Osel Devices Limited IPO: issue dates, price, and lot size

Osel Devices Limited, a company that operates in the technology-driven manufacturing sector, has already made its debut on the stock market through an initial public offering (IPO). This SME IPO generated interest, particularly for those looking to diversify their portfolio within the electronics and healthcare equipment industries. By going public, Osel Devices aimed to raise capital for future growth and enhance its foothold in both domestic and international markets.

In this blog, we provide details of the Osel Devices Limited IPO and discuss whether it’s a wise IPO investment.

Osel Devices Limited IPO synopsis

About Osel Devices Limited

Founded in 2006, Osel Devices Limited, formerly known as Innovative Infratech Solutions Private Limited, has become a notable player in the manufacturing of LED display systems and hearing aids. The company's comprehensive LED display systems serve a variety of purposes, including advertising media, billboards, corporate boardrooms, and command centres. 

In addition to their LED displays, Osel Devices also manufactures hearing aids, which are designed to assist individuals with hearing impairments. The company's hearing aids, commonly referred to as health aids, are available in both digitally programmable and non-programmable versions. 

Osel Devices Limited financials

Osel Devices Limited IPO highlights: Strengths

1. Diversified product portfolio: Osel Devices has a strong presence in two high-growth sectors – LED displays and hearing aids. This diversified portfolio decreases the risk associated with being overly dependent on an individual product or market.
2. Technological integration: The company’s LED display systems are equipped with advanced content management systems, making them more accessible and user-friendly for businesses looking for customisable advertising solutions.
3. Healthcare focus: Osel Devices’ hearing aids business benefits from contracts with government entities like ALIMCO, which offers the company a stable and consistent source of revenue. This segment also positions Osel Devices as a key player in the growing market for assistive healthcare devices.
4. Strong market demand: The increasing use of LED displays for advertising and corporate communication, combined with the rising demand for hearing aids due to an ageing population, indicates strong potential for growth in both sectors.

Osel Devices Limited IPO highlights: Challenges

1. Market competition: The LED display and hearing aid markets are highly competitive, with several large and established players dominating the field. This poses a challenge for Osel Devices in terms of market penetration and sustaining its growth.
2. SME listing: Being an SME IPO means that Osel Devices will have a relatively smaller investor base compared to larger public offerings, which could limit liquidity and trading volumes initially.
3. Dependence on key customers: A significant portion of the company’s revenue comes from a few key clients, particularly in the hearing aid segment. Any loss of business from these clients could adversely affect the company’s financial performance.
4. Operational risks: The company’s success depends on its ability to maintain and upgrade its technological capabilities, meet the growing demand for medical and LED products, and manage potential supply chain disruptions.

Should you invest in the Osel Devices Limited IPO?

Investing in the Osel Devices Limited IPO presents both opportunities and risks. On the one hand, the company’s diversification across the LED display and healthcare sectors, along with its technological innovation, provides the potential for growth. Moreover, the SME market segment often offers room for faster expansion, making it attractive for investors looking for high-growth stocks.

On the other hand, the competitive landscape, dependence on key clients, and operational risks pose notable challenges for the upcoming IPO. Additionally, as an SME IPO, liquidity could be limited compared to larger offerings.

For investors with an increased risk tolerance and an interest in niche markets, Osel Devices Limited's IPO could be a worthwhile consideration, particularly given the growth potential in both the commercial and healthcare sectors. However, it’s important to carefully evaluate the company’s financials and industry competition before making any decisions.

Conclusion

Osel Devices Limited’s IPO represents a chance for investors to participate in a company that is diversified across the commercial and healthcare markets. While the company has several strengths, such as a broad product portfolio and technological innovation, it also faces challenges that warrant caution. Investors should know the potential risks and rewards carefully to determine whether this IPO aligns with their investment strategy and risk appetite.

FAQs

1. What is the lot size for the Osel Devices Limited IPO? 

The minimum lot size for the Osel Devices Limited IPO is 800 shares.

2. What is the GMP of Osel Devices Limited IPO? 

The grey market premium (GMP) for Osel Devices Limited IPO is ₹110.

3. When is the Osel Devices Limited IPO opening? 

The IPO is expected to open on September 16, 2024.