The Saharsa Electronic Solutions Limited IPO has attracted significant attention as it represents a promising opportunity in the electronic solutions sector. With a total issue amount of ₹186.15 Crores, the IPO comprises a Fresh Issue of 60.78 Lakh Shares worth ₹172.00 Crores and an Offer for Sale of 5.00 Lakh Shares totaling ₹14.15 Crores. The subscription period for this IPO opened on September 26, 2024, and will close on September 30, 2024. Investors are eagerly awaiting the allotment, which is expected to be finalized on or around October 1, 2024, with shares tentatively listed on the NSE SME by October 4, 2024.

The share price band for the Saharsa IPO is set between ₹269 to ₹283 per share, and the minimum lot size is 400 shares. This translates to a minimum investment requirement of ₹1,13,200 for retail investors, while High-Net-Worth Individuals (HNIs) must invest at least ₹2,26,400 for 800 shares. The IPO is managed by HEM SECURITIES LIMITED as the book-running lead manager, with BIGSHARE SERVICES PRIVATE LIMITED acting as the registrar for the issue, and Hem Finlease Private Limited serving as the market maker.

Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) for the Saharsa Electronic Solutions Limited IPO is expected to be in the range of ₹110 to ₹117. However, it is crucial to note that actual trading based on GMP is minimal, making price discovery before the listing challenging. The GMP reflects the demand and supply dynamics in an unregulated market environment, serving primarily for educational and informational purposes.

Live Subscription Status

As of 5:50 PM on September 30, 2024, the Saharsa Electronic Solutions Limited IPO has been subscribed 113.60 times on its third day of the subscription period. This impressive figure indicates strong investor interest and confidence in the company's prospects. Investors can track the Saharsa IPO's live subscription status on the NSE.

Anchor Investors Report

The company has successfully raised ₹53.03 Crores from anchor investors, with shares allocated at a price of ₹283. A total of 18,74,000 equity shares have been allocated to these investors, reflecting confidence in Saharsa's growth trajectory. It is important to note that the equity shares allotted to anchor investors fall under the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Date and How to Check

The allotment date for the Saharsa IPO is set for October 1, 2024. Investors can easily check their allotment status online through the registrar's website. Here's how to do it:

Navigate to the IPO allotment status page.

Select Saharsa Electronic Solutions Limited IPO from the dropdown menu.

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

Submit the information to view your allotment status.

Objectives of the Saharsa IPO

The proceeds from the fresh issue will be utilized for the following objectives:

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

₹2,292.58 Lakhs will be invested in Sahasra Semiconductors Private Limited to support its capital expenditure needs for installing more plant and machinery.

₹4,000.00 Lakhs will meet working capital requirements.

General corporate purposes will also be funded.

Financial Performance Overview

Saharsa Electronic Solutions has shown steady financial growth. For the fiscal years 2023 and 2024, the revenue figures were ₹1,063.91 Lakhs and ₹10,278.79 Lakhs, respectively. The EBITDA for these periods was ₹1,876.88 Lakhs and ₹3,526.58 Lakhs, while the profit after tax increased from ₹230.55 Lakhs in FY23 to ₹3,262.77 Lakhs in FY24. These figures highlight a substantial growth trajectory.

In terms of valuation, the company is issuing shares at a pre-issue EPS of ₹18.05 and a post-issue EPS of ₹13.05. The pre-issue P/E ratio stands at 15.67x, while the post-issue P/E ratio is 21.68x, in contrast to the industry P/E ratio of 167.77x. Additionally, the Return on Capital Employed (ROCE) for FY24 is an impressive 42.50%, and the Return on Equity (ROE) is 54.09%. These metrics suggest that the IPO is reasonably priced, making it an attractive investment option.

Investment Recommendation

Considering the Grey Market Premium (GMP) indicating potential listing gains of 25% to 30%, along with the company's robust financial performance, we recommend that investors consider applying for the Saharsa Electronic Solutions Limited IPO. This IPO offers an opportunity not just for potential short-term listing gains but also for long-term investment prospects.

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This comprehensive overview underscores Saharsa's commitment to Environmental, Social, and Governance (ESG) principles, marking a pivotal shift in corporate practices towards sustainability and ethical governance. By integrating ESG factors into its core operations, Saharsa aims to mitigate risks and create lasting value for its stakeholders and society as a whole.

With its seasoned leadership and clear financial growth, Saharsa Electronic Solutions Limited stands poised for a promising future, making it a notable IPO to watch in the upcoming investment landscape.