Sahasra Electronics IPO Day 2: Check GMP, Day 2 Subscription Status And More

Sahasra Electronics Solutions Ltd. launched its initial public offering on September 26 and was subscribed 5.07 times on Day 1. The SME issue has already been subscribed more than 8 times on Friday (Day 2).

The Rs 186-crore book-building issue will be the second-largest SME IPO of 2024, after KP Green Engineering Ltd.'s Rs 189.5 crore public offer. The IPO will be India’s biggest SME IPO at NSE.

Here's all you need to know about the public issue of Sahasra Electronics Solutions.

Sahasra Electronics Solutions IPO combines a fresh issue of 60.78 lakh shares valued at Rs 172.01 crore and an offer for sale (OFS) portion of 5 lakh shares totalling Rs 14.15 crore.

Sahasra Electronics Solutions IPO's price band is Rs 269 and Rs 283 per share. Retail investors can bid in the IPO with a minimum lot size of 400 shares, totalling an investment of Rs 1,13,200. For HNIs, it is 2 lots amounting to Rs 226,400.

The registrar for the Sahasra Electronics Solutions IPO is Bigshare Services Pvt Ltd. The company has appointed Hem Securities Ltd. as the book-running lead manager and Hem Finlease Pvt. as the market maker for the issue. 

As per the company's red herring prospectus, of the 65,78,000 shares offered - 19% is reserved for Qualified institutional buyers, 14.26% for non-institutional investors, 33.25% for retail investors and 28.49% for Anchor investors.

The bidding window for Sahasra Electronics Solutions IPO will remain open till September 30. The company will finalise the allotment for shares in the IPO on October 1. 

Credit of shares into the Demat account of successful bidders will be done on October 3 along with initiation of refunds for the non-allottees. 

Shares of Sahasra Electronics Solutions are set to list on the NSE SME platform, Emerge, tentatively on October 4. 

The IPO of Sahasra Electronics Solutions IPO was subscribed 13.94 times on Friday.

• Qualified Institutions: 8.60 times

• Non-institutional buyers: 12.95 times

• Retail investors: 17.42 times

The grey market premium (GMP) of Sahasra Electronics Solutions IPO was Rs 200, as of 3:28 p.m. on September 27, indicating a 70.67% premium over the IPO price, according to Investorgain. Based on the GMP, the estimated listing price of the stock is likely to be Rs 483 per share.

However, investors must note that GMP is not an official price quote for the stock and is based on speculation.

Sahasra Electronic Solutions Limited specialise in the electronic system design and manufacturing (ESDM) sector. The company offers a diverse range of products, including printed circuit board assemblies (PCBAs), LED lighting solutions and a variety of computer and IT accessories. 

The company exports over 80% of its products to global markets in countries USA, UK, Germany and Canada. 

Use of Proceeds

Sahasra Electronic Solutions Ltd.  plans to use the net proceeds from the offer to fund its capital expenditure for the setting up of additional plant and  machinery at a new facility in Rajasthan.

The company will further use the funds to invest in its subsidiary Sahasra Semiconductors Pvt.

Additionally, a portion of the funds will be used for working capital requirements and general corporate purposes.

Financial Performance

Sahasra Electronic Solutions Ltd. reported a stellar  866% year-on-year rise in its revenue for FY24. The company posted a revenue of Rs 102.78 crore in FY24, compared to Rs 10.63 crore in FY23. Its profit after tax  grew many folds to Rs 32.62 crore in FY24, up from Rs 2.3 crore in FY23.

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.