Smarten Power IPO Opens July 7: Promoters to Offload Shares at Nearly 10x Acquisition Cost
By Shishta Dutta | Updated at: Oct 14, 2025 05:57 PM IST
Mumbai, 3 July 2025: Gurgaon-based Smarten Power Systems Limited is set to launch its ₹50 crore SME initial public offering (IPO) on 7 July 2025. The company will offer 50,00,400 equity shares at a fixed price of ₹100 per share. The public issue will remain open for three days, closing on 9 July 2025, with the shares scheduled to list on the NSE Emerge platform on or after 12 July 2025.
IPO Structure Signals Strategic Fundraising and Promoter Exit
The IPO is a Fixed Price SME Issue, with each lot comprising 1,200 shares. The issue size is divided between a fresh issue worth ₹40 crore and an Offer for Sale (OFS) worth ₹9.99 crore. A portion of 2,50,800 shares has been allocated for the market maker.
| Detail | Information |
|---|---|
| Company | Smarten Power Systems Limited |
| Symbol | SMARTEN |
| Issue Opens | July 7, 2025 |
| Issue Closes | July 9, 2025 |
| IPO Type | Fixed Price SME Issue |
| Issue Price | ₹100 per share |
| Lot Size | 1,200 shares |
| Total Issue Size | ₹50.00 crore (50,00,400 shares) |
| Fresh Issue | ₹40.00 crore (40,00,800 shares) |
| Offer for Sale (OFS) | ₹9.99 crore (9,99,600 shares) |
| Market Maker Portion | 2,50,800 shares |
| Listing Exchange | NSE Emerge |
| Listing Date | On or after July 12, 2025 (T+3 basis) |
Promoters to Book Gains as Issue Price Surges 10x Acquisition Cost
All four promoters – Arun Bhardwaj, Rajnish Sharma, Ravi Dutt, and Tirath Singh Khaira – will participate in the Offer for Sale. Notably, their average cost of acquisition is just ₹0.67 per share, while the IPO is priced at ₹100 per share, implying a near tenfold return at the offer price.
Fresh Proceeds to Strengthen Core Operations and Expansion
The ₹40 crore fresh issue will be strategically allocated across key business functions. A significant portion – ₹22 crore – will be used to strengthen the company’s working capital. Additional funds will be directed toward capital investments in its Jhajjar manufacturing facility and a battery production asset acquisition in Himachal Pradesh.
Use of IPO Proceeds (Fresh Issue)
| Objective | Amount (₹ in lakh) |
|---|---|
| Working Capital | 2,200.00 |
| Purchase of Battery Production Assets | 418.90 |
| Capital Expenditure for Jhajjar Manufacturing Facility | 446.15 |
| Debt Repayment | 95.00 |
| General Corporate Purposes | 469.91 |
Pan-India Reach and Global Exports Strengthen Business Profile
Smarten Power Systems manufactures and trades power backup and solar energy equipment, including inverters, home UPS systems, PCUs, and batteries. The company operates across 23 Indian states and exports its products to over 18 countries, such as UAE, Nigeria, Bangladesh, and Nepal. As part of its backwards integration strategy, the company is acquiring a battery production line in Himachal Pradesh, enhancing its control over the supply chain.
Promoters to Retain Majority Stake Post Listing
After the IPO, the promoter group will hold 67.10% of the equity, while public shareholders will own 32.90%.
| Category | Post-Issue Holding |
|---|---|
| Promoters (4 total) | 67.10% |
| Public | 32.90% |
| Total | 100.00% |
Experienced Issue Managers to Steer Listing
Smarten Power IPO will be managed by Arihant Capital Markets Ltd as the lead manager, while Maashitla Securities Pvt Ltd will act as the registrar to the issue.
With promoter valuations rising steeply and funds targeted at key expansion areas, Smarten Power Systems’ IPO presents a notable development in the SME segment this July.
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