About the Company:
Sahasra Electronic Solutions Ltd is engaged in the business of providing solutions towards electronics system design and manufacturing (“ESDM”) services.
Company provides product and solutions right from printed circuit board (“PCB”) assembly, Box Build, LED lighting. Memory, IT accessories, computer and IT hardware.
Company has made export of over 80% of its products and solutions during the FY 2024 to certain global manufacturers located in countries like United States of America, Rwanda, Tunisia, United Kingdom, Germany, Canada, Austria & Belgium.
Company operates through our manufacturing facility situated at 68AA, NSEZ, Noida, Uttar Pradesh, which is located in a Special Economic Zone.
Company’s manufacturing facilities comprises of four SMT lines equipped with machines including RMTS high speed clip machine, surface mount technology (“SMT”) machines, lead free wave soldering machine, PCBA router, high speed compact modular mounter, reflow oven and surface cleaning machines.
Company’s Product Portfolio may be categorized as follows:
- Printed circuit board assemblies (“PCBA”): Company’s PCBAs are used in products manufactured in the automotive, medical, industrial, IT and consumer products industries, and shall include box-build products such as laptop and tablets.
- LED Lighting solutions, which include LED Chip – the source of the lightning, power supply or the driver, printed circuit board for LED’s, housing or the frame.
- Memory product which includes -DRAM modules, Solid State Drives (SSD), USB flash storage device etc.
- IT hardware which includes -Motherboard, laptop, Computer, Tablets, and other accessories.
Company’s Revenue from Various Product Offerings: (in Lakhs)
Company’s Promoter:
Company is led by Promoters who have significant experience in the ESDM industry.
Company’s promoter & Managing Director, Amrit Lal Manwani is an engineering graduate from IIT Kanpur & MBA from FMS, Delhi University. He has worked with many companies engaged in the electronic manufacturing services industry for about 20 years, before he began his entrepreneurial journey.
Company’s History:
Promoter and Managing Director, Amrit Lal Manwani, was earlier undertaking the business of trading of diesel as a sole proprietorship concern in the name of Northern Petroleum Company, which later entered into the business of PCB assembly during the FY2021 under the name of Sahasra Electronic Solutions, which was during the year 2023 acquired by the Company on a going concern basis.
Further, Company have during the FY 2024-25, acquired controlling stake in Sahasra Semiconductor Private Limited, which became the subsidiary of our company, having a Semiconductor Packaging Facility at Bhiwadi, Rajasthan which is engaged in the manufacturing of electronic components like integrated circuits, chips, semiconductor devices, eMMC, mSD, COBs, COB based USBs, LED drivers IC, BGA, NAND flash & memory products.
Also, Company sells its LED lighting solutions to Sahasra Electronics Rwanda Pvt Ltd, which is a subsidiary of our group company Sahasra Electronics Pvt Ltd, which further sell these LED lighting solutions to countries like Rwanda etc.
Company’s Manufacturing Facility:
Company operates through our manufacturing facility situated at 68AA, NSEZ, Noida, Uttar Pradesh, which is located in a Special Economic Zone.
Company’s manufacturing facilities include engineered layout with process controls and necessary automations for quality and productivity. This allows us to keep our core competencies within our Company, allowing us to ensure strict quality control and safety at each step of our manufacturing process.
Company’s manufacturing facilities comprises of four SMT lines equipped with machines including RMTS high speed clip machine, surface mount technology (“SMT”) machines, lead free wave soldering machine, PCBA router, high speed compact modular mounter, reflow oven and surface cleaning machines.
Additionally, Company has also installed quality inspection machines such as high speed PWB inspection, PWB Visual inspection and X-Ray inspection machines to ensure the high standards of product quality.
Company’s manufacturing facility is staffed with a workforce of approximately 160 employees, as of March 31, 2024 which includes a team of around 35 engineers dedicated to enhancing our operational efficiency.
