Smarten Power Systems IPO Opens July 7 with ₹50 Crore Fixed Price Issue at ₹100 Per Share

Smarten Power Systems Limited is set to launch its Initial Public Offering (IPO) with a fixed price issue amounting to ₹50 crore. The IPO consists of:

• Fresh Issue of 40 lakh shares worth ₹40 crore.

• Offer for Sale (OFS) of 9.99 lakh shares totaling ₹10 crore.

The company aims to raise funds to support capital expenditure, working capital needs, debt repayment, and other corporate purposes.

IPO Timeline and Key Dates

Investors planning to subscribe should take note of these important dates:

• IPO Opens: July 7, 2025

• IPO Closes: July 9, 2025

• Allotment Finalisation: Expected on Thursday, July 10, 2025

• Tentative Listing Date: Monday, July 14, 2025 on NSE SME

These dates are critical for planning applications, fund transfer, and monitoring allotment.

Price, Market Capitalisation, and Lot Size

This IPO is fixed price, with each share priced at ₹100. At the issue price, the company's market capitalisation is projected at ₹190 crore.

Lot Size Details:

• Each lot: 1,200 shares.

• Minimum Retail Application: 2 lots (2,400 shares).

• Minimum Retail Investment: ₹2,40,000.

This ensures participation is focused on serious, well-funded retail investors as well as HNIs.

Lead Manager, Registrar, and Market Maker

The IPO has strong backing from seasoned intermediaries:

• Book Running Lead Manager: Arihant Capital Markets Limited

• Registrar: Maashitla Securities Private Limited

• Market Maker: Arihant Capital Markets Limited

This setup ensures smooth processing, transparent allotment, and active post-listing support.

Company Overview and Business Model

Smarten Power Systems is engaged in designing and assembling a wide range of power backup and solar power products.

Their products include:

• Home UPS systems

• Solar inverters

• Solar power conditioning units (PCUs)

• Solar charge controllers

In addition to manufacturing, they are involved in trading solar panels and batteries. The company uses a distributor model to sell across India and also exports (except solar panels) to other markets.

This dual model of manufacturing and trading provides flexibility, market reach, and revenue diversification.

Promoter and Leadership Experience

Smarten Power Systems is promoted by:

• Arun Bhardwaj

• Rajnish Sharma

• Ravi Dutt

• Tirath Singh Khaira

These four promoters bring over two decades of experience each in the power-backup industry, giving the company deep technical expertise, reliable vendor networks, and strategic insight.

Their shared vision is to offer efficient, low-cost power solutions tailored for both domestic and export markets.

Objectives of the IPO

The net proceeds from the Fresh Issue will be utilised for five key objectives:

1. Purchase of movable assets for battery production line: ₹418.90 lakh.

2. Working capital requirements: ₹2,200.00 lakh.

3. Partial or full repayment of borrowings: ₹95.00 lakh.

4. Funding capital expenditure: ₹446.15 lakh.

5. General corporate purposes: ₹469.91 lakh.

This allocation reflects a well-thought-out plan to strengthen the company’s manufacturing capabilities, liquidity, and balance sheet.

Financial Performance: Steady Growth Story

Smarten Power Systems has demonstrated steady revenue growth over the last three fiscal years:

• FY23 Revenue: ₹18,606.28 lakh

• FY24 Revenue: ₹19,873.20 lakh

• FY25 Revenue: ₹20,319.67 lakh

EBITDA figures have also improved consistently:

• FY23: ₹798.89 lakh

• FY24: ₹1,708.08 lakh

• FY25: ₹1,836.79 lakh

Profit After Tax (PAT) has shown significant growth:

• FY23: ₹515.66 lakh

• FY24: ₹1,129.00 lakh

• FY25: ₹1,277.04 lakh

This trend highlights the company’s resilience, improved margins, and market traction.

Valuation and Key Ratios

• Pre-Issue EPS: ₹8.51

• Post-Issue EPS: ₹6.72 for FY24

• Pre-Issue P/E Ratio: 11.75x

• Post-Issue P/E Ratio: 14.88x

• Industry P/E Ratio: 42x

Profitability Metrics:

• Return on Capital Employed (ROCE): 32.58%

• Return on Equity (ROE): 39.72%

• Return on Net Worth (RoNW): 33.14%

These figures suggest the IPO is fairly priced relative to industry peers and indicates healthy financial performance.

Grey Market Premium (GMP) and Market Sentiment

As of early July, the Grey Market Premium (GMP) for Smarten Power Systems is ₹0, suggesting no expected listing gains.

GMP is an informal, unregulated indicator and not a reliable predictor of final listing prices. It depends entirely on market demand and sentiment, which can change rapidly.

Live Subscription Status

As of 11:30 AM on July 8, 2025, the IPO is 0.49 times subscribed on its second day.

This relatively modest subscription level reflects tempered investor interest, though many SME IPOs see last-day surges, especially from HNIs and institutional investors.

How to Check IPO Allotment Status

Investors can check their allotment status starting July 10, 2025, by:

1. Visiting the registrar’s website.

2. Selecting Smarten Power Systems Limited IPO.

3. Entering application number, PAN, or DP Client ID.

4. Submitting details to view allotment status.

This process ensures transparent, easy, and fast access to allotment information.

Investment Risks and Considerations

Strengths:

• Wide product portfolio in power backup and solar segments.

• Growing revenue and profitability.

• Experienced promoter team.

• Clear use of IPO proceeds to strengthen operations.

Risks:

• Entirely a fixed price issue – no price discovery through book-building.

• Significant exposure to distributor channel risk.

• Competitive pressure from established brands and imported products.

• Low GMP, indicating weak grey market sentiment.

Conclusion: Cautious Approach Advised

Smarten Power Systems IPO offers a chance to invest in the fast-growing solar and power backup space in India.

While financials show healthy growth and the IPO price seems fair, the absence of GMP listing premium suggests muted listing gains.

Analysts recommend investors exercise caution. The IPO may suit long-term, fundamental investors but listing gain seekers may choose to avoid or wait for market clarity.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control,  Anthem Biosciences.

The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

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