Mangal Compusolution IPO To Open on November 12, 2024

Mangal Compusolution, a Mumbai-based hardware rental provider, is ready to launch its IPO on November 12, 2024, with shares priced at Rs.45 each. Aiming to raise Rs.16.23 crore, this is the third SME IPO this month, joining Neelam Linens and Garments and Rosmerta Digital Services. The offer consists solely of a fresh issue of 36.06 lakh shares, with no shares up for sale from existing stakeholders.

IPO Details & Timeline

The subscription period for Mangal Compusolution’s IPO wraps up on November 14, 2024, with shares expected to list on the BSE SME platform on November 20, 2024. Investors should note that half of the shares are set aside for retail investors, with the other half kept for high-net-worth individuals (HNIs). Qualified institutional buyers (QIBs) don’t get a slice in this one.

The minimum application is 3,000 shares, which translates to Rs.135,000, while HNIs can apply in multiples of 6,000 shares (Rs.270,000).

About the Company

Founded in 2011, Mangal Compusolution offers rental services for a range of IT equipment, from servers to projectors. They’ve carved out a niche in Maharashtra, which contributes to nearly 97% of their revenue. The company also customizes setups based on client needs, making it a go-to for tailored hardware solutions. IPO proceeds will fund capital expansion (Rs.12.96 crore) and general corporate needs (Rs.1.94 crore).

Financials

In FY24, Mangal Compusolution reported revenue of Rs.23.44 crore, down from Rs.34.83 crore the previous year, with profits dropping from Rs.7.04 crore to Rs.3.86 crore. Key metrics include a return on equity of 21.35% and an EBITDA margin of 56.57%.

Conclusion: For those looking at Mangal Compusolution’s IPO, it’s a chance to get in on a tech-centric rental business with a stronghold in Maharashtra. Investors should keep in mind the financial downturns, so it’s essential to weigh the potential risks before diving in for the long haul.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.