Smarten Power Systems Ltd

About Smarten Power Systems Limited IPO

Smarten Power Systems Limited IPO is an IPO of up to 50,00,400 equity shares. It consists of an offer for sale of up to 9,99,600 equity shares and a fresh issue of up to 40,00,800 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Smarten Power Systems Limited IPO

• Purchase of movable assets for the production line of the battery manufacturing unit.
• To meet working capital requirements.
• Repayment, in full or in part, of their outstanding borrowings.
• Funding capital expenditure requirements.
• General corporate purposes.

Industry Outlook

The IEA’s mid-year Electricity Market Report notes that India, the fastest-growing major economy globally, is expected to see an 8% rise in electricity consumption in 2024, maintaining the rapid growth observed in 2023. India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 446.18 GW as of June 30, 2024. The installed solar energy capacity has increased by 26 times over the last 9 years, reaching 73.32 GW as of December 2023. In January 2024, the capacity addition from solar energy stood at 9,008.47 MW. The home The Uninterruptible Power Supply (UPS) market in India is a dynamic and rapidly evolving sector. Its growth is driven by the increasing demand for reliable power due to frequent outages, as well as the nation’s surge in digitalisation and offsite work opportunities. The home UPS market in India was valued at $31.78 crores in 2023 and is expected to grow to $49.3 crores by 2032, with a compound annual growth rate (CAGR) of 5%. It is also projected that the Indian solar inverter market size will grow at a CAGR of 14.4% from 2020 to 2026.

Company Information

Smarten Power Systems Limited is engaged in the design and assembly of power backup and advanced solar power products such as home UPS systems, solar inverters, solar power conditioning units (PCUs), and solar charge controllers. The company is also involved in the trading of solar panels and batteries. They sell their products through distributors within India and export their products (excluding solar panels) outside India. Approximately 66.51% of their revenue is generated through domestic sales, and 33.49% through exports.

Risks of Smarten Power Systems Limited IPO

• A significant portion of their revenue is derived from the states of Haryana and Uttar Pradesh, and any adverse developments in these states could negatively affect their business.

• They rely on third parties for the supply of raw materials for Home UPS Systems and Solar Inverters/Solar Power Conditioning Units (PCUs). If these suppliers fail to meet their obligations, it may have a materially adverse effect on their business, operations, and financial condition.

• A significant portion of their revenue depends on the sale of Home UPS Systems, Solar Inverters/Solar Power Conditioning Units, and Batteries. A loss in sales, or a decrease in demand or volume of these products, would materially and adversely affect their revenue and profitability.

Anchor Investor Information

The Anchor investing will occur one day before the IPO opens.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Arihant Capital Markets Limited

Registrar for the IPO is Maashitla Securities Private Limited

Business Model

The company earns its revenue through designing and assembling power backup and advanced solar power products such as home UPS systems, solar inverters, solar power conditioning units (PCUs), and solar charge controllers.

Company Growth Trajectory

Revenue from operations for the period that ended 30 June 2024 was ₹62.06 crores, accounting for 99.01% of the total revenue. This includes ₹61.23 crores from the sale of products and ₹0.20 crores from the sale of services. EBITDA for the period ended 30 June 2024 was ₹5.79 crores, which was approximately 9.33% of the total revenue. PAT for the same period was ₹4.05 crores, representing approximately 6.53% of the total revenue.

Company Market Position

Currently, the company operates in 23 states and 2 union territories within India. Beyond India, the company has established its global footprint in 17 international markets, with a strong presence in Nigeria, other West African countries, Nepal, Bangladesh, the UAE, and Yemen. The company’s international expansion is driven by strategic relationships with over 33 international distributors who support a steady flow of exports.

How To Check Allotment Status of Smarten Power Systems Limited IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Maashitla Securities Private Limited.

To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Smarten Power Systems Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Maashitla Securities Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Smarten Power Systems Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status