Smarten Power Systems Limited, a prominent name in the power-backup and solar energy sector, is launching its Initial Public Offering (IPO) with a fixed issue size of ₹50.00 Crores. The IPO comprises a Fresh Issue of ₹40.00 Crores (40.00 lakh equity shares) and an Offer for Sale (OFS) of ₹10.00 Crores (9.99 lakh shares). The IPO will open for subscription on July 7, 2025, and close on July 9, 2025.

The company has fixed the IPO price at ₹100 per share, resulting in a post-issue market capitalisation of ₹190.00 Crores. The minimum application size for retail investors is 1,200 shares, amounting to ₹1,20,000, while HNIs need to apply for at least 2 lots (2,400 shares), which equals ₹2,40,000.

The listing of shares is scheduled to take place on the NSE SME platform on or around July 14, 2025. The IPO allotment will be finalized by July 10, 2025.

The IPO is managed by Arihant Capital Markets Limited, which also acts as the Market Maker, while Maashitla Securities Private Limited is the Registrar for the issue.

Company Overview

Smarten Power Systems is a leading designer and assembler of power backup and advanced solar power products, including:

• Home UPS systems

• Solar inverters

• Solar charge controllers

• Solar power conditioning units (PCUs)

• Trading of solar panels and batteries

The company’s distribution is widespread across India through its vast distributor network. Moreover, Smarten Power Systems exports its products (excluding solar panels) to various international markets.

The enterprise is promoted by industry veterans – Arun Bhardwaj, Rajnish Sharma, Ravi Dutt, and Tirath Singh Khaira – each having more than 20 years of experience in the power backup space.

Financial Performance Snapshot

The company’s performance over the past three years showcases steady growth:

• Revenue from Operations

  • FY23: ₹18,606.28 Lakhs

  • FY24: ₹19,873.20 Lakhs

  • FY25: ₹20,319.67 Lakhs

• EBITDA

  • FY23: ₹798.89 Lakhs

  • FY24: ₹1,708.08 Lakhs

  • FY25: ₹1,836.79 Lakhs

• Profit After Tax (PAT)

  • FY23: ₹515.66 Lakhs

  • FY24: ₹1,129.00 Lakhs

  • FY25: ₹1,277.04 Lakhs

This upward trend reflects improving profitability, aided by scaling operations and optimized cost controls.

Valuation & Key Financial Metrics

At the fixed IPO price of ₹100 per share, here are the core valuation indicators:

• Pre-Issue EPS (FY24): ₹8.51

• Post-Issue EPS (FY24): ₹6.72

• Pre-Issue P/E Ratio: 11.75x

• Post-Issue P/E Ratio: 14.88x

• Industry Average P/E: 42x

Other notable metrics:

• Return on Capital Employed (ROCE): 32.58%

• Return on Equity (ROE): 39.72%

• Return on Net Worth (RoNW): 33.14%

These numbers indicate that the IPO is fairly priced compared to its industry peers, offering potential upside with limited overvaluation.

Use of IPO Proceeds

The net proceeds from the fresh issue will be deployed as follows:

1. ₹418.90 Lakhs – Purchase of movable assets for a new battery manufacturing unit

2. ₹2,200.00 Lakhs – Working capital requirements

3. ₹95.00 Lakhs – Repayment of outstanding borrowings

4. ₹446.15 Lakhs – Capital expenditure requirements

5. ₹469.91 Lakhs – General corporate purposes

The allocation showcases the company’s intention to expand production capabilities, enhance liquidity, and strengthen its financial position.

Grey Market Premium (GMP) and Listing Outlook

As of July 2, 2025, the Grey Market Premium (GMP) of Smarten Power Systems IPO stands at ₹0, indicating no visible premium in the unofficial grey market. The expected listing price remains at the issue price of ₹100, suggesting neutral sentiment in the pre-listing phase.

While GMP trends often influence investor perception, it is worth noting that GMP is not a reliable or regulated metric and must be taken only as an educational reference.

IPO Allotment Guide

Investors can check their Smarten Power Systems IPO allotment status by following these steps:

1. Visit the Registrar’s official website

2. Select Smarten Power Systems Limited IPO from the dropdown

3. Enter Application Number, PAN, or DP Client ID

4. Click Submit to view allotment result

This process will be live from July 10, 2025 onwards.

Final Verdict and Investment Recommendation

Smarten Power Systems has shown consistent revenue growth, sound fundamentals, and reasonable profitability over the years. However, with zero GMP, a fixed price structure, and no guaranteed listing gains, the IPO lacks speculative enthusiasm seen in some recent SME listings.

Furthermore, the company operates in a competitive sector with moderate entry barriers, and the IPO being relatively small in size may limit post-listing liquidity for short-term traders.

Hence, based on the available data and valuation metrics:

💡 Investment Recommendation: AVOID – The IPO is suitable only for long-term fundamental investors willing to ride the company’s growth in solar and backup energy solutions. Investors seeking short-term listing gains may want to stay cautious or avoid this issue due to absence of premium and market buzz.

Disclaimer:
This article is intended for educational and informational purposes only and does not constitute financial advice. Investors should assess their risk tolerance and consult with a certified financial advisor before making any investment decisions. Investment in securities markets is subject to market risks. Please read all IPO-related documents thoroughly before investing.

The Upcoming IPOs in this week and coming weeks are CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India, Meta Infotech.

The Current active IPO are Happy Square Outsourcing Services, Cryogenic OGS, Crizac.

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