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Slone Infosystems Limited IPO Review: Slone Infosystems Limited’s IPO comprises of a fresh issue of 14,00,000 lakh shares valued at INR 11.06 crores. The corporation plans to invest in technology, repay loans, and cover regular corporate expenses.
Slone Infosystems Limited IPO – Important Dates
| Slone Infosystems IPO Date | May 3, 2024 to May 7, 2024 |
| Slone Infosystems IPO Listing Date | May 10, 2024 |
| Slone Infosystems IPO Price | INR 79 per share |
| Slone Infosystems IPO Lot Size | 1600 Shares |
| Slone Infosystems IPO Total Issue Size | INR 11.06 crores |
| Slone Infosystems IPO Basis of Allotment | May 8, 2024 |
| Slone Infosystems IPO Initiation of Refunds | May 9, 2024 |
| Slone Infosystems IPO Credit of Shares to Demat | May 9, 2024 |
| Slone Infosystems IPO Issue Type | Fixed Price Issue IPO |
| Slone Infosystems IPO Listing At | NSE, SME |
Slone Infosystems Limited IPO – Company Profile
Slone Infosystems Limited is a firm that provides IT hardware solutions in India. It provides a variety of services, including laptop and desktop computer sales and rentals, as well as IT solutions such as cloud server management and corporate equipment maintenance.
They provide specialized IT solutions by acquiring and selling or renting technology based on customer requirements, allowing for flexibility to maximize productivity within budget restrictions, and assuring client satisfaction and operational efficiency.
They offer customized IT solutions, including the sale of old equipment and diverse areas such as laptop/computer sales, other IT product sales, IT service solutions, and rental services, assuring comprehensive client support.
Slone Infosystems Limited IPO Financials
Slone Infosystems’ financial analysis shows a mixed performance. Revenue initially increased but eventually fell short. Profitability and equity increased, while return on net worth decreased, indicating contrasting facets of the company’s performance.
- Revenue Trend: The revenue rose from ₹2,578.79 lakhs in March 2022 to ₹3,022.14 lakhs in March 2023. The revenue for the current year’s nine-month period ending December 2023 is INR 3,407.06 lakhs, which exceeds the previous year’s benchmark.
- Equity and Liabilities: Equities have continually climbed over time, indicating prospective growth and expansion.
- Profitability: Profit after tax (PAT) has increased from ₹38.31 lakhs in March 2022 to ₹284.72 lakhs in December 2023. This increase in profitability could boost investor confidence.
- Earnings per Share (EPS): The adjusted earnings per share for December 2023 is 13.58.
- Return on Net Worth (RoNW): The RoNW has increased from 16.75% to 23.98%, showing that the company is better able to earn returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth.
Slone Infosystems Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 2,578.79 | 3,022.14 | 3,407.06 |
| Equity (₹ in lakhs) | 228.70 | 210.49 | 1,187.51 |
| Expenses (₹ in lakhs) | 2,609.55 | 2,991.49 | 3,049.38 |
| Profit and Loss After Tax (₹ in lakhs) | 38.31 | 74.66 | 284.72 |
| Diluted EPS only (₹) | NA | 4.05 | 13.58 |
| Return on Net Worth (%) | 16.75 | 35.47 | 23.98 |
| NAV per Equity Share (₹) | NA | NA | 30.89 |
| Total Assets (in lakhs) | 1,167.37 | 1,190.71 | 1,978.58 |
| Total Liabilities (in lakhs) | 938.67 | 980.22 | 791.07 |
Slone Infosystems Limited IPO Peer Comparison
Slone Infosystems is stable, Brisk Technovision has growth potential and good fundamentals, and Benchmark Computer Solutions is volatile despite high earnings and a large net worth, exhibiting varied characteristics of performance.
| Company | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | Book value per share (₹) |
| Slone Infosystems Limited | 10 | 19.51 | 4.05 | 35.47 | 30.69 |
| Brisk Technovision Ltd | 10 | 14.61 | 9.24 | 38.62 | 23.93 |
| Benchmark Computer Solutions Ltd | 10 | 0.03 | 1,959.31 | 15.20 | 12,890.60 |
Slone Infosystems Limited IPO Objective
Slone Infosystems Limited’s primary goal is to deploy funds toward the purchase of laptops, desktops, SSDs, and RAM, as well as the repayment/prepayment of borrowings and the fulfillment of basic corporate demands.
- Capital Expenditure towards the purchase of Laptops, Desktops, SSD, and RAM: Slone Infosystems Limited intends to use a portion of the Issue Proceeds to purchase laptops, desktops, SSDs, and RAM for its business operations, particularly to maintain and grow its profitable rental services segment.
- Repayment/prepayment of certain borrowings availed by the company: The company intends to use the Net Proceeds of INR 392.12 lakhs to repay/prepay term loans and working capital facilities, with the goal of reducing outstanding debt, increasing equity base, and leveraging capacity for future expansion.
- General Corporate Purpose: The company will allocate cash to broad corporate goals such as strategic initiatives, acquisitions, investments in future subsidiaries, office expansions, business development, the acquisition of fixed assets, and paying various expenses such as salaries, rent, taxes, and maintenance.
Slone Infosystems Limited IPO Risks And Challenges
Slone Infosystems Limited faces risks such as a lack of operating history, which affects investor appraisal, reliance on client relationships for success, and vulnerability to supplier risks, which could have an impact on business operations, financial condition, and viability.Slone Infosystems Limited faces risks such as a lack of operating history, which affects investor appraisal, reliance on client relationships for success, and vulnerability to supplier risks, which could have an impact on business operations, financial condition, and viability.
- Slone Infosystems Pvt Ltd bought Slone Infosystems, formerly known as M/s Sam Computers, in March 2023. Its small working experience makes it difficult for investors to assess the company’s prospects and viability.
- The company’s performance is primarily reliant on establishing positive relationships with clients. Losing key clients could have a substantial impact on operations and cash flow. Dependency exposes risks connected to customer management, financial health, and key events, potentially harming the firm.
- The business’s dependence on a small number of suppliers exposes it to risks such as delays, financial instability, and poor conditions. Without long-term contracts or adequate alternatives, this could have a negative impact on the business’s financial health and operations.
Slone Infosystems Limited IPO – Industry & Market Potential
India’s electronics hardware business is expanding rapidly, with local production reaching USD 87.1 billion and projected to reach USD 300 billion by 2026, aided by effective incentive schemes and innovation efforts.
India’s electronic manufacturing sector has expanded dramatically as a result of government efforts such as “Make in India” and “Digital India,” which seek to increase domestic output, reduce import dependence, and position India as a worldwide manufacturing hub.
India’s ICT hardware sector provides prospects for import substitution and exports, as well as high-value additions through domestic production. Emerging disciplines such as AI, ML, and IoT capitalize on India’s technical knowledge, labor availability, and linguistic advantage.
Slone Infosystems Limited IPO Allotment Structure
Slone Infosystems Limited’s IPO allotment structure has three categories: Retail Individual Investors (RII) with investments under ₹2 lakhs, Other Investors with investments beyond ₹2 lakhs, and Market Makers with a reservation of 70,400 shares.
- Retail Individual Investors (RII): These individual investors apply for shares worth less than Rs. 2 lakhs.
- Other than retail individual investors: Such applications have a value that exceeds INR 2 lakh.
- Market Makers Reservation: Market makers are allocated a specific percentage or number of shares. The company has reserved 70,400 shares for this purpose.
Slone Infosystems Limited IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 3 May to 7 May 2024 | 79 | 67 | 146 (84.81%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
