ROX Hi-Tech LTD. IPO: Review, Date , Valuation & Todays GMP

ROX Hi-Tech Limited - Complete Overview

Established in 2002, ROX Hi-Tech is a customer-centric IT solutions provider. The company is headquartered in Chennai, India.

With 22 years of industry experience, ROX Hi-Tech has evolved from an IBM Business Partner into a prominent player in the IT sector.

The company offers a comprehensive range of distributed IT solutions, which include consulting, enterprise and end-user computing, managed print, and network services.

The company's offerings encompass:

1. Digital Transformation Solutions (Software services, AI, RPA, and ML)
2. Network and Collaboration
3. IT And OT Security
4. Data center Solutions (On-premises and Cloud)
5. IoT, SMART, and MEDIA
6. Smart Edge Devices

In FY 23, the company achieved a total revenue from operations of Rs. 13,372.79 Lacs.

 

What does the company do? 

ROX Hi-Tech is a customer-centric IT solutions provider.

 

 

IPO Overview

The ROX Hi-Tech Limited IPO date is set to open from November 7, 2023, to November 9, 2023. This SME IPO is categorized as a Book Built Issue.

The ROX Hi-Tech Limited IPO price falls in the range of Rs. 80 to Rs. 83 per share. The total issue size of the upcoming SME IPO is Rs. 54.49 Crores.

Regarding the allocation, the company has earmarked 45.96% for institutional investors, 38.37% for retail investors, and 15.67% for non-institutional investors.

 

ROX Hi-Tech Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	7 November 2023
IPO Closing Date	9 November 2023
IPO Allotment Date	15 November 2023
Refund initiation	16 November 2023
IPO Listing Date	20 November 2023

 

ROX Hi-Tech Limited IPO Details

IPO Opening & Closing Date	7 November to 9 November 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 80 to Rs. 83 per Share
Lot Size	1600 Shares
Price of 1 Lot	Rs. 132,800
Issue Size	6,564,800 Shares (aggregating up to Rs. 54.49 Cr)
Offer for Sale	547,200 Shares of Rs.10 (aggregating up to Rs. 4.54 Cr)
Fresh issue	6,017,600 Shares (aggregating up to Rs. 49.95 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Purva Sharegistry India Pvt. Ltd.

 

ROX Hi-Tech Limited IPO Lot Details

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

 

 

ROX Hi-Tech Limited IPO Reservation

Institutional Share Portion	45.96%
Non-Institutional Share Portion	15.67%
Retail Share Portion	38.37%

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	6,103.26	3,866.72	3,887.58
Total Revenue	13,398.85	10,297.25	6,547.94
PAT	1,532.97	151.31	66.15
Net worth	2,415.03	882.06	730.75
Reserve & Surplus	1,667.53	134.56	405.75
Total Borrowings	2,258.36	1,794.59	1,135.32

 

Revenue from Operation 

Amount in Lakhs

Application Industries	FY 23	FY 22	FY 21
Higher Education and Research	2,059.09	1,409.48	597.62
Space and Defense	271.33	262.90	128.63
IT & ITES	1,094.93	526.24	426.60
Others	984.68	271.71	275.02
Total	4,410.02	2,470.33	1,427.87

 

Objective of the Issue 

The company has outlined its intended use of the Net Fresh Issue Proceeds as follows:

1. Allocation for Capital Expenditure, which includes:
   a) Establishing a Network Operations Centre (NOC) and Security Operations Centre (SOC) in Chennai.
   b) Establishing a Medical Automation Centre in Chennai.
   c) Establishing a Global Software Delivery Center in Noida.
2. Allocation for meeting working capital needs.
3. Allocation for covering general corporate expenses.

 

Promoters and Management of ROX Hi-Tech Limited

Jim Rakesh and Sukanya Rakesh are the promoters of the company.

Pre-issue Promoter Shareholding	83.29%
Post-issue Promoter Shareholding

 

Peer Comparison 

Below are the listed peers of ROX Hi-Tech Limited 

Company Name	Total income (Rs. in Lakhs)	EPS	P/E Ratio
ROX Hi-Tech Limited	13,398.85	9.11	-
Dynacons Systems & Solutions Ltd	80,644.07	27.69	11.26

 

IPO's Valuations

The ROX Hi-Tech Limited IPO price is established within the range of Rs. 80 to Rs. 83 per share, and the company's EPS is Rs. 9.11. When assessing the IPO valuation at the upper end of the price range, the company's PE ratio is 9.11.

 

Dividend Policy

According to the ROX Hi-Tech Limited IPO DRHP, the company has not disbursed any dividends in the previous fiscal years, and the potential payment of dividends in the future is contingent upon the company's future earnings.

 

IPO's Strengths 

• Proficient Promoter and Competent Senior Management Team
• Adaptable Business Model with Growth Potential
• Swift and Efficient Engineering and Delivery Processes
• Exclusive Agreements in Specific Domains
• Distinguished Client Base
• Proven Track Record of Financial Success and Ongoing Growth
• Notable Product Development and Innovation Achieved via Research and Development (R&D)

 

IPO Weaknesses

• The company's success hinges on its enduring customer relationships.
• The duration of the company's sales cycle is subject to significant fluctuations, contingent on various external factors.
• The company will not derive any proceeds from the Offer for Sale.
• There are ongoing legal disputes involving the Company, its Promoters, and its Directors.
• The company faces competition in its industry.
• Instances of delays have been noted in certain forms that the company was required to submit.
• Disruptions or performance issues related to the company's technology and infrastructure could negatively impact its business and financial results.
• The company must secure or renew essential licenses, approvals, and registrations promptly.
• The company is exposed to the risk of payment delays or non-payment by clients and other counterparties.

 

 

IPO GMP Today

The Latest GMP of ROX Hi-Tech Limited IPO is Rs. 75.

 

Conclusion

The company possesses a scalable business model and has a strong track record of past performance. Nonetheless, the significant increase in profits in FY 23 has prompted some concerns. Given the company's niche focus and promising outlook for the future, experienced investors may consider allocating their funds to the issue after conducting a thorough analysis.

 

 

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.

 

 

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 market.