LED display systems

• Geographical presence

• Its products' quality assurance and supervision

• Enduring, friendly, and solid connections with clients

• Production that is economical and order processing that is prompt

• Knowledgeable management group

• The large clientele base of the company

• After-sale assistance and service.

 

IPO’s Weaknesses

• Its capacity to create and design cutting-edge products that meet the needs of the clients is a major factor in its commercial success. The company would suffer if it is unable to properly apply and manage its capacity to create and design novel products.

• A sizable amount of its revenue comes from the healthcare industry, which is the primary source of demand. The business and operating results of the company could be negatively impacted by any downturn in the healthcare sector or by its inability to grow or manage its sales.

• Produce the majority of its sales through its activities in certain geographic areas. Any unfavorable events affecting the business in these areas could harm its earnings and operational performance.

• The company has experienced negative cash flows from operating, investing, and financing activities in the previous years. A sustained negative cash flow could trouble the company's expansion.

• Most of its raw materials are imported from China. Its profitability may be impacted if it is unable to pass on price increases for the essential raw materials needed to manufacture its products.

 

Osel Devices IPO GMP Today

Osel Devices IPO GMP today is Rs.110 as of 14 September 2024. With a price band of Rs.160, the Osel Devices IPO listing price (estimated) is Rs.270. 

68.75% is the anticipated percentage gain or loss per share.

 

 

IPO Timetable (Tentative)

The Osel Devices IPO date is from September 16 to September 19, 2024, with allotment on September 20, refund initiation on September 23, and the Osel Devices IPO listing date on September 24, 2024.

 

 

Osel Devices IPO Details 

 

Osel Devices IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (800 Shares) amounting to Rs.1,28,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1600 Shares) amounting to Rs.2,56,000.

 

Osel Devices IPO Reservation

 

Promoters And Management of Osel Devices Ltd.

• Rajendra Ravi Shanker Mishra

• Jyotsna Jawahar

 

IPO Lead Managers

• Horizon Management Private Limited.

 

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. so this blog will be very useful to you if you are looking for information about the upcoming IPO since it will give you reliable data about the company's insights, financials, and past performance. if this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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