Osel Devices Limited is a dynamic player in the technology sector, driven by a passion for innovation and a commitment to excellence. The company specializes in creating transformative products that empower individuals, businesses, and communities to thrive in a rapidly evolving digital landscape.

The Osel Devices IPO is a Book Built Issue amounting to ₹70.65 crores, comprising entirely a fresh issue of 44.16 lakh shares. The subscription period for the IPO is from September 16, 2024, to September 19, 2024. The price band for the shares is set between ₹155 and ₹160, with a minimum lot size of 800 shares. Retail investors must invest a minimum of ₹128,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹256,000 (2 lots or 1,600 shares).

The book-running lead manager for this issue is Horizon Management Private Limited, while MAS Services Limited serves as the registrar. Giriraj Stock Broking Private Limited acts as the market maker for the IPO.

Financial Performance

Osel Devices has shown impressive financial growth over the past few years. In Fiscal Year 2024, the company reported revenue of ₹13,268.52 lakhs, a significant increase from ₹8,195.58 lakhs in FY23 and ₹6,555.49 lakhs in FY22. The EBITDA for FY24 was ₹2,288.29 lakhs, compared to ₹868.37 lakhs in FY23 and ₹464.73 lakhs in FY22. The Profit After Tax (PAT) also rose substantially to ₹1,305.21 lakhs in FY24, up from ₹466.00 lakhs in FY23 and ₹212.31 lakhs in FY22.

For the IPO, Osel Devices is offering shares with a pre-issue EPS of ₹11.31 and a post-issue EPS of ₹8.09. The pre-issue Price-to-Earnings (P/E) ratio stands at 14.14x, while the post-issue ratio is 19.77x, compared to the industry P/E of 38.00x. The company's Return on Capital Employed (ROCE) for FY24 is 43.17%, and the Return on Equity (ROE) is 34.68%, indicating that the IPO is fairly priced.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Osel Devices is anticipated to be between ₹90 and ₹95, suggesting a potential listing gain of 55% to 58%. However, it’s crucial to note that the GMP is speculative and should not be the sole factor in making investment decisions.

Subscription Status

As of 11:34 PM on September 19, 2024, the Osel Devices IPO has received overwhelming interest, with a subscription rate of 63.27 times on its final day. This robust demand reflects positive sentiment toward the company's offerings and financials. The subscription breakdown includes significant participation from various investor categories, indicating broad interest.

Anchor Investors

Osel Devices successfully raised ₹20.12 crores from anchor investors at a price of ₹160 per share, allocating 12,57,600 equity shares to these institutional investors. This allocation demonstrates confidence from major investors and sets a positive tone for the IPO's reception.

Allotment and Listing Details

The allotment date for the Osel Devices IPO is set for September 20, 2024. Investors can check their allotment status through the registrar’s website by following these steps:

Visit the Registrar’s 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.

The shares are expected to be listed on the NSE SME on September 25, 2024.

Objectives of the IPO

The proceeds from the fresh issue will be utilized for:

₹600 lakhs for the prepayment or repayment of certain loans.

₹4,400 lakhs for funding the working capital requirements of the company.

General corporate purposes.

Conclusion

Osel Devices Limited is a prominent player in the technology sector, with a strong focus on innovation and growth. With solid financial performance, attractive pricing, and positive market sentiment, the IPO offers a compelling investment opportunity.

Investors interested in participating in the technological advancement and growth of the digital landscape should consider the Osel Devices IPO for both listing gains and long-term investment potential.

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