IPO Overview
Sollfege Smart Electronics Limited is a Kolkata-based company engaged in the business of premium audio, video, and home automation solutions. Established in 2012, the company started its journey with premium audio and video accessories and has since evolved into a comprehensive smart living solutions provider. The company operates across premium audio-video, home automation, smart living, security, and lifestyle technology categories. The company has Experience Centres in Kolkata and Gurgaon that allow buyers to test setups, and showrooms in Kolkata, Gurgaon, and Bhubaneswar. The whole company runs on 32 people.
The company is aiming to raise ₹21.78 crore through the IPO, with its equity shares proposed to be listed on the BSE SME platform. The IPO comprises an offer of 39,60,000 equity shares with a face value of ₹10 each at an issue price of ₹55 per equity share. The IPO opens on 30 September 2026 and closes on 5 October 2026, with listing expected on 8 October 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Fixed Price Issue – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 30 September 2026 |
| IPO Close Date | 5 October 2026 |
| Allotment Date | 6 October 2026 (Expected) |
| Refund Initiation | 7 October 2026 |
| Credit to Demat | 7 October 2026 |
| Listing Date | 8 October 2026 (Tentative) |
| Issue Type | Fixed Price (not Book Built) |
| Face Value | ₹10 per share |
| Issue Price | ₹55 per share |
| Lot Size | 2,000 shares |
| Minimum Investment (Retail) | ₹2,20,000 (2 lots = 4,000 shares) |
| Minimum Investment (HNI) | ₹3,30,000 (3 lots = 6,000 shares) |
| Issue Size | ₹21.78 crore |
| Fresh Issue | 39,60,000 shares (₹21.78 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Retail Individual Investors (RII) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~50% |
| Market Maker | Reserved Portion |
Note: Being a Fixed Price SME issue, standard QIB/NII/Retail split of book-built issues does not apply.
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all IPO proceeds will be received directly by the company for business expansion and working capital.
Objects of the Issue (Fund Utilization)
The company proposes to use the net proceeds primarily to fund capital expenditure for launching 12 new showrooms, meet working capital requirements, and fund general corporate purposes:
- Funding capital expenditure for expansion of the retail network by launching 12 new showrooms — ₹8.54 crore
- Funding working capital requirements — ₹9.67 crore
- General corporate purposes — ₹1.80 crore
Lead Managers & Registrar
- Book Running Lead Manager: Finshore Management Services Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
Promoters & Management
Mr. Umesh Kumar Agarwal is the Managing Director of Sollfege Smart Electronics Limited. The promoters have built the business with an experience-led approach to premium electronics, focusing on curated product portfolios and Experience Centre-driven retail.
Company Details
The company specialises in applying digital technologies, automation software, and control systems to transform and optimise industrial processes. By integrating shop-floor equipment, machinery, and production workflows with enterprise-level IT systems, it enables seamless data flow, enhanced operational visibility, and real-time process monitoring. On the retail side, Sollfege positions itself as a premium Experience Centre-led brand, offering customers a hands-on setup experience before purchase.
Sectors / Product Categories:
- Premium Audio & Video Systems
- Home Automation & Smart Living
- Security & Surveillance Solutions
- Lifestyle Technology & Smart Home Integration
Key Products & Solutions:
- Premium audio and video accessories and systems
- Home automation and integrated smart living setups
- Security solutions
- Customized smart home installation and programming services
Key Capabilities:
- High sticky-revenue potential through customized service, programming, and software automation upgrades. Low baseline asset intensity in early operations, allowing high return metrics as showrooms mature.
- Revenue is overwhelmingly from trading activities (~99.8% in FY25).
Retail Presence:
- Experience Centres in Kolkata and Gurgaon
- Showrooms in Kolkata, Gurgaon, and Bhubaneswar
- Plans to launch 12 new showrooms using IPO proceeds
Financial Snapshot
| Period | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
| FY23 | ₹12.62 | ₹0.66 | ₹0.36 |
| FY24 | ₹18.53 | ₹1.73 | ₹1.76 |
| FY25 | ₹21.01 | ₹3.24 | ₹2.13 |
| FY26 | ₹22.22 | ~₹4.00 | ~₹2.19 |
| 6M FY26 (Sep 2025) | ₹10.74 | ₹1.93 | ₹1.05 |
Key Financial Metrics
- Total income increased from ₹12.74 crore in FY23 to ₹19.84 crore in FY24 and further to ₹21.28 crore in FY25. EBITDA rose sharply from ₹0.66 crore in FY23 to ₹1.73 crore in FY24 and ₹3.24 crore in FY25.
- EBITDA margins rose from 5.18% in FY23 to 15.22% in FY25 — strong operating leverage expansion.
- Revenue from operations grew from ₹18.53 crore in FY24 to ₹22.21 crore in FY26. However, growth slowed to ~4% in FY26 after stronger prior years.
- Revenue and profitability improved between FY23 and FY25, with PAT rising from ₹0.36 crore to ₹2.13 crore.
- West Bengal contributed around 89% of revenue from operations in FY25 and 88.53% during the seven months ended October 31, 2025 — indicating high geographic concentration.
Company Strengths
- Niche positioning in premium audio-video and smart home automation, a segment seeing rising demand as consumers upgrade their living spaces
- Sales and installation offering — Sollfege can earn from tailored projects as well as product sales.
- Consistent improvement in EBITDA margins — from 5.18% in FY23 to ~15-18% in FY25-26, reflecting strong operating leverage
- Entire IPO is a fresh issue — all funds go directly to the company; no promoter exit
- Clear and focused expansion plan — 12 new showrooms with specific capital allocation of ₹8.54 crore
- Experience Centre-led retail model creates high customer engagement and sticky service revenue through customization, programming, and software upgrades
Key Risks & Challenges
- West Bengal contributed around 89% of revenue from operations in FY25 — extremely high geographic concentration; the business is not yet nationally diversified
- Revenue and profit growth slowed sharply after FY24, with just 7% growth in FY25 and 4% in FY26. It is not certain that new showrooms will reverse this trend
- At its current pre-IPO operating structure, Sollfege controls roughly 0.05% of the estimated nationwide TAM and approximately 0.28% of the organized market — very early stage with a microscopic national footprint
- Very small company running on 32 employees — limited organizational depth and execution bandwidth for a 12-showroom expansion
- Working capital intake pressures: premium smart automation systems require upfront capital for inventory holding.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
