Sahasra Electronic Solutions Limited is an Electronic System Design and Manufacturing company that provides electronic system design and manufacturing (“ESDM”) services. Sahasra Electronics Solutions IPO is set to raise Rs 186.16 crores. The issue is a combination of fresh issue of aggregating to Rs 172.01 crores and offer for sale of Rs 14.15 crores.
IPO opens
September 26, 2024
IPO Closes
September 30, 2024
IPO Size (Rs.)
₹186.16 Cr
Breakup
Fresh issue ₹172.01 Cr + OFS ₹14.15 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹269 to ₹283 per share
Minimum Lot
400 Shares
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Hem Securities Limited
Registrar
Bigshare Services
Market maker
Hem Finlease
About Sahasra Electronics Solutions
Company is engaged in the business of providing solutions towards electronics system design and manufacturing (“ESDM”) services at its manufacturing plant located at 68AA, NSEZ, Noida, Uttar Pradesh, which is equipped with four high speed SMT lines having a total capacity of around 1800000 units.
They provide product and solutions right from printed circuit board (“PCB”) assembly, Box Build, LED lighting. Memory, IT accessories, computer and IT hardware.
They during FY 2024-25, acquired controlling stake in Sahasra Semiconductor Private Limited, whose Semiconductor Packaging Facility is located at Bhiwadi, Rajasthan & engaged in the manufacturing of electronic components like integrated circuits, chips, semiconductor devices, eMMC, mSD, COBs, COB based USBs, LED drivers IC, BGA, NAND flash & memory products.
Company is promoted by Amrit Lal Manwani, Arunima Manwani & Varun Manwani.
Financials: Sahasra Electronics Solutions IPO
Particulars/ Rs. Lacs
2024
2023
Feb-23
2022
Revenue
10,278.79
1,063.91
6,002.92
2,212.80
Profit/(loss) after tax
3,262.77
230.55
1794.56
250.17
Paid up Share Capital/
1891.48
1796.95
2435.06
1521.57
Net Worth
6031.69
2027.5
2435.06
1521.57
Net Asset Value
33.37
11.43
13.72
8.57
Total Borrowings
2171.89
689.84
798.6
30.96
Post issue Share Capital
2499
FV
10.0
IPO price
283.0
EPS Fy24
13.1
PE Fy24
21.7
Market cap in Lacs
70,722
Market cap / Sales
6.88
Sahasra Electronics Solutions IPO: Anchors
Sahasra Electronics Solutions IPO: Salient Points
India is expected to reach US$ 300 billion worth of electronics manufacturing and exports of US$ 120 billion by 2025-26.
Sahasra Electronics Solutions is a leading provider of electronic manufacturing services (EMS) and has a diverse clientele spanning various industries.
Medical: Sahasra has expertise in manufacturing electronic components for medical devices, ensuring precision and reliability.
Aerospace: Their capabilities extend to producing electronic systems for aerospace applications, meeting stringent quality standards.
Automotive: Sahasra provides electronic solutions for automotive components, contributing to advancements in vehicle technology.
Industrial: They serve industries like manufacturing and automation by providing electronic components and systems.
Consumer Electronics: Sahasra supports the production of various consumer electronic devices.
They derive a significant portion of revenues from operations from export to countries like: United States, Rwanda, Tunisia, United Kingdom, Germany, Canada, Norway, Austria, Belgium etc.
During the Fiscal 2024, Fiscal 2023 and Fiscal 2022, revenues from exports amounted to ₹ 8503.97 lakhs, ₹ 6803.39 lakhs and ₹ 2038.30 lakhs respectively, which constituted 83.57%, 98.46% and 93.93% respectively, of total revenues from operations.
Further, United States has contributed to more than 70% of revenue from operations during the last 3 years.
Subsidiary Sahasra Semiconductor Private Limited is engaged in the business of semiconductor chips manufacturing including products like integrated circuits, chips, semiconductor devices, eMMC, mSD, COBs, COB based USBs, LED drivers IC, BGA, NAND flash & memory products. Company took over 54.18% stake in the said company on June 21, 2024.
Their LED lighting solutions, are sold to Sahasra Electronics Rwanda Private Limited, a subsidiary of their group company, which distributes these products in African countries like Rwanda.
Net proceeds use :
Sr. No.
Particulars
Amount
1.
Funding Capital Expenditure towards installation of additional plant and machinery at new manufacturing facility situated at Bhiwadi, Rajasthan
6,596.63
2.
Investment in our Subsidiary, Sahasra Semiconductors Private Limited for financing its capital expenditure requirements in relation towards installation of additional plant and machinery
2,292.58
3.
Funding of Working Capital requirements
4,000.00
4.
General Corporate Purposes
[●]
Revenue from operations by products and service offerings
Product Name
March 312024
% to Total Sales
Printed circuit board assemblies (“PCBA”)
8818.10
87.18
SSD, USB Flash Storage Device
1024.15
10.13
Led Lighting Solutions
232.62
2.30
Computer and IT accessories
39.82
0.39
Total
10114.69
100.00
PE 2024: 21.7x.
Peers:
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW %
Sahasra Electronic Solutions
283
102.79
32.63
31.7%
21.7
6.88
54.09%
Kaynes Technology India
5,553
1860.54
183
9.8%
170
17.7
7.37
Trident Techlabs Limited
795
73.00
9.37
12.8%
147
18.9
20.12
Promoter & Managing Director, Amrit Lal Manwani is an engineering graduate from IIT Kanpur & MBA from FMS, Delhi.
I intend to apply in Sahasra Electronics Solutions IPO. Electronics System Design & Manufacturing is growing at a good pace with massive Govt support in form of PLI’s and other initiatives. Margins are also good due to specialized business of the company.
GMP as reported on social media is Rs. 175 (62%)
Lead manager Hem Securities Limited has quite decent record and enjoys good standing.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
