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About OSEL Device IPO
OSEL Devices’ IPO is a book-built issue of Rs 70.66 crores, consisting entirely of a fresh issue of 44.16 lakh shares.
The subscription for OSEL Devices’ Initial Public Offering (IPO) commences on September 16, 2024, and concludes on September 18, 2024. The allocation for the OSEL Devices IPO is anticipated to be finalised on Thursday, September 19, 2024. The listing of the OSEL Devices IPO on NSE SME is scheduled for Monday, September 23, 2024.
The price band for OSEL Devices IPO is between Rs 155 and Rs 160 per share. The minimum lot size for an application is 800 shares. Retail investors require a minimum investment of Rs 1,28,000. For High Net Worth Individuals (HNIs), the minimum lot size investment is 2 lots (1,600 shares), totalling Rs 2,56,000.
Horizon Management Private Limited is the book-running lead manager for the OSEL Devices IPO, and Mas Services Limited is the registrar. Giriraj Stock Broking is the market maker for the OSEL Devices IPO.
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OSEL Devices Ltd IPO Details:
| Particulars | Details |
| IPO Date | September 16, 2024 to September 18, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 155 to Rs 160 per share |
| Lot Size | 800 Shares |
| Total Issue Size | 44,16,000 shares (aggregating up to Rs 70.66 Crores) |
| Fresh Issue | 44,16,000 shares (aggregating up to Rs 70.66 Crores) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Shareholding pre-issue | 1,17,13,200 |
| Shareholding post-issue | 1,61,29,200 |
| Market Maker portion | 2,21,600 shares (Giriraj Stock Broking) |
OSEL Device IPO Timeline for major events
| Particulars | Details |
| IPO Open Date | Monday, September 16, 2024 |
| IPO Close Date | Wednesday, September 18, 2024 |
| Basis of Allotment | Thursday, September 19, 2024 |
| Initiation of Refunds | Friday, September 20, 2024 |
| The credit of Shares to Demat account | Friday, September 20, 2024 |
| Listing Date | Monday, September 23, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 18, 2024 |
Shares Application Categories
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 800 | Rs 1,28,000 |
| Retail (Max) | 1 | 800 | Rs 1,28,000 |
| HNI (Min) | 2 | 1,600 | Rs 2,56,000 |
Shares offered to different Investor categories
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Offer |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
OSEL Devices Ltd. Company Details
Established in 2006 as Innovative Infratech Solutions Private Limited, OSEL Devices Limited has substantial experience in manufacturing an extensive range of light-emitting diode (LED) display systems and hearing aids.
With a state-of-the-art leadership team focused on the ongoing growth and innovation vectors, OSEL Devices Limited will continue to expand into new products, markets, and technologies to provide solutions and transformation for people on a global scale.
With strategic direction and commitment to excellence, our leadership team has positioned OSEL Devices Limited a leader in the LED digital screen and hearing aid industries prepared for the challenges, opportunities, and uncertainty ahead.
The company produces a comprehensive array of LED display systems, encompassing all key components for commercial applications, such as advertising media, billboards, corporate boardrooms, presentations, display promotions, command centres, and storefront signs.
The company’s LED display systems are designed with a content management system which allows connectivity to a phone or computer to display content on the screen.
Also, the company manufactures hearing aids, also known as health aids, for individuals with hearing impairments where there is a specific focus on older adults, the disabled population and individuals with chronic illness. The company’s key end customer is the Artificial Limbs Manufacturing Corporation of India. The company manufactures both digitally programmable hearing aids and non-programmable hearing aids.
OSEL’s Greater Noida manufacturing facility was inaugurated by former Union Minister Shri Pratap Sarangi. The manufacturing facility has capacity for 15,000 square feet of LED display systems and 40,000 units of hearing aids per year. The competitive advantage of the company is from its unwavering attention to quality.
As a prominent manufacturer of LED display systems and hearing aids. They have a solid market presence and a global reach. Their products undergo stringent quality assurance and control processes, and we nurture enduring, strong relationships with their clients.
They employ a cost-effective production process and ensure prompt order fulfilment. Their adept management team is focused on delivering exceptional service and post-sale support.
