Sollfege Smart Electronics IPO
Sollfege Smart Electronics LtdSME
This IPO opens on 30 Sep 2026.
- Open date
- 30 Sep 2026
- Close date
- 5 Oct 2026
- Min. Investment
- ₹2,20,000
- Lot Size
- -
- Fresh Issue
- ₹21.78 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers0.00x
- Non-Institutional Investors0.00x
- Retail-Individual Investors0.00x
- Total0.00x
Schedule
- Current step: IPO open date30 Sep 2026
- Upcoming: IPO close date5 Oct 2026
- Upcoming: Allotment date6 Oct 2026
- Upcoming: Funds unblock or debit7 Oct 2026
- Upcoming: Tentative listing date8 Oct 2026
About
Promoter shareholding in Sollfege Smart Electronics Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Umesh Kumar Agarwal | 60,34,000 | 99.90% | 60,34,000 | 60.34% |
| Geetanjali Sabarwal Agarwal | 4,000 | 0.07% | 4,000 | 0.04% |
Sollfege Smart Electronics IPO Strengths & Risks
- Established and proven track record.
- Leveraging the experience of our Promoters.
- Experienced management team and a motivated and efficient work force.
- Cordial relations with our customers.
- Quality Assurance & Control.
- Risks Relating to the Business: The Company, Directors, Promoters and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The company's business operations are majorly concentrated in West Bengal as the company generates majority of its retail sales from the company's store in West Bengal. Any adverse developments affecting its operations in West Bengal could have an adverse impact on the company's revenue and results of operations.
- Risks Relating to the Business: A large part of the company's revenue is dependent on its top five brands. The loss of any of the company's major brands or a decrease in the supply or volume from such brands, will materially and adversely affect its revenues and profitability.
- Risks Relating to the Business: There are certain instances of delays in the past with ROC/Statutory Authorities due to historical compliance matters, administrative oversight, reconciliation issues, delays in collating requisite information and documents for filing purposes. Any future regulatory action, penalties or adverse orders in relation to such delays may adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: There are certain instances of delays in the past with ROC/Statutory Authorities due to historical compliance matters, administrative oversight, reconciliation issues, delays in collating requisite information and documents for filing purposes. Any future regulatory action, penalties or adverse orders in relation to such delays may adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: Past regulatory non-compliances by its Group Company resulted in the freezing of the company's Promoter's demat account and shareholding, and any future regulatory non-compliance may adversely affect its reputation, investor confidence, business operations and financial condition.
- Risks Relating to the Business: A substantial portion of the company's revenue is generated from trading activities and concentrated across limited business verticals. Any adverse change affecting these verticals may have a material adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: Substantial portion of the company's revenues has been dependent upon few customers. The loss of any one or more of its major customers would have a material effect on the company's business operations and profitability.
- Risks Relating to the Business: The Company is dependent on external suppliers for its product requirements. Any delay or failures on the part of the external suppliers to deliver products, may materially and adversely affect the company's business, profitability and reputation.
- Risks Relating to the Business: The company is exposed to risks arising from price volatility of Audio-Video (AV) products due to fluctuations in input costs, foreign exchange rates and changes in trade policies, which may have a material adverse effect on its business, results of operations, financial condition and cash flows.
- Risks Relating to the Business: Non-availability of initial period secretarial/statutory records of the company filed with ROC since incorporation.
- Risks Relating to the Business: The products traded by the company is generally positioned in the premium price segment and the demand for such products may be relatively limited, which could have an adverse effect on the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company operates in a competitive industry and its market share may be adversely impacted in case the company does not keep its selves appraised of the latest consumer trends and technology and if the company fails to compete effectively in the markets in which the company operates.
- Risks Relating to the Business: The company faces competition from substitutes of its products and if consumers preferences for any of these substitutes increases it could lead to a reduction in the demand for the company's products, which could have a material adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: The company's debt financing agreements contain certain restrictive covenants that may adversely affect the Company's business, credit ratings, prospects, results of operations and financial condition.
