Mangal Compusolution Limited, a renowned name in the IT service sector across major cities in India, offers customized solutions for hardware and software rental needs. With over 20 years of experience, Mangal has catered to high-profile individuals and leading organizations. Known for its consistency in high delivery quality, the company attributes its success to its skilled team and strong business ethics. Now, Mangal Compusolution is making a significant move in the stock market with its Initial Public Offering (IPO). This article will provide an in-depth review of the IPO, its subscription details, and key insights for potential investors.

Mangal Compusolution IPO Overview

The Mangal Compusolution IPO consists entirely of a fresh issue amounting to ₹16.23 Crores, with 36.06 lakh shares being offered at ₹45 per equity share. The IPO opens on November 12, 2024, and closes on November 14, 2024. The shares will be listed on the BSE SME platform, with a tentative listing date set for November 20, 2024. The IPO targets raising funds for capital expenditure and general corporate purposes, with key allocations as follows:

• ₹1,295.88 Lakhs for capital expenditure.
• ₹193.82 Lakhs for general corporate purposes.

IPO Subscription and Allotment

As of November 14, 2024, the Mangal Compusolution IPO was subscribed 32.86 times on its final day of subscription. Retail investors are required to invest a minimum of ₹1,35,000 (3,000 shares), while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,70,000 (6,000 shares). Investors can check their allotment status starting on November 18, 2024, through the registrar's website.

Financials of Mangal Compusolution

In terms of financial performance, Mangal Compusolution reported revenues of ₹2,344.42 Lakhs in FY24, EBITDA of ₹1,181.52 Lakhs, and a Profit after Tax (PAT) of ₹385.80 Lakhs. The company is fairly priced based on a pre-issue P/E ratio of 11.65x and post-issue P/E ratio of 15.90x, which compares favorably with the industry average P/E ratio of 20.22x. Despite showing consistent growth in revenue and profit, the Grey Market Premium (GMP) is currently ₹0, suggesting limited to no expected listing gains.

Key Investment Considerations

Given the financial health of the company and the fair pricing of the IPO, Mangal Compusolution’s stock may appeal to long-term investors rather than those looking for quick listing gains. The company’s Return on Equity (RoE) for FY24 stands at an impressive 21.35%, while the Return on Capital Employed (ROCE) is 9.55%. However, considering the GMP of ₹0, short-term investors may not find immediate listing gains promising. For long-term growth, Mangal Compusolution may still represent a viable investment opportunity.

Investors interested in the IPO should carefully assess their goals—whether they’re aiming for long-term growth or hoping for quick listing gains—before making their investment.

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