Sahasra Electronic Solutions
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Sep 2024 – 30 Sep 2024
- Listing date
- 04 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹283 per share
- Lot size
- 400 shares
- Listing at
- NSE
- Total issue size
- ₹186 Cr
- Market cap at offer price
- ₹707 Cr
- Promoter holding
- 95.00% → 69.90% pre-issue → post-issue
- ISIN
- INE0RBQ01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 33, Pocket 1, Jasola Vihar, New Friends Colony, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,74,000 | — | — |
| Market maker | 3,29,600 | — | — |
Application size
Minimum 400 shares per lot, in multiples, at ₹283
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 400 | ₹1,13,200 |
| S-HNI (min) | 2 | 800 | ₹2,26,400 |
| S-HNI (max) | 8 | 3,200 | ₹9,05,600 |
| B-HNI (min) | 9 | 3,600 | ₹10,18,800 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 17.25 | 13.05 |
| P/E (×) | 16.41 | 21.69 |
| Market cap | — | ₹707 Cr |
Key performance indicators
- Return on net worth
- 54.09%
- ROCE
- 42.50%
- Debt / equity
- 0.36
- PAT margin
- 32.26%
- NAV per share
- ₹33.37
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sahasra Electronic Solutions
Sahasra Electronic Solutions Limited was incorporated on February 22, 2023, and took over the running business of the proprietorship M/s Sahasra Electronic Solutions along with its assets and liabilities. The company operates a manufacturing facility at 68AA, Noida Special Economic Zone (NSEZ), Uttar Pradesh, equipped with four high-speed SMT lines with a capacity of approximately 1,800,000 units. The company provides ESDM solutions including PCB assembly, box build, LED lighting, memory products, IT accessories, and computer hardware. In FY 2024-25, the company acquired a controlling stake (54.18%) in Sahasra Semiconductors Private Limited, which operates a semiconductor packaging facility in Bhiwadi, Rajasthan, manufacturing integrated circuits, chips, semiconductor devices, eMMC, mSD, COBs, LED driver ICs, BGA, NAND flash, and memory products. The company serves both domestic and international customers, with exports representing 83.57% of revenue in FY 2024.
Company Analysis
from RHPSahasra Electronic Solutions Limited is an EN 9100:2018 certified electronics system design and manufacturing (ESDM) company providing PCB assembly, box build, LED lighting, IT accessories, and semiconductor packaging solutions.
Sahasra Electronic Solutions Limited was incorporated on February 22, 2023, and took over the running business of the proprietorship M/s Sahasra Electronic Solutions along with its assets and liabilities. The company operates a manufacturing facility at 68AA, Noida Special Economic Zone (NSEZ), Uttar Pradesh, equipped with four high-speed SMT lines with a capacity of approximately 1,800,000 units. The company provides ESDM solutions including PCB assembly, box build, LED lighting, memory products, IT accessories, and computer hardware. In FY 2024-25, the company acquired a controlling stake (54.18%) in Sahasra Semiconductors Private Limited, which operates a semiconductor packaging facility in Bhiwadi, Rajasthan, manufacturing integrated circuits, chips, semiconductor devices, eMMC, mSD, COBs, LED driver ICs, BGA, NAND flash, and memory products. The company serves both domestic and international customers, with exports representing 83.57% of revenue in FY 2024.
