Mangal Compusolution IPO, Price, Review, date, GMP, Key Details

Mangal Compusolution IPO-Complete Overview

Mangal Compusolution IPO an SME IPO is a fixed price issue of Rs.16.23 crore by Mangal Compusolution Limited. The company was established in April 2011 and offers hardware leasing services to meet the demands of companies in a range of sectors. The business provides complete end-to-end IT equipment and rents out IT technology. Servers, laptops, desktops, projectors, router switches, workstations, plasma/LCD TVs, PA systems, and other accessories are among the many IT devices it rents.

It offers servers, laptops, desktop computers, and other IT hardware items that may be customized to match the unique needs of both small and large businesses.

Although the organization offers its services throughout India, the majority of its clientele are located in Maharashtra.

The following aspects can be used to categorize the company's operations:

1. Rent revenue from leasing IT equipment, such as PCs and peripherals.

2. IT equipment sales.

3. Fees for IT Equipment Maintenance Services.

This Mangal Compusolution Limited IPO will start on 12 November 2024, and its ‘initial public offering’ will end on 14 November 2024.

Mangal Compusolution IPO Overview

The Rs.16.23 crore new SME IPO comprises a wholly fresh issue of 36.06 lac Shares. 

This upcoming IPO date is from November 12 to November 14, 2024. The Mangal Compusolution IPO price is Rs.45 for each Share. 

The expected IPO listing date is Wednesday, 20 November 2024, and listing at BSE and SME.

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown  

(Amount in lac)

 

Product-wise Revenue Breakdown  

(Amount in lac)

 

 

State-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of The Issue

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

• Capital Expenditure.

• General corporate purposes.

Peers of Mangal Compusolution Ltd.

 

Note:-

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

 

Evaluation

The IPO price is Rs.45 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.86 from the last year, the resulting P/E ratio is 11.66x.

Considering the weighted EPS of Rs.4.42 for the last three years, the P/E ratio is 10.18x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 20.22x.

 

 

In simple words, the P/E ratio of this IPO (11.66x), compared with the industry’s average P/E of 20.22x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths 

• The company's competitive advantages reassure investors about company stability and prospects for expansion.

• It effectively satisfies a wide range of customer needs thanks to its access to numerous premium hardware brands.

• Since the company is committed to offering excellent customer care, characterized by proactive management of stock and a 24-hour support staff, customers will experience as much minimum downtime as possible.

• The company has a solid revenue base and room for growth since its services are well-received in Maharashtra and other parts of India.

• With the help of knowledgeable promoters, it gains access to a well-defined business plan and market intelligence.

 

IPO’s Weaknesses

• The company's main source of income is the rental of IT hardware, which is subject to changes in the market or improvements in technology.

• High capital to maintain a wide range of inventory and large infrastructure could impact cash flow.

• Growing with increased competition because of more newly developed competitors as the IT rental market grows, could be a factor that affects Mangal Compusolution's market share.

 

Mangal Compusolution IPO GMP

The IPO GMP today is Rs.3 as of 9 November 2024. With a price of Rs.45 per Share, the estimated IPO listing price is Rs.48 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from November 12 to November 14, 2024, with allotment on November 18, refund initiation on November 19, and listing on November 20, 2024.

 

 

Mangal Compusolution IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 36,06,000 Shares (Rs.16.23 Cr).

Mangal Compusolution IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.1,35,000 and in multiples thereof. In contrast, for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.2,70,000.

 

Mangal Compusolution IPO Reservation (% of Net Issue)

 

Promoters And Management of Mangal Compusolution Ltd.

• Hardik Meghraj Jain

• Neeta Mukesh Desai

• Pathik Mukesh Desai

• Mr. Mukesh Khandubhai Desai

• Mrs. Binny Pathik.

 

 

IPO Lead Managers

• Jawa Capital Services Private Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

Mangal Compusolution's IPO is by way of a fixed price issue of Rs.16.23 crore in the form of shares priced at Rs.45. It is a leasing service provider in IT hardware and most of its operating presence is in Maharashtra. The IPO works out to be undervalued compared to its industry peers based on the P/E ratio. However, its dependence on the rental market and competition risks its endeavor. The funds are going to be employed for purposes of capital expenditure and general corporate purposes by the company. An investor must weigh growth prospects and risks before investing in a particular company.

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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