Sahasra Electronics Solutions, a company specializing in electronics system design and manufacturing services, is launching its initial public offering (IPO) on September 26, 2024. The IPO aims to raise Rs 186.16 crore and will remain open for subscription until September 30. Investors have the opportunity to buy shares within the price band of Rs 269-283 per share. This IPO follows the successful launch of KP Green Engineering’s Rs 189.5 crore issue earlier in 2024, making it the second-largest public issue in the SME segment this year.
Sahasra Electronics IPO Details
Under the Sahasra Electronics IPO, the company plans to issue fresh equity shares totaling 60.78 lakh, amounting to Rs 172 crore. In addition, 5 lakh shares worth Rs 14.15 crore will be sold by promoter Amrit Lal Manwani through an Offer for Sale (OFS). Manwani holds a significant 94.98% stake in the company and is the primary shareholder participating in the OFS.
The IPO opens for anchor investors on September 25, one day before the public subscription begins. Of the total net offer, half is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. Once the issue closes, trading of Sahasra Electronics’ shares will begin on NSE Emerge on October 4, 2024. Hem Securities will serve as the sole book-running lead manager for the issue, while Bigshare Services will act as the registrar.
Use of IPO Proceeds
Sahasra Electronics plans to utilize the funds raised through the IPO for various purposes. The company has earmarked Rs 65.97 crore for the development of a new manufacturing facility in Bhiwadi, Rajasthan, including the installation of additional plant and machinery. Another Rs 22.93 crore will be used by its subsidiary, Sahasra Semiconductors, for setting up more plant and machinery.
The company also plans to allocate Rs 40 crore towards working capital requirements, with the remaining funds reserved for general corporate purposes. Sahasra Electronics aims to enhance its production capacity and expand its footprint in the global electronics manufacturing market.
Grey Market Premium (GMP) and Expected Listing Price
Sahasra Electronics’ IPO has been receiving a positive response in the grey market. On September 21, the IPO was trading at a premium of Rs 100. If this premium holds until the listing date, the company’s shares may debut at Rs 383, offering potential investors a 35.34% profit over the issue price.
Sahasra Electronics: Company Overview
Based in Noida, Uttar Pradesh, Sahasra Electronics Solutions offers a variety of products and services, including printed circuit board (PCB) assembly, box build solutions, LED lighting, IT accessories, and hardware. The company has a significant global presence, exporting over 80% of its products to international clients across countries like the United States, Rwanda, Tunisia, the United Kingdom, Germany, Canada, Austria, and Belgium.
In addition to its Noida facility, Sahasra Electronics competes with other prominent players like Kenes Technology India and Trident Techlabs. The funds raised through the IPO are expected to strengthen the company’s production capabilities and support its long-term growth strategies.
