Slone Infosystems IPO: Price, Lot Size, Strengths and Risks

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In the first week of May, several SMEs (Small and Medium Enterprises) are set to launch their IPOs (Initial Public Offering) as the mainboard segment takes a short break. SME IPOs give investors a lucrative opportunity to multiply their gains by investing in companies in very early stages of growth. 

Slone Infosystems Limited is the latest upcoming SME IPO of this month, with the issue set to launch on 3rd May, 2024. The company is a provider of IT hardware solutions, selling and renting equipment like desktops, laptops, servers and workstations. 

Before you make up your mind, here are all the essential details about the upcoming Slone Infosystems Limited IPO. 

Additional Read: Upcoming IPOs in May 2024

IPO Details

Learn about the upcoming Slone Infosystems IPO details to make an informed decision:

IPO Launch Date

3rd May, 2024 – 7th May, 2024

Issue Type

Fixed Price SME IPO

Listed at

NSE Emerge

Issue Price

Rs. 79 per share

Face Value 

Rs. 10 per share

Minimum Lot Size

1,600 shares (retail investors) 

Fresh Issue Size

14 lakh equity shares

OFS Size

Nil

Total Issue Size 

Rs. 11.06 crore

Shareholding Pre-issue

38,69,013

Shareholding post-issue

52,69,013

Additional Read: How to Invest in an IPO Online

About the Company

Set up in 1999 as a sole proprietorship called M/s SAM Computers, Slone Infosystems Limited is today a private limited company engaged in IT hardware solutions. The company sells and rents out all sorts of IT equipment, including desktop computers, laptops, servers, switches, workstations, storage devices, monitors, printers, keyboards, mouse, headphones, CCTV, etc. It also provides cloud management, laptop and workstation maintenance and server installation services. 

With a service record stretching to 25 years, the company has established itself as a trusted sub-dealer of IT equipment to a diverse client base. Some of the reputed brands it serves include Hindustan Computers, Silicon Rental Solutions Ltd, Cemtrex Labs, etc. The company serves customers across India through its extensive network. 

Slone Infosystems Limited specialises in providing premium tech products with a vast selection. It sources products from tech giants such as Lenovo, HP, ASUS, Apple and Dell based on customers’ needs and requirements. The company also provides IT equipment installations, consulting, support and rental services. 

IPO Timeline

The following table shows the timeline of the Slone Infosystems Limited IPO:

Open Date 

3rd May, 2024 (Friday) 

Close Date 

7th May, 2024 (Tuesday) 

Cut-off Time for UPI Mandate Confirmation

5 PM on 7th May, 2024 (Tuesday)

Basis of Allotment 

8th May, 2024 (Wednesday) 

Initiation of Refunds 

9th May, 2024 (Thursday)

Credit of Shares to Accounts 

9th May, 2024 (Thursday)

Listing Date 

10th May, 2024 (Friday) 

Additional Read: Difference Between NFO and IPO

Lot Size

To invest in the upcoming Slone Infosystems IPO, you must buy at least one lot of 1,600 shares as a retail investor. The following table shows the lot sizes for different investors:

Application Type

Lots

Shares

Amounts

Retail (min) 

1

1,600

Rs. 1,26,400

Retail (max) 

1

1,600

Rs. 1,26,400

HNI (min) 

2

3,200

Rs. 2,52,800

Company Financials 

The following table shows a summary of the financial statements of Slone Infosystems Ltd for the previous three years:

Particulars

For the Financial Year Ending*

 

March 31, 2023

March 31, 2022

March 31, 2021

Total Assets

1,190.71

1,167.37

929.41

Total Liabilities

980.22

938.67

739.8

Total Expenses

2,991.49

2,609.55

1,122.46

Total Revenue

3,077.40

2,659.14

1,157.44

Profit/Loss After Tax

74.66

38.31

27.54

EBITDA

187.60

135.21

77.27

EPS (Basic and Diluted) 

4.05

NA

NA

*in Rs. Lakhs Other Than EPS

Strengths of the Company

Here are some of the notable competitive strengths of Slone Infosystems Limited:

  • The company provides a broad range of IT equipment and peripherals. From low-cost standard systems to power computers and customised systems, Slone Infosystems specialise in providing customised hardware solutions. 

  • Besides providing equipment on rent, the IT solutions provider provides technical support, guidance and installation services for all of its products. Furthermore, it provides IT consultation services for its clients. 

  • Slone Infosystems Limited has a diverse customer base spread across India. Its customers belong to sectors like BPO, logistics, education, insurance, pharmaceuticals, media and entertainment among others.  

  • Over the years, the company has built and expanded strong relationships with its customers. Its track record of providing consistent quality helps it keep high client retention rates.  

Risks Involved

Before investing in the Slone Infosystems Limited IPO, go through the important risk factors: 

  • A significant portion of the company’s revenue is generated from a handful of clients. For FY23, the top ten clients contributed to 98.44% of its revenue. This poses a high risk of concentration of revenue sources. 

  • The IT equipment industry is a highly competitive market with various organised and unorganised players. Due to high competition in the field, Slone Infosystems could find it difficult to generate profits in the future.   

  • The company lacks long-term contracts with most of its clients and makes most of its revenue on a purchase-order basis. Failure to maintain good relationships would impact its operations and revenue. 

Summary 

Slone Infosystems Limited IPO is a fixed-price SME IPO expected to open from the 3rd to the 7th of May. As with any other equity investment, there are various strengths, opportunities, risks, and threats involved with the company that could impact your returns. Therefore, go through the RHP (Red Herring Prospectus) filed by this company to ensure you understand both the merits and demerits of investing in this company.  

If you are looking to invest in IPOs, why not open a demat and trading account with Bajaj Broking? This will let you stay informed and apply for IPOs with minimum hassles.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

Where will the shares of Stone Infosystems Limited get listed?

Answer Field

The shares of Stone Infosystems Limited will be listed on the NSE Emerge platform for SME IPOs on 10th May, 2024. 

How much do I need to invest in the Stone Infosystems IPO?

Answer Field

As a retail investor, you will need to invest at least Rs. 126,400 in this IPO by purchasing one lot of shares.   

As a retail investor, you will need to invest at least Rs. 126,400 in this IPO by purchasing one lot of shares.   

 

Who is the book-running lead manager of Stone Infosystems IPO?

Answer Field

Jawa Capital Services Private Limited has been appointed the book-running lead manager of this IPO.

Who is the registrar of the upcoming IPO of Stone Infosystems Limited?

Answer Field
Kfin Technologies Limited is the registrar of the Stone Infosystems IPO. 

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