Mangal Compusolution
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Nov 2024 – 14 Nov 2024
- Listing date
- 21 Nov 2024
- Face value
- ₹1 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Listing at
- BSE
- Total issue size
- ₹16.23 Cr
- Market cap at offer price
- ₹61.23 Cr
- Promoter holding
- 100.00% → 73.50% pre-issue → post-issue
- ISIN
- INE0RU901015
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Jawa Capital Services Pvt.Ltd.
- Registered office
- Unit No.03, Satguru Nanak Industrial Estate, Off Western Express Highway, Goregaon (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,86,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.86 | 2.38 |
| P/E (×) | 11.66 | 18.91 |
| Price to book (×) | 2.16 | — |
| Market cap | — | ₹61.23 Cr |
Key performance indicators
- Return on net worth
- 15.56%
- ROCE
- 2.05%
- Debt / equity
- 0.90
- PAT margin
- 19.82%
- NAV per share
- ₹20.81
- Price to book
- 2.16
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Mangal Compusolution
Mangal Compusolution Limited was originally incorporated as 'Pathik Computer Systems Private Limited' on April 11, 2011, renamed 'Mangal Compusolution Private Limited' on June 07, 2012, and converted into a public limited company ('Mangal Compusolution Limited') on October 26, 2023. Headquartered at Goregaon (East), Mumbai, the company rents and sells IT hardware across India, including servers, laptops, desktops, printers, projectors, router-switches, workstations, Plasma/LCD TVs, PA systems and accessories, and specializes in creating customized IT configurations tailored to clients' specifications for both rental and purchase. It offers both new and pre-owned IT equipment, provides on-site setup, deployment, support and maintenance services (with a 24-hour support line), and rents top-tier brands such as IBM, Dell, HP, Lenovo, Sony, Apple, Compaq and Toshiba. The company makes money primarily through rental income from lease of IT equipment (75.60% of FY2023 revenue from operations), supplemented by sale of IT equipment (14.85% in FY2023) and IT equipment maintenance service fees (9.55% in FY2023). Its customers are businesses (B2B) concentrated in Maharashtra (84.11% of FY2023 revenue from operations). For FY2023, restated revenue from operations was ₹ 1,748.17 lakhs and profit after tax ₹ 704.09 lakhs. The company is promoted by Hardik Meghraj Jain, Neeta Mukesh Desai and Pathik Mukesh Desai, who together hold 100.00% of the pre-issue equity share capital.
Company Analysis
from DRHPMangal Compusolution Limited is a Mumbai-based company engaged in the business of renting and selling IT hardware equipment, offering comprehensive end-to-end IT equipment rental, sale and maintenance services across India.
Mangal Compusolution Limited was originally incorporated as 'Pathik Computer Systems Private Limited' on April 11, 2011, renamed 'Mangal Compusolution Private Limited' on June 07, 2012, and converted into a public limited company ('Mangal Compusolution Limited') on October 26, 2023. Headquartered at Goregaon (East), Mumbai, the company rents and sells IT hardware across India, including servers, laptops, desktops, printers, projectors, router-switches, workstations, Plasma/LCD TVs, PA systems and accessories, and specializes in creating customized IT configurations tailored to clients' specifications for both rental and purchase. It offers both new and pre-owned IT equipment, provides on-site setup, deployment, support and maintenance services (with a 24-hour support line), and rents top-tier brands such as IBM, Dell, HP, Lenovo, Sony, Apple, Compaq and Toshiba. The company makes money primarily through rental income from lease of IT equipment (75.60% of FY2023 revenue from operations), supplemented by sale of IT equipment (14.85% in FY2023) and IT equipment maintenance service fees (9.55% in FY2023). Its customers are businesses (B2B) concentrated in Maharashtra (84.11% of FY2023 revenue from operations). For FY2023, restated revenue from operations was ₹ 1,748.17 lakhs and profit after tax ₹ 704.09 lakhs. The company is promoted by Hardik Meghraj Jain, Neeta Mukesh Desai and Pathik Mukesh Desai, who together hold 100.00% of the pre-issue equity share capital.
Objects of the Issue
- Capital Expenditure – procurement of various IT equipment (servers, laptops, desktops, storage, switches etc.) for business operations ₹ 1,295.88 lakhs p.66
- General Corporate Purposes p.68
- To meet Issue related expenses p.68
Issue Structure
- Total Issue
- Upto 36,06,000 Equity Shares aggregating upto ₹ [●] Lakhs
- Fresh Issue
- Upto 36,06,000 Equity Shares (100% Fresh Issue)
- Offer for Sale
- Nil
- Face Value
- ₹ 10 each
Business Model
The company derives revenue from operation from three business verticals: (1) rental income from lease of IT equipment (computers & peripherals), billed largely through monthly rental invoices under signed customer agreements; (2) sale of IT equipment, including new and pre-owned (used) equipment previously held for rent/lease; and (3) IT equipment maintenance/service fees, including on-site support and deployment by qualified engineers.
Business Segments
SWOT Analysis
- • Comprehensive product range sourced from leading brands (HP, Dell, Lenovo)(p.94)
- • 24/7 service availability with dedicated support team(p.94)
- • Standby equipment provided to ensure zero client downtime(p.94)
- • Unrestricted, flexible rental durations from 1 day to 365 days(p.94)
- • Customer-centric approach with tailored configurations(p.94)
- • Consistent track record of profitable growth on a scalable model (qualitative factor underpinning Issue Price)(p.72)
- • High customer concentration – top 10 customers account for 64%–84% of revenue(p.30)
- • Extreme supplier concentration – top 10 suppliers contribute ~89%–99% of purchases(p.31)
- • No long-term or written contracts with customers; business runs on a purchase-order basis(p.32)
- • Geographic concentration of revenue in Maharashtra (~84%–95%)(p.33)
- • Outstanding borrowings concentrated with a single lender – excessive dependence on Bharat Co-Operative Bank(p.38)
- • History of deficiencies and inaccuracies in regulatory filings(p.29)
- • Reported negative cash flows from investing and financing activities(p.31)
- • Strategy to enhance customer base by entering new, untapped domestic geographies(p.95)
- • Rising demand for short-term, flexible pay-per-user IT equipment rental(p.95)
- • Customised packages to attract more customers and increase revenue(p.95)
- • Industry tailwind – IT sector expected to contribute 10% of India's GDP by 2025(p.22)
- • Expanding the range of IT equipment offered to win new and retain existing customers(p.95)
- • Intense competition in a fragmented market with low entry barriers(p.30)
- • Rapid technological change renders rented IT equipment obsolete, requiring substantial capital investment(p.31)
- • Adverse changes in government regulations or their implementation(p.39)
- • Increases/new imposition of taxes and levies affecting cost and demand(p.39)
- • Slowdown in economic growth in India and globally(p.40)
- • Rising wage costs for skilled IT professionals eroding margins(p.37)
- • Decline in outsourcing of IT needs / falling demand for IT equipment rentals(p.32)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hardik Meghraj Jain | Promoter | 60.00% | 44.10% |
| Neeta Mukesh Desai | Promoter | 20.00% | 14.70% |
| Pathik Mukesh Desai | Promoter | 20.00% | 14.70% |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.