Rocking Deals Circular Economy Ltd. IPO:Review,Valuation & GMP

Rocking Deals Circular Economy Limited IPO - Complete Overview

Established in 2005, Rocking Deals Circular Economy Limited primarily operates as a B2B re-commerce player, specializing in bulk trading of excess inventory, open-boxed items, re-commerce products, and refurbished items. The company deals with a diverse range of products across multiple categories, including small home appliances, apparel, kitchenware, household items, speakers, mobile accessories, large appliances, and footwear. 

They have lots of products in their portfolio for you to check out like clothes, shoes, gadgets, and more. Their head office is in Faridabad, India. It's right in the heart of the city and is 30,000 square feet big.

 

What does the company do?

The company manages over 18 categories of Stock Keeping Units (SKU) such as:

• Apparel and footwear from brands like Zara, Nike, Campus
• Speakers from Boat, JBL, Gizmore
• Mobile accessories from Lenovo, Boat, Gizmore
• Electrical appliances from brands like Syska, Havells, LG, Panasonic, Usha, Crompton, Luminous, Phillips, and others

These items are sourced from various channels, including e-commerce vendors such as Snapdeal (Juscorp), Flipkart and Amazon affiliates. The company also collaborates with companies like GO Auto, Salora International, and Zazz Technology Connect Private Limited, as well as dealers and distributors like Matrix Housewares, Raj Agency, and Sudhi Enterprises. Rocking Deals Circular Economy Limited specializes in bulk transactions, procuring goods from different vendors and predominantly selling them in bulk quantities.

 

 

IPO Overview

Rocking Deals Circular Economy Limited IPO date is slated to be open for subscription from November 22, 2023, to November 24, 2023. This NSE SME IPO follows a Book Built Issue IPO.

The Rocking Deals Circular Economy Limited IPO  price is fixed at Rs. 136 to Rs. 140 per share. The upcoming NSE SME IPO will be listed on November 30, 2023.

The total issue size of this IPO amounts to Rs. 21.00 Cr. Within this total issue, 35% is issued to retail investors.

 

Rocking Deals Circular Economy Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	22 November 2023
IPO Closing Date	24 November 2023
IPO Allotment Date	28 November 2023
Refund initiation	29 November 2023
IPO Listing Date	30 November 2023

 

Rocking Deals Circular Economy Limited IPO Details

IPO Opening & Closing Date	22 November to 24 November 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 136 to Rs. 140 per Share
Lot Size	1000 Shares
Price of 1 lot	Rs. 140,000
Total Issue Size	1,500,000 Shares (aggregating up to Rs. 21.00 Cr)
Fresh Issue	1,500,000 Shares (aggregating up to Rs. 21.00 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd .

 

Rocking Deals Circular Economy Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

 

Rocking Deals Circular Economy Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Rocking Deals Circular Economy Limited did well financially. In the year ending March 31, 2023, their revenue dropped a bit (-1.01%), but their profit after tax shot up by a whopping 974.19%. Shows that the company can make money and keep its finances stable.

(Amount in Lakhs)

Period	FY 23	FY 22	FY 21
Total Assets	1,226.60	1,397.27	1,863.09
Total Revenue	1,517.53	1,533.08	1,069.62
PAT	154.34	14.37	-1.48
Net worth	693.31	538.97	539.48
Reserve & Surplus	681.05	526.71	527.21
Total Borrowings	393.20	406.10	411.85

 

Product-wise Revenue Bifurcation

In terms of product categories, companies' revenue distribution is led by IT & ITES (34.14%) followed by SHA (Small Home Appliances) at 20.57% and Apparel & Footwear at 15.62%. Other contributing segments include Speakers (10.94%), Fans (7.21%), Large Appliances (4.38%), Mix Items (SHA, Footwear, Electronic Items) at 3.19% and kitchenware at 3.02%. This breakdown showcases the varying significance of different product categories in the overall revenue structure.

(Amount in % age) 

Categories	%
IT & ITES	34.14
SHA (Small Home Appliances)	20.57
Apparel & Footwear	15.62
Speakers	10.94
Fans	7.21
Large Appliances	4.38
Mix Items (SHA, Footwear, Electronic Items)	3.19
Kitchen Ware	3.02

 

Revenue By Operations

In the financial year ending on June 30, 2023, Rocking Deals Circular Economy Limited earned Rs. 9,58,149.53 (in hundreds) from its main operations, slightly lower than the previous year. The total income, including other sources, was Rs. 9,58,149.84. This indicates some fluctuation in the company's earnings over the years.

(Amount in Hundreds)

Particulars	FY 23	FY 22	FY 21
Revenue from operations	15,01,008.14	14,82,816.41	10,55,632.13
Other Income	16,524.17	50,268.15	13,986.48
Total	15,17,532.31	15,33,084.56	10,69,618.61

 

Revenue Breakup Geographical-Wise

Companies' revenue distribution highlights that Haryana contributes the highest percentage at 48.73%, followed by Karnataka at 25.65%. Telangana, Rajasthan, and Uttar Pradesh also play significant roles, contributing 8.57%, 6.90%, and 2.58%, respectively. This geographic breakdown underscores the diversified revenue streams of companies across various states in India.

State	%
Haryana	48.73%
Karnataka	25.65%
Telangana	8.57%
Rajasthan	6.90%
Uttar Pradesh	2.58%
Madhya Pradesh	2.27%
Delhi	1.17%
Uttarakhand	1.08%
Gujarat	1.07%
Punjab	1.00%
Bihar	0.58%
Maharashtra	0.17%
Jharkhand	0.09%
Jammu Kashmir	0.08%
Chhattisgarh	0.03%
Kerala	0.01%
Total	100.00%

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• General Corporate Purposes
• Brand Positioning, Marketing, and Advertisement
• To meet the working capital requirements of the company

 

Promoters and Management of Rocking Deals Circular Economy Limited IPO

• MR. Aman Preet
• MRS. Kulbir Chopra
• MRS. Avneet Chopra

Pre-issue Promoter Shareholding	88.45%
Post-issue Promoter Shareholding	65.00%

 

IPO's Valuations

To evaluate the Rocking Deals Circular Economy Limited IPO's valuation, we can utilize the information presented in the company's RHP. Rocking Deals Circular Economy Limited IPO is fixed at Rs. 136 to Rs. 140 per share, with an EPS of Rs. 4.2. Based on the issue price the company's P/E ratio is calculated at 33.33.

 

Dividend Policy

The company does not have a formal dividend policy. Its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

• Strong brand image and customer recall
• Well-managed by professionals
• Extensive network of vendors
• In-house Service Center for minor repairs
• No obligation to provide warranty

 

IPO's Weaknesses

• Economic changes impact the business.
• Facing intense competition in the segment.
• Heavily reliant on other companies for various aspects.
• Most sales are concentrated in specific areas.
• Potential issues if the government changes rules for the business.

 

 

IPO GMP Today

The Latest GMP of Rocking Deals Circular Economy Limited IPO is Rs. 55

 

Conclusion

Rocking Deals Circular Economy Limited IPO, scheduled from November 22 to November 24, 2023, offers an opportunity with strengths like a strong brand image and an extensive vendor network. However, investors should be cautious about economic sensitivity, competition, and reliance on other companies. The valuation seems reasonable, with a price range of Rs. 136 to Rs. 140 per share. The IPO aims to raise Rs. 21.00 Crore for general purposes and working capital.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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