Slone Infosystems Ltd IPO: Review, Valuation, Date & GMP

Slone Infosystems Limited IPO  - Complete Overview

Established in 2022, Slone Infosystems Limited is an Indian IT hardware solutions company specializing in the sale and rental of IT equipment, as well as providing IT service solutions. 

The company's product offerings include laptops, desktops, servers, workstations, and other IT-related products. Additionally, it offers services such as managing cloud servers and servicing IT equipment for corporate clients. 

The business operates across four segments:

1. Sale of Laptops, Computers & Computer Peripherals

2. Sale of Other IT-related Products

3. IT Service Solutions

4. Rental Services

Slone Infosystems Limited holds ISO certifications for Occupational Health & Safety Management System (OH&S), Information Security Management System (ISMS), Environmental Management System (EMS), and Quality Management System (QMS).

As of 31 December 2023, the company has generated the revenue of Rs. 3,434.86 Lakhs.

 

 

Slone Infosystems Limited IPO Overview

Slone Infosystems Limited IPO date is slated to be open for subscription from May 3, 2024, to May 7, 2024. This NSE SME IPO follows a Fixed Price Issue IPO.

Slone Infosystems Limited IPO price is fixed at Rs.79 per share. 

The total issue size of this IPO amounts to Rs.11.06 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Slone Infosystems Limited has seen growth in total assets and total revenue but decreased in net worth. The profit after tax has increased while the total borrowing decreased.

Amount in Lakhs

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	1,978.58	1,190.71	1,167.37
Total Revenue	3,434.86	3,077.40	2,659.14
PAT	284.72	74.66	38.31
Net worth	1,187.51	210.49	228.70
Reserve & Surplus	800.61	25.94
Total Borrowings	642.66	681.53	921.15

 

Segment- wise Revenue Break Up

(Amount in Lakhs)

Particulars	31 Dec 2023	31 Mar 2023	31 Mar 2022
Sale of Laptop, Computer & Computer Peripherals	2,731.91	2,659.04	2,313.23
Sale of other products (viz. Oxymeter, Infrared Thermometer, Sanitizers and Face Masks)	-	-	-
Revenue from Installations & IT Consulting and Support Services	511.86	-	-
Installation Charges	309.18	-	-
IT Consulting Services	26.00	-	-
Annual AMC Charges	176.68	-	-
Revenue from Rental Services	163.29	363.10	265.56
Storage or Server Hire Charges	130.35	80.79	35.85
Desktop/Laptop Hire Charges	32.94	282.31	229.71
Total	3,407.06	3,022.14	2,578.79

 

Product-wise Revenue Break up

(Amount in Lakhs)

Particulars	31 Dec 2023	31 Mar 2023	31 Mar 2022
Laptops	1716.05	1553.68	603.16
Desktops	365.17	282.16	129.17
Computer Peripherals, spares	235.18	187.08	73.18
Data Servers	193.41	115.41	39.57
LED Monitor	109.50	82.50	60.22
Firewall equipment	112.60	92.40	45.05
Revenue from IT Equipment Installations, IT Consulting and Support Services	511.86	-	-
Revenue from IT Equipment Rental Services	163.29	265.56	149.86
Total	3407.06	2578.79	1100.21

 

Geography-wise Revenue Break up

(Amount in Lakhs)

Particulars	31 Dec 2023	31 Mar 2023	31 Mar 2022
Maharashtra	3,261.56	3,013.84	2,573.26
Tamil Nadu	145.00	-	-
Delhi	0.50	-	-
Gujarat	-	7.36	4.40
Karnataka	-	0.94	-
Haryana	-	-	1.13
Total	3407.06	3022.14	2578.79

 

 

The Objective of the Issue

The objectives of the present issue of Equity Shares are:

1. Capital Expenditure towards purchase of Laptops, Desktops, SSD and RAM.

2. Repayment/prepayment of certain borrowings availed by our Company; and

3. General Corporate Purpose

 

Peers of Slone Infosystems Limited IPO 

Name of the Company	Face Value (Rs.)	EPS (Rs)	P/E Ratio
Slone Infosystems Limited	10	4.05	19.51
Brisk Technovision Ltd.	10	9.24	14.61
Benchmark Computer Solutions Ltd	10	1959.31	0.03

 

Evaluation

The IPO is priced within the range of Rs.79 per share.

