The Phoenix Mills Ltd. (PDF)
Trending Sector
Top Losers
Current IPOs
Closed IPOs
Listed IPOs
IPO Performers
CAGR Calculator
SIP Calculator
Retirement Planning Calculator
Adani Ports and SEZ
Sahasra Electronic Solutions Ltd IPO
Status: Closed
Overview
IPO date
26 Sept 2024 to 30 Sept 2024
Face value
₹ 10 per share
Price
₹ 269 to ₹283 per share
Issue Size
6,578,000 shares
(aggregating up to ₹ 186.16 Cr)
(aggregating up to ₹ 186.16 Cr)
Allotment Date
01 Oct 2024
Listing at
NSE
Issue type
Book Building - SME
Sector
Electronics
Objectives of Sahasra Electronic Solutions Ltd IPO
Initial public offer of upto 65,78,000 equity shares of face value of
Rs. 10/- each (the "Equity Shares") of Sahasra Electronic Solutions Limited ("The Company" or "SESL" or "The Offer") at an offer price of Rs. 283 per equity share for cash, aggregating up to Rs. 186.16 crores ("Public Offer") comprising of a fresh issue of upto 60,78,000 equity shares aggregating to
Rs. 172.01 crores (the "Fresh Issue") and an offer for sale of upto 5,00,000 equity shares by the selling shareholder ("Offer for Sale") aggregating to
Rs. 14.15 crores comprising by Amrit Lal Manwani; out of which 3,29,600 equity shares of face value of Rs. 10 each, at an offer price of Rs. 283 per equity share for cash, aggregating Rs. 9.33 crores will be reserved for subscription by the market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. offer of 62,48,400 equity shares of face value of Rs. 10 each, at an offer price of Rs. 283 per equity share for cash, aggregating upto Rs. 176.83 crores is herein after referred to as the "Net Offer". The public offer and net offer will constitute 26.32% and 25.00% respectively of the post-offer paid-up equity share capital of the company.
Sahasra Electronic Solutions Ltd IPO Strategy
- Diversification of our product range.
- Pursue inorganic growth through acquisitions.
- Increase our geographical reach and expand our customer base.
- Invest in expanding our technological capabilities and manufacturing capacities.
About Sahasra Electronic Solutions Ltd
Sahasra Electronic Solutions Limited was incorporated as Limited Company vide Certificate of Incorporation dated February 22, 2023 issued by Registrar of Companies, Central Registration Centre. The Company is an EN 9100:2018 certified company, which is engaged in the business of providing solutions towards electronics system design and manufacturing ('ESDM') services at its manufacturing plant located at Noida, Uttar Pradesh, which is equipped with four high speed SMT lines having a total capacity of around 1800000 units. The Company provide product and solutions right from printed circuit board (PCB) assembly, Box Build, LED lighting. Memory, IT accessories, computer and IT hardware.
The 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 FY 2021 under the name of Sahasra Electronic Solutions.
In 2023, the Company acquired the running business of proprietorship concern of the Promoter Amrit Lal Manwani, namely, M/s Sahasra Electronic Solutions along with the assets and liabilities of the proprietorship concern as going concern in February, 2023.
During the FY 2024-25, the Company acquired 54.18% stake in Sahasra Semiconductor Private Limited, whicht became the Subsidiary of the Company effective from June 21, 2024.
The Company operate through their manufacturing facility situated at Noida, Uttar Pradesh, which is located in a Special Economic Zone.l
The 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, the Company 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.
The Company is planning an IPO aggregating of 65,78,000 Equity Shares consisting 60,78,000 Fresh Issue Equity Shares and an Offer for Sale of 5,00,000 Equity Shares.
Unlock Stock of the Month
T&C*
Strengths vs Risks of Sahasra Electronic Solutions Ltd
Know the pros & cons
Strengths
Dedicated solutions for ESDM services.- Established relationships with customers across various countries.
- Established manufacturing capabilities.
- Quality Assurance.
- Experienced Promoters, management and operating team.
Risks
- The company business is dependent on the sale of its products to certain key customers which also includes some of its Group Companies. The loss of any of these customers or loss of revenue from sales to these customers could have a material
adverse effect on its business, financial condition, results of operations and cash flows.
