Earn 44% in the DelaPlex SME IPO—A higher return.
Investors are eyeing the DelaPlex SME IPO as a golden opportunity, with a promising 44% return on the horizon. Scheduled to kick off on January 25, this Rs 46-crore IPO combines an offer for sale and a new issuance, making it a noteworthy venture in the corporate finance landscape.
Key Details of DelaPlex SME IPO
Subscriptions for this IPO will be accepted until January 30. DelaPlex, founded on February 12, 2004, has been instrumental in providing technology and software development solutions as well as consulting services to foster growth, revenue, and market value for its clients.
The IPO comprises an offer to sell six lakh shares for Rs 11.52 crore and a new issue of eighty lakh shares valued at Rs 34.5 crore. Investors can bid in multiples of 600 shares, with a minimum bid requirement of 600 shares.
DelaPlex’s financial results for the year ending March 2023 indicate a revenue from operations of Rs 54 crore, showcasing a 9% increase from the previous year. The net profit for the same period was Rs 7.9 crore, compared to Rs 6.1 crore the year before.
Utilization of Funds:
The raised capital will be allocated to various purposes, including laptop purchases, marketing and sales costs, advertising, and fulfilling working capital requirements. The remainder will address other corporate needs.
Promoters behind DelaPlex SME include Nitin Sachdeva, Manish Iqbalchand Sachdeva, Mark T. River, Preeti Sachdeva, and DelaPlex INC. Bigshare Services Pvt Ltd is the issue’s registrar, and Shreni Shares Limited serves as the book-running lead manager, with Shreni Shares acting as the market maker.
Despite the promising outlook, it’s crucial to acknowledge potential risks. DelaPlex heavily relies on its corporate promoter and one group firm for the majority of its revenue, posing a concentration risk. Additionally, economic downturns in the US, where a significant portion of revenue is generated, could impact the company’s financial standing.
Furthermore, the dependency on a third party for cloud services introduces a vulnerability that, if mismanaged, could affect the business’s finances, legal standing, reputation, and operations.
Grey Market Premium (GMP) and Listing Expectations:
As of January 24, the GMP rose by Rs 86, indicating a 44.2% increase. The implied listing price stands at Rs 277. Investors typically monitor the GMP to gauge the potential listing price. The tentative listing date is set for February 2, 2024, on NSE SME.
In conclusion, the DelaPlex SME IPO presents a compelling investment opportunity with a projected 44% return. Stay informed, conduct thorough research, and make well-informed investment decisions to capitalize on this corporate finance venture.