Smarten Power Systems IPO

About Smarten Power Systems IPO

Smarten Power Systems Limited IPO is an IPO of 50,00,400 equity shares of ₹10 each aggregating ₹50.004 crores . It consists of an offer for sale of 9,99,600 equity shares of ₹ 10 each aggregating ₹ 9.996 crores and a fresh issue of 40,00,800 equity shares of ₹10 each aggregating to ₹40.008 crores. The price band is 100. The lot size is 1200.

The listing date is July 14, 2025. The shares will be allotted on July 10, 2025. The credit of shares to the demat account will take place on July 11, 2025, and the initiation of refunds will take place on July 11, 2025.

Objective of Smarten Power Systems 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 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 76.41% of their revenue is through domestic sales and 23.59% of their revenue is generated through exports.

Risks of Smarten Power Systems 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

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 31 March for FY25 was ₹201.748 crores, compared to ₹195.196 crores in FY24. EBITDA for FY25 was ₹16.920 crores compared to ₹ 13.544 crores in FY24. PAT for FY25 was ₹12.770 crores compared to ₹11.290 crores in FY24.

Company Market Position

Currently, over 76.41% of the Company’s total revenue is generated from domestic markets, with around 95.27% of this domestic revenue coming from the north zone, covering states and union territories such as Haryana, Uttar Pradesh, Uttarakhand, Rajasthan, Jammu and Kashmir, Punjab, Himachal Pradesh and Delhi, Chandigarh.

The company has established its global footprint in 18 international markets, with a strong presence in Nigeria, West African countries, Nepal, Bangladesh, the UAE and Yemen. The Company’s international expansion is driven by strategic relationships with over 31 international distributors who support a steady flow of exports. Their global footprint is not only a testament to the company's product quality and reliability but also to its commitment to offering accessible, efficient power solutions in developing and emerging markets.

The company’s Revenue from Operation, EBITDA and PAT as on 31 March 2025 stood at ₹201.748 crores, ₹16.920 crores, and ₹12.770 crores respectively.

How To Check Allotment Status of Smarten Power Systems 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

How to Apply for Smarten Power Systems IPO?

Here are the steps to apply for Smarten Power Systems IPO:

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.