Mangal Compusolution IPO: Key Details, Timeline, and Investment Insights

Mangal Compusolution IPO Dates and Timeline:

Overview of Mangal Compusolution IPO:

Mangal Compusolution Limited, a company offering IT hardware rental solutions, is set to launch its IPO from November 12 to November 14, 2024. The IPO, a fixed-price issue on the BSE SME platform, is valued at ₹16.23 crores, issuing a fresh allotment of 3.606 million shares at a fixed price of ₹45 per share.

This IPO provides an opportunity to invest in a niche business model that provides IT rental solutions for small and large enterprises across India. Mangal Compusolution’s strategic offering includes a diverse IT hardware portfolio that can be tailored to client needs, setting it apart in a competitive market.

The Mangal Compusolution IPO has attracted considerable interest in the market. For investors looking to understand the significance of Grey Market Premium (GMP) and how it impacts IPO valuations, check out our detailed article on IPO GMP – Grey Market Premium.

IPO Key Details:

• IPO Price: ₹45 per share
• Face Value: ₹10 per share
• Issue Type: Fixed Price Issue IPO
• Total Issue Size: 3,606,000 shares, aggregating to ₹16.23 crores
• Market Maker Portion: 186,000 shares
• Listing Platform: BSE SME

As this IPO launches on the BSE SME platform, it’s helpful to know the differences between an IPO and an Offer for Sale (OFS), as each type serves different purposes and caters to varying investor goals. Read our comprehensive guide on OFS vs IPO Differences for more insights.

IPO Lot Size and Investment Requirement:

For retail and high-net-worth individual (HNI) investors, the minimum and maximum lot sizes are as follows:

The minimum application size for retail investors is set at ₹135,000, making it a considerable investment option for those looking for stable, fixed-income opportunities.

Company Profile: Mangal Compusolution Limited:

Founded: 2011
Core Services: IT hardware rental solutions, sale of IT equipment, and maintenance services

Mangal Compusolution Limited has positioned itself as a comprehensive IT hardware provider, offering a wide range of rental products, including servers, desktops, laptops, projectors, PA systems, and other peripherals. The company serves clients across various industries, with a major client base in Maharashtra and operations across India.

Core Business Segments:

1. Rental Income: Leasing IT equipment like computers, peripherals, and other essential devices.
2. Sale of IT Equipment: Selling specialised IT products to businesses.
3. Maintenance Services: Offering maintenance services for their leased and sold equipment.

Competitive Strengths:

• Diverse Product Portfolio: Offers products from top brands like HP, Dell, and Lenovo.
• Customer-Centric Approach: A dedicated support team ensures 24/7 service availability.
• Operational Efficiency: Maintains additional stock for zero downtime in case of equipment failure.

Mangal Compusolution Financials:

Mangal Compusolution has displayed a fluctuating performance in recent years. Here is a snapshot of their key financials:

The company’s revenue declined 32.69%, and profit after tax decreased 45.21% from FY 2023 to FY 2024. This dip may raise some concerns; however, the company has a strong market position and offers unique rental solutions that could generate steady income streams.

Investment Considerations for Mangal Compusolution IPO:

1. Specialised Market Offering: Mangal Compusolution operates within a niche IT rental market, catering to businesses with scalable rental solutions.
2. Fixed Income Opportunity: The company’s rental income model could appeal to investors focused on stable returns.
3. Moderate Risk Factor: Given its financial performance fluctuations, investors should consider the potential returns and associated risks.

Competitive Analysis:

Mangal Compusolutions unique business model and extensive hardware options give it a competitive edge. However, investors should weigh the following factors:

• Revenue Decline: The recent revenue dip might indicate market or operational challenges.
• Scalability Potential: With a focus on Maharashtra and expansion plans across India, the company may see growth in its client base.

Grey Market Premium (GMP) and Subscription Status:

The IPO has attracted considerable interest, with a current Grey Market Premium (GMP) indicating positive investor sentiment. As of day one, it was oversubscribed by 2.65 times, showcasing substantial demand in both the retail and HNI segments.

How to Apply for Mangal Compusolution IPO:

Investors interested in Mangal Compusolution IPO can apply via their brokers or trading apps. Here’s a quick guide:

1. Login to your broker’s trading app or website.
2. Navigate to the IPO Section and select “Mangal Compusolution IPO.”
3. Enter Your Bidding Details: Choose your lot size and bid price.
4. Confirm UPI Mandate: Complete the payment process via UPI by 5 PM on November 14, 2024.
5. Track Allotment Status: The allotment status will be declared on November 18, 2024.

Should You Invest in Mangal Compusolution IPO?

The Mangal Compusolution IPO presents an attractive opportunity for investors who value fixed-income assets and have an appetite for moderate risk. While the IT rental market is competitive, Mangal Compusolution’s customer-centric approach, diverse portfolio, and expansion potential could provide stable returns.

However, the recent decline in revenue and profits suggests caution. Investors should consider their financial goals, risk tolerance, and the company’s fundamentals before investing.
If you’re considering IPO investment strategies, including flipping, where shares are sold shortly after listing for potential gains, you may want to understand the risks and rewards involved. Learn more in our guide on IPO Flipping.

Conclusion:

Mangal Compusolution’s IPO on the BSE SME platform allows investors to explore a unique IT rental business model with a fixed-income approach. This offering is ideal for those looking to diversify into niche sectors with growth potential. With strong client relationships and a customer-focused strategy, Mangal Compusolution could offer substantial long-term value.

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