Mangal Compusolution Limited, an IT hardware solutions provider, recently launched its Initial Public Offering (IPO) on November 12, 2024, with the subscription period concluding on November 14, 2024. The IPO was priced at ₹45 per share, with a minimum lot size of 3,000 shares, equating to an investment of ₹135,000 for retail investors.

Company Overview

Established in April 2011, Mangal Compusolution specializes in renting and selling IT hardware, offering a comprehensive range of equipment including servers, laptops, desktops, projectors, and related accessories. The company primarily serves clients in Maharashtra but extends its services across India.

IPO Details

• Issue Size: The IPO aimed to raise ₹16.23 crore through a fresh issue of 36.06 lakh equity shares.
• Price Band: Fixed at ₹45 per share.
• Subscription Dates: Opened on November 12, 2024, and closed on November 14, 2024.
• Listing Date: The shares are expected to be listed on November 20, 2024, on the BSE SME platform.

Subscription Status

As of November 13, 2024, the IPO was oversubscribed 7.87 times. The retail investor segment saw a subscription of 13.25 times, while the Non-Institutional Investors (NIIs) segment was subscribed 2.49 times.

 

Grey Market Premium (GMP) Analysis

The Grey Market Premium (GMP) is an informal indicator of the market’s perception of an IPO’s potential listing performance. As of November 13, 2024, Mangal Compusolution’s IPO GMP was reported at ₹7 per share. This suggests an expected listing price of approximately ₹52 per share, indicating a premium of about 16% over the issue price.

 

Financial Performance

For the fiscal year ending March 31, 2024, Mangal Compusolution reported:

• Total Revenue: ₹2,344.42 lakhs
• Profit After Tax (PAT): ₹385.80 lakhs
• Net Worth: ₹1,999.90 lakhs
• Total Borrowings: ₹2,041.21 lakhs

These figures reflect the company’s financial stability and growth trajectory.

 

Investment Considerations

Prospective investors should evaluate the following factors:

• Market Demand: The oversubscription rates indicate strong investor interest.
• Financial Health: The company has demonstrated consistent revenue and profit growth.
• GMP Trends: A positive GMP suggests favorable market expectations for the stock’s listing performance.

Conclusion

Mangal Compusolution’s IPO has garnered significant attention, as evidenced by its oversubscription and positive GMP. Investors are advised to consider the company’s financial health, market position, and the prevailing GMP trends when making investment decisions.

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