Mangal Compusolution, a prominent name in India’s IT services sector, specializes in customized hardware and software rental solutions. With over 20 years of experience, the company has delivered high-quality services to a wide range of clients, including leading organizations and high-profile individuals across major cities in India. The company prides itself on its integrity and commitment to consistent, high delivery quality through its experienced team.

The Mangal Compusolution IPO is a Fixed Price Issue worth ₹16.23 Crores, with 36.06 Lakh shares being issued entirely as a fresh issue. The IPO subscription period begins on November 12, 2024, and will close on November 14, 2024. The allotment date is expected to be on November 18, 2024, and shares will be listed on the BSE SME on November 20, 2024.

Share Price and Investment Details:

The price band for the Mangal Compusolution IPO is set at ₹45 per share. At this price, the company’s market capitalization will be ₹61.22 Crores. The lot size is 3,000 shares, and retail investors must invest a minimum of ₹1,35,000. High-Net-Worth Individuals (HNIs) need to invest in a minimum of 2 lots (6,000 shares), which amounts to ₹2,70,000.

The book-running lead manager for the IPO is Jawa Capital Services Private Limited, and the registrar is Kfin Technologies Limited. Rikhav Securities Limited is the Market Maker for the IPO.

IPO Subscription and Allotment Status:

As of November 13, 2024, at 5:00 PM, the Mangal Compusolution IPO has been subscribed 7.51 times on the second day of the subscription period. The Grey Market Premium (GMP) is reported to be ₹0, indicating no significant demand in the grey market at this stage.

The allotment date for the IPO is November 18, 2024. Investors can check their allotment status online by entering the required details such as application number, PAN, or DP Client ID.

Objectives of the IPO:

The proceeds from the Mangal Compusolution IPO will be used for the following purposes:

1. ₹1,295.88 Lakhs for capital expenditure.
2. ₹193.82 Lakhs for general corporate purposes.

Financial Performance:

For the fiscal years 2024, 2023, and 2022, Mangal Compusolution reported:

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

The pre-issue EPS stands at ₹3.86, and the post-issue EPS is projected to be ₹2.83. The pre-issue P/E ratio is 11.65x, while the post-issue P/E ratio is 15.90x, compared to the industry P/E ratio of 20.22x. The company’s Return on Capital Employed (ROCE) for FY24 is 9.55%, and its Return on Equity (RoE) stands at 21.35%, which reflects solid profitability metrics.

IPO Review:

The Mangal Compusolution IPO is reasonably priced, given its positive revenue growth and solid EBITDA margins. However, the Grey Market Premium (GMP) suggests no significant listing gains, indicating that the demand for the stock might not be strong enough for immediate gains.

Despite the company’s good financials, including a positive RoE, the GMP and the valuation suggest that the IPO may not offer significant listing gains in the short term. Therefore, investors seeking short-term gains might want to be cautious, though the IPO could still be a reasonable option for long-term investment depending on further performance.

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.