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22 January 2024

Shree OSFM E-Mobility IPO: Navigating Urban Transport with Innovation

Introduction:

Shree OSFM E-Mobility Limited recently made waves with its fixed-price Initial Public Offering (IPO), raising Rs 24.60 crores through a fresh issue of 3,784,000 shares. This blog takes a comprehensive look at the Shree OSFM E-Mobility IPO, covering key details, subscription statistics, and the company's position in the dynamic landscape of urban mobility solutions

Key Dates:

Bidding Period	Allotment Date	Listing Date
December 14 to December 18, 2023	December 19, 2023	December 21, 2023

IPO Highlights:

Issue Size	Fresh Issue	Price per Share	Lot Size	Minimum Investment
Rs 24.60 Crores	3,784,000 shares	Rs 65	2000 Shares	Rs 1,30,000

Financial Overview:

Total Issue Size	Shareholding Pre-Issue	Shareholding Post-Issue
3,784,000 shares, aggregating up to Rs 24.60 Crores	10,500,000 shares	14,284,000 shares

Shareholding Structure:

Pre-Issue Shares	Post-Issue Shares
100%	74.97%

IPO Management:

Lead Manager	Registrar	Market Maker
First Overseas Capital Limited	Bigshare Services Pvt Ltd	Bhh Securities

Subscription Highlights:

The Shree OSFM E-Mobility IPO garnered a subscription rate of 8.52 times, showcasing strong interest from investors. Retail Individual Investors (RII) played an active role, contributing significantly to the subscription figures.

IPO Journey Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Refunds Initiation	Shares Credited to Demat	Listing Date
December 14, 2023	December 18, 2023	December 19, 2023	December 20, 2023	December 20, 2023	December 21, 2023

Market Maker Segment:

Prabhat Financial Services	193,000 shares

Lot Size Details:

Investors had the option to bid for a minimum of 2000 shares, with retail investors having an investment range from 1 lot to multiples thereof.

Application	Lots	Shares	Amount
Retail (Min)	1	2000	Rs 130,000
Retail (Max)	1	2000	Rs 130,000
S-HNI (Min)	2	4,000	Rs 260,000

Shree OSFM E-Mobility IPO Reservation:

The IPO featured a reserved portion strategically allocated to Non-Institutional Investors (NII), Retail Individual Investors (RII), and Market Makers.

Investor Category	Shares Offered
Market Maker	200,000 (5.29%)
Retail	1,792,000 (47.36%)
Other (NII)	1,792,000 (47.36%)

About Shree OSFM E-Mobility Limited:

Established in 2006, Shree OSFM E-Mobility Limited specializes in providing transportation services to employees of major multinational companies in various Indian cities. Operating with an "asset-light" model, the company manages a fleet of over 1475 vehicles, offering a range from small cars to luxury cars and buses.

Key Financial Indicators:

As of September 30, 2023, Shree OSFM E-Mobility Limited showcased impressive financial figures:

Metric	Values
Assets	Rs 5,019.67 Lakhs
Revenue	Rs 5,597.09 Lakhs
Profit After Tax	Rs 222.59 Lakhs
Net Worth	Rs 2,267.95 Lakhs

Key Performance Indicators:

- Market Capitalization: Rs 92.85 Crores
- Return on Equity (ROE): 0.09%
- Return on Capital Employed (ROCE): 0.21%
- Debt/Equity Ratio: 0.45
- Return on Net Worth (RoNW): 15.11%

Objects of the Issue:

The net proceeds from the IPO are intended for:

- Funding additional working capital requirements.
- Purchase of passenger vehicles.
- General corporate purposes.

Conclusion:

Shree OSFM E-Mobility Limited, with its focus on urban transport solutions, presents an interesting opportunity for investors. The IPO's subscription rate reflects positive sentiments from the market. While the company's financial performance exhibits growth, investors should carefully weigh the risks and rewards associated with the fluctuating bottom lines reported in recent periods.
The Shree OSFM E-Mobility IPO offers a chance to participate in the evolving landscape of corporate transportation services. As the company eyes strategic acquisitions and explores new markets, investors may find potential in its plans for expansion and product portfolio diversification. However, considering the cautious review by experts, it's advisable for investors to conduct thorough due diligence before making investment decisions in this rapidly evolving sector.

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