At Sahasra, a commitment to promoting Environmental, Social, and Governance (ESG) principles underscores every facet of their operations. This approach represents a fundamental shift in business practices, emphasizing sustainability, social responsibility, and ethical governance. As a responsible corporate entity, Sahasra recognizes the necessity of integrating ESG factors into their decision-making processes, aiming to mitigate risks while fostering long-term value for stakeholders and society.

The company is set to launch its Initial Public Offering (IPO), with a total issue size of ₹186.15 Crores. This consists of a Fresh Issue of 60.78 Lakh Shares valued at ₹172.00 Crores and an Offer for Sale of 5.00 Lakh Shares, amounting to ₹14.15 Crores. The subscription period for the Saharsa IPO opens on September 26, 2024, and closes on September 30, 2024. The allotment results are expected to be finalized on October 01, 2024, with shares projected to be listed on the NSE SME around October 04, 2024.

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

HEM SECURITIES LIMITED serves as the book-running lead manager, BIGSHARE SERVICES PRIVATE LIMITED is the registrar for the issue, and Hem Finlease Private Limited acts as the market maker.

Current Market Insights

As of September 27, 2024, the Grey Market Premium (GMP) for Saharsa Electronic Solutions Limited IPO is estimated to range between ₹110 to ₹117, reflecting robust demand. The IPO has been subscribed 12.57 times on its second day, signaling strong interest from investors.

Objectives of the IPO

Proceeds from the IPO will be utilized as follows:

₹6,596.63 Lakhs for funding capital expenditures related to installing additional plant and machinery at the new manufacturing facility in Bhiwadi, Rajasthan.

₹2,292.58 Lakhs for investments in the subsidiary, Sahasra Semiconductors Private Limited, to finance capital expenditure.

₹4,000.00 Lakhs to meet working capital requirements.

General corporate purposes.

Financial Performance Overview

The leadership team at Saharsa comprises experienced individuals from the Electronics System Design and Manufacturing (ESDM) industry. Promoter Amrit Lal Manwani has approximately 20 years of experience in electronic manufacturing services, while Varun Manwani and Arunima Manwani manage growth strategies and business plans, respectively.

In terms of financial performance, the company reported:

Revenue: ₹10,278.79 Lakhs in FY 2024, a significant increase from ₹1,063.91 Lakhs in FY 2023.

EBITDA: ₹3,526.58 Lakhs in FY 2024, compared to ₹1,876.88 Lakhs in FY 2023.

Profit After Tax: ₹3,262.77 Lakhs in FY 2024, up from ₹230.55 Lakhs in FY 2023.

For the Saharsa IPO, the company offers 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 stands at 21.68x, significantly lower than the industry P/E ratio of 167.77x. The Return on Capital Employed (ROCE) for FY24 is 42.50%, and the Return on Equity (ROE) is 54.09%, indicating robust financial health.

Investment Recommendation

Given the strong financial performance and the promising Grey Market Premium indicating potential listing gains of 25% to 30%, we recommend investors apply for the Saharsa Electronic Solutions Limited IPO for both listing gains and long-term investment opportunities. For more insights into the latest IPOs and investment tips, visit Top News Headlines and join our Finance Saathi Telegram Channel for real-time updates.

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