- The company is significantly dependent on revenue from sale of PCBA. Any inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.
- The company has been recently incorporated and has taken-over the running business of M/s Sahasra Electronic Solutions, thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
- Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
- Any delay, interruption or reduction in the supply of raw materials required to manufacture its products may adversely affect the company's business, results of operations, cash flows and financial condition.
- Its business is substantially dependent on the company engineering teams to accurately carryout the designing, engineering and estimation studies for potential orders. Any deviation during the execution of the order as compared to its estimates could have a material adverse effect on its cashflows, results of operations and financial condition.
- The company is subject to strict design & quality requirements, customer inspections and audits, and any failures to comply with design & quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and our business and results of operations and future prospects.
- The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
- The Company operates under several statutory and regulatory approvals in respect of its operations. Failures to obtain or maintain licenses, registrations, permits and approvals may affect our business and results of operations.
- Restrictions on foreign trade and/or any increase in shipment cost may adversely impact its business, cash flows and results of operations.
- Its may be subject to risks associated with product warranty. In case any product warranty getting materialized due to product defect, its may be subject to additional cost, product liability claims or loss of future purchase orders from customers which may affect its business and results of operations.
- Its Statutory Auditors have included certain Key Audit Remarks on the company Audited financial statements.
- Its Subsidiary Sahasra Semiconductor Private Limited is engaged in the business of semiconductor chips manufacturing which exposes it to certain risks. If the company is unable to effectively manage its operations or pursue the company growth strategy, its business, financial condition, results of operations and prospects may be adversely affected.
- The Pro Forma Financial Information included in this Draft Red Herring Prospectus is not indicative of its expected results or operations in the future periods or the company future financial position or a substitute for its past results.
- Its subsidiary company, Sahasra Semiconductor Private Limited has negative cash flows from operating activities in the past and may continue to have negative cash flows in the future.
- The company intend to utilise a portion of the Net Proceeds towards funding the capital expenditure of its Subsidiary, Sahasra Semiconductor Private Limited and the company cannot assure you that its will be able to derive the benefits from the proposed object.
- Its registered office and manufacturing facility have been taken on lease basis. If the company is unable to renew these leases or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
- The Company has not yet placed orders for machineries and equipment required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of plant and machinery may result in time and cost overruns, and may affect its profitability.
- The company is planning to expand its operations at Plot no B-3/1, Elcina Electronics Manufacturing Cluster, Industrial Area Salarpur, Bhiwadi, Distt. Alwar-301019, Rajasthan. Its may face business or financial challenges which may adversely affect its profitability and results of operations.
- If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
- The company enjoy certain tax related & policy benefits in its business, which if withdrawn by the competent authority may affect the company financial conditions & profitability.
- The manufacturing facility of the company is located in NSEZ; thus the company is required to compulsory comply with certain restrictions imposed upon the company, if its fail to comply with these terms such benefits may be withdrawn which may affect its financials and results of operations.
- Loans availed by the Company has been secured on personal guarantees of its directors. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its directors.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- The company does not make any provisions for decline in the value of investments made by the Company. Any continuous decline in the value of investments made by the company may impact its financial results and condition.
- The company has had certain inaccuracy in relation to implementation of accounting standards issued by the Accounting Standards Board of the Institute of Chartered Accountants of India.
- Its business is dependent on its manufacturing facility and the company is subject to risks in relation to its manufacturing process, such as technology failures, cyber-attacks, security breaches or obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same could have a material adverse effect on its business, results of operation or financial condition.
- IT systems are critical to its ability to manage the company operations any disruption or shutdown of the same may have an adverse effect on its business operations.
- The company operates in a highly competitive market, and its competitors may have larger resources which may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in its net revenues and profitability.
- Its Subsidiary Company and some of the company Group Company have incurred losses in past and any operating losses in the future could adversely affect the results of operations and financial conditions of its group company.
- The company deploy advanced technologies in the manufacturing of PCBA, Electronic items, LED lighting, etc. Any incapability to adopt a new technology or change in the requirement of a particular technology may affect its position.
