Osel Devices Limited IPO

Apply 0
Avoid 0

Osel Devices Limited, originally incorporated on August 14, 2006, as Innovative Infratech Solutions Private Limited, is a leading technology solutions provider. The company specializes in manufacturing a comprehensive range of LED display systems and advanced hearing aids. Osel operates from a state-of-the-art manufacturing facility in Greater Noida, Uttar Pradesh, India, and has evolved through several name changes to better reflect its business focus and branding.

Osel’s LED display systems are equipped with cutting-edge technology, including content management systems that enable seamless connectivity with phones or computers. These systems are widely used in commercial applications such as advertising media, billboards, corporate meeting rooms, command control centers, and front signboards. The company ensures high performance and consistency through rigorous quality control standards and vertical integration.

In addition to LED systems, Osel also manufactures advanced hearing aids designed to improve the quality of life for individuals with hearing disabilities, elderly persons, and chronic patients. The company offers both digital programmable and non-programmable hearing aids, with major clients including the Artificial Limbs Manufacturing Corporation of India.

Driven by a passion for innovation, Osel Devices Limited continues to empower individuals, businesses, and communities with transformative technology solutions in a rapidly evolving digital world.

Objects of the Osel Devices Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Prepayment or repayment of certain loans availed by the Company; ii. Funding of working capital requirements of the Company; and iii. General Corporate Purposes.
DRHP of Osel Devices Limited IPO
RHP of Osel Devices Limited IPO

Osel Devices Limited IPO Details:

Open Date: Sep 16 2024
Close Date: Sep 19 2024
Total Shares: 4,416,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 70.66 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 155 - 160 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 24 2024

Promoters And Management:

Rajendra Ravi Shanker Mishra, 47, is a Promoter and Managing Director of the Company. He holds a diploma in computer science engineering from B S F Institute of Technology and has been with the Company since its inception. He oversees overall supervision, risk assessment, and business development, leading the LED Division. With over 18 years of experience in manufacturing and developing LED screens and hearing aids, he has been instrumental in expanding our product portfolio, clientele, and market reach. Jyotsna Jawahar, 34, is a Promoter, Whole-time Director, and Chief Financial Officer of the Company. She holds a bachelor’s degree in business management from Andhra University and a postgraduate diploma in management from Balaji Institute of Management, Pune. With over a decade of experience in accounts and finance, she previously worked as a Manager-II at ICICI Bank. Jyotsna has been with the Company since May 2019 and became CFO in January 2024, heading the Accounts and Finance division. In Fiscal Year 2024, she received a remuneration of ₹6.00 lakhs. Mukesh Kumar Sinha, 55, is a Whole-time Director of the Company. He holds a bachelor’s degree in science from Ranchi University and a diploma in industrial relations and personnel management from Rajendra Prasad Institute of Communication & Management, Bombay. With over 30 years of experience in healthcare, med-tech, and electronics, he has held key roles at Dr. Reddy’s Laboratories, Allergan India, and HOYA Medical India. Since joining our Company in December 2023, he has led the hearing-aid division, overseeing technology development, client management, and project management.

Financials of Osel Devices Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 6,525 8,189 13,223
Other Income 31 7 45
Total Revenue 6,555 8,196 13,269
Cost Of Material Consumed 6,082 7,288 10,492
Change in Inventories -267 -359 -312
Employees Benefit Expenses 80 195 470
Other Expenses 196 203 331
EBITDA 465 868 2,288
OPM (%) 7.09% 10.60% 17.25%
Depreciation & Amortisation 56 58 95
EBIT 409 810 2,193
Finance Cost 110 114 338
PBT 299 697 1,855
Tax 86 231 549
PAT 212 466 1305
NPM (%) 3.24% 5.69% 9.84%
No.of Shares 161.29 161.29 161.29
EPS 1.31 2.88 8.09

Comparison With Peers:

Note :- There are no listed companies in India that are comparable in all aspects of business and products that they offer.

Lead Manager of Osel Devices Limited IPO:

  1. Horizon Financial Pvt Ltd

Registrar of Osel Devices Limited IPO:

  1. MAS Services limted

Company Address:

Osel Devices Limited Office No.- 712, Naurang House K.G. Marg, Connaught Place, Central Delhi, New Delhi - 110 001 Phone: +91 120 635 1600 Email: info@oseldevices.com Website: http://www.oseldevices.com/

Discussion on Osel Devices Limited IPO:

1 Comment

    OSEL appears to be a good opportunity for listing gains. They manufacture LEDs primarily used for marketing, with the majority of sales coming from government tenders. However, they are highly dependent on China for most LED components, which poses a challenge. Without a robust domestic ecosystem, maintaining healthy margins in this business is difficult, as most of the profit is absorbed in the Bill of Materials (BOM).

    That said, OSEL fits well with the Make in India initiative, and they stand a decent chance of securing more government projects, as the Indian government is prioritizing local players.

    The asking market cap is ₹257 crore on a PAT of ₹13 crore, which translates to a P/E of 20x—slightly on the higher side.

    While OSEL is a good short-term play, it may not be an attractive long-term investment due to its reliance on government projects and external dependencies for key components.

    Reply

Leave a Reply