November 11, 2024
admin
Review of Mangal Compusolution SME IPO
The IPO opens on 12 November and closes on 14 November 2024.
Incorporated in April 2011, Mangal Compusolution Limited is a leading provider of IT hardware rental solutions that cater to the diverse needs of businesses across a variety of industries. The company specializes in renting out a wide range of IT equipment and providing end-to-end solutions to support both small and large enterprises. Mangal Compusolution offers a vast array of products, from servers and laptops to desktops, projectors, routers, workstations, Plasma/LCD TVs, PA systems, and various accessories.
The IPO size is Rs. 16.23 crore, offering 16.23 lakh shares. This size is relatively modest when compared to recent IPO trends. With 570 applications received, the retail portion of the offering is likely to be subscribed once.
The company has experienced a significant increase in net profit over the past two years, leading up to its Initial Public Offering (IPO). A detailed analysis of this growth is warranted. In FY 2021-22, the company reported a net profit of Rs. 87 lakhs on total income of Rs. 18.49 crore. However, in FY 2022-23, the net profit surged to Rs. 7.04 crore, accompanied by a total income of Rs. 34.83 crore. This sharp rise in profitability is noteworthy and warrants attention.
Given this substantial improvement in the company’s bottom line, the IPO appears to be reasonably priced, especially when considering the rapid growth in profit. Without this growth, the offering could have been perceived as relatively expensive.
+ from fundamental angle: May Apply
+ from grey market angle: ?
