Rockingdeals Circular Economy IPO (NSE SME) Overview

Rockingdeals Circular Economy IPO envisages to raise ₹21 crore entirely as a fresh issue of shares. Rockingdeals Circular Economy is primarily a B-2-B re- commerce player specializing in bulk trading of surplus inventory, open-boxed items, re-commerce products, and refurbished goods.

IPO opensNov 22, 2023
IPO ClosesNov 24, 2023
IPO Size (Rs.)₹21.00 Cr
IPO Size (shares)1,500,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹136 to ₹140
Minimum Lot1000 Shares
Listing AtNSE SME
QIB (includes anchor, Market Maker)~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerCorporate Capitalventures Pvt Ltd
RegistrarBigshare Services
Market makerSs Corporate Securities

About Kalyani Cast Tech Limited;

  • Rockingdeals Circular Economy Ltd. is primarily a B-2-B re- commerce player which started its operations in 2005.
  • Company is primarily engaged in bulk trading of excess inventory, open boxed inventory, re-commerce products and refurbished products,
  • These products range in several categories such as small home appliances, apparel, kitchenware’s and household, speaker & mobile accessories, large appliances, footwear etc. These products are generally of various well-known brands such as Samsung, Thomson, MI, LG, symphony, ZARA, Nike, Reebok, Campus, Sony, JBL, Boat, Gizmore, One Plus, etc.
  • Rockingdeals CE take the aforementioned products in bulk from various dealers of Inalsa, Khaitan etc and supplies these products in bulk to clients such as Jindal Mega Mart, Brand Wala, VLE Bazaar Private Limited, HIC International, PSUAVI, KRAT India, Zazz Technology besides to its sister companies such as (Rockingdeals Private Limited, Rockingdeals (HYD) Private Limited, Harkrishanji Products Private Limited).
  • As on date company has over 18 categories of Stock Keeping Units (SKU) i.e., electrical appliances (Syska, Havells, LG, Panasonic, Usha, Crompton, Luminous, Phillips etc.), apparels & footwear (Zara, Nike, Campus etc), speaker (Boat, JBL, Gizmore), mobile and mobile accessories (Lenovo, Boat, Gizmore etc) and various other products which the company procures from ecommerce vendors of platforms like Snapdeal (Juscorp), affiliates of Flipkart, Amazon and, etc; companies like GO Auto, Salora International, Zazz Technology Connect Private Limited; and dealers & distributors like Matrix Housewares, Raj Agency, Sudhi Enterprises etc.
  • The promoters of Company are Mr. Aman Preet, Mrs. Kulbir Chopra and Mrs. Avneet Chopra.

Financials: Rockingdeals Circular Economy IPO

Particulars / Rs. Lacs30-Jun-23202320222021
Revenue (Total income)958.151,517.531,533.081,069.62
Profit after Tax125.15154.3414.37-1.48
Share Capital367.8912.2612.2612.26
Net Worth818.46693.31538.97539.48
EPS Basic and Diluted3.44.20.39-0.04
Net Asset Value22.2518.8514.6514.66
Total borrowings    
– Long Term32.3136.8268.2468.85
– Short Term340.50356.39337.86342.99
Post issue Share Capital566   
IPO price140.0   
EPS Fy232.7   
PE Fy2351.3   
EPS Fy24 (annulaized)8.8   
PE Fy24  (annulaized)15.8   
Market cap in Lacs7,924.0   
Market Cap/sales5.2   

Anchor: Rockingdeals Circular Economy IPO

Rockingdeals Circular Economy IPO: Salient Points

  • By 2025, India’s Consumer Electronics and Appliances Industry is predicted to be the fifth-largest in the world.
  • Re-commerce, or reverse supply chain, entails offering new products in exchange for old ones; reselling returned products; repairing defective products; or recycling or refurbishing used products. It has great significance in today’s times when there is growing awareness amongst businesses and consumers about the need to make environmentally responsible choices.
  • A report by Infogence Global Research estimated India’s re-commerce at USD 29.54 billion in 2022 and projected it to grow at a CAGR of 6.15 percent by 2027.
  • Rockingdeals Circular Economy is more of B2B platform,
  • The primary purpose of this IPO is to utilise the proceeds for working capital requirements, brand positioning, marketing and advertising, and general corporate purposes. Company intends to utilize the Net Proceeds for the following objects:
 ParticularsAmount (In ₹. Hundreds)
1Working Capital Requirement14,00,000.00
2Brand Positioning and Marketing & Advertisement1,42,000.00
  • As per company it has formed partnerships with marquee brands and platforms, including Samsung, Thomson, MI, LG, Symphony, Zara, Nike, Reebok, Campus, Sony, JBL, Boat, Gizmore, and One Plus. Further it has affiliations with Snapdeal, Flipkart, and Amazon to source surplus inventory and open-box products.
  • Presently it operates from four warehouses.
  • Grading and refurbishing the products lies at the core of company’s business strategy. Then they offer discounts based on the condition of the product.
  • Company has ambitious plans to extend its presence in the northeastern region of India.
  • Managements is hopeful of good jump in revenues going ahead.
  • The company claims that donot work in loss and has good focus on profits and cash generation.
  • Rockingdeals Circular Economy IPO is coming at a PE ratio of 51x(fy23 earnings) and 15.8x (fy24 annualized earnings)
  • I intend to apply in Rockingdeals Circular Economy IPO subject to fund availability. Valuations are not comforting at the moment but if company can grow as per projections of management then there can be room for a higher price. It remains a high risk case.
  • GMP as reported on social media has been around Rs. 50.
  • Corporate Capitalventure is the Lead Manager. Past issues handled by them include Oriana Power Limite, Crayons Advertising Limited, Droneacharya Aerial Innovations Limited, Annapurna Swadisht Limited, Rajnandini Metal Limited, Swastik Pipe Limited, Uma Exports Limited, Phantom Digital Effects Limited, Nupur Recyclers etc.
  • SME IPO are more risky than mainboard IPOs.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational/ exploratory purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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