DelaPlex SME IPO: Check price band, GMP, financials, risks and listing date

The issue is a combination of a fresh issue of 18 lakh shares worth Rs 34.5 crore and an offer for sale of six lakh shares aggregating to Rs 11.52 crore.

Price band

The price band for the offer has been fixed at Rs 186-Rs 192 per share.

Lot size

Investors can bid for a minimum of 600 shares and in multiples thereof.

Financial performance of the company

For the year ended March 2023, the company's revenue from operations stood at Rs 54 crore, a jump of nearly nine percent when compared to the same period previous year where the company reported a revenue of Rs 49.7 crore.

As for the net profit, it stood at Rs 7.9 crore for the year ended March 2023, compared to Rs 6.1 crore in the same period of the previous year.

Objectives of the issue

The company proposes to utilize the proceeds for advertisement, sales and marketing expenses, funding working capital requirements for the company, purchasing laptops, and the rest for general corporate purposes.

Promoters of the company

Nitin Sachdeva, Manish Iqbalchand Sachdeva, Mark T. River, Preeti Sachdeva and DelaPlex INC are the promoters of the company.

Lead managers

Shreni Shares Limited is the book-running lead manager of the DelaPlex IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for DelaPlex IPO is Shreni Shares.

Key Risks

i) The company is dependent on a few customers for revenues, mainly its corporate promoter and one of its group companies. Further, it does not have any long-term commitments from customers and any failure to continue existing arrangements could adversely affect business and results of operations.

ii) The company's revenue from operations is highly dependent on customers located in the United States. Worsening economic conditions or factors that negatively affect the economic conditions of the United States could harm the business, financial conditions and profitability of the company.

iii) DelaPlex relies on a third party for providing cloud services and ineffective management of this relationship or agreement could increase the company’s financial, legal, reputational and operational risk.

Grey market premium

The grey market premium (GMP) surged by Rs 86, or 44.2 percent, over the issue price of Rs 192 on January 24. The GMP implies a listing price of Rs 277.

The grey market is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors typically track the grey market premium (GMP), which can fluctuate wildly, to get an indication of the listing price.

Listing date

DelaPlex IPO will likely list on NSE SME with a tentative listing date fixed as Friday, February 2, 2024.

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