Share Samadhan Limited, India’s largest organization for the recovery of unclaimed investments and assets, launched its Initial Public Offering (IPO) from September 9 to September 11, 2024. The company is recognized for its unique services in the financial sector, addressing the retrieval of unclaimed investments, money, and assets, making it the sole public company in this niche space. Having served a wide range of asset classes since its inception on 11.11.11, Share Samadhan's specialized expertise has earned it a strong reputation.

The Share Samadhan IPO, a book-built issue of ₹24.05 crores, consists entirely of a fresh issue of 32.51 lakh shares. The company set a price band of ₹70 to ₹74 per share, with a minimum lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹118,400, while High-Net-Worth Individuals (HNIs) must invest in at least two lots, bringing the total investment to ₹236,800. The IPO saw significant interest, resulting in a 13.63x subscription by the close of the final bidding day, September 11, 2024.

The company appointed Narnolia Financial Services Limited as the book-running lead manager, while Skyline Financial Services Private Limited acts as the registrar. Nikunj Stock Broker Limited has been appointed as the market maker for this IPO, ensuring liquidity when shares are listed on the BSE SME platform.

Subscription Status & Allotment Details

The IPO subscription showed strong demand across all investor categories, with notable interest from HNIs and retail investors. The allotment is expected to be finalized by September 12, 2024, and shares will be listed on the BSE SME on September 16, 2024.

For investors awaiting allotment results, here’s how you can check your Share Samadhan Limited IPO allotment status:

Go to the registrar’s website.

Choose Share Samadhan Limited IPO from the list.

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

Submit the details to check your allotment status.

Financial Performance Overview

Share Samadhan Limited has demonstrated steady growth over the years. The company’s revenue has risen from ₹24,213.75 thousand in FY22 to ₹27,613.81 thousand in FY23, with a significant jump to ₹99,612.57 thousand in FY24. This sharp rise reflects the growing demand for its services in the recovery of unclaimed assets, underscoring its industry leadership.

Similarly, EBITDA saw a substantial increase, from ₹5,847.00 thousand in FY22 to ₹52,372.03 thousand in FY24, indicating a boost in operational efficiency. The company’s Profit After Tax (PAT) jumped from ₹6,069.86 thousand in FY22 to ₹39,101.31 thousand in FY24, reflecting solid profitability.

In terms of valuation, Share Samadhan’s pre-issue EPS stands at ₹4.63, with a post-issue EPS of ₹3.81. The P/E ratio is 15.98x pre-issue and 19.42x post-issue, compared to the industry average of around 30x. This relatively moderate valuation suggests that the IPO is priced fairly, considering the company’s performance.

Grey Market Premium (GMP) Insights

As of the final day of bidding, the Grey Market Premium (GMP) for Share Samadhan Limited IPO ranges from ₹20 to ₹26, signaling possible listing gains of 30% to 35%. However, it is important to note that GMP is an unofficial indicator based on market sentiment and demand, and not a reliable predictor of actual listing performance. Investors should treat the Grey Market Premium with caution and focus on the company’s financial health and business fundamentals.

Key Objectives of the Share Samadhan IPO

The proceeds from the Share Samadhan Limited IPO will be allocated towards the following objectives:

₹41,000.00 thousand for investment in technology upgrades.

₹35,648.00 thousand for an unidentified acquisition, potentially in India or abroad.

₹79,000.00 thousand to address the company’s working capital requirements.

Additional funds for general corporate purposes.

Expenses related to the IPO issuance.

Company Leadership and Strategy

Share Samadhan’s leadership is a critical component of its success. Mr. Abhay Kumar Chandalia, the Managing Director and Co-Founder, has played a pivotal role in steering the company towards becoming a leader in unclaimed investment recovery. With over 26 years of experience in fields such as corporate finance, capital markets, and investment banking, Mr. Chandalia has helped the company build a robust business model that prioritizes customer satisfaction and innovation.

Mr. Vikash Kumar Jain, the company’s Co-Founder, also brings 22 years of expertise in corporate finance and investment advisory. Together, they have built a client-centric organization focused on delivering specialized financial services that cater to the complex needs of investors seeking to recover unclaimed assets.

IPO Review & Recommendations

Share Samadhan Limited operates in a highly specialized niche within India’s financial services sector. Its focus on recovering unclaimed investments sets it apart from other companies in the industry. The company has grown significantly since its inception and has shown strong financial performance in recent years.

While the company’s P/E ratio and ROCE (47.99%) suggest that the IPO is fairly priced, it is essential for investors to consider the nature of the business and the market environment. Given the modest Grey Market Premium, investors looking for short-term gains should proceed with caution. Long-term investors who believe in the company’s business model and growth potential may find value in this IPO, especially considering its leadership in a niche sector.

Conclusion

The Share Samadhan Limited IPO presents a unique opportunity for investors interested in the financial services sector, specifically in the recovery of unclaimed investments and assets. The company’s solid financial performance, experienced leadership, and focused business model make it a compelling option for long-term investors. However, given the GMP and overall market conditions, risk-averse investors may want to assess the company’s long-term growth potential before committing.

Investors can monitor Share Samadhan Limited IPO allotment status and other key updates through the official registrar’s website.

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