Company’s Capacity and Capacity Utilization:
Company’s Tie- up with a Customer:
Company has on June 15, 2023 entered into an agreement for a term of 3 years with a company engaged into the business of designing and marketing of hardware and software products like laptops, tablets, servers and IT peripherals for the supply of laptops, tablets, motherboards and related PCBA’s as per the specification and purchase orders placed by the customer from time to time.
Company’s Revenue from various Geographies: (in Lakhs)
Management Team:
- Mr. Amrit Lal Manwani (Designation: Chairman & Managing Director)
- Mrs. Arunima Manwani (Designation: Executive Director)
Objectives of the Issue:
Offer For Sale: (Rs.14 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.172 cr)
- Funding Capital Expenditure towards installation of additional plant and machinery at new manufacturing facility situated at Bhiwadi, Rajasthan.
- Investment in our Subsidiary, Sahasra Semiconductors Private Limited for financing its capital expenditure requirements in relation towards installation of additional plant and machinery.
- To Meet Working Capital Requirements.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding Capital Expenditure towards installation of additional plant and machinery at newmanufacturing facility situated at Bhiwadi, Rajasthan | 65.96 cr |
| Investment in our Subsidiary, Sahasra Semiconductors Private Limited for financing its capital expenditure requirements in relation towards installation of additional plant and machinery | 22.92 cr |
| To Meet Working Capital Requirements | 40 cr |
Positives for the Company:
Experienced Promoters, Management and Operating Team.
- The Promoters of our Company are Amrit Lal Manwani, Varun Manwani and Arunima Manwani, who have vide experience in the field of EMS, and they have been instrumental in the growth of our business. We also have a diversified Board of Directors, which is supplemented by a strong management team with extensive experience in the electronic manufacturing sector.
- Company’s Promoter and Managing Director, Amrit Lal Manwani, is an engineering graduate from IIT Kanpur & MBA from FMS, Delhi University. He has worked with many companies engaged in the electronic manufacturing services industry for about 20 years, before he began his entrepreneurial journey.
Company Provides Dedicated solutions for ESDM services.
- With a focus on customers’ needs, Company offers well diversified solutions comprising PCB assembly, box build assemblies and design solutions.
- Company’s services include PCB assembly, wire harness, box build solutions, IT hardware products, with manufacturing lines that cater to high end enterprise solutions. Further, company focusses on continually expanding the technological expertise in manufacturing for diverse industries, integrating our services, and thereby enhancing our capability to serve multiple industry verticals.
- The diversification and expansion of company’s product portfolio is primarily driven by the needs of our customers and technological advancements in the industry.
- As a part of company’s diversification strategy, we have during the FY2024-25 acquired controlling stake in our subsidiary namely Sahasra Semiconductor Private Limited, which is engaged in the business of manufacturing of semiconductor devices, eMMC, mSD, COBs, COB based USBs, LED drivers IC, BGA, NAND flash & memory products.
Established relationships with Customers.
- Company’s product portfolio and quality assurance has helped us establish strong relationships with our major clients. Company has established and will continue to focus on strengthening long-standing relationships with customers.
- The varied applications of our products have helped us build a wide customer base. Our products are distributed in India and overseas, in over 10 different countries, including the United States, Rwanda, Tunisia, United Kingdom, Germany, Canada, Austria, Belgium, Norway & Panama.
- During the Fiscals 2022, 2023, and 2024, our revenue from operations, attributable to exports was Rs.20.38.30 cr, Rs.68.03 cr & Rs.85.03 cr, which accounted for approximately 93.93%, 98.46%, and 83.57%, respectively of our total revenue from operations.
Company is planning Diversification of the Product range.
- Company has continuously sought to diversify our product portfolio which could cater to customers across various end-use industries and geographies.
- Accordingly, while company seek to continue to strengthen our existing product portfolio, company also intends to further diversify into products with prospects for increased growth and profitability by leveraging our R&D capabilities.
- Company also plans to continue to increase offerings in our current business segments as well as diversify into new products by tapping into segments which in the view of our management have attractive growth prospects.
