Benchmark Computer Solutions' IPO was fully subscribed on the second day led by retail investors; Check GMP, issue details and more

Benchmark Computer Solutions' IPO opened for subscription on Thursday, December 14th and closes on Monday, December 18th. The price range for the benchmark IPO has been set at ₹66 each. The lot size of the Benchmark Computer IPO is 2,000 shares. Investors can bid for at least 2,000 shares and multiples thereof.

Benchmark Computer Solutions Limited provides technology consulting and IT infrastructure solutions. The company offers complete technology solutions as well as technology-related services such as software development and IT infrastructure. The company offers all service models, including Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS).

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The company's service offerings include software and web-based applications, IT infrastructure and solution services, annual maintenance contracts (AMCs) and facility management services (FMS). The company has deep expertise in both traditional and new-age technologies, as well as technology expertise across verticals.

As stated in the Red Herring prospectus (RHP), the Company's listed competitors are Silver Touch Technologies Limited (with a P/E ratio of 16.30) and Dynacons Systems & Solutions Limited (with a P/E ratio of 51.24). 51.24). E of 11.25).

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Between the financial year ended March 31, 2023 and March 31, 2022, Benchmark Computer Solutions Limited's revenue increased by 70.21% and its profit after tax (PAT) increased by 145.43%.

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Benchmark Computer Solutions IPO details

Benchmark IPO that is worthwhile ₹12.24 crore, is an all-new issue of 1,854,000 shares; According to RHP, there is no OFS (Offer for Sale) component.

The proceeds from the new issue will be used for the following purposes: general corporate purposes, working capital requirements and capital expenditure.

“We believe the listing will enhance our corporate image and the visibility of our company’s brand name. We also believe that our company will benefit from listing shares on the SME platform of BSE. It will also provide liquidity to existing shareholders and also create a public trading market for our company's shares,” Benchmark Computer Solutions said in its RHP.

The book running lead manager of the Benchmark Computer Solutions IPO is Beeline Capital Advisors Pvt Ltd and the registrar of the issue is Kfin Technologies Limited. Spread X Securities is the market maker for Benchmark Computer Solutions' IPO.

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Benchmark Computer Solutions IPO Subscription Status

The subscription status for Benchmark Computer Solutions' IPO is at 30.05 on the second day. The issue received positive response from retail investors whose share was subscribed 52.47 times and non-institutional buyers whose share was subscribed 7.67 times, according to data on chittorgarh.com.

According to chittorgarh.com, the company has received offers for 5,28,32,000 shares against 17,58,000 shares offered.

Benchmark Computer Solutions' IPO subscription status is 8.54x on the first day.

Benchmark Computer Solutions IPO GMP today

Today's benchmark IPO GMP or gray market premium is +35, similar to the previous session but higher than +22 on December 13th. This suggests that Benchmark Computer's share price was trading at a premium of ₹35 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current gray market premium, the estimated listing price of Benchmark Computer's stock has been included ₹101 per piece, which is 53.03% higher than the IPO price of ₹66.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

Evaluating Benchmark Computer Solutions' IPO

“The company deals with IT-related services and products. The company operates in a highly competitive and fragmented segment. The Company experienced discrepancies in its net income during the reporting periods. Based on the annualized super earnings for FY24, the issue appears to be greedily valued. The low equity base after the IPO suggests that the transition to motherboards will take longer. Well-informed investors could invest moderate funds in the medium term,” said Dilip Davda, Editor, Chittorgarh.

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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.

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