Mangal Compusolution Lists at Par on Issue Price on BSE SME

Mangal Compusolution Limited, established in April 2011 and specializing in IT hardware rental solutions and services, made its market debut on Thursday, 21st November 2024, with its shares listing on the BSE SME platform. The company provides comprehensive end-to-end IT equipment rental services including servers, laptops, desktops, and other peripherals.

Listing Details

• Listing Time & Price: Mangal Compusolution share price were listed at ₹45 per share at market open on BSE SME, marking a flat start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price matches the IPO issue price. Mangal Compusolution had set its fixed price issue at ₹45 per share.
• Percentage Change: The listing price of ₹45 translates to 0% premium/discount over the issue price of ₹45.

First-Day Trading Performance

• Opening vs. Latest Price: As of 09:42 AM IST, the stock was maintaining its opening price of ₹45.
• Market Capitalisation: As of early trading, the company's market capitalisation stood at ₹61.23 crore, with free float market cap at ₹16.53 crore.
• Trading Volume: The traded volume was 6.18 lakh shares with a traded value of ₹2.78 crore in early trading.

Market Sentiment and Analysis

• Market Reaction: The stock maintained stability at its opening price in early trading.
• Subscription Rate: The IPO was oversubscribed by 34.59 times (as of November 14, 2024, 6:19:07 PM), with retail investors leading at 46.91 times subscription and NIIs at 22.28 times.
• Trading Range: In early trading, the stock maintained a steady price of ₹45 without any fluctuation.

Growth Drivers and Challenges

Expected drivers of future performance:

• Diverse IT equipment portfolio
• Customer-centric approach
• 24/7 support availability
• Zero downtime commitment
• Pan-India service capability

Potential challenges:

• Inconsistent financial performance
• Highly competitive sector
• Revenue decline concerns
• Geographic concentration risk
• Technology obsolescence risk

Utilisation of IPO Proceeds

Mangal Compusolution plans to use the funds for:

• Capital Expenditure
• General corporate purposes

Financial Performance

The company has shown declining trends:

• Revenue decreased by 32.69% to ₹23.44 crore in FY2024 from ₹34.83 crore in FY2023
• Profit After Tax dropped by 45.21% to ₹3.86 crore in FY2024 from ₹7.04 crore in FY2023
• Q1 FY2025 showed revenue of ₹4.53 crore with PAT of ₹0.81 crore.

As Mangal Compusolution begins its journey as a listed entity, market participants will closely monitor its ability to reverse the declining revenue trend and maintain profitability. The flat listing suggests cautious market sentiment towards the company's prospects in the IT hardware rental services sector.