The Mangal Compusolution IPO is set to open for subscription on November 12, 2024, and will close on November 14, 2024. It is a fixed price issue IPO aiming to raise ₹16.23 crores, comprising a fresh issue of 36.06 lakh equity shares at a fixed price of ₹45 per share. Below are the key IPO details. Mangal Compusolution Limited is an emerging player in the IT hardware rental services sector, primarily operating in Maharashtra. The company provides flexible, scalable, and cost-effective IT hardware rental solutions, catering to a wide range of clients from small businesses to large enterprises. Its offerings allow businesses to access essential IT infrastructure without the need for heavy upfront capital investments, which appeals to organizations seeking operational flexibility and efficiency.
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Mangal Compusolution IPO Overview
| Details | Information |
|---|---|
| IPO Open Date | November 12, 2024 |
| IPO Close Date | November 14, 2024 |
| IPO Price | ₹45 per share |
| Fresh Issue | ₹16.23 crores |
| Offer for Sale | [.] equity shares |
| Face Value | ₹10 per share |
| Listing on | NSE, BSE SME |
| Listing Date | November 20, 2024 |
| Retail Quota | 50% |
| QIB Quota | 0% |
| HNI Quota | 50% |
| Minimum Lot Size | 3,000 shares |
| Minimum Investment (Retail) | ₹135,000 |
| Minimum Investment (HNI) | ₹270,000 |
Financial Performance (FY 2023-2024)
The company’s recent financial performance is as follows:
| Financial Year | Revenue (₹ crores) | Profit (₹ crores) |
|---|---|---|
| FY 2023 | ₹34.83 | ₹7.04 |
| FY 2024 | ₹23.44 | ₹3.86 |
IPO Shareholding & Capital Structure
The IPO constitutes 26.50% of the company’s post-IPO paid-up capital. Here’s an outline of the pre-and post-IPO capital structure:
| Shareholding Structure | Equity Shares (₹) | Capital (₹) |
|---|---|---|
| Pre-IPO Paid-Up Capital | 10,000,000 | ₹10 crores |
| Post-IPO Paid-Up Capital | 13,606,000 | ₹13.61 crores |
The funds raised through this IPO will be utilized as follows:
- Capital Expenditure: ₹12.96 crores
- General Corporate Purposes: ₹1.94 crores
IPO Investor Categories
Qualified Institutional Buyers (QIBs)
QIBs include financial institutions, banks, FIIs, and mutual funds registered with SEBI. The QIB quota for this IPO is set at 0%.
Non-Institutional Investors (NIIs)
NIIs include retail individual investors (HNIs), NRIs, companies, trusts, etc., bidding for shares worth more than ₹2 lakhs. This category is further divided as follows:
| Category | Investment Range | Reserved Quota |
|---|---|---|
| Small HNI (sHNI) | ₹2 lakhs - ₹10 lakhs | 1/3 of NII |
| Big HNI (bHNI) | Above ₹10 lakhs | 2/3 of NII |
Retail Individual Investors (RIIs)
The retail individual investors and NRIs investing up to ₹2 lakhs fall under this category.
Employee (EMP)
Eligible employees have a reserved quota in the IPO, as specified by the company.
Others
This category covers eligible shareholders and other reserved investors.
Key Dates for Mangal Compusolution Services IPO
| Event | Date |
|---|---|
| IPO Opening Date | November 12, 2024 |
| IPO Closing Date | November 14, 2024 |
| Allotment Finalization | November 18, 2024 |
| Refund Initiation | November 19, 2024 |
| Shares Credit to Demat | November 20, 2024 |
| Listing Date | November 20, 2024 |
Investment Highlights & Considerations
- Business Model: The company provides IT hardware rental solutions tailored to client needs. The rental services allow flexibility without long-term ownership, making them appealing to both small and large enterprises.
- Revenue Dependency: The Maharashtra region accounts for the majority (96.87%) of revenue as of Q1 FY 2025, indicating limited regional diversification.
- Competitive Market: Operating in a fragmented IT hardware rental market, the company faces intense competition.
- IPO Valuation: Based on annualized FY25 earnings, the IPO price appears fully priced, presenting a “High Risk/Low Return” profile for investors.
Capital History
Since its inception, Mangal Compusolution Limited has undergone several changes in its equity structure. Notably, the company issued bonus shares in a 4-for-1 ratio in August 2023. Here’s an outline of capital history:
| ent | Date | Share Ratio | Promoter’s Cost per Share |
|---|---|---|---|
| Initial Issue | Par Value | - | ₹6.00 - ₹9.00 |
| Bonus Issue | August 2023 | 4 for 1 | - |
Investment Considerations
The upcoming IPO, set for November 12-14, 2024, aims to raise ₹16.23 crores. The proceeds will be directed toward capital expenditure, with an allocation of ₹12.96 crores for expansion and ₹1.94 crores for general corporate purposes. The IPO price of ₹45 per share reflects the company’s growth potential in the expanding IT rental sector, though some risks remain due to its limited geographical reach and financial fluctuations.
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Mangal Compusolution’s IPO listing date is expected on November 20, 2024, on the NSE and BSE SME platforms, which may offer new growth opportunities in the competitive IT hardware rental industry.
Conclusion
Mangal Compusolution Limited represents a promising but high-risk investment in the IT rental solutions industry. Its well-established presence in Maharashtra provides a stable foundation, while the IPO funds will potentially fuel its future expansion. However, with regional revenue concentration and financial volatility in mind, prospective investors should carefully evaluate the company’s growth prospects and competitive position in the industry before making an investment decision.