- The Company is involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties/prosecutions and may adversely affect its business and results of
operations.
- Its manufacturing activities requires deployment of labour and depends on availability of skilled labour. In case of unavailability of such skilled labour, its business operations could be affected.
- The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on the company's business and financial condition.
- The company does not own the trademark/ logo which the company is using for its business purpose. The trademark/ logo have been taken from its promoter pursuant to a no objection certificate from the promoter.
- The company is dependent on third party transportation providers for the delivery of its raw materials, components and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.
- The company is exposed to foreign currency fluctuation risks, which may affect its results of operations.
- Under-utilization of its manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
- While the Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale portion, and the Selling Shareholders, shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale.
- The Company may not be successful in penetrating new export markets. The Company may not be successful in penetrating new export markets.
- The company is dependent on its promoters and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect the company's business, results of operations, financial condition and cash flows.
- The company contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
- Its lenders have charge over the company immovable and movable properties in respect of finance availed by it.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency. The deployment of funds will be entirely at its discretion, based on the parameters as mentioned in the chapter titled "Objects of the Issue".
- Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Industry information included in this Draft Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
- Its Promoter, Chairman & Managing Director Amrit Lal Manwani was director of a company which has been struck off by RoC under provision of the Companies Act 2013.
- Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
- Excessive dependence on Citi Bank in respect of Loan facilities obtained by the Company.
- The average cost of acquisition of Equity Shares by its Promoters & selling shareholder may be lower than the Issue price of the Equity Share in the proposed IPO.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
- The company may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.
Sahasra Electronic Solutions Ltd Peer Comparison
Understand the company’s industry standing
Sahasra Electronic Solutions Ltd
Kaynes Technology India Ltd
Trident Techlabs Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
102.7879
1860.535
73.0039
EPS-Basis
18.05
30.63
5.52
EPS-Diluted
---
---
---
NAV Per Share
---
---
---
P/E-Basic EPS
---
181.56
153.99
P/E-Diluted EPS
---
---
---
RONW(%)
54.09
7.37
20.12
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Sahasra Electronic Solutions Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
IPO reads
Stay updated with the latest IPO developments
December 9, 2024 | 5 min read
11 IPOs This Week: ₹18,482 Crores in Focus – GMP, SWOT, and All You Need to Know!
December 2, 2024 | 5 min read
Upcoming IPOs in December 2024: A Packed Month for Investors
November 25, 2024 | 5 min read
SME IPO Rush: 6 Issues Worth ₹410 Cr. Know Key Details Here!
October 25, 2024 | 5 min read
Waaree Energies IPO: GMP Soars 106% Amid 76.34x Subscription – Check Your Allotment Status!
October 22, 2024 | 5 min read
Upcoming IPOs: 9 Public Issues Set to Raise ₹10,984.8 Cr – Key Insights Inside!
October 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons Why
September 6, 2024 | 5 min read
Bajaj Housing Finance IPO: All You Need to KnowOctober 17, 2024 | 5 min read
Hyundai IPO Hits a Speed Bump With 42% Subscription On Day 2 : 4 Reasons Why
August 26, 2024 | 5 min read
Premier Energies IPO: Key Details Ahead of the ₹2,830.40 Cr Issue LaunchMore on IPOs
Navigate your way to other IPO resources
Latest videos on IPOs
IPO highlights & details!
FAQs on IPO
Get answers to all your questions here!
The IPO opens on 26 Sept 2024 & closes on 30 Sept 2024.
Sahasra Electronic Solutions Limited was incorporated as Limited Company vide Certificate of Incorporation dated February 22, 2023 issued by Registrar of Companies, Central Registration Centre. The Company is an EN 9100:2018 certified company, which is engaged in the business of providing solutions towards electronics system design and manufacturing ('ESDM') services at its manufacturing plant located at Noida, Uttar Pradesh, which is equipped with four high speed SMT lines having a total capacity of around 1800000 units. The Company provide product and solutions right from printed circuit board (PCB) assembly, Box Build, LED lighting. Memory, IT accessories, computer and IT hardware.
The 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 FY 2021 under the name of Sahasra Electronic Solutions.