- Further, looking towards the opportunities in the laptop and tablet market, company is intending to expand our market share in the IT hardware and equipment sectors with added focus towards laptop and tablets.
Company has Entered into the Semiconductor Business.
- During the FY 2024-25, acquired controlling stake in Sahasra Semiconductor Private Limited, which has become the subsidiary of our company, having a Semiconductor Packaging Facility at Bhiwadi, Rajasthan which is engaged in the manufacturing of electronic components like integrated circuits, chips, semiconductor devices, eMMC, mSD, COBs, COB based USBs, LED drivers IC, BGA, NAND flash & memory products.
Company Plans to Pursue inorganic growth through acquisitions.
- In conjunction to company’s organic growth strategies, we have in the past, and going forward, intend to continue pursuing strategic acquisitions by selectively evaluating targets or partners for strategic acquisitions and investments.
- Company has expanded our business and operations through acquisitions and integration of operations with our operations, and we intend to continue our strategic expansion plans through inorganic growth opportunities in sectors that complement our existing operations.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 22.12 | 60.02 | 102.78 |
| Net Profit | 2.50 | 17.94 | 32.62 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Sahasra Electronic Solutions Ltd |
10 | 18.05 | 15.67 | 54.09% | 33.37 |
| Kaynes Technology India Ltd | 10 | 30.63 | 181.56 | 7.37% | 389.32 |
| Trident Techlabs Ltd | 10 | 5.52 | 153.99 | 20.12% | 26.95 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 26th September 2024 |
| Issue Closes on | 30th September 2024 |
| Issue Price | Rs.269 -283 |
| Face Value | Rs.10 |
| Minimum Lot | 400 Shares |
| Minimum Investment | Rs.1,13,200 |
| Issue Constitutes | 26.31 % |
| Issue Size | Rs.186 cr ($ 22 million) |
| Market Cap | Rs.707 cr ($ 84 million ) |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 60,78,000 (Rs.172 cr) |
| Equity Shares Offered (OFS) | 5,00,000 (Rs.14 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 65,78,000 (Rs. 186 cr) |
| Equity Shares Prior to the Issue | 1,89,14,763 |
| Equity Shares after the Issue | 2,49,92,763 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 18.05 | 15.67 | 54.09% | 33.37 | 0.36 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Sahasra Electronic Solutions Ltd is a company specializing in electronics system design and manufacturing (ESDM) services. It provides comprehensive solutions, ranging from printed circuit board (PCB) assembly and box build services to LED lighting, memory, IT accessories, and computer hardware.
During FY 2024, the company exported over 80% of its products to leading global manufacturers in countries such as the United States, Rwanda, Tunisia, the United Kingdom, Germany, Canada, Austria, and Belgium. The company is led by highly experienced promoters, with Managing Director Amrit Lal Manwani, an IIT Kanpur engineering graduate and MBA from FMS Delhi, having over two decades of experience in the electronic manufacturing services sector. Sahasra operates a state-of-the-art manufacturing facility located in Noida, Uttar Pradesh, within a Special Economic Zone (SEZ). The company has built strong relationships with its customers and is looking to diversify its product range, having recently ventured into the semiconductor business. Sahasra also plans to pursue inorganic growth through strategic acquisitions, making its IPO a potential long-term investment opportunity. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 1st October 2024 |
| Initiation of Refunds | on or Before 3rd October 2024 |
| Credit of Equity Shares: | on or Before 3rd October 2024 |
| Listing Date: | on or Before 4th October 2024 |
| Company Contact Info: |
|---|
| Sahasra Electronic Solutions Ltd 33, Pocket 1, Jasola Vihar New Friends Colony, South Delhi-110025, New Delhi, India. Tel No: +91-120-4202604 E-mail: cs@sahasraelectronics.com Website: www.seslimited.in |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Address: S6-2, 6th Floor, Pinnacle Business Park, next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093, Maharashtra India. Telephone: +91 22 6263 8200; Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
