Rosmerta Digital Services IPO date, price, GMP

Rosmerta Digital Services IPO-Complete Overview  

Rosmerta Digital Services IPO an SME IPO is a book-built issue of Rs.206.33 crore by Rosmerta Digital Services Limited. This company was established in 2021. It is a subsidiary of Rosmerta Technologies Limited (RTL), which offers automobile accessories and components with digitally-enabled services and digitally-enabled channels.

The company started as vehicle registration services to the original equipment manufacturers (OEMs). It has grown to include garage maintenance, last-mile delivery, and the selling of auto parts and accessories.

The company has two main business areas:

1. Digitally Enabled Services: Here the company offers technology-enabled vehicle registrations, last-mile delivery, and garage services, simplifying processes for OEMs and vehicle sales companies such as Cars24. The services, which include title transfers and last-mile HSRP delivery, were to be complemented by the streamlined workflows of the company's URJA platform.

2. Digital Enabled Channel Sales: In 2023, the company ventured into automotive parts with more than 150 distribution partners thereby ensuring efficient delivery. The company, which collaborates with Royal Enfield and OLA Electric, is driving the registration process for electric two-wheelers. The MyRaasta app helps garage partners and continues to maintain Rosmerta Digital's efficiency and client satisfaction credentials while the URJA platform of the firm streamlines workflows. This Rosmerta Digital IPO will start on 18 November 2024, and its ‘initial public offering’ will end on 21 November 2024.

 

 

Rosmerta IPO Overview

The Rs.206.33 crore new SME IPO  comprises a wholly fresh issue of 140.36 lac Shares. 

This upcoming IPO date is from November 18 to November 21, 2024. The Rosmerta Digital Services Limited IPO price band is Rs.140 to Rs.147 for each Share. 

The expected IPO listing date is Tuesday, 26 November 2024, and listing at BSE and SME.

If you want to apply for the IPO, Click Here to open a Demat Account.

 

Company Financial

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in thousands)

 

Segment-wise Revenue Breakdown  

(Amount in thousands)

 

State-wise Revenue Breakdown  

(Amount in thousands)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the capital project for the acquisition of Mumbai office space.

• Financing the initial investment needed to establish model workshops, experience centers, and warehouses across India.

• Financing the initial investment needed to set up IT infrastructure.

• Financing the company's working capital needs.

• Financing the cost of acquisitions and other strategic efforts for inorganic development.

• General corporate purposes.

 

Peers of Rosmerta Digital Services Ltd.

 

Note:- The basic EPS of the peers is for the financial year ended on 31 March 2024. 

Evaluation

The IPO price is Rs.140 to Rs.147 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.01 from the last year, the resulting P/E ratio is 48.83x.

Considering the weighted EPS of Rs.1.66 for the last three years, the P/E ratio is 88.55x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 282.36x.

In simple words, the P/E ratio of this IPO (48.83x), compared with the industry’s average P/E of 282.36x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Leverage the experience of its Corporate Promoter.

• Experienced management team and a motivated and efficient workforce.

• Quality deliverables of services.

• Adaption to advanced technology.

• Timely and safe deliveries.

• Experienced management team and a motivated and efficient workforce.

• Cordial relations with its clients.

 

IPO's Weaknesses

• Reliance on a relatively small number of customers in the Digital Enabled Services business.

• Thin margins in OEM parts business model.

• Highly dependent on partner garages for garage services.

• Car Market slowdown.

• Vehicle Registration as a service is an emerging business model.

• Must pass on cost-benefit of economies of scale to OEMs in the Digital Services business.

 

 

Rosmerta Digital Services IPO GMP Today

Rosemerta Digital IPO GMP is Rs.31. With a price of Rs.147 per Share, the estimated IPO listing price is Rs.178 when writing this information (as of 11 November 2024).

IPO Timetable (Tentative)

The IPO allotment date is on November 22, refund initiation on November 25, and listing on November 26, 2024.

 

Rosmerta Digital IPO Details 

The IPO with a Face Value of Rs.2 per share offers a total issue size of 14,036,000 Shares (Rs.206.33 Cr).

Rosmerta IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,47,000 and in multiples thereof. In contrast, for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,94,000.

 

Rosmerta IPO Reservation (% of Net Issue)

 

Promoters And Management of Rosmerta Digital Services Ltd.

• M/s Rosmerta Technologies Limited.

• M/s Shree Bankey Bihari Family Trust.

• Mr. Karn Vivek Nagpal.

• Mr. Kartick Vivek Nagpal.

 

 

IPO Lead Managers

• Narnolia Financial Services Ltd.

• Beeline Capital Advisors Pvt Ltd.

 

Dividend Policy

The company has paid a dividend of Rs.3,505 thousand for the six months ended 30 September 2024.

Conclusion

The Rosmerta Digital Services IPO provides investors with an opportunity to invest in a rapidly growing pharmaceutical company having an excellent product portfolio and mature customers. It offers the issue at Rs.58-61 per share, which appears value-priced based on the P/E multiple considering sector peers. However, the investor needs to balance the dependence of the company on regulations and the competitive environment. This IPO would appeal to investors who wish to invest in a promising pharmaceutical sector with some regulatory oversight.

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

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.Hope you loved the IPO analysis. Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.