Diving Deep into Osel Devices Limited IPO: What You Need to Know

Table of Contents

1. Introduction to Osel Devices Limited IPO

Osel Devices Limited, a pioneer in LED display systems and hearing aids, is gearing up for its Initial Public Offering (IPO). This IPO presents a unique opportunity for investors to participate in the growing technological advancements Osel Devices is spearheading. In this blog, we offer a comprehensive overview of the IPO, from key dates to financial insights and market sentiment.

Check Osel Devices Limited details here.

2. IPO Basics of Osel Devices Limited

IPO Dates: The Osel Devices Limited IPO opens on September 16, 2024, and closes on September 19, 2024.
Price Band: The price is set between ₹155 to ₹160 per share, making it an attractive entry point for investors.
Issue Size: Osel Devices aims to raise approximately ₹70.66 crores, which will be allocated towards loan repayments, working capital, and general corporate purposes.

Here’s a structured table summarizing the Osel Devices Limited IPO based on the information provided:

Detail	Information
IPO Dates	Opens on September 16, 2024, and closes on September 19, 2024.
Price Band	₹155 to ₹160 per share.
Issue Size	4,416,000 equity shares, aggregating up to ₹70.66 Crores.
Lot Size	800 Shares, requiring a minimum investment of ₹128,000.
Listing Date	Expected on September 23, 2024.
Registrar	MAS Services Limited.
Book Running Lead Manager	Horizon Management Private Limited.
Purpose of Issue	Funds for loan repayment, working capital, and general corporate purposes.
GMP (Grey Market Premium)	₹110, indicating strong investor interest.
Market Sentiment	Predictions of listing gains up to 80-100%.
Financial Growth	Revenue up by 62% and PAT up by 180% from FY23 to FY24.
Pre-IPO EPS	Calculated based on pre-issue shareholding and latest FY earnings.
Allotment Finalization	Expected on September 20, 2024.
Shares Credited to Demat	By September 23, 2024.
Market Performance Expectations	Post-listing volatility expected but strong fundamentals suggest good returns.
Investment Risks	Market competition, technology trends, and general IPO risks.
Investment Opportunities	Niche in LED displays and hearing aids technology.
Application Process	Through platforms like IPO Ji or directly via brokers.
Post-IPO Strategy	Consider holding for long-term gains based on market conditions.
IPO Type	SME IPO on NSE SME.

This table encapsulates the key details and insights for potential investors interested in the Osel Devices Limited IPO, providing a comprehensive view for decision-making.

3. Financial Health and Performance

Osel Devices has demonstrated strong financial performance in recent years:

Revenue Growth: The company’s revenue jumped from ₹81.96 crores in FY23 to ₹132.69 crores in FY24, marking a 62% increase.
Profit After Tax (PAT): Osel Devices saw significant growth in profits, rising from ₹4.66 crores to ₹13.05 crores in the same period, indicating robust financial health and a well-managed business model.

Here’s the financial information for Osel Devices Limited in a tabular format:

Financial Metric	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets (₹ Lakhs)	9,864.2	4,902.09	3,312.17
Revenue (₹ Lakhs)	13,268.52	8,195.58	6,555.49
Profit After Tax (₹ Lakhs)	1,305.21	466	212.31
Net Worth (₹ Lakhs)	2,534.21	1,229	763
Reserves and Surplus (₹ Lakhs)	1,380.39	1,042.9	576.9
Total Borrowing (₹ Lakhs)	2,545.23	1,782.29	862.87

Key Financial Insights:

Revenue Growth: A 62% increase in revenue from FY 2023 to FY 2024, indicating robust business expansion.
Profit Surge: Profit After Tax (PAT) grew by 180%, showcasing significant operational efficiency or cost management improvements.
Asset Expansion: Assets more than doubled from FY 2023 to FY 2024, suggesting substantial investments in infrastructure or acquisitions.
Net Worth: Reflects a substantial rise, indicating retained earnings and overall financial health improvement.
Reserves and Surplus: An increase, which might suggest retained earnings being plowed back into the business or lower dividend payouts.
Borrowings: A significant increase in total borrowings, potentially to fund the asset growth or working capital needs.

This table provides a snapshot of Osel Devices Limited’s financial performance over the last three fiscal years, highlighting its growth trajectory and financial stability.

4. Market Sentiment and Grey Market Premium (GMP)

Based on the information available up to September 18, 2024, here’s an overview of the Osel Devices Limited IPO regarding its Grey Market Premium (GMP) and subscription status.
Grey Market Premium (GMP): The GMP for Osel Devices Limited’s IPO was reported around ₹100 to ₹115, indicating strong market interest and speculation on listing gains. This GMP reflects the market’s expectation of the stock’s performance post-listing, suggesting a significant premium over the issue price.
Subscription Status:
- By the end of the first day of subscription on September 16, 2024, the IPO was subscribed 2.80 times.
- By September 18, 2024, the subscription had surged to 43.84 times overall, with particularly high interest from retail investors at 73.69 times subscription, and non-institutional investors at 32.61 times. However, there was no subscription from qualified institutional buyers (QIBs) as of the last update.
Market Sentiment: The high subscription rate, especially from retail and non-institutional investors, alongside the robust GMP, indicates a bullish sentiment towards Osel Devices Limited’s IPO. This enthusiasm might be driven by the company’s financial performance, market positioning, or broader market trends favoring SME IPOs.

5. Investment Considerations

Before investing, it’s important to weigh both the risks and opportunities:

Lot Size: The minimum lot size for Osel Devices is 800 shares, which requires an investment of ₹128,000.
Risks: Market competition, technological changes, and general IPO risks are factors to consider.
Opportunities: Osel’s expertise in LED displays and hearing aids gives it a unique market position, potentially offering significant long-term gains.

6. How to Invest in Osel Devices Limited IPO

Application Process: Investors can apply through IPO platforms such as IPO Ji, brokers, or banks offering IPO application services. Make sure to review the lot size and confirm your investment through the appropriate channels.
Post-IPO Strategy: Depending on market conditions and individual investment goals, investors may choose to hold Osel Devices shares for the long term or seek listing gains based on early market performance.

7. Listing and Beyond

Listing Date: Osel Devices Limited is expected to list on the NSE SME on September 23, 2024.
Post-Listing Performance: While initial volatility may occur, Osel’s strong fundamentals suggest it has the potential for significant growth, making it a company to watch in the tech space.

8. Conclusion

The Osel Devices Limited IPO offers a unique investment opportunity in a fast-growing tech sector. With its robust financial performance, strong market sentiment, and promising future in LED displays and hearing aids, this IPO is a compelling choice for investors seeking both short-term listing gains and long-term growth potential.

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