Evaluation of P/E Ratio

• Considering the 9 months period ended December 31, 2023 EPS of Rs 13.58 from the last year, the resulting P/E ratio is 5.82x.

• Taking into account the weighted EPS of Rs 4.05 for the last three years, the P/E ratio amounts to 19.50x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 7.32x.

As a result, the IPO price range, with a P/E ratio ranging from 5.82x to 19.50x, seems aggresively priced to the industry average of 7.32x.

 

IPO's Strengths

• Diverse range of offerings coupled with the ability to deliver customized and integrated IT solutions.

• Extensive footprint in the domestic market, catering to a broad customer base.

• Seasoned management and operational team with considerable experience.

• Strong rapport with customers, fostering strong and enduring relationships.

 

IPO's Weaknesses 

• The company has a limited operating history.

• A notable portion of its revenue stems from a select few clients.

• The company operates within highly competitive and fragmented markets characterized by low entry barriers.

• Negative cash flows have been reported across operating, investing, and financing activities.

• Business operations predominantly focus on the Maharashtra region, making it susceptible to adverse developments in the area.

• The nature of the company's business is capital intensive, necessitating continuous funding for operations.

 

IPO GMP Today

The Latest GMP of Slone Infosystems Limited is Rs.45.

 

 

Slone Infosystems Limited IPO timetable (Tentative)

Slone Infosystems Limited IPO is scheduled from May 3 to May 7, 2024, with allotment on May 8, refund initiation on May 9, and listing on May 10, 2024.

Events	Date
IPO Opening Date	May 3, 2024
IPO Closing Date	May 7, 2024
IPO Allotment Date	May 8, 2024
Refund initiation	May 9, 2024
IPO Listing Date	May 10, 2024

 

Slone Infosystems Limited IPO Details 

Slone Infosystems Limited IPO, with a face value of Rs.10 per share, opens on May 3 and closes on May 7, 2024, offering 1,400,000 shares at Rs.79 per share, with a lot size of 1600 shares, aiming to raise Rs.11.06 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	May 3, 2024 to May 7, 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 79 per share
Lot Size	1600 Shares
Price of 1 lot	Rs. 126,400
Issue Size	1,400,000 Shares (aggregating up to Rs.11.06 Cr)
Fresh issue	1,400,000 Shares (aggregating up to Rs.11.06 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

Slone Infosystems Limited IPO Lot Details 

For Slone Infosystems Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1600 shares) at Rs.126,400 while for HNI investors, the minimum investment is 2 lots (3200 shares) at Rs.252,800.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Slone Infosystems Limited IPO Reservation

Non-institutional Investoes share Portion	50%
Retail Investors share Portion	50%

 

Promoters and Management of Slone Infosystems Limited

• Mr. Rajesh Srichand Khanna

• Mrs. Manisha Rajesh Khanna

• Mr. Mohit Rajesh Khanna

Pre-issue Promoter shareholding	99.43%
Post-issue Promoter shareholding	73.01%

 

Slone Infosystems Limited IPO Lead Managers

• Jawa Capital Services Private Limited 

 

 

Dividend Policy

The Company has not paid any dividend since incorporation.

 

Conclusion

The company operates within a competitive and fragmented market characterized by low entry barriers. Despite this, it has consistently generated profits since the average performance of Fy 21. The growth in profits is primarily credited to high-margin contracts in installation and rentals, with the company anticipating this trend to continue in the future. Experienced investors are encouraged to consider participating in the upcoming IPO after conducting thorough evaluations to maximize potential profits.

 

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.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.