DelaPlex Limited IPO: See Key financial indicators

New Delhi: In the absence of comparable listed peers, it may gain a competitive advantage in the market through its unique technological solutions and focus. The funds raised by the company through the IPO are expected to support its future business development plans

1. Introduction to DelaPlex:

DelaPlex Limited was established on February 12, 2004. It is a subsidiary of the American company delaPlex INC. and holds 51% of the company's shares. The company focuses on providing technology and software development solutions and consulting services to help clients achieve growth, revenue and market value. They offer a variety of technology solutions, including software-defined data centers, integrated infrastructure, cloud computing, DevOps, security solutions, data analytics, and artificial intelligence.

The DelaPlex IPO has an issue size of Rs 460.8 crore, which includes fresh issue of 1.8 million shares for a total amount of Rs 345.6 crore and sale of 600,000 shares for a total amount of Rs 115.2 crore. The DelaPlex IPO will be open for subscription on January 25, 2024, with a closing date of January 30, 2024, and the placement is expected to be completed on Wednesday, January 31, 2024. The DelaPlex IPO will be listed on NSE SME and the listing date is scheduled for Friday, February 2, 2024.

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The issue price range is Rs 186 to Rs 192 per share and the minimum investment amount for retail investors is Rs 115,200, while the minimum investment lot size for HNI is 2 lots (1,200 shares) and the amount is Rs 230,400. Shreni Shares Limited is the lead bookkeeping manager for the DelaPlex IPO, while Bigshare Services Pvt Ltd is the registrar for the issue and the market maker is Shreni Shares. This IPO provides the company with opportunities for capital expansion and further market development.

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IPO date: January 25 to January 30, 2024

Listing date: February 2, 2024

DelaPlex IPO Key Performance Indicator: (Key Performance Indicator):

The market capitalization of DelaPlex IPO is Rs 1,749.1 crore.

1. Return on equity (ROE): 40.45% ROE represents the ratio of a company's net profit to shareholders' equity. DelaPlex IPO's ROE is 40.45%, which means that the company can generate a net profit of 40.45 rupees for every 100 rupees of shareholders' equity invested. This is generally considered a high ROE value, indicating that the company is effectively using shareholders' funds to generate profits.

2. Return on capital (ROCE) and return on net working capital (RoNW): 56.73% ROCE measures the profitability that a company can achieve by investing its capital, including debt and equity capital. RoNW is similar to ROE but focuses on net working capital. Both metrics for the DelaPlex IPO are 56.73%, showing that the company is operating extremely efficiently and is able to generate high returns on its working capital.

3. Price/Book Value Ratio (P/BV): 0 The P/BV ratio compares the market value and book value of a company’s stock. The DelaPlex IPO has a P/BV of 0, which theoretically means the company's market value is equal to its book value.

Summarize: Key financial indicators of the DelaPlex IPO demonstrate the company's efficient profit generation and capital utilization. In particular, high values of ROE and ROCE indicate that the company operates efficiently and is able to create significant value for its shareholders. However, the case of a P/BV of 0 requires further investigation to confirm whether this is accurate and to understand the reasoning behind it. Additionally, the company's market capitalization indicates that it is highly valued in the market, and investors may be optimistic about its future growth and earnings potential.

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