Osel Devices Limited, a prominent name in the technology sector, is gearing up for its Initial Public Offering (IPO), with a fresh issue amounting to ₹70.65 Crores. The IPO will be entirely comprised of a fresh issue of 44.16 lakh shares, offering a unique opportunity for investors to be part of a company known for its innovative tech solutions.

Key Details

The subscription period for the Osel Devices IPO will commence on September 16, 2024, and conclude on September 18, 2024. Following the end of the subscription period, the allotment of shares is expected to be finalized on September 19, 2024, with a tentative listing date on the NSE SME set for September 23, 2024.

The share price band for the IPO is set between ₹155 to ₹160 per share. Investors will need to purchase a minimum lot size of 800 shares, making the minimum investment amount ₹128,000 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment requirement is 2 lots or 1,600 shares, totaling ₹256,000.

IPO Management

The Book-Running Lead Manager for this IPO is Horizon Management Private Limited, while MAS Services Limited serves as the registrar for the issue. Giriraj Stock Broking Private Limited has been appointed as the Market Maker for the Osel Devices IPO.

Grey Market Premium

The Grey Market Premium (GMP) for Osel Devices is anticipated to range between ₹110 to ₹115, reflecting the company's promising financial performance. However, it's crucial to note that GMP can be volatile and does not guarantee actual listing gains, as it is driven by market speculation and demand.

Subscription Status

As of 02:19 PM on September 16, 2024, the IPO has been subscribed 2.80 times on its first day. For real-time updates on the Osel Devices IPO subscription status, investors can check the NSE website.

Anchor Investors

Osel Devices has successfully raised ₹20.12 Crores from Anchor Investors at a share price of ₹160. The company allocated 12,57,600 equity shares to these investors. Note that the shares allocated to Anchor Investors are from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Details

The allotment date for the IPO is September 19, 2024. To check the allotment status online, follow these steps:

Visit the IPO allotment status page.

Select Osel Devices Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the fresh issue will be utilized for:

₹600 Lakhs for prepayment or repayment of certain loans.

₹4,400 Lakhs for funding working capital requirements.

General corporate purposes.

Financial Performance and Valuation

Osel Devices has demonstrated strong financial performance in recent years. The company's revenue for fiscal years 2024, 2023, and 2022 was ₹13,268.52 Lakhs, ₹8,195.58 Lakhs, and ₹6,555.49 Lakhs, respectively. The EBITDA for these years was ₹2,288.29 Lakhs, ₹868.37 Lakhs, and ₹464.73 Lakhs, while the Profit After Tax (PAT) was ₹1,305.21 Lakhs, ₹466.00 Lakhs, and ₹212.31 Lakhs.

The IPO is being offered at a pre-issue EPS of ₹11.31 and a post-issue EPS of ₹8.09, with a pre-issue P/E ratio of 14.14x and a post-issue P/E ratio of 19.77x compared to the industry P/E ratio of 38.00x. The company's ROCE for FY24 is 43.17%, and the ROE is 34.68%, suggesting that the IPO is attractively priced.

IPO Review

Given the company's solid financial metrics and potential for growth, the Osel Devices IPO appears to be a promising opportunity. The Grey Market Premium suggests potential listing gains of 68% to 70%, making it a viable option for investors looking for short-term gains or long-term investment.

Disclaimer: The information provided is for educational purposes only and should not be construed as financial advice. Investors should seek professional advice tailored to their individual circumstances before making any investment decisions.

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