Sollfege Smart Electronics IPO

SME • BSE SME • Fresh capital only

LISTEDSMEBSE SME

Sollfege Smart Electronics

Price band

₹55

Lot size

2000 shares

Min investment

₹1,10,000

Issue size

₹21.78 Cr

About the company

Sollfege Smart Electronics Limited was incorporated in November 2012. It began by distributing high-end audio and video equipment and has since moved into fitting out whole homes, offices and institutions with integrated technology. Its range covers audio solutions such as speakers, home theatre systems, soundbars, wireless speakers and background music systems, video solutions such as premium displays and projectors, and smart living solutions covering home automation, networking, security and surveillance, lighting and climate control, smart door locks, CCTV and integrated monitoring. It works with OEM brands including Bose, Yamaha, Panasonic, Lutron, Sonos, Devialet, Focal, Epson and LG. The company sells through an experience-before-purchase approach, with experience centres in Kolkata and Gurgaon where customers can see the products working, and three showrooms in Kolkata, Gurgaon and Bhubaneswar. Its teams handle site assessment, system design, installation and after-sales service. It does not manufacture, so the model is asset light. As on August 2026 it had 32 employees.

Sollfege Smart Electronics Limited distributes, integrates and installs premium audio, video and home automation systems in India, working with OEM brands such as Bose, Yamaha, Panasonic, Lutron, Sonos, Devialet, Focal, Epson and LG. It runs three showrooms in Kolkata, Gurgaon and Bhubaneswar and does not manufacture anything itself.

IPO details

Issue price: ₹55
Price band: ₹55
Face value: ₹10
Lot size: 2000
Min investment: ₹1,10,000
Issue size: ₹21.78 Cr
Sale type: Fresh capital only
Listing on: BSE SME
BSE scrip code: 8027
NSE symbol: SOLLFEGE.BO

Lot size & investment by category

APPLICATION	LOTS	SHARES	AMOUNT
Retail (Min)	1	2,000	₹1,10,000
Retail (Max)	1	2,000	₹1,10,000
HNI (Min)	2	4,000	₹2,20,000

Investor reservation

CATEGORY	RESERVED
NII	18,80,000 shares (50.00% of the Offer)
Retail	18,80,000 shares (50.00% of the Offer)

Objects of the issue

1Funding Capital Expenditure for expansion of our Retail Network by launching 12 new Showrooms8.54

2Working Capital Requirements9.67

3General Corporate Expenses1.80

4Issue Expenses1.76

Financials

Rs. Crore • restated

METRIC	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	30.37	24.83	12.30
Total Income	22.22	21.28	19.84
Profit After Tax	2.19	2.13	1.76
EBITDA	4.00	3.24	1.73
NET Worth	11.62	9.43	3.75
Reserves and Surplus	5.58	7.92	2.74
Total Borrowing	6.98	4.46	2.87

Key performance indicators

P/E Ratio

25.11

EPS (₹)

2.19

RoE

20.82%

RoCE

23.57%

RoNW

18.86%

PAT Margin

9.86%

EBITDA Margin

18.02%

Debt / Equity

0.60

NAV (₹)

19.24

✓ Strengths

• Profit has grown every year, from Rs 1.76 crore in FY2024 to Rs 2.13 crore in FY2025 and Rs 2.19 crore in FY2026.

• EBITDA has more than doubled in two years, from Rs 1.73 crore in FY2024 to Rs 4.00 crore in FY2026, an EBITDA margin of 18.02%.

• Return on capital employed is 23.57% and return on net worth is 18.86%, helped by a model that owns no factory.

• Net worth has grown from Rs 3.75 crore in FY2024 to Rs 11.62 crore in FY2026, and debt to equity is 0.60.

• It holds dealerships for well known brands including Bose, Yamaha, Panasonic, Lutron, Sonos and Devialet, which are hard for a new entrant to obtain.

• The whole Rs 21.78 crore issue is fresh capital with no offer for sale, of which Rs 8.54 crore opens 12 new showrooms and Rs 9.67 crore funds working capital.

• It earns on both the product and the service, doing site assessment, system design, installation and after-sales support in house.

⚠ Risks

• Control sits with a single promoter, Umesh Kumar Agarwal, who holds 99.97% before the issue and 60.38% after it.

• Sales have barely moved. Total income was Rs 19.84 crore in FY2024, Rs 21.28 crore in FY2025 and Rs 22.22 crore in FY2026, a rise of about 4% in the latest year.

• The reserves row does not fit the rest of the table, falling from Rs 7.92 crore in FY2025 to Rs 5.58 crore in FY2026 while net worth rose from Rs 9.43 crore to Rs 11.62 crore.

• The issue is priced at 25.11 times post issue earnings on an EPS of Rs 2.19, against 15.15 times on a pre issue EPS of Rs 3.63, so the dilution lifts the multiple by about two thirds.

• Borrowing has more than doubled in two years, from Rs 2.87 crore in FY2024 to Rs 6.98 crore in FY2026.

• The business rests on dealership arrangements with foreign OEM brands. Those can be changed or ended, and the company makes nothing of its own to fall back on.

• Premium audio, video and home automation is discretionary spending by high-end buyers, which falls away first when property and luxury demand slows.

• It is a small operation, with 32 employees and three showrooms, and plans to add 12 more showrooms at once out of issue money.

• Promoter holding falls from 99.97% to 60.38%, and this is a fixed price issue at Rs 55 per share, so there is no price discovery through bidding.

• This is an SME issue. One lot is 2,000 shares, which is about Rs 1.10 lakh at the upper band of Rs 55, and SME shares usually trade in low volume after listing.

Promoters & holding

Umesh Kumar Agarwal

Pre-issue promoter holding

99.97%

Post-issue promoter holding

60.38%

Promoters hold 99.97% before the issue and will hold 60.38% after it.

Data refreshed 07 Nov 2026, 04:41 pm IST. GMP is unofficial market sentiment, not investment advice.