Sahasra Electronics Solutions IPO: Review, Valuation, Date & GMP

Sahasra Electronics Solutions IPO-Complete Overview

Sahasra Electronics Solutions IPO an SME IPO is a book-built issue of Rs.186.16 crore by Sahasra Electronics Solutions Limited, which was established in February 2023. It is an electronic system design and manufacturing ("ESDM") company in Noida that offers solutions and products like LED illumination, Box Build, printed circuit board (PCB) assembly, computer hardware, memory, and IT accessories.

More than 80 percent of the company's goods and solutions were exported to multinational firms in the United States, Rwanda, Tunisia, the United Kingdom, Germany, Canada, Austria, and Belgium during FY 2024.

The company's EN 9100:2018 certified Noida plant has a 1.8 million unit manufacturing capacity.

The company's product line consists of:

1. Printed circuit board assemblies (PCBAs): Products made in the consumer goods, automotive, medical, and industrial sectors all use the company's PCBAs. This covers goods that are packaged in boxes, such as tablets and computers.

2. The printed circuit board, housing, power supply, and LED chip are components of LED lighting systems.

3. Motherboards, DRAM modules, solid-state drives (SSD), USB drives, and other memory-related items and accessories are examples of computer and IT accessories.

The business has obtained certification under 9100:2018 (which is the same as AS 9100D, JISQ 9100:2016, and ISO 9001:2015) for PCB assembly quality management systems.

This new SME IPO is to be launched on 26 September 2024, and its ‘initial public offering’ will end on 30 September 2024. 

Sahasra Electronics Solutions IPO Overview

The Rs.186.16 crore Sahasra Electronics Solutions IPO is a combination of a fresh issue of 60.78 lac Shares (Rs.172.01 Cr) and an offer for sale (OFS) of 5 lac Shares (Rs.14.15 Cr.). 

This SME IPO date is from September 26-September 30, 2024. Sahasra Electronics Solutions IPO price is Rs.269 to Rs.283 for each Share. The expected IPO listing date is on Friday, 04 October 2024, and listing at NSE and SME.

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

Company Financial

The company’s revenue rose by 866% and PAT grew by 1315% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Geographical-wise Revenue Breakdown 

(Amount in lac)

 

Product-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:

• Funding the company's needs for working capital

• Finance Capital Outlay for the Installation of New Equipment and Plant at a New Manufacturing Plant in Bhiwadi, Rajasthan

• Investment in Sahasra Semiconductors Private Limited, the subsidiary, to finance the capital expenditures needed to install new equipment and machines

• General corporate purposes.

 

Peers of Sahasra Electronics Solutions Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ending 31 March 2024.

 

Evaluation

The IPO price is Rs.269 to Rs.283 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.18.05 from the last year, the resulting P/E ratio is 15.68x.

Considering the weighted EPS of Rs.13.06 for the last three years, the P/E ratio is 21.67x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 167.77x.

 

In simple words, the P/E ratio of Sahasra Electronics IPO (15.68x), compared with the industry’s average P/E of 167.77x, has an undervaluation (on a P/E Ratio basis only). Hence the price of the Share seems fairly (fully) priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

• Specific solutions for services related to ESDM

• Cultivated ties with clients

• Proven production capacities

• Assurance of Quality

• Skilled managers, operators, and promoters.

 

IPO’s Weaknesses

• The comparatively recent business was founded in February 2023

• High reliance on exports more than 80% of goods are exported

• Fierce rivalry in the ESDM industry

• Price fluctuations for basic materials

• Risks posed by geopolitics to global trade.

 

Sahasra Electronics Solutions IPO GMP Today

Sahasra Electronics Solutions IPO GMP is Rs.180 as of 24 September 2024. With a price of Rs.283, the estimated IPO listing price is Rs.463 at the time of writing this information.

IPO Timetable (Tentative)

The IPO date is from September 26 to September 30, 2024, with allotment on October 01, refund initiation on October 03, and listing on October 04, 2024.

 

Sahasra Electronics Solutions IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 6,578,000 Shares (Rs.186.16 Cr).

Sahasra Electronics Solutions IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (400 Shares) amounting to Rs.1,13,200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (800 Shares) amounting to Rs.2,26,400.

 

Sahasra Electronics Solutions IPO Reservation (% of Net Issue)

 

Promoters And Management of Sahasra Electronics Solutions Ltd.

• Amrit Lal Manwani

• Arunima Manwani

• Varun Manwani

IPO Lead Managers

• Hem Securities Limited

Dividend Policy 

 

Conclusion

The company is in the business of offering manufacturing and design solutions for electronic systems. Last year, it converted from being a sole proprietorship to a limited company. The FY24 financial performance showed increased top and bottom lines, which has sparked questions about whether profit margins can continue to be sustained. Super profits for FY24 suggest that the issue is priced completely.

Sahasra IPO is showing a 63.60% gain or loss in its listing price in the grey market as of the date of writing this content. Hope this blog helped you with the information you were seeking.

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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