In 2023, the Company acquired the running business of proprietorship concern of the Promoter Amrit Lal Manwani, namely, M/s Sahasra Electronic Solutions along with the assets and liabilities of the proprietorship concern as going concern in February, 2023.
During the FY 2024-25, the Company acquired 54.18% stake in Sahasra Semiconductor Private Limited, whicht became the Subsidiary of the Company effective from June 21, 2024.
The Company operate through their manufacturing facility situated at Noida, Uttar Pradesh, which is located in a Special Economic Zone.l
The 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, the Company 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.
The Company is planning an IPO aggregating of 65,78,000 Equity Shares consisting 60,78,000 Fresh Issue Equity Shares and an Offer for Sale of 5,00,000 Equity Shares.
Sahasra Electronic Solutions Ltd IPO will close on 30 Sept 2024.
- Dedicated solutions for ESDM services.
- Established relationships with customers across various countries.
- Established manufacturing capabilities.
- Quality Assurance.
- Experienced Promoters, management and operating team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Amrit Lal Manwani | 17964700 | 94.98 | 17464700 | 69.88 |
| 2 | Arunima Manwani | 1200 | 0.01 | 1200 | --- |
| 3 | Varun Manwani | 1200 | 0.01 | 1200 | --- |
- The company business is dependent on the sale of its products to certain key customers which also includes some of its Group Companies. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company is significantly dependent on revenue from sale of PCBA. Any inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.
- The company has been recently incorporated and has taken-over the running business of M/s Sahasra Electronic Solutions, thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
- Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
- Any delay, interruption or reduction in the supply of raw materials required to manufacture its products may adversely affect the company's business, results of operations, cash flows and financial condition.
- Its business is substantially dependent on the company engineering teams to accurately carryout the designing, engineering and estimation studies for potential orders. Any deviation during the execution of the order as compared to its estimates could have a material adverse effect on its cashflows, results of operations and financial condition.
- The company is subject to strict design & quality requirements, customer inspections and audits, and any failures to comply with design & quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and our business and results of operations and future prospects.
- The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
- The Company operates under several statutory and regulatory approvals in respect of its operations. Failures to obtain or maintain licenses, registrations, permits and approvals may affect our business and results of operations.
- Restrictions on foreign trade and/or any increase in shipment cost may adversely impact its business, cash flows and results of operations.
- Its may be subject to risks associated with product warranty. In case any product warranty getting materialized due to product defect, its may be subject to additional cost, product liability claims or loss of future purchase orders from customers which may affect its business and results of operations.
- Its Statutory Auditors have included certain Key Audit Remarks on the company Audited financial statements.
- Its Subsidiary Sahasra Semiconductor Private Limited is engaged in the business of semiconductor chips manufacturing which exposes it to certain risks. If the company is unable to effectively manage its operations or pursue the company growth strategy, its business, financial condition, results of operations and prospects may be adversely affected.
- The Pro Forma Financial Information included in this Draft Red Herring Prospectus is not indicative of its expected results or operations in the future periods or the company future financial position or a substitute for its past results.
- Its subsidiary company, Sahasra Semiconductor Private Limited has negative cash flows from operating activities in the past and may continue to have negative cash flows in the future.
- The company intend to utilise a portion of the Net Proceeds towards funding the capital expenditure of its Subsidiary, Sahasra Semiconductor Private Limited and the company cannot assure you that its will be able to derive the benefits from the proposed object.
- Its registered office and manufacturing facility have been taken on lease basis. If the company is unable to renew these leases or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
- The Company has not yet placed orders for machineries and equipment required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of plant and machinery may result in time and cost overruns, and may affect its profitability.
- The company is planning to expand its operations at Plot no B-3/1, Elcina Electronics Manufacturing Cluster, Industrial Area Salarpur, Bhiwadi, Distt. Alwar-301019, Rajasthan. Its may face business or financial challenges which may adversely affect its profitability and results of operations.
- If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
- The company enjoy certain tax related & policy benefits in its business, which if withdrawn by the competent authority may affect the company financial conditions & profitability.
- The manufacturing facility of the company is located in NSEZ; thus the company is required to compulsory comply with certain restrictions imposed upon the company, if its fail to comply with these terms such benefits may be withdrawn which may affect its financials and results of operations.
