DelaPlex SME IPO: An Investment Opportunity with 44% Return

Invest in the DelaPlex SME IPO to Earn a 44% Return- A chance for a better return

On January 25, DelaPlex Limited, a division of the American company DelaPlex INC., is scheduled to begin its Rs 46-crore IPO. Combining an offering for sale with a new issuance, the DelaPlex SME IPO offers a noteworthy trading investment opportunity in the corporate finance space.

Subscriptions for the initial public offering will be accepted through January 30. DelaPlex was founded on February 12, 2004, and since then, it has helped customers achieve growth, revenue, and market value by offering technology and software development solutions as well as consulting services. The following are the main points of the issue.

This issuance 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. There is a 600-share minimum bid and bids can be made in multiples of 600 shares.

The financial results of the company show that, compared to the same period in the previous year, when the company reported sales of Rs 49.7 crore, its revenue from operations for the year ending in March 2023 was Rs 54 crore, or about nine percent more. In terms of net profit, it was Rs 7.9 crore for the year that ended in March 2023 as opposed to Rs 6.1 crore for the same time the year before.

The issue's objectives the business plans to use the money raised to pay for laptop purchases, marketing and sales costs, advertising, and working capital requirements. The remaining funds will be used for other corporate needs.

The business's advocates Promoters of the business include Nitin Sachdeva, Manish Iqbalchand Sachdeva, Mark T. River, Preeti Sachdeva, and DelaPlex INC.

Managers in charge of Bigshare Services Pvt Ltd serve as the issue's registrar, while Shreni Shares Limited is the book-running lead manager for the DelaPlex IPO. For the DelaPlex IPO, Shreni Shares is the market maker.

Key Risks

The majority of the company's revenue comes from its corporate promoter and one of its group firms, who are the only clients it has. It also has no long-term contracts with clients, and terminating current agreements might hurt operations and financial performance.

Customers in the US account for a large portion of the business's operating revenue. The business, financial standing, and profitability of the organization may be harmed by circumstances that worsen the US economy or hurt it.

DelaPlex depends on a third party to provide cloud services, and poor management of this arrangement might place the business in greater danger in terms of its finances, legal standing, reputation, and operations.

On January 24, the issue price of Rs 192 saw a rise in the grey market premium (GMP) of Rs 86, or 44.2 percent. A listing price of Rs 277 is implied by the GMP. Shares begin trading well in advance of the allotment and continue until the day of listing in the unofficial grey market. To gain a sense of the listing price, investors usually monitor the volatile grey market premium (GMP). With a tentative offering date set for Friday, February 2, 2024, the DelaPlex IPO is expected to list on NSE SME.