The Osel Devices IPO is set to open from September 16, 2024, to September 19, 2024. The IPO involves a fresh issue of 44.16 lakh shares, aiming to raise ₹70.66 crores. The price band is ₹155-₹160 per share, with a minimum lot size of 800 shares, requiring a minimum retail investment of ₹128,000. The IPO will list on NSE SME with a tentative date of September 24, 2024.
IPO Details:
- Total Issue Size: 4,416,000 shares
- Listing at: NSE SME
- Book Running Lead Manager: Horizon Management Private Limited
- Market Maker: Giriraj Stock Broking
Company Overview:
Osel Devices Limited was founded in 2006 and is a manufacturer of LED display systems and hearing aids. The company offers a wide range of products, including commercial LED displays for advertising, corporate boardrooms, and digital signage. They also manufacture health aids, particularly hearing aids used by Artificial Limbs Manufacturing Corporation of India.
Financial Performance:
Osel Devices has shown significant growth, with a 62% increase in revenue and a 180% rise in profit after tax from FY 2023 to FY 2024.
- Revenue FY 2024: ₹13,268.52 lakhs
- Profit FY 2024: ₹1,305.21 lakhs
- Reserves FY 2024: ₹1,380.39 lakhs
Key Financial Metrics:
- ROE (Return on Equity): 34.68%
- ROCE (Return on Capital Employed): 43.17%
- PAT Margin: 9.87%
- Pre-IPO EPS: ₹11.14, Post-IPO EPS: ₹8.09
IPO Timeline:
- Anchor Investor Bid Date: September 13, 2024
- Allotment Date: September 20, 2024
- Refund Initiation: September 23, 2024
- Listing Date: September 24, 2024
Objects of the Issue:
- Prepayment of loans to reduce financial liabilities.
- Funding working capital requirements for business expansion.
- General corporate purposes to support the company’s growth strategy.
Promoter Holding:
- Pre-IPO Holding: 98.50%
- Post-IPO Holding: 71.53%
Risk Factors:
Osel Devices operates in a highly competitive and fragmented market, particularly in the LED display and hearing aid segments. Though the company has shown strong growth, the sustainability of its profits post-IPO remains a concern for some analysts.
Should You Invest?
Given the company’s strong growth in recent years and its prominent market position in manufacturing LED display systems and hearing aids, the Osel Devices IPO is an appealing prospect for investors. However, potential investors should carefully evaluate the company’s future growth potential and market competition before making a decision.
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