Objects of the Issue
- Funding Capital Expenditure towards installation of additional plant and machinery at new manufacturing facility situated at Bhiwadi, Rajasthan ₹6,596.63 lakhs p.23
- Investment in our Subsidiary, Sahasra Semiconductors Private Limited for financing its capital expenditure requirements in relation towards installation of additional plant and machinery ₹2,292.58 lakhs p.23
- Funding of Working Capital requirements ₹4,000.00 lakhs p.23
- General Corporate Purposes p.23
- Funding Capital Expenditure towards installation of additional plant and machinery at new manufacturing facility situated at Bhiwadi, Rajasthan ₹6,596.63 Lakhs p.69
- Investment in our Subsidiary, Sahasra Semiconductors Private Limited for financing its capital expenditure requirements in relation towards installation of additional plant and machinery ₹2,292.58 Lakhs p.69
- To Meet Working Capital Requirements ₹4,000.00 Lakhs p.69
- General Corporate Purposes p.69
- Expansion of manufacturing capabilities ₹6,596.63 lakhs p.102
- Funding capex for the new plant at B-3/1, Elcina Electronics Manufacturing Cluster, Industrial Area Salarpur, Bhiwadi, Distt. Alwar- 301019, Rajasthan p.234
Issue Structure
- Total Issue
- up to 65,78,000 Equity Shares aggregating up to ₹ [●] lakhs
- Fresh Issue
- up to 60,78,000 Equity Shares aggregating to ₹ [●] lakhs
- Offer for Sale
- up to 5,00,000 Equity Shares aggregating to ₹ [●] lakhs
- Price Band
- ₹ [●] (Floor Price) to ₹ [●] (Cap Price)
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue through manufacturing and supply of electronic components and products. Revenue streams include: (1) PCBA (printed circuit board assembly) which represented 87.18% of FY 2024 revenue; (2) Box Build and electronic accessories; (3) LED lighting products; (4) IT accessories and computer hardware; (5) Semiconductor packaging and components through its subsidiary. The company operates on a job-order basis, receiving customer orders specifying price per unit, product specifications, and delivery schedules. Cost of raw materials and components consumed represented 52.50% of revenue in FY 2024. The company sources raw materials and components from domestic and international suppliers (countries including US, China, Hong Kong, Thailand, Singapore). The company also operates in the SEZ, generating tax benefits under Section 10AA of the Income Tax Act.
Business Segments
SWOT Analysis
- • EN 9100:2018 certified with modern manufacturing infrastructure(p.22)
- • Established business with takeover of running proprietorship concern with existing customer relationships(p.2)
- • Strong revenue growth trajectory(p.34)
- • Exceptional profit growth and improving profitability(p.34)
- • Integrated semiconductor packaging capability through subsidiary acquisition(p.22)
- • Established relationships with customers(p.82)
- • Established manufacturing capabilities(p.82)
- • Quality Assurance(p.82)
- • Experienced Promoters, management and operating team(p.82)
- • Dedicated solutions for ESDM services(p.82)
- • High EBITDA margin of 34.86% in FY24(p.84)
- • Strong PAT margin of 32.26% in FY24(p.84)
- • Strong ROE of 54.09% in FY24(p.84)
- • Diverse ESDM solutions portfolio with strong export orientation(p.98)
- • Modern manufacturing facility with advanced automation and quality systems(p.98)
- • EN 9100:2018 certification demonstrating quality commitment(p.98)
- • Strong growth trajectory with significant revenue expansion(p.99)
- • Experienced promoter leadership with extensive ESDM industry background(p.99)
- • Established customer relationships across multiple geographies(p.100)
- • Established manufacturing presence with modern facilities in NSEZ(p.151)
- • Strong export revenue generation with 84% export sales concentration(p.168)
- • High profitability with 32.26% net profit margin(p.174)
- • Strong return on equity of 80.97%(p.174)
- • Diversified geographic revenue across North America, Africa, Asia, and Europe(p.155)
- • Significant revenue growth with 868% increase in FY2024(p.168)
- • EN 9100:2018 certified manufacturing with advanced SMT capabilities(p.217)
