Osel Devices is a prominent player in the technology sector, known for its innovative solutions and transformative products. The company is now offering its shares through a Book Built Issue amounting to ₹70.65 Crores, comprising a Fresh Issue of 44.16 Lakh Shares. The subscription period for the IPO is open from September 16, 2024, to September 18, 2024, with the allotment expected to be finalized by Thursday, September 19, 2024. The shares are set to be listed on the NSE SME with a tentative listing date on or about Monday, September 23, 2024.

The share price band for the Osel Devices IPO is set between ₹155 to ₹160 per equity share. The minimum lot size is 800 shares, necessitating a minimum investment of ₹128,000 for retail investors. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 2 lots (1,600 shares), amounting to ₹256,000.

Subscription Status and Anchor Investors

As of September 16, 2024, the Osel Devices IPO has been oversubscribed 2.80 times on its first day, indicating robust investor interest.

The company has also raised ₹20.12 Crore from Anchor Investors at the upper end of the price band, ₹160 per share. A total of 12,57,600 equity shares have been allocated to Anchor Investors, reflecting significant institutional confidence.

Grey Market Premium (GMP)

The Grey Market Premium for Osel Devices is currently estimated between ₹110 to ₹115, which translates to potential listing gains of approximately 68% - 70%. While GMP offers an indication of market sentiment, actual price discovery will occur only upon listing.

Objectives of the IPO

Proceeds from the Osel Devices IPO will be allocated towards:

Prepayment or repayment of certain loans availed by the company, amounting to ₹6 Crores.

Funding working capital requirements of the company, which requires ₹44 Crores.

General corporate purposes, ensuring continued growth and operational efficiency.

Financial Performance and Valuation

Osel Devices has demonstrated significant financial growth with revenue figures for Fiscal 2024 reaching ₹13,268.52 Lakhs, compared to ₹8,195.58 Lakhs in Fiscal 2023 and ₹6,555.49 Lakhs in Fiscal 2022. The company's EBITDA for Fiscal 2024 is ₹2,288.29 Lakhs, with a Profit after Tax of ₹1,305.21 Lakhs.

For this IPO, the company is offering shares with a pre-issue EPS of ₹11.31 and a post-issue EPS of ₹8.09. The pre-issue P/E ratio is 14.14x, while the post-issue P/E ratio is 19.77x, compared to the industry P/E ratio of 38.00x. The company's ROCE for FY24 is 43.17% and ROE is 34.68%. These metrics indicate that the IPO is fairly priced and offers a promising opportunity for investors.

Investment Recommendation

Considering the high GMP and the company's strong financial performance, the Osel Devices IPO is an attractive option for both listing gains and long-term investment. It presents a solid investment opportunity in the technology sector.

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