The Lamosaic India IPO, open for subscription from November 21 to November 26, 2024, is a fixed-price issue offering 30.6 lakh shares at a price of ₹200 per equity share. The total issue size is ₹61.2 Crore, and the shares will be listed on the NSE SME on November 29, 2024. At the IPO price of ₹200 per share, the company’s market capitalization will be ₹206.76 Crore. The lot size is 600 shares, requiring a minimum investment of ₹1,20,000 for retail investors and ₹2,40,000 for HNI investors.

Grey Market Premium (GMP) and Subscription Status

As of November 26, 2024, the Lamosaic India IPO has been subscribed 1.34x, indicating moderate demand. However, the grey market premium (GMP) is reported at ₹0, suggesting no significant listing gains in the immediate future. This implies that the IPO is unlikely to generate substantial short-term returns.

Financial Overview

Lamosaic India has shown consistent growth in revenue, increasing from ₹1,003.45 Lakhs in FY2022 to ₹5,565.72 Lakhs in FY2024. The EBITDA has improved significantly from ₹95.96 Lakhs in FY2022 to ₹1,417.20 Lakhs in FY2024, indicating a significant boost in operational efficiency. The Profit After Tax (PAT) has also grown from ₹50.89 Lakhs in FY2022 to ₹822.94 Lakhs in FY2024.

The Current active IPO is Rajputana Biodiesel, Rajesh Power Services, C2C Advanced System, Enviro Infra Engineers and Lomosaic India.

The P/E ratio for the IPO stands at 17.68x pre-issue and 25.12x post-issue, which is lower than the industry average of 121.99x, suggesting that the IPO is priced reasonably relative to industry peers. The company’s Return on Equity (RoE) for FY24 is 53.94%, and its Return on Capital Employed (ROCE) stands at 42.25%, both of which are strong performance indicators.

IPO Objectives and Utilization of Funds

The proceeds from the fresh issue will be utilized as follows:

• ₹445.77 Lakhs for the repayment of borrowings.
• ₹3500 Lakhs for meeting incremental working capital needs.
• ₹600 Lakhs for pursuing inorganic growth opportunities.
• ₹1400 Lakhs for general corporate purposes.

IPO Review and Investment Recommendation

The Lamosaic India IPO is reasonably priced based on its P/E ratios compared to the industry average. However, the grey market premium (GMP) indicates no immediate listing gains, and the company's relatively small market capitalization might pose growth challenges in the long term. The company has shown strong growth in revenues and profits, with healthy ROE and ROCE metrics, but these do not necessarily guarantee outperformance in the current market climate.

Given the modest subscription demand and lack of significant GMP, we recommend avoiding this IPO for listing gains and long-term investment purposes. Investors should carefully consider other investment options before participating in this issue.

The Upcoming IPOs in this week and coming weeks are Apex Ecotech, Abha Power and Steel, Agarwal Toughened, Ganesh Infraworld, Suraksha Diagnostic, Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

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