Mangal Compusolution, a leading name in India's IT service sector, is making waves in the market with its Initial Public Offering (IPO). The company, which has been providing customized hardware and software rental solutions for over 20 years, serves top-tier organizations and high-profile individuals across major cities in India. The company prides itself on its high-quality delivery and integrity, with a proven track record of excellence in its field.

About Mangal Compusolution Limited

Founded and led by experienced promoters, Mangal Compusolution has established itself as a reliable player in the IT services market. The company’s focus on providing tailored rental solutions for hardware and software needs has led it to serve some of the most prestigious clients across industries. The company now seeks to expand further with its ₹16.23 Crores Fixed Price Issue, comprising 36.06 Lakh shares in a fresh issue.

Mangal Compusolution IPO Key Dates

• IPO Opens: November 12, 2024
• IPO Closes: November 14, 2024
• Allotment Date: November 18, 2024
• Listing Date: November 20, 2024

The IPO price for Mangal Compusolution is set at ₹45 per equity share, placing the market capitalization at ₹61.22 Crores. Retail investors can purchase a minimum of 3,000 shares for an investment of ₹1,35,000, while High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 6,000 shares, totaling ₹2,70,000.

Mangal Compusolution IPO Subscription Status

As of 02:00 PM on November 12, 2024, the Mangal Compusolution IPO has been subscribed 1.70 times on its first day of subscription, showing moderate interest from investors. The subscription period will continue until November 14, and real-time updates on the subscription status can be checked at BSE SME.

Mangal Compusolution IPO Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) for the Mangal Compusolution IPO is expected to be ₹0. As is typical with unregulated grey market trading, the GMP does not offer any reliable indication of potential listing gains. Investors should avoid relying on this as a measure for investment decisions.

Mangal Compusolution IPO Financial Overview

Mangal Compusolution’s revenue and profit figures over the past three fiscal years are as follows:

• Revenue from operations: ₹2,344.42 Lakhs in FY24, ₹3,483.18 Lakhs in FY23, and ₹1,848.78 Lakhs in FY22.
• EBITDA: ₹1,181.52 Lakhs in FY24, ₹1,543.05 Lakhs in FY23, and ₹1,048.88 Lakhs in FY22.
• Profit after Tax (PAT): ₹385.80 Lakhs in FY24, ₹704.09 Lakhs in FY23, and ₹86.62 Lakhs in FY22.

The company’s P/E ratio is 11.65x pre-issue, rising to 15.90x post-issue, which is relatively lower than the industry average of 20.22x. The Return on Capital Employed (ROCE) for FY24 is 9.55%, and Return on Equity (RoE) is 21.35%, reflecting a decent financial performance despite fluctuations in revenue over the years.

Use of IPO Proceeds

The funds raised from the fresh issue will be allocated towards:

1. ₹1,295.88 Lakhs for capital expenditure, likely for expanding the company’s infrastructure and operations.
2. ₹193.82 Lakhs for general corporate purposes, enabling further growth and operational improvements.

Investment Recommendations

Given the modest valuation of the IPO, the lower-than-industry P/E ratio, and the company’s strong position in the IT services market, the Mangal Compusolution IPO is fairly priced for investors. However, with the GMP showing no clear indications of listing gains, investors should approach this IPO cautiously.

We recommend that investors avoid Mangal Compusolution for short-term listing gains, although it may be worth considering for long-term investments based on the company’s consistent track record and market potential.

The Upcoming IPOs in this week and coming weeks are Onyx Biotec, Rosmerta Digital, NTPC Green, Avanse Financial, Nisus Finance and Black Buck.

The Current active IPO are  Neelam Lines and Garments and Mangal Compusolution.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.