Mangal Compusolution is set to launch its initial public offering (IPO) on November 12, 2024, with a fixed price of ₹45 per share. This IPO will consist entirely of a fresh issue, totaling approximately 36.06 lakh shares and aiming to raise about ₹16.23 crores. The company specializes in renting and selling IT hardware, catering primarily to clients in the Maharashtra region, which accounts for nearly 97% of its revenue. Mangal Compusolution focuses on providing customized IT configurations to meet specific client needs.
₹5
₹45
₹45
Expert Opinions
Market sentiment for the Mangal Compusolution IPO is cautiously optimistic, reflecting interest in the growing IT hardware rental sector. Company strengths include its established presence in Maharashtra, where it generates nearly 97% of its revenue, and its ability to provide customized IT solutions, which enhances client satisfaction. However, the company faces risks and challenges, such as ongoing litigation and regulatory issues that could impact its reputation and operational stability.
From a valuation analysis standpoint, the fixed price of ₹45 per share seems reasonable given its financial metrics, including a P/E ratio of 11.66. The growth prospects appear promising as demand for IT rentals continues to rise, but investors should remain aware of the competitive landscape. Adopting a long-term investment perspective may be beneficial, as Mangal Compusolution is poised to leverage the expanding market for IT services in India.
Investor Considerations
Investors considering the Mangal Compusolution IPO should evaluate several important factors. Company performance and fundamentals show a decline in revenue from ₹34.83 crores in 2023 to ₹23.44 crores in 2024, alongside a drop in profit after tax, indicating potential operational challenges. The sector outlook for IT hardware rentals remains positive, driven by increasing demand for flexible IT solutions, particularly in Maharashtra, where the company generates nearly 97% of its revenue.
The IPO valuation is fixed at ₹45 per share, which reflects a P/E ratio of 11.66, suggesting a reasonable entry point given its market position. Growth prospects are supported by the rising need for customized IT configurations. However, investors should be aware of risk factors, including ongoing litigation and market competition. A long-term investment horizon may be prudent, as Mangal Compusolution could benefit from the expanding IT service landscape in India over time.
| Date | GMP | Trend |
|---|---|---|
| 21 Nov 2024 10.42 | ₹5 | --- |
| 18 Nov 2024 11.13 | ₹5 | --- |
| 15 Nov 2024 11.34 | ₹5 | Down |
| 14 Nov 2024 12.45 | ₹10 | --- |
| 13 Nov 2024 11.59 | ₹10 | --- |
| 12 Nov 2024 10.19 | ₹10 | Up |
| 11 Nov 2024 15.49 | ₹5 | Up |
| 10 Nov 2024 12.40 | ₹2 | --- |
| 09 Nov 2024 11.14 | ₹2 | --- |
| 08 Nov 2024 10.53 | ₹2 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Mangal Compusolution’s listing performance. While the GMP of ₹5 predicted a positive premium of 11.11% over the issue price, the stock listed flat with no gains or losses. With a prediction error of 10%, the GMP incorrectly anticipated positive listing gains when the stock actually showed no movement from its issue price, demonstrating its limitations as a reliable indicator in this case.
Mangal Compusolution IPO Current GMP is ₹5.
Mangal Compusolution IPO Expected Returns is 11.11%.
Mangal Compusolution IPO estimated listing price is ₹50.