Mangal Compusolution is a prominent player in India’s IT services sector, providing tailored solutions for hardware and software rentals. With over 20 years of experience, it has built a reputation for delivering high-quality services to leading organizations and high-profile individuals across major cities in India. The company offers solutions that cater to various industries, making it a go-to service provider in the country.

IPO Details and Timeline

The Mangal Compusolution IPO is a fixed-price issue valued at ₹16.23 crores, with a price band set at ₹45 per share. The IPO consists of a fresh issue of 36.06 lakh shares. The subscription period will run from November 12 to November 14, 2024, with the allotment date set for November 18, 2024. Shares will be listed on the BSE SME on November 20, 2024.

• Price Band: ₹45 per share
• Lot Size: 3,000 shares
• Minimum Investment for Retail Investors: ₹1,35,000
• Minimum Investment for HNIs: ₹2,70,000

Objectives of IPO Proceeds

Mangal Compusolution plans to use the proceeds from the IPO for:

1. ₹1,295.88 Lakhs: Capital expenditure for business expansion.
2. ₹193.82 Lakhs: General corporate purposes, including potential business enhancements.

Business and Financial Overview

With strong financial growth, Mangal Compusolution posted ₹2,344.42 lakhs in revenues for FY24, up from ₹3,483.18 lakhs in FY23 and ₹1,848.78 lakhs in FY22. The company has shown a solid EBITDA growth of ₹1,181.52 lakhs in FY24, compared to ₹1,543.05 lakhs in FY23 and ₹1,048.88 lakhs in FY22. The Profit After Tax (PAT) for FY24 was ₹385.80 lakhs, a decline from the previous year, ₹704.09 lakhs in FY23.

Key financial metrics include:

• Pre-issue EPS: ₹3.86
• Post-issue EPS: ₹2.83
• Pre-issue P/E ratio: 11.65x
• Post-issue P/E ratio: 15.90x
• Industry P/E ratio: 20.22x
• ROCE for FY24: 9.55%
• ROE for FY24: 21.35%

These numbers suggest that the IPO is fairly priced when compared to industry standards, although it shows modest growth potential.

Grey Market Premium (GMP) Insights

Currently, the Grey Market Premium (GMP) for the Mangal Compusolution IPO is ₹0, reflecting a lack of demand or anticipation in the grey market. GMP is generally speculative and unregulated, and its value is based on demand and supply dynamics, which is not an accurate reflection of the stock's performance post-listing.

Live Subscription Status

As of November 14, 2024, the Mangal Compusolution IPO has been subscribed 32.86 times on the final day of the subscription period. Real-time updates on the subscription status are available at BSE.

Allotment Process

The allotment date for the Mangal Compusolution IPO is set for November 18, 2024, and allotment details will be available on the registrar’s website. Investors can check their allotment status by entering their application number, PAN, or DP Client ID on the registrar's portal.

Review and Recommendation

Given the financial performance of the company and the IPO valuation, the Mangal Compusolution IPO appears to be priced reasonably but with limited growth potential. The P/E ratios are competitive, but the lack of significant GMP indicates that the market may not expect considerable listing gains.

We recommend investors to avoid this IPO for short-term gains, but it might be considered for those looking for long-term investments in the IT services space, depending on future growth and market conditions.

Conclusion

Mangal Compusolution Ltd. offers an opportunity to invest in a well-established IT service provider, but potential investors should carefully evaluate the IPO's long-term value before committing. Stay updated on the subscription status and allotment details as the IPO progresses.

The Upcoming IPOs in this week and coming weeks are Lomosaic India, C2C Advanced System, Rosmerta Digital, NTPC Green, Avanse Financial and Nisus Finance.

The Current active IPO are Zinka Logistics Solution (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.