Saharsa Electronic Solutions Limited is at the forefront of promoting Environmental, Social, and Governance (ESG) principles in all its operations. This commitment signifies a transformative approach to business, emphasizing sustainability, social responsibility, and ethical governance practices. As a responsible corporate citizen, Saharsa recognizes the necessity of integrating ESG factors into its decision-making processes to mitigate risks and create enduring value for stakeholders and society.

The Saharsa IPO is a Book Built Issue amounting to ₹186.15 Crores, comprising a Fresh Issue of 60.78 Lakh Shares valued at ₹172.00 Crores and an Offer for Sale of 5.00 Lakh Shares, totaling ₹14.15 Crores. The subscription period opens from September 26, 2024, and closes on September 30, 2024. Allotments are expected to be finalized on October 1, 2024, with shares anticipated to list on the NSE SME by October 4, 2024.

The share price band for this IPO is set between ₹269 to ₹283 per equity share, with a minimum lot size of 400 shares. Retail investors must invest a minimum of ₹1,13,200, while High-Net-Worth Individuals (HNIs) need to invest in 2 lots (800 shares), totaling ₹2,26,400.

HEM SECURITIES LIMITED acts as the book-running lead manager, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar for the issue. Hem Finlease Private Limited is the Market Maker for Saharsa.

Grey Market Premium (GMP):

The expected Grey Market Premium for Saharsa Electronic Solutions IPO ranges from ₹110 to ₹117, reflecting the company's financial performance. It’s essential to understand that actual trading based on Grey Market Premium is not conducted, which makes price discovery dependent on the listing of shares on the stock exchange. The GMP is mentioned solely for educational purposes.

Live Subscription Status:

As of 04:50 PM on September 27, 2024, the live subscription status shows that the Saharsa IPO has been subscribed 12.57 times on its second day. For real-time updates, investors can check the NSE.

Anchor Investors Report:

Saharsa Electronic Solutions has successfully raised ₹53.03 Crore from Anchor Investors at a price of ₹283 per share, allocating 18,74,000 equity shares to these investors. The allocation of shares to Anchor Investors is drawn from the Qualified Institutional Buyers (QIBs) reservation portion.

How to Check Allotment Status:

The allotment date for the Saharsa IPO is scheduled for October 1, 2024. Investors can check their allotment status online by following these steps:

Navigate to the IPO allotment status page.

Select Saharsa Electronic Solutions 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 Saharsa Electronic Solutions IPO:

The proceeds from the Fresh Issue will be allocated as follows:

₹6,596.63 Lakhs for funding capital expenditure related to the installation of additional plant and machinery at a new manufacturing facility in Bhiwadi, Rajasthan.

₹2,292.58 Lakhs for investment in Sahasra Semiconductors Private Limited to finance its capital expenditure requirements.

₹4,000.00 Lakhs to meet working capital requirements.

General corporate purposes.

Financial Performance:

Saharsa Electronic Solutions has shown robust financial growth over the past fiscal years:

Fiscal 2024 Revenue: ₹10,278.79 Lakhs

Fiscal 2023 Revenue: ₹1,063.91 Lakhs

The EBITDA figures for these years were:

Fiscal 2024: ₹3,526.58 Lakhs

Fiscal 2023: ₹1,876.88 Lakhs

The Profit After Tax stood at:

Fiscal 2024: ₹3,262.77 Lakhs

Fiscal 2023: ₹230.55 Lakhs

For the IPO, the company is issuing shares with a pre-issue EPS of ₹18.05 and a post-issue EPS of ₹13.05. The pre-issue P/E ratio is 15.67x, while the post-issue P/E ratio is 21.68x, compared to an industry P/E ratio of 167.77x. The ROCE for FY24 is 42.50%, and ROE is 54.09%, indicating a fully priced IPO.

Expert Recommendation:

With a Grey Market Premium (GMP) suggesting potential listing gains of 25% to 30%, along with strong financial performance and favorable valuation metrics, experts recommend that investors apply for the Saharsa Electronic Solutions Limited IPO for both potential listing gains and as a strong long-term investment.

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