Newjaisa Technologies LTD. IPO - Review, Valuation & GMP Today

Newjaisa Technologies Limited - Complete Overview

Established in 2020, Newjaisa Technologies Limited is a technology-driven company specializing in refurbished IT electronics for direct-to-consumer sales, offering quality refurbished electronic devices at affordable prices.

The company's business model involves the acquisition of used IT assets, such as laptops, desktops, and peripherals, which are then meticulously refurbished to a condition closely resembling new computers. These refurbished electronics are sold directly to end-use customers, including businesses and retail consumers.

Newjaisa Technologies' product range comprises IT products, including laptops, Chromebooks, desktops, Chromeboxes, monitors, and various accessories such as keyboards, mouse, WiFi equipment, and speakers. This product lineup serves as the company's primary revenue source.

A central goal for Newjaisa Technologies is to contribute to the reduction of e-waste. The company operates within the Indian market and serves a nationwide customer base through e-commerce and online platforms. Its customer segments primarily include students, home users, SMEs, and working professionals.

Newjaisa Technologies has extended its services to customers in over 19,298 PIN codes across India, managing operations through a centralized team and plant located in Bangalore.

Currently, the company boasts a team of 347 individuals, consisting of 99 employees and 248 interns, operating out of a 28,750-square-foot facility. They successfully deliver approximately 5,500 refurbished SKUs on a monthly basis.

 

What does the company do? 

Newjaisa Technologies Limited is a technology-focused company specializing in the direct-to-consumer sale of refurbished IT electronics, offering high-quality refurbished electronic devices at budget-friendly rates.

 

 

Company Products

The company's product lineup encompasses IT Products i.e. Laptops/ Chromebooks, Desktops/Chromeboxes/ Monitors and Accessories (Keyboard, Mouse, WiFi, Speakers).

 

IPO Overview 

The Newjaisa Technologies Limited IPO date is set to commence on September 25, 2023, and conclude on September 27, 2023. The total issue size for this upcoming SME IPO is Rs. 39.93 Crores.

This IPO is categorized as a Book Built Issue IPO, and Newjaisa Technologies Limited IPO price ranges from Rs. 44 to Rs. 47 per share, with a face value of Rs. 5 per share.

In terms of allocation, the company has designated 50% of the shares for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Newjaisa Technologies Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 September 2023
IPO Closing Date	27 September 2023
IPO Allotment Date	4 October 2023
Refund initiation	6 October 2023
IPO Listing Date	9 October 2023

 

Newjaisa Technologies Limited IPO Details 

IPO Opening & Closing Date	25 September to 27 September 2023
Face value	Rs.5 per Share
Issue Price	Rs.44 to Rs.47 per Share
Lot Size	3000 Shares
Price of 1 lot	Rs.141,000
Issue Size	8,496,000 Shares (aggregating up to Rs. 39.93 Cr)
Offer for sale	NA
Fresh issue	8,496,000 Shares (aggregating up to Rs. 39.93 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Newjaisa Technologies Limited IPO Lot Details 

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

 

Newjaisa Technologies Limited IPO Reservation

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

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	337.99	559.15	2208.70
Total Revenue	960.71	2792.50	4453.23
PAT	73.36	180.19	675.57
Net Worth	74.36	254.55	930.12
Reserve & Surplus	73.36	218.55	894.12
Total Borrowings	162.64	181.82	743.70

 

State-wise revenue split of the Newjaisa Technologies Limited

State	Percentage
Tamil Nadu	26%
Karnataka	19%
West Bengal	14%
Maharashtra	9%
Haryana	8%
Uttar Pradesh	4%
Telangana	4%
Kerala	2%
Andhra Pradesh	2%
Delhi	2%

 

Operational Data Metrics of the Newjaisa Technologies Limited

Diwali Month Sales
Particulars	FY 2020-2021	FY 2021-2022	FY 2022-2023
Units sold (Nos)	1499	3829	5644
Revenue (Rs. in Lakh)	353.38	760.75	1,023.91
Units Sold/ Processed (yoy- Financial Year)
Particulars	FY 2020	FY 2021	FY 2022
Units sold (Nos)	8,928	24,959	42,043