- • High export exposure providing diversified revenue base(p.217)
- • Experienced promoter with 20 years in ESDM industry(p.218)
- • Strong profitability with PAT margin of 32.26% in FY2024(p.218)
- • Growing customer base from 20 to 40 customers(p.218)
- • Heavy customer concentration with top 10 customers representing >89% of revenue(p.28)
- • Majority of revenue from related party sales (~63% in FY2024)(p.28)
- • High dependence on PCBA products (87% of FY2024 revenue)(p.29)
- • Limited operating history as a recently incorporated company(p.29)
- • Subsidiary company incurring significant losses(p.30)
- • Subsidiary company has negative operating cash flows(p.33)
- • Significant auditor qualifications in prior period financial statements(p.24)
- • Personal guarantees by directors securing bank borrowings(p.37)
- • No ownership of trademarks/logos used in business(p.41)
- • No alternate source of funding identified, failure to mobilize IPO proceeds may delay implementation(p.42)
- • Past delays in filing EPF returns(p.42)
- • Past delays in filing GST returns resulting in penalties(p.42)
- • Excessive dependence on Citi Bank for loan facilities(p.42)
- • Restrictive covenants from lenders limiting operational flexibility(p.42)
- • Promoter's prior company struck off by RoC with risk of regulatory action(p.42)
- • Promoters retain 69.90% post-IPO shareholding, limiting minority influence(p.43)
- • Concentrated customer base dependent on few key customers(p.99)
- • Acquisition-related integration and operational risks(p.124)
- • Subsidiary company currently operating at losses(p.127)
- • High material cost dependency reducing margin flexibility(p.106)
- • Heavy dependence on related party transactions and single promoter shareholding(p.159)
- • Significant concentration of trade receivables with related parties(p.166)
- • High short-term borrowings relative to equity(p.160)
- • Rapid inventory expansion requiring working capital management(p.167)
- • No employee stock ownership plan established(p.138)
- • Heavy dependence on few customers representing 95.78% of FY2024 revenue(p.224)
- • Significant dependence on promoter group sales at 62.99% of FY2024 revenue(p.224)
- • High inventory turnover decline from 7.49 to 5.93 times(p.204)
- • Elevated debt-to-equity ratio of 0.33, up from 0.02 in prior year(p.204)
- • Pending litigation with customer APVM Electronics for alleged dues(p.226)
- • Electronics manufacturing industry growth trajectory with NPE 2019 targets(p.22)
- • Growth strategy expansion including market penetration and operational efficiencies(p.34)
- • Eligibility for PLI scheme incentives for expansion(p.36)
- • Planned expansion of manufacturing facility with new unit in Bhiwadi, Rajasthan(p.35)
- • Tax benefits as SEZ unit with 10AA income tax deduction(p.36)
- • Expansion into laptop and tablet manufacturing markets(p.75)
- • Setup of new manufacturing facility in Bhiwadi, Rajasthan(p.70)
- • Expansion of subsidiary Sahasra Semiconductors with additional plant and machinery(p.74)
- • Strong revenue growth from ₹1043.1 lakhs (Feb-Mar 23) to ₹10115.27 lakhs (FY24)(p.84)
- • India's target to achieve US$ 300 billion electronics manufacturing by 2025-26(p.94)
- • PLI scheme providing substantial incentive opportunities(p.97)
- • Massive growth in laptop and tablet manufacturing segment(p.95)
- • Strong government support through policy and infrastructure development(p.96)
- • Expanding export market opportunity with 10.1x growth target(p.94)
- • Digital India initiative and AI growth driving electronics demand(p.96)
- • SEZ benefits including Section 10AA tax exemption extending through established operations(p.157)
- • Expansion into semiconductor manufacturing through subsidiary investment(p.157)
- • Proposed new manufacturing facility expansion in Bhiwadi(p.142)
- • Strong demand for PCB and LED products from North American markets(p.155)
- • Promotional experience of 50+ years in electronics industry(p.142)
- • Expansion into semiconductor packaging through Sahasra Semiconductors acquisition(p.217)
- • PLI Scheme approval enabling tax benefits and growth incentives(p.232)
