Smarten Power Systems Soars 44% on Listing, Beats Market Expectations

The power backup and solar products manufacturer, Smarten Power Systems Limited, made an impressive debut on the NSE SME platform on July 14, 2025. After closing its IPO bidding between July 7 - July 9, 2025, the company commenced trading with a remarkable 44% premium to its issue price, significantly exceeding the pre-IPO buzz and delivering substantial returns to investors in the renewable energy sector.

Smarten Power Systems IPO Listing Details

Smarten Power Systems Limited launched its IPO at ₹100 per share with minimum investment of 1,200 shares costing ₹1,20,000. The IPO received strong response with subscription of 5.51 times - individual investors at 4.66 times and NII leading at 6.31 times, reflecting robust investor appetite for renewable energy companies.

Listing Price: The Smarten Power Systems share price opened at ₹144 on NSE SME, representing a premium of 44% from the issue price of ₹100, delivering exceptional gains of approximately ₹52,800 per lot for allotted investors and significantly outperforming pre-IPO expectations.

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First-Day Trading Performance Outlook

Smarten Power Systems delivered exceptional debut performance reflecting strong investor confidence in renewable energy companies. The company, incorporated in 2014, operates across 23 states with global presence in 17 countries, offering 372 SKUs across six categories including solar inverters and power backup systems, supported by 382 distributors and 52 service centres.

Growth Drivers and Challenges

Growth Drivers:

• Expanding Renewable Energy Market: Positioned to benefit from India's ambitious renewable energy targets driving adoption of solar power solutions and inverters
• Comprehensive Product Portfolio: Diversified range of 372 SKUs under SMARTEN brand with registered patents across solar and power backup segments
• Extensive Distribution Network: Strong reach through 382 distributors across 23 states and 17 international markets ensuring robust sales support
• Strong Financial Metrics: PAT growth of 13% in FY25 with impressive ROE of 39.72% demonstrating operational efficiency

Challenges:

• Modest Revenue Growth: Revenue growth of only 2% in FY25 indicating potential market saturation in traditional power backup segment
• Increasing Debt Burden: Total borrowings increased to ₹16.59 crore with debt-to-equity ratio of 0.43 raising leverage concerns
• Margin Pressure: Relatively low PAT margin of 6.28% suggesting intense competition requiring operational improvements
• Valuation Concerns: Post-issue P/E of 14.88x may limit further appreciation potential in volatile SME segment

Utilisation of IPO Proceeds

• Battery Manufacturing Unit: ₹4.19 crore for purchase of movable assets for production line expansion to enhance manufacturing capabilities 
   
• Working Capital Requirements: ₹22.00 crore for meeting operational needs and inventory management to support business growth 
• Debt Repayment: ₹0.95 crore for repayment of outstanding borrowings to improve capital structure and reduce financial leverage 
• Capital Expenditure: ₹4.46 crore for funding infrastructure and equipment requirements to strengthen operational capabilities 
• General Corporate Purposes: ₹4.70 crore for strategic initiatives and operational requirement

Financial Performance of Smarten Power Systems

Revenue: ₹203.20 crore for FY25, showing modest 2% growth from ₹198.73 crore in FY24, reflecting stable but slow growth in competitive power solutions market.

Net Profit: ₹12.77 crore in FY25, demonstrating solid 13% growth from ₹11.29 crore in FY24, though absolute profit levels remain relatively modest for the business scale.

Financial Metrics: Strong ROE of 39.72%, healthy ROCE of 32.58%, moderate debt-to-equity of 0.43, modest PAT margin of 6.28%, and EBITDA margin of 8.39% with market capitalisation of ₹190.01 crore post-listing.

Smarten Power Systems represents an attractive investment opportunity in the renewable energy and power backup sector with exceptional listing performance delivering 44% premium backed by strong subscription response exceeding 5.5 times.