Osel Devices IPO: GMP Today, Day 1 Subscription Status And More

The initial public offer of Osel Devices Ltd., which manufactures LED display systems and hearing aids, opened for subscription on Monday.  Investors may apply for shares in the Osel Devices IPO by September 19. 

The book-built issue, valued at Rs 70.66 crore, solely comprises a fresh issue of 44.16 lakh shares. Osel Devices' IPO's allotment is likely to be finalised on September 20, with shares being listed on the NSE SME platform, Emerge, on September 24.

The price band for Osel Devices IPO has been set between Rs 155 and Rs 160 per share, with a face value of Rs 10 per share. The minimum application lot size is 800 shares or 1 lot, with retail investors requiring a minimum investment of Rs 1,28,000. For High Net-Worth Individuals (HNIs), the minimum lot size is two lots, or 1,600 shares, with an investment of Rs 2,56,000.

Horizon Management Private Limited is the book-running lead manager for the IPO, while Mas Services Limited is the registrar. Giriraj Stock Broking is the issue’s market maker.

The company's promoters are Rajendra Ravi Shanker Mishra and Jyotsna Jawahar, who currently hold a pre-issue shareholding of 98.50%. Following the IPO, their combined stake will be reduced to 71.53%, reflecting the dilution from the fresh issue of shares.

The SME IPO was subscribed 3.42 times on Monday.

• Qualified Institutions: NIL

• Non-Institutional Buyers: 1.67 times

• Retail Investors: 6.12 times

The grey market premium (GMP) of Osel Devices is Rs 110 as of 09:24 p.m. on Monday, implying 68.75% gains over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 270 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Osel Devices aims to utilise the net proceeds from the IPO for several key objectives. These include the prepayment or repayment of loans taken by the company, funding working capital requirements, and addressing general corporate purposes. 

Osel Devices Limited was established in 2006, and specialises in manufacturing a wide range of LED display systems and hearing aids. The company's LED display systems cater to commercial applications such as advertising media, billboards, corporate boardrooms, presentations, display promotions, command centres and front signs. Additionally, Osel Devices produces hearing aids to assist individuals with disabilities, the elderly, and those with chronic hearing impairments. 

Osel Devices Limited witnessed significant financial growth between the fiscal year ending March 31, 2024, and March 31, 2023. The company's revenue surged by 62%, rising from Rs 81.96 crore in FY 2023, to Rs 132.69 crore in FY 2024. During the period, its profit after tax (PAT) increased by 180%, jumping from Rs 4.6 crore to Rs 13.05 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.