Smarten Power Systems, a company engaged in the designing, assembling and trading of power backup and solar energy products, is set to launch its Initial Public Offering (IPO) on the NSE SME platform starting July 7, 2025. The company specializes in Home UPS systems, solar inverters, power conditioning units (PCUs), and solar charge controllers, along with the trading of solar panels and batteries. These products are distributed across India via an established distribution network and are also exported internationally, excluding solar panels.

The Smarten Power Systems IPO is a Fixed Price Issue amounting to ₹50.00 Crores, comprising a Fresh Issue of 40 lakh equity shares worth ₹40.00 Crores and an Offer for Sale (OFS) of 9.99 lakh shares totaling ₹10.00 Crores. The IPO subscription window is from July 7 to July 9, 2025, with the allotment likely on July 10 and listing expected on July 14, 2025, on the NSE SME platform.

IPO Pricing and Investment Details

The share price is set at ₹100 per equity share, with a market capitalisation of ₹190.00 Crores at the IPO price. The lot size is 1,200 shares, making the minimum investment for retail investors ₹1,20,000. For High-Net-Worth Individuals (HNIs), the minimum application is 2 lots (2,400 shares), equating to ₹2,40,000.

Arihant Capital Markets Limited serves as the Book Running Lead Manager for the IPO, while Maashitla Securities Private Limited is the registrar. Arihant Capital is also acting as the Market Maker, ensuring liquidity post-listing.

Grey Market Premium (GMP) and Expected Gains

As per the latest data updated on 02 July 2025, the Grey Market Premium (GMP) of Smarten Power Systems IPO is noted at ₹0, indicating that no unofficial trading activity has yet occurred. Consequently, the expected listing price remains at ₹100, the same as the issue price. GMP is an unofficial, unregulated metric and may not provide an accurate view of actual market sentiment. It is not recommended to rely solely on GMP for investment decisions.

Company Overview and Market Position

Smarten Power Systems is promoted by four individuals: Arun Bhardwaj, Rajnish Sharma, Ravi Dutt, and Tirath Singh Khaira—all of whom bring more than two decades of experience in the power-backup industry. Their expertise spans product assembly and distribution in both domestic and international markets.

The company is known for developing efficient and cost-effective power solutions, and its product portfolio includes:

• Home UPS systems

• Solar inverters

• Solar charge controllers

• Solar power conditioning units (PCUs)

• Trading of solar panels and batteries

Financial Performance and Growth

Smarten Power Systems has shown consistent growth in its financials over the last three fiscal years:

• Revenue from operations increased from ₹18,606.28 Lakh in FY23 to ₹20,319.67 Lakh in FY25.

• EBITDA rose from ₹798.89 Lakh in FY23 to ₹1,836.79 Lakh in FY25.

• Profit After Tax (PAT) climbed from ₹515.66 Lakh in FY23 to ₹1,277.04 Lakh in FY25.

These results indicate steady growth and improving margins, supported by expanding distribution and export channels.

The Earnings Per Share (EPS) for FY24 is ₹8.51 (pre-issue) and ₹6.72 (post-issue). The Price-to-Earnings (P/E) ratio stands at 11.75x (pre-issue) and 14.88x (post-issue), significantly lower than the industry average P/E of 42x, suggesting a conservative and fair valuation.

In terms of return ratios:

• Return on Capital Employed (ROCE): 32.58%

• Return on Equity (ROE): 39.72%

• Return on Net Worth (RoNW): 33.14%

These metrics point to efficient capital utilization and profitability in line with industry benchmarks.

Use of IPO Proceeds

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

1. ₹418.90 Lakhs for acquiring movable production line assets for a new battery manufacturing unit.

2. ₹2,200.00 Lakhs towards working capital requirements, highlighting the company's growth ambitions.

3. ₹95.00 Lakhs to repay existing borrowings, improving debt-to-equity position.

4. ₹446.15 Lakhs earmarked for capital expenditure needs.

5. ₹469.91 Lakhs for general corporate purposes, ensuring operational agility.

IPO Allotment and Listing Process

Investors can check their IPO allotment status on or after July 10, 2025, via the registrar’s website. Follow these steps:

• Go to the IPO allotment status page.

• Choose Smarten Power Systems Limited IPO from the dropdown.

• Enter your Application Number, PAN, or DP Client ID.

• Click submit to check your IPO allotment status.

Once the allotment is finalised, the shares are expected to list on the NSE SME platform on July 14, 2025.

Investor Outlook and Recommendations

Despite strong financials, fair valuation, and industry growth potential, the lack of Grey Market Premium and absence of institutional buzz have made the market sentiment towards this IPO lukewarm. Though Smarten Power Systems operates in a high-growth sector—solar energy and power backup—this NSE SME IPO may not appeal to short-term or listing gain seekers due to neutral GMP and limited liquidity post-listing.

For long-term investors with a high-risk appetite, the IPO may still hold value, considering:

• Consistent revenue and profit growth

• Healthy return ratios

• Industry experience of promoters

• Reasonable post-issue P/E

However, for those seeking listing gains, this IPO may not provide immediate returns, especially in the absence of demand in the grey market.

Conclusion

The Smarten Power Systems IPO, opening on July 7, 2025, offers a ₹50 Crore issue through a combination of Fresh Issue and OFS. With a ₹100 per share price, ₹190 Crore market cap, and solid financial performance, the company presents itself as a viable long-term bet in the renewable and power-backup space.

While investors should not expect listing gains, those aligned with the company’s long-term vision and the solar energy narrative in India may consider participating with a patient investment horizon. The IPO represents a strategic move for Smarten Power Systems to scale operations and enhance capacity, especially in battery manufacturing.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com

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

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

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.