Mangal Compusolution IPO: Opens on November 12 – Check Details
Mangal Compusolution IPO
Mangal Compusolution IPO: Third SME IPO of November to Open on November 12 – Full Details, Issue Price, and Investment Insights
Mangal Compusolution IPO: A promising new entrant in the world of IT hardware solutions, Mangal Compusolution, is set to launch its Initial Public Offering (IPO) on November 12, 2024.
This IPO marks the third SME (Small and Medium Enterprise) segment offering for the month, following Neelam Linens & Garments and Rosmerta Digital Services.
The company has priced its issue at Rs 45 per share, giving investors an opportunity to invest in a growing business that focuses on renting and selling IT hardware solutions.
The subscription window for the Mangal Compusolution IPO will remain open until November 14, 2024, giving investors a three-day window to subscribe.
The company’s shares are expected to begin trading on the BSE SME platform from November 20, 2024.
In this article, we’ll dive into all the important details about the IPO, the business model of Mangal Compusolution, its future growth prospects, and how the company plans to utilize the funds raised from this public offering.
Mangal Compusolution IPO Details
Mangal Compusolution is a Mumbai-based IT hardware rental and sales company, offering a wide range of IT equipment solutions to various businesses.
The IPO will involve the issuance of 36.06 lakh fresh equity shares, totaling an approximate value of Rs 16.23 crore.
It’s worth noting that this IPO does not include any Offer for Sale (OFS) component, meaning no existing shareholders are selling their shares.
The entire offering is for the issuance of new shares, which could provide a significant boost to the company’s capital base.
The issue price has been set at Rs 45 per share, with half of the net offer reserved for retail investors.
The remaining portion will be allocated to institutional and non-institutional investors, which include high-net-worth individuals (HNIs) and large institutional investors.
The IPO will open on November 12, 2024, and close on November 14, 2024, giving investors ample time to evaluate the offering.
What Does Mangal Compusolution Do?
Mangal Compusolution is primarily engaged in providing IT hardware solutions, including renting and selling equipment such as computers, servers, laptops, networking devices, and other hardware accessories.
The company’s business model revolves around offering end-to-end IT solutions, tailored to the specific needs of its clients, ranging from small businesses to larger corporations.
One of Mangal Compusolution’s key offerings is customized IT configurations. The company works closely with clients to design hardware setups that meet their operational and technical requirements.
This makes them a preferred partner for businesses seeking specialized IT solutions rather than standard off-the-shelf products.
The company has a dominant presence in Maharashtra, accounting for 96.87% of its revenue.
This regional concentration suggests that Mangal Compusolution has a deep understanding of the local market and the specific needs of businesses in this area.
However, with the funds raised from this IPO, the company aims to expand its operations and venture into other regions, potentially growing its revenue base and market share.
Financial Overview
For the fiscal year 2023, Mangal Compusolution reported strong financial performance with significant revenue growth, driven by both hardware rentals and sales.
As the demand for IT infrastructure and digital transformation continues to grow in India, companies like Mangal Compusolution are well-positioned to benefit from this trend.
The company’s ability to provide customized IT solutions sets it apart from competitors, and its solid track record in the Maharashtra region suggests potential for growth in other parts of India.
Use of IPO Proceeds
The funds raised from the Mangal Compusolution IPO will be used primarily for capital expenditure and general corporate purposes. Here’s how the company plans to deploy the funds:
- Capital Expenditure (Rs 12.96 Crore): A substantial portion of the funds will be allocated to capital expenditure, which will help the company scale up its operations. This includes upgrading infrastructure, expanding its IT equipment inventory, and investing in new technologies to better serve its clients. The capital raised will allow Mangal Compusolution to meet increasing demand for its IT solutions and enhance its capacity to cater to a larger client base.
- General Corporate Purposes (Rs 1.94 Crore): The remaining funds will be used for general corporate purposes. This could include activities such as working capital management, debt reduction, marketing initiatives, and other operational requirements that support the company’s growth and expansion strategy.
IPO Structure and Investor Allocation
The IPO has been structured to accommodate different types of investors:
- Retail Investors: Half of the total issue is reserved for retail investors, which is a positive sign for individual investors looking to participate in the offering. Retail investors can subscribe to the IPO at the fixed price of Rs 45 per share, which could potentially offer them long-term growth prospects as the company expands and gains a larger market share in the IT hardware rental sector.
- Institutional and Non-Institutional Investors: The other half of the IPO will be allocated to institutional investors (such as mutual funds, insurance companies, and pension funds) and non-institutional investors (such as high-net-worth individuals). These investors are typically expected to have a larger appetite for risk and may play a crucial role in determining the overall success of the IPO.
Key Dates and Timeline
- IPO Opening Date: November 12, 2024
- IPO Closing Date: November 14, 2024
- Issue Price: Rs 45 per share
- Equity Shares on Offer: 36.06 lakh (Fresh issue)
- Listing Date: November 20, 2024
- Listing Platform: BSE SME
Java Capital Services has been appointed as the sole book-running lead manager for the IPO, responsible for managing the offer process.
KFin Technologies will act as the registrar to the offer, handling investor applications and related functions.
Why Invest in Mangal Compusolution IPO?
The Mangal Compusolution IPO presents an opportunity for investors to participate in a growing sector with significant demand.
The IT hardware rental business is booming as more companies seek flexible and cost-effective solutions for their technology needs.
By offering customized solutions and focusing on customer satisfaction, Mangal Compusolution has carved out a niche in the market.
The company’s deep penetration into Maharashtra, combined with the IPO’s capital infusion, positions it well for expansion into other regions, further enhancing growth potential.
The funds raised will be critical in expanding capacity and improving service offerings, which could drive revenue growth and profitability in the coming years.
For retail investors, this IPO offers a chance to invest in a well-established SME with a proven track record and strong regional presence, as well as a commitment to growth and scalability.
Final Remarks
Mangal Compusolution’s IPO provides an exciting investment opportunity for those looking to gain exposure to the growing IT hardware rental industry.
With its solid business model, strong regional presence, and plans for expansion, the company is poised for growth in the coming years.
Retail investors, in particular, may find this offering attractive, given the favorable share allocation and the potential for long-term capital appreciation.
Investors should carefully review the company’s financials, growth strategy, and use of IPO proceeds before making investment decisions.
The opportunity to subscribe to the Mangal Compusolution IPO opens on November 12, 2024, with the final date to apply being November 14, 2024.