 

Online / Offline Sales of the Newjaisa Technologies Limited

(Amount in Lakhs)

Description	FY 2020-21	FY 2021-22	FY 2022-23
Online Sales	684.19	2,003.37	2833.41
Offline Sales	-	-	381.72
Corporate sales	276.48	788.53	1237.85
Total Sales	960.67	2,791.90	4,452.98

 

Product-wise Sales of the Newjaisa Technologies Limited

(Amount in Lakhs)

Description	FY 2020-21	FY 2021-22	FY 2022-23
Laptops/ Chromebooks	296.74	838.60	2,309.75
Desktops/ Chromeboxes/ Monitors	653.74	1,873.14	1,996.25
Accessories (Keyboard, Mouse, WiFi, Speakers)	10.19	80.16	146.98
Total	960.67	2791.90	4452.98

 

Objective of the Issue 

The raised funds will be deployed for the following purposes:

• Expanding the refurbishment facility and acquiring plant, machinery, and equipment.
• Investing in the development of technology.
• Enhancing branding and marketing efforts.
• Meeting working capital needs.
• Repaying existing bank facilities.
• Addressing general corporate requirements.

 

Promoters and Management of Newjaisa Technologies Limited

Mr. Vishesh Handa and Mr. Mukunda Raghavendra are the promoters of the company.

Pre-issue Promoter Shareholding	94.23%
Post-issue Promoter Shareholding

 

Peer Comparison

Below are the listed peers of NewJaisa Technologies Limited:

Company Name	EPS  (Rs.) Diluted	P/E	Total Income (Rs. in Lakhs)
NewJaisa Technologies Limited	3.03	-	4453.23
Cerebra Technologies Limited	2.31	2.45	8620.3

 

IPO's Valuations

To assess the IPO valuation, we can utilize the information provided in Newjaisa Technologies Limited's DRHP. Newjaisa Technologies Limited has determined the IPO price range to be Rs. 44 to Rs. 47 per share, while the company's EPS stands at Rs. 3.03. Considering the higher end of the issue price, the company's P/E ratio is calculated at 15.51.

 

Dividend Policy 

Newjaisa Technologies Limited has not declared any dividends in the past, and any future dividend payments will be contingent upon the company's financial earnings.

 

IPO's Strengths

• A highly skilled team with extensive qualifications and experience.
• An exclusive and adaptable refurbishment process.
• Collaboration with leading companies in the industry.

 

IPO Weaknesses

• An increase in the prices of used computers, laptops, and related products ("Inputs") could lead to higher costs for refurbished products.
• A substantial rise in returns and the activation of warranty provisions by customers may have an impact on the business.
• Failure to obtain approval for intellectual property rights could have adverse effects on the business.
• If products experience performance issues due to defects or similar problems, it may adversely affect the business.
• The company needs to obtain or renew the necessary licenses, approvals, and registrations.
• The market for refurbished products is relatively new and continuously evolving.
• Discrepancies and errors have been identified in some of the company's corporate records related to forms submitted to the Registrar of Companies.
• The company has experienced inaccuracies in regulatory filings and non-compliance with certain provisions of applicable law.
• Independent Directors of the company have previously held positions in companies that have been deregistered by the Registrar of Companies.
• Certain agreements may have insufficient stamping or may not have been registered, potentially impairing the company's operations.
• The company faces significant competition from both established and unorganized companies that offer refurbished products.
• The company's business relies on the sale of products through third-party online e-commerce platforms.

 

 

IPO GMP Today

Latest GMP of Newjaisa Technologies IPO is Rs.5.

 

Conclusion 

Newjaisa Technologies specializes in refurbished products, operating in a favourable market segment with promising growth opportunities in the future. The company has consistently generated substantial revenue. It is recommended to consider investing in this issue after conducting a thorough evaluation.

 

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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