- • Strategic partnerships enabling integrated solutions delivery(p.218)
- • Capacity expansion with new manufacturing facility in Bhiwadi(p.239)
- • Risk of customer loss or order cancellation without compensation(p.29)
- • Rapid product obsolescence and need for continuous technological upgradation(p.29)
- • Volatility in raw material prices and supply chain disruptions(p.30)
- • Heavy import dependence (77% of purchases in FY2024) and foreign trade risks(p.30)
- • Export concentration risk with US market representing >70% of revenues(p.30)
- • High competitive pressures from larger domestic and international competitors(p.37)
- • Regulatory and licensing risks with potential approval/renewal delays(p.30)
- • SEZ compliance requirements and export obligation thresholds(p.36)
- • Risk of manufacturing disruptions from equipment failure or natural disasters(p.37)
- • Foreign exchange volatility impacting import costs and export revenues(p.40)
- • Potential withdrawal of tax incentives and policy benefits(p.36)
- • Risk of trade restrictions and tariffs on export markets(p.30)
- • Low capacity utilization at manufacturing facilities (55% in FY2024)(p.40)
- • Potential regulatory penalties from statutory authorities for compliance breaches(p.42)
- • Global financial instability and recession risks(p.44)
- • Potential adverse impact from changes in labour laws(p.44)
- • Slowdown in Indian economic growth affecting business(p.44)
- • Changes in tax laws and regulatory uncertainties(p.45)
- • Natural calamities impacting business operations(p.45)
- • Political instability affecting market performance(p.45)
- • Stock price subject to surveillance measures affecting liquidity(p.43)
- • Global economic slowdown reducing export demand(p.93)
- • Current account balance risks from domestic demand-driven growth(p.93)
- • Highly competitive ESDM industry requiring continuous cost reduction(p.107)
- • Volatility in raw material and component prices(p.106)
- • Supply chain disruption risks from overseas sourcing(p.98)
- • Dependency on special economic zone location and policy continuity(p.100)
- • Dependence on packing credit financing from banks at variable rates(p.161)
- • Foreign exchange exposure creating currency risk on receivables(p.176)
- • Concentration risk with significant revenue from single geography and customer base(p.171)
- • Substantial contingent liabilities and guarantees outstanding(p.177)
- • High import dependency for raw materials creating input cost volatility(p.175)
- • Risk of SEZ tax exemptions reduction impacting cost structure(p.218)
- • Manufacturing facility disruption risks from natural disasters and shutdowns(p.218)
- • Foreign exchange fluctuation risks affecting export earnings(p.219)
- • Competition and cyclicality in electronics manufacturing sector(p.224)
- • Quality compliance failures threatening customer orders(p.219)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Amrit Lal Manwani | Promoter / Selling Shareholder | 94.98% | 69.88% |
| Varun Manwani | Promoter | 0.01% | 0.01% (Negligible) |
| Arunima Manwani | Promoter | 0.01% | 0.01% (Negligible) |
| Varsha B P Manwani | Promoter Group | 0.01% | 0.01% (Negligible) |
| Akshay Manwani | Promoter Group | 0.01% | 0.01% (Negligible) |
| Amrit Lal Manwani | Promoter/Chairman & Managing Director | 94.98% | 69.88% |
| Varun Manwani | Promoter/Non-Executive Director | 0.01% | Negligible |
| Arunima Manwani | Promoter/Executive Director | 0.01% | Negligible |
| Varsha B P Manwani | Promoter Group | 0.01% | Negligible |
| Akshay Manwani | Promoter Group | 0.01% | Negligible |
| Amrit Lal Manwani | Promoter/Chairman & Managing Director | 94.98% | — |
| Varun Manwani | Promoter/Non-Executive Director | 0.01% | — |
| Arunima Manwani | Promoter/Executive Director | 0.01% | — |
| Amrit Lal Manwani | Promoter | 94.98% | — |
| Arunima Manwani | Promoter | 0.01% | — |
| Varun Manwani | Promoter | 0.01% | — |
| Amrit Lal Manwani | Promoter | — | — |
| Amrit Lal Manwani | Promoter Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP 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 RHP before relying on it.