- Risks Relating to the Business: The company's insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on the company's business.
- Risks Relating to the Business: The company's business and revenues are substantially dependent on trading activities, and any adverse developments affecting such segments may materially impact its business, results of operations and financial condition.
- Risks Relating to the Business: The company's business is highly dependent on the brand owners effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new electronic products at regular intervals. In case any of the company's brand partners is unable to do so, its sales would get impacted which would have an adverse impact on the operations and financial performance of the Company.
- Risks Relating to the Business: The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact the company's business, financial condition and results of operations.
- Risks Relating to the Business: The average cost of acquisition of Equity Shares by the company's Promoters is lower than the Issue Price.
- Risks Relating to the Business: The Company has entered into certain related party transactions and may continue to do so in the future.
- Risks Relating to the Business: There has been an instance of non-compliance due to the delayed holding of the Annual General Meeting for the financial year 2018-19. Due to such lapse, the Company may be held liable to penal actions by the regulatory authorities under the Companies Act which may have impact on its financial position.
- Risks Relating to the Business: There has been an instance of non-compliance due to non-preparation of consolidated financial statements for the financial year 2020-21, which may result in penal action by regulatory authorities and adversely affect the company's financial position and reputation.
- Risks Relating to the Business: The company is subject to certain government regulation and if its fails to obtain, maintain or renew the company's statutory and regulatory licenses, permits and approvals required to operates its business, the company's business and results of operations may be adversely affected.
- Risks Relating to the Business: The company's Promoters have provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by the company's Promoter.
- Risks Relating to the Business: There has been an instance of delay in submission of the foreign assets and liabilities (FLA) and return for closure of overseas subsidiary to Reserve Bank of India.
- Risks Relating to the Business: There have been some instances of delayed filing of returns and depositing of statutory dues with regulatory authorities.
- Risks Relating to the Business: The Company is yet to place orders for Interior Work and display stocks for the proposed 12 showrooms cum experience Centres. Any delay in placing orders or procurement of such items may delay the schedule of implementation and possibly increase the cost of commencing operations.
- Risks Relating to the Business: Any failures on the company's part to effectively manage its inventory and working capital requirements may have an adverse effect on the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company's lenders have charge over its movable properties, book debts, stocks in respect of finance availed by the company.
- Risks Relating to the Business: Certain experience certificates and supporting documents relating to the prior professional engagements of some of the company's Promoters, Directors and Key Managerial Personnel are not traceable.
- Risks Relating to the Business: The company does not own the certain premises which the company uses for the purpose of its business operations.
- Risks Relating to the Business: The company could be subject to product liability claims, refunds and recalls or return of products, warranty claims, negative publicity which may have a material adverse impact, in which case the company's business and revenues, and ultimately its reputation, could be negatively affected.
- Risks Relating to the Business: Orders placed by the company's customers may be delayed, modified, cancelled or not fully paid for, which may have an adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: The company has not entered into any long-term contracts with any of its clients.
- Risks Relating to the Business: An inability to provide adequate customer support and ancillary services may adversely affect the company's relationship with its existing and prospective customers, and in turn the company's business, results of operations and financial condition.
- Risks Relating to the Business: The company's inability to offer financing options to customers due to absence of tie-ups with financing companies may adversely impact its sales.
- Risks Relating to the Business: Delays or defaults in customer payments could adversely affect the company's financial condition.
- Risks Relating to the Business: The company's business is characterized by low customer repeat purchases, which may impact revenue stability and growth.
- Risks Relating to the Business: The company's dependence on a single godown for inventory storage, despite geographically dispersed operations, may expose it to operational and logistical risks.
- Risks Relating to the Business: The company's Promoters, Directors and Key Managerial Personnel of the Company may enters into ventures that may lead to real or potential conflicts of interest with its business which in turn may materially adversely impact the company's business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: General economic and market conditions in India and globally could have a material adverse effect on the company's business, financial condition, cash flows, results of operations and prospects.
