The IPO details for Racks & Rollers are confirmed: The IPO is scheduled to open on April 30 and close on May 3. Racks & Rollers, a BSE SME IPO, aims to raise ₹29.95 crores through the IPO. The price band for the Racks & Rollers IPO is set at ₹73 to ₹78 per share, with a market lot of 1600 shares.
Racks and Rollers, a division of Storage Technologies & Automation, was established in 2010 with a focus on providing storage racking systems. They specialize in designing, manufacturing, and installing metal storage racks, automated warehouses, and other storage solutions. Their product range reflects their dedication to offering innovative and efficient solutions tailored to the diverse warehousing needs of various industries, including oil & gas, automotive components & aerospace, food & beverages, cold storage, pharmaceuticals, textiles, retail, FMCG, and more.
As a customer-centric company, Racks and Rollers prioritize continuous innovation and operational efficiency. They offer a wide range of display and storage racks for commercial and industrial purposes, all manufactured using high-quality raw materials to ensure durability and strength. Their raw materials include different grades of mild steel (hot rolled coils, cold rolled coils, galvanized steel coils, PPGI coils, pipes, and structural sections), as well as materials for powder coating such as epoxy, enamel paints, and plastic for packaging.
Being ISO 9001:2015 certified underscores their commitment to quality. Their extensive infrastructure, spanning approximately 56,250 square feet in Singanayakanahalli, Yelahanka Hobli, Bangalore-560064, Karnataka, along with a storage facility of around 20,000 square feet, supports their streamlined manufacturing process. They manage product design, manufacturing, quality control, packaging, storage, and delivery processes across various specialized segments of their infrastructure, with strict monitoring by their experienced team of quality controllers.
IPO Date | April 30, 2024 to May 3, 2024 |
Listing Date | [.] |
Face Value | ₹10 per share |
Price Band | ₹73 to ₹78 per share |
Lot Size | 1600 Shares |
Total Issue Size | 3,840,000 shares (aggregating up to ₹29.95 Cr) |
Fresh Issue | 3,840,000 shares (aggregating up to ₹29.95 Cr) |
Issue Type | Book Built Issue IPO |
Listing At | BSE SME |
Share holding pre issue | 9,000,000 |
Share holding post issue | 12,840,000 |
Market Maker portion | 200,000 shares |
IPO Open Date | Tuesday, April 30, 2024 |
IPO Close Date | Friday, May 3, 2024 |
Basis of Allotment | Monday, May 6, 2024 |
Initiation of Refunds | Tuesday, May 7, 2024 |
Credit of Shares to Demat | Tuesday, May 7, 2024 |
Listing Date | Wednesday, May 8, 2024 |
Cut-off time for UPI mandate confirmation | 5 PM on May 3, 2024 |
KPI | Values |
---|---|
ROE | 46.37% |
ROCE | 22.52% |
RoNW | 37.64% |
PAT Margin (%) | 6.78% |
The company intend to utilize the proceeds of the Issue to meet the following objects: –
The company operates in a fiercely competitive and fragmented market, with fluctuations in its bottom lines observed from FY21 to FY23. Although it reported significant profits for the first seven months of FY24, there are concerns that these profits may be a result of window dressing to inflate the valuation of the IPO. While the valuation based on super annualized earnings for FY24 suggests that the issue is fully priced, considering FY23 earnings, it appears exorbitantly priced.
As of April 1, 2024, the company’s order book stood at Rs. 21+ crores, indicating a promising outlook. However, it’s important to exercise caution and conduct thorough due diligence before investing, especially for well-informed or cash-surplus investors who may consider parking funds for the medium term.
Rack & Rollers Ltd’s revenue increased by 16.42% and profit after tax (PAT) rose by 335.72% between the financial year ending with March 31, 2023 and March 31, 2022.
Period Ended | 31 Oct 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
Assets | 6,375.77 | 4,004.01 | 3,567.70 | 3,113.04 |
Revenue | 5,317.09 | 8,137.12 | 6,989.72 | 4,852.38 |
Profit After Tax | 358.91 | 48.30 | -20.49 | 118.42 |
Net Worth | 953.52 | 594.61 | 546.31 | 566.81 |
Reserves and Surplus | 653.52 | 294.61 | 246.31 | 466.81 |
Total Borrowing | 1,632.53 | 931.63 | 871.10 | 347.48 |
Amount in ₹ Lakhs |
₹ in Crores | |||
---|---|---|---|
Year | Revenue | Expense | PAT |
2021 | ₹48.52 | ₹46.65 | ₹1.18 |
2022 | ₹69.90 | ₹69.91 | ₹0.20 |
2023 | ₹81.37 | ₹80.58 | ₹0.48 |
October 2023 | ₹53.17 | ₹48.32 | ₹3.59 |