- Loans availed by the Company has been secured on personal guarantees of its directors. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its directors.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- The company does not make any provisions for decline in the value of investments made by the Company. Any continuous decline in the value of investments made by the company may impact its financial results and condition.
- The company has had certain inaccuracy in relation to implementation of accounting standards issued by the Accounting Standards Board of the Institute of Chartered Accountants of India.
- Its business is dependent on its manufacturing facility and the company is subject to risks in relation to its manufacturing process, such as technology failures, cyber-attacks, security breaches or obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same could have a material adverse effect on its business, results of operation or financial condition.
- IT systems are critical to its ability to manage the company operations any disruption or shutdown of the same may have an adverse effect on its business operations.
- The company operates in a highly competitive market, and its competitors may have larger resources which may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in its net revenues and profitability.
- Its Subsidiary Company and some of the company Group Company have incurred losses in past and any operating losses in the future could adversely affect the results of operations and financial conditions of its group company.
- The company deploy advanced technologies in the manufacturing of PCBA, Electronic items, LED lighting, etc. Any incapability to adopt a new technology or change in the requirement of a particular technology may affect its position.
- The Company is involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.
- Its manufacturing activities requires deployment of labour and depends on availability of skilled labour. In case of unavailability of such skilled labour, its business operations could be affected.
- The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on the company's business and financial condition.
- The company does not own the trademark/ logo which the company is using for its business purpose. The trademark/ logo have been taken from its promoter pursuant to a no objection certificate from the promoter.
- The company is dependent on third party transportation providers for the delivery of its raw materials, components and finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.
- The company is exposed to foreign currency fluctuation risks, which may affect its results of operations.
- Under-utilization of its manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
- While the Company will receive proceeds from the Fresh Issue, it will not receive any proceeds from the Offer for Sale portion, and the Selling Shareholders, shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale.
- The Company may not be successful in penetrating new export markets. The Company may not be successful in penetrating new export markets.
- The company is dependent on its promoters and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect the company's business, results of operations, financial condition and cash flows.
- The company contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
- Its lenders have charge over the company immovable and movable properties in respect of finance availed by it.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency. The deployment of funds will be entirely at its discretion, based on the parameters as mentioned in the chapter titled "Objects of the Issue".
- Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Industry information included in this Draft Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
- Its Promoter, Chairman & Managing Director Amrit Lal Manwani was director of a company which has been struck off by RoC under provision of the Companies Act 2013.
- Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
- Excessive dependence on Citi Bank in respect of Loan facilities obtained by the Company.
- The average cost of acquisition of Equity Shares by its Promoters & selling shareholder may be lower than the Issue price of the Equity Share in the proposed IPO.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.
- The company may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.
The Issue type of Sahasra Electronic Solutions Ltd is Book Building - SME.
The minimum application for shares of Sahasra Electronic Solutions Ltd is 400.
The total shares issue of Sahasra Electronic Solutions Ltd is 6578000.
Initial public offer of upto 65,78,000 equity shares of face value of
Rs. 10/- each (the "Equity Shares") of Sahasra Electronic Solutions Limited ("The Company" or "SESL" or "The Offer") at an offer price of Rs. 283 per equity share for cash, aggregating up to Rs. 186.16 crores ("Public Offer") comprising of a fresh issue of upto 60,78,000 equity shares aggregating to
Rs. 172.01 crores (the "Fresh Issue") and an offer for sale of upto 5,00,000 equity shares by the selling shareholder ("Offer for Sale") aggregating to
Rs. 14.15 crores comprising by Amrit Lal Manwani; out of which 3,29,600 equity shares of face value of Rs. 10 each, at an offer price of Rs. 283 per equity share for cash, aggregating Rs. 9.33 crores will be reserved for subscription by the market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. offer of 62,48,400 equity shares of face value of Rs. 10 each, at an offer price of Rs. 283 per equity share for cash, aggregating upto Rs. 176.83 crores is herein after referred to as the "Net Offer". The public offer and net offer will constitute 26.32% and 25.00% respectively of the post-offer paid-up equity share capital of the company.