- Risks Relating to the Business: The company's directors and certain Key Management Personnel hold Equity Shares in the Company and are therefore interested in its performance in addition to their remuneration and reimbursement of expenses.
- Risks Relating to the Business: The company may not be able to adequately protect its intellectual property rights which could harm the company's competitiveness.
- Risks Relating to the Business: The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
- Risks Relating to the Business: The company has not made any alternate arrangements for meeting its regular working capital requirements. If the company is unable to manage/arrange funds (including at short notice) to meet its working capital requirements, there may be an adverse effect on the company's results of operations and financial performance.
- Risks Relating to the Business: In addition to the company's existing indebtedness for its operations, the company may be required to obtain further loan during the course of business. There can be no assurance that its would be able to service the company's existing and/or additional indebtedness.
- Risks Relating to the Business: The Company has availed certain unsecured loan which can be recalled at any time.
- Risks Relating to the Business: Excessive dependence on Bank of Baroda in respect of Loan facilities obtained by the Company.
- Risks Relating to the Business: The company's Managing Director, Umesh Agarwal, holds the position of Managing Director in another company which may lead to potential conflicts of interest and divided managerial attention.
- Risks Relating to the Business: The company's success depends heavily upon its Promoters, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support.
- Risks Relating to the Business: If the company is unable to source business opportunities effectively, its may not achieve the company's financial objectives.
- Risks Relating to the Business: The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- Risks Relating to the Business: The company may not be successful in implementing its business strategies.
- Risks Relating to the Business: Brand recognition is important to the success of the company's business, and its inability to build and maintain the company's brand names will harm its business, financial condition and results of operation.
- Risks Relating to the Business: Major fraud, lapses of internal control or system failures could adversely impact the company's business.
- Risks Relating to the Business: Upon completion of the Issue, the company's Promoters may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.
- Risks Relating to the Business: Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 89 of this Prospectus, the Company's management will have flexibility in applying the proceeds of this Issue subject to applicable laws. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
- Risks Relating to the Business: Portion of the company's Issue Proceeds are proposed to be utilized for general corporate purposes amounting to Rs. 180.00 lakhs which constitute 8.26% of the total Issue Proceeds.
- Risks Relating to the Business: Industry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
- Risks Relating to the Business: Deployment of funds raised through this Issue is subject to monitoring by a Monitoring Agency as per directions issued by BSE, however, the Monitoring Agency shall not guarantee optimum utilization of funds raised through the Issue.
- Risks Relating to the Business: The Company is dependent on third-party transportation and logistics service providers for procurement of electronic products from suppliers and delivery of such products to customers, and any disruption in such services could adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: The company is subject to risks arising from interest rate fluctuations, which could adversely affect its business, financial condition and results of operations.
- Risks Relating to the Business: Some of the KMPs is associated with the company for less than one year.
- Risks Relating to the Business: In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect the company's revenue and results of operations.
- Risks Relating to the Business: There is no guarantee that the company's Equity Shares will be listed on the SME Platform of BSE Limited in a timely manner or at all.
- Risks Relating to the Business: The Issue Price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue.
- Risks Relating to the Business: After this Issue, the price of the company's Equity Shares may be volatile, or an active trading market for its Equity Shares may not be sustained.
- Risks Relating to the Business: The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
- Risks Relating to the Business: There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
- Risks Relating to the Business: Any future issuance of Equity Shares may dilute the investors shareholdings or sales of the company's Equity Shares by its Promoters or Promoter Group may adversely affect the trading price of the company's Equity Shares.
- Risks Relating to the Business: You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
- Risks Relating to the Business: Applicants to this Issue are not allowed to withdraw their Applications at any stage.
- Risks Relating to the Business: The company's ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company's financing arrangements.
- Risks Relating to the Business: The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
- Risks Relating to the Business: Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.
- Risks Relating to the Business: The company's Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
