Mangal Compusolution, a well-established IT service provider in India, offers comprehensive solutions for hardware and software rental needs across major cities, building a strong reputation over 20+ years for high-quality and consistent delivery. Mangal Compusolution’s client base includes prominent organizations and high-profile individuals who depend on the company's customized offerings.

The IPO, launched as a fixed-price issue of ₹16.23 Crores, comprises a fresh issue of 36.06 lakh shares priced at ₹45 per equity share. The company’s IPO subscription period is set from November 12 to November 14, 2024, targeting listing on the BSE SME exchange. The market capitalization at the issue price will be around ₹61.22 Crores.

Subscription and Investment Details

Subscription Timeline
The Mangal Compusolution IPO opens on November 12, 2024, and closes on November 14, 2024. Interested investors can submit applications until 5:00 PM on the closing date.

Investment Requirement
The IPO’s lot size is 3,000 shares, requiring a minimum investment of ₹1,35,000 for retail investors. High-Net-Worth Individuals (HNIs) must apply for at least two lots (6,000 shares), totaling ₹2,70,000.

Lead Manager and Market Maker
The IPO’s lead manager is Jawa Capital Services Private Limited, while Kfin Technologies Limited is the issue registrar. Rikhav Securities Limited will serve as the market maker.

Allotment and Listing

The allotment status for the IPO is expected to be finalized by November 18, 2024. Investors can check their status on the Kfin Technologies website by following these steps:

• Go to the allotment status page.
• Select Mangal Compusolution Limited IPO from the dropdown list.
• Enter your application number, PAN, or DP Client ID.
• Submit to view the allotment results.

Shares will likely list on the BSE SME on November 20, 2024, enabling investors to trade on the secondary market.

Financial and Performance Review

Mangal Compusolution's revenue from operations for FY 2024 was ₹2,344.42 Lakhs, reflecting growth from ₹1,848.78 Lakhs in FY 2022. However, profit after tax (PAT) declined to ₹385.80 Lakhs from ₹704.09 Lakhs in FY 2023, indicating some fluctuation in profitability.

The company’s Earnings Per Share (EPS) stands at ₹3.86 pre-issue and ₹2.83 post-issue. Mangal Compusolution's pre-issue P/E ratio is 11.65x, while the post-issue P/E ratio rises to 15.90x, both of which compare well against the industry P/E of 20.22x. With a ROCE of 9.55% and RoE of 21.35%, the IPO appears fairly valued, but its performance metrics indicate moderate profitability trends.

Objectives of the IPO

The proceeds from the IPO will be allocated as follows:

1. Capital Expenditure – ₹1,295.88 Lakhs for upgrading service offerings and enhancing operational capabilities.
2. General Corporate Purposes – ₹193.82 Lakhs for other strategic business requirements and initiatives.

These funds are primarily aimed at expanding Mangal Compusolution’s business footprint across India and increasing efficiency in service delivery.

GMP and Market Outlook

The Grey Market Premium (GMP) for Mangal Compusolution is expected to be ₹0, indicating no anticipated listing gains. GMP trends are influenced by demand and supply dynamics within unregulated markets, and the absence of a premium here reflects modest investor interest for short-term gains. As a result, investors might consider alternative investment options or prioritize Mangal Compusolution only for potential long-term growth.

Conclusion

Given Mangal Compusolution's long-standing market presence, the IPO holds appeal for investors interested in a moderate-risk, service-oriented stock. However, the absence of a Grey Market Premium and the recent fluctuation in profitability suggest that this IPO may not offer significant listing gains. The company’s business fundamentals and steady demand within the hardware and software rental sector could support gradual growth over time. Investors are advised to carefully consider financial goals and risk tolerance before making a decision on this IPO.

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

The Current active IPO are  Mangal Compusolution, Black Buck, and Onyx Biotec.

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.