In an era increasingly focused on sustainable energy, companies at the forefront of power backup and solar solutions stand out. This detailed analysis delves into the Smarten Power Systems Ltd. IPO, exploring its business model, financial strength, IPO specifics, and its crucial Shariah compliance status.
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Crucial Shariah Status
For investors guided by Islamic financial principles, Smarten Power Systems Ltd. presents a compelling opportunity. Based on comprehensive screening, Smarten Power Systems Ltd. is unequivocally categorized as Shariah Compliant.
- The company’s core business, centered around power backup and solar products, has successfully passed the Shariah screening.
- Its impermissible income to total revenue ratio is 0.0%, indicating no revenue from non-Shariah-compliant sources.
- The interest-bearing debt to total assets ratio stands at 24.58%, comfortably within acceptable Shariah limits.
- The illiquid assets to total assets ratio is 49.33%, also meeting Shariah criteria.
- The company passes the net liquid assets versus market capitalisation rule.
- Furthermore, Smarten Power Systems Ltd. passes the non-compliant investments to total assets rule too.
Therefore, for Muslim investors prioritizing Shariah compliance, Smarten Power Systems Ltd. IPO is considered a permissible investment avenue.
About Smarten Power Systems Ltd.: Powering the Future with Renewable Energy
Smarten Power Systems Ltd., established in 2014, is a visionary entity engaged in the design and assembly of advanced power backup and solar power products. Driven by the motto “Evolution of Renewable Energy” and the belief that “Fusion is the Future,” Smarten is dedicated to empowering homes and commercial spaces globally with world-class sustainable energy solutions. Their rigorous focus on design, research and development, and manufacturing capacity underpins this commitment.
- Product Innovation: Smarten specializes in a diverse portfolio of 372 SKUs across six key categories. These include Home UPS systems, solar inverters, solar power conditioning units (PCUs), solar charge controllers, and they also trade in solar panels and inverter batteries.
- Extensive Reach: Within India, the company operates across 23 states and two union territories, supported by a robust network of 382 distributors and 52 service centers for comprehensive after-sales support.
- Global Footprint: Smarten’s vision extends globally, with a significant presence in 17 countries across the Middle East, Africa, and South Asia. They export their assembled products, excluding solar panels, internationally.
- Brand Strength: The company designs, assembles, and trades products under its proprietary “SMARTEN” brand, which includes its registered patent.
- Technological Advancement: Backed by a team of technologists and dignitaries, Smarten is well-regarded internationally for its focus on innovation, research and development, and its commitment to transforming energy consumption towards solar, tidal, and wind energy.
- Dedicated Workforce: As of May 31, 2025, the company is supported by a team of 252 dedicated department employees.
Competitive Strengths:
- Innovative Product Range and Technological Advancements.
- Strong Research and Development (R&D) Capabilities.
- Extensive Distribution and After-Sales Service Network.
- Strong Vendor Relationships and Supply Chain Efficiency.
- Experienced Leadership and Operational Expertise.
Smarten Power Systems Ltd. IPO: Key Details
The Initial Public Offering of Smarten Power Systems Ltd. is structured as a Bookbuilding Issue. The IPO opened on Monday, July 7, 2025, and is scheduled to close on Wednesday, July 9, 2025. The total issue size is 50,00,400 shares, aggregating up to ₹50.00 Crores.
- IPO Open Date: July 7, 2025 (Monday)
- IPO Close Date: July 9, 2025 (Wednesday)
- Face Value: ₹10 per share
- Issue Price Band: ₹100 per share
- Total Issue Size: 50,00,400 shares (aggregating up to ₹50.00 Crores)
- Fresh Issue: 37,50,000 shares (aggregating up to ₹37.50 Crores)
- Offer for Sale: 9,99,600 shares (aggregating up to ₹10 Crores)
- Reserved for Market Maker: 2,50,800 shares
- Net Offered to Public: 47,49,600 shares
- Issue Type: Fixed Price IPO
- Listing At: NSE SME
- Tentative Allotment Date: Thursday, July 10, 2025
- Initiation of Refunds: Friday, July 11, 2025
- Credit of Shares to Demat: Friday, July 11, 2025
- Tentative Listing Date: Monday, July 14, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 9, 2025
Financial Performance: A Snapshot of Smarten Power Systems Ltd.
Smarten Power Systems Limited has demonstrated robust financial growth. The company’s revenue increased by 2% and profit after tax (PAT) rose by 13% between the financial year ending March 31, 2025, and March 31, 2024. This consistent growth highlights efficient management and expanding market penetration.
- Assets: Increased from ₹76.01 Crores in March 2023 to ₹97.24 Crores in March 2025.
- Revenue: Grew from ₹186.06 Crores in March 2023 to ₹203.20 Crores in March 2025.
- Profit After Tax: Showed consistent improvement, from ₹5.16 Crores in March 2023 to ₹12.77 Crores in March 2025.
- EBITDA: Increased from ₹1.86 Crores in March 2023 to ₹16.92 Crores in March 2025.
- Net Worth: Grew from ₹14.48 Crores in March 2023 to ₹38.54 Crores in March 2025.
- Reserves and Surplus: Increased from ₹13.48 Crores to ₹23.54 Crores in the same period.
- Total Borrowing: Increased, from ₹4.13 Crores in March 2023 to ₹16.59 Crores in March 2025.
Key Performance Indicator (KPI): Smarten Power Systems Ltd.
Key Performance Indicators offer insights into Smarten Power Systems Ltd.’s efficiency and valuation, as of Friday, March 31, 2024. The market capitalization of Smarten Power Systems IPO is ₹190.01 Crores.
- ROE (Return on Equity): 39.72%
- ROCE (Return on Capital Employed): 32.58%
- Debt/Equity: 0.43
- RoNW (Return on Net Worth): 33.14%
- PAT Margin: 6.28%
- EBITDA Margin: 8.39%
- Price to Book Value: 5.82
Objects of the Issue: Purpose of the IPO Funds
How Smarten Power Systems Plans to Use IPO Money:
- ₹4.19 crore to buy machinery for their battery production unit.
- ₹22 crore for day-to-day working capital needs.
- ₹0.95 crore to repay existing loans.
- ₹4.46 crore for business expansion and capital expenses.
- ₹4.70 crore for general business activities.
Summary:
Most of the funds will go towards working capital and business growth.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Smarten Power Systems IPO is currently ₹0 (0.00%). This indicates that as of now, there is no significant premium or discount in the grey market for this IPO. GMP is an unofficial indicator that reflects market sentiment and can fluctuate.
Conclusion and Investor Outlook
Smarten Power Systems Ltd. is a promising entity in the growing renewable energy and power backup sector, demonstrating consistent financial growth and a clear strategy for expansion. Its Shariah-compliant status makes it a particularly attractive option for Muslim investors seeking ethically sound investment opportunities. For all investors, a thorough review of the Red Herring Prospectus (RHP) is always recommended to understand the company’s detailed business model, risk factors, and future strategies. An informed investment decision is best made after comprehensive research aligned with individual investment goals and risk tolerance.
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SEBI Disclaimer: Investment in securities markets are subject to market risks, read all the related documents carefully before investing. The information provided in this article is for educational and informational purposes only and does not constitute financial advice. Investors should consult with qualified financial professionals before making any investment decisions.