Saharsa Electronic Solutions Limited is committed to advancing Environmental, Social, and Governance (ESG) principles, representing a fundamental shift in business operations. Their focus on sustainability, social responsibility, and ethical governance practices highlights their role as a responsible corporate citizen. Saharsa integrates ESG factors into its decision-making processes to mitigate risks and create long-term value for stakeholders and society at large.

The Saharsa IPO is a Book Built Issue amounting to ₹186.15 Crores, comprising 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 opens on September 26, 2024, and closes on September 30, 2024. The allotment is expected to be finalized around October 01, 2024, with shares set to be listed on the NSE SME around October 04, 2024.

The share price band for the Saharsa IPO is set between ₹269 and ₹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) are required to invest a minimum of ₹2,26,400 for 800 shares.

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

Live Subscription Status

As of 05:50 PM on September 30, 2024, the live subscription status for the Saharsa IPO indicates an impressive subscription rate of 113.60 times on its third day.

Anchor Investors Report

Saharsa Electronic Solutions has raised ₹53.03 Crore from anchor investors at a price of ₹283 per share, allocating 18,74,000 equity shares. This reflects strong interest from institutional investors.

Allotment Date and Procedure

The allotment date for the Saharsa IPO is scheduled for October 01, 2024. Investors can check their allotment status 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 check your allotment status.

Objectives of the IPO

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

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

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

₹4,000.00 Lakhs to meet working capital requirements.

General corporate purposes.

Financial Performance Overview

Saharsa Electronic Solutions has shown significant financial growth, with revenue figures for Fiscal 2024 and Fiscal 2023 reported at ₹10,278.79 Lakhs and ₹1,063.91 Lakhs, respectively. The EBITDA for these years was ₹3,526.58 Lakhs and ₹1,876.88 Lakhs, respectively. The Profit After Tax figures for these years were ₹3,262.77 Lakhs and ₹230.55 Lakhs, indicating substantial upward growth.

For the Saharsa Electronic Solutions IPO, the company is offering shares with 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, compared to the industry average of 167.77x. The company’s Return on Capital Employed (ROCE) for FY24 is 42.50%, and the Return on Equity (ROE) is 54.09%, suggesting that the IPO is fully priced.

Investment Recommendation

The Grey Market Premium (GMP) for Saharsa Electronic Solutions indicates potential listing gains of 25% to 30%. Given the company's robust financial performance and favorable IPO valuation metrics, we recommend that investors apply for the Saharsa Electronic Solutions Limited IPO for both listing gains and long-term investment purposes.

In conclusion, investors should assess their strategies and market conditions before participating in the Saharsa IPO. 

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