OSEL Devices Ltd IPO GMP
As per the latest update on September 13 2024 , the Grey Market Premium (GMP) for OSEL Devices IPO is at ₹100. The price band is expected to be between Rs 155.00 and Rs 160.00 per share. In the price band, the upper price band plus the current GMP will give around a Rs 260 listing price.
This implies an anticipated percentage gain/loss per share of 62.50%. The Retail Subject to Sauda for OSEL Devices SME IPO is Rs 60,800.
Financials of the OSEL Devices Ltd Company
Extract from the Financial Statements
| Particulars | As of 31-03-2024 | As of 31-03-2023 | As of 31-03-2022 |
| Assets (Rs in lakhs) | 9,864.20 | 4,902.09 | 3,312.17 |
| Revenue (Rs in lakhs) | 13,268.52 | 8,195.58 | 6,555.49 |
| Profit After Tax (Rs in lakhs) | 1,305.21 | 466 | 212.31 |
| Net Worth (Rs in lakhs) | 2,534.21 | 1,229 | 763 |
| Reserves and Surplus (Rs in lakhs) | 1,380.39 | 1,042.90 | 576.9 |
| Total Borrowing (Rs in lakhs) | 2,545.23 | 1,782.29 | 862.87 |
Key Ratios
| KPI (Key Performance Indicator) | Values as of March 31, 2024 |
| ROE (Return on Equity) | 34.68% |
| ROCE (Return on Capital Employed) | 43.17% |
| RoNW (Return on Net Worth) | 51.50% |
| P/BV (Price to Book Value) | 7.29 |
| PAT (Profit after tax) Margin (%) | 9.87 |
OSEL Devices Ltd IPO RHP Details
Risks associated with the company as per Red Herring Prospectus (RHP).
Risks related to innovation and design
The company’s capacity to generate revenue and maintain profitability largely hinges on our skill in creating and designing ground-breaking products that fulfill customer needs. If the company cannot efficiently utilize and oversee its capacity to produce and design innovative products, it will harm its business, revenue, and profitability.
Risks related to Sales
Their production includes both Digital Programmable and Non-Programmable Hearing Aids. Therefore, the revenue generated from hearing aid products is greatly influenced by the success of the healthcare industry or preventive healthcare industry.
The income is largely reliant on their customers in the healthcare industry, and the potential loss of any of their customers in any industry they serve could negatively impact their sales and, consequently, their business and financial performance, necessitating immediate action. Further,
Risks related to competitors
If the company’s competitors are larger or form alliances, they may improve efficiency and offer high-quality products at lower prices. This could affect the company’s revenues and profitability. Additionally, they may withstand industry downturns better and offer more competitive prices, impacting our business.
Risks related to negative cash flows
The company has witnessed negative cash flows from Investing activities in the financial year ended March 31, 2023 and March 31, 2024. Further, it has also seen negative cash flows from financing activities in the year ended March 31, 2022.
Other Risks
Risks related to the following factors may hinder the operations of the business.
1. Modifications to laws, policies, and regulations within the political and economic landscape may hinder the ability to conduct business.
2. Potential customers could view them as a regional company, hindering their ability to compete on large and complex opportunities at the national level.
3. They have limitations for implementing the strategy of clustering projects in the states we are working in.
The company needs to overcome these risks in order to sustain and grow in the industry.
OSEL Device IPO FAQs:
What are the objectives of OSEL Devices Ltd IPO?
The net proceeds from the fresh issue will be utilised in prepayment of certain loans of the company, for financing the requirements of working capital, and for meeting general corporate purposes.
Who are the OSEL Devices Ltd competitors?
The competitors of the company are Havells India Limited, Polycab India Limited, Premier Energies Limited, Honeywell Automation, KEI Industries Limited, and Apar Industries Limited.
What is the OSEL Devices Ltd IPO Opening date?
The opening date of the IPO is Monday, September 16, 2024.
What is the OSEL Devices Ltd IPO closing date?
The closing date of the IPO is Wednesday, September 18, 2024.
When is the OSEL Devices Ltd IPO listing date?
The listing date of the IPO is Monday, September 23, 2024.
What is the OSEL Devices Limited IPO Lot size?
The minimum lot size of the OSEL Devices Limited IPO is 800 shares (1 lot) for Retail investors, and 1600 shares (2 lots) for High Net Worth Individuals (HNIs).
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