ROX Hi-Tech IPO envisages to raise Rs 54.49 crores. The issue is a combination of fresh issue of 60.18 lakh shares aggregating to Rs 49.95 crores and offer for sale of 5.47 lakh shares aggregating to Rs 4.54 crores. ROX Hi-Tech offers’ end-to-end IT Solution to Customers across various end-user industries.
IPO opens
Nov 7, 2023
IPO Closes
Nov 9, 2023
IPO Size (Rs.)
₹54.49 Cr
IPO Size (shares)
6,564,800 shares
Breakup
Fresh issue ₹49.95 Cr + OFS ₹4.54 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹80 to ₹83
Minimum Lot
1600 Shares
Listing At
NSE SME
QIB (includes anchor)
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Swaraj shares and securities
Registrar
Purva Sharegistry India
Market maker
Share India Securities
About ROX Hi-Tech Limited;
ROX Hi-Tech offers end-to-end IT Solution to Customers across various end-user industries (Application Industries) such as information technology, information technology enabled services, entertainment and media, banking, financial services, and insurance (BFSI), national data centres and government entities including in the defence sector, education and research development institutions.
ROX, headquartered in Chennai, India, is a customer-centric IT solutions provider with a vision to being committed to excellence. Company offers a comprehensive range of distributed IT solutions, including consulting, enterprise and end-user computing, managed print, and network services. They are in the business of providing end to end IT solution provider.
Their offerings comprises of :
Digital Transformation Solutions (Software services, AI, RPA & ML)
Network and Collaboration
IT And OT Security
Data center Solutions (On-premises and Cloud)
IoT, SMART and MEDIA
Smart Edge Devices
The company has been promoted by Jim Rakesh and Sukanya Rakesh.
Financials: ROX Hi-Tech Limited
Particulars / Rs. Lacs
July 31, 2023
March 31, 2023
March 31, 2022
March 31, 2021
Revenue from operations
4,995.96
13,332.79
10,286.22
6,407.18
Profit before tax
906.16
2,047.50
208.04
90.04
Profit after Tax
675.89
1,532.97
151.31
66.15
Share Capital
1,681.88
747.5
747.5
325
Net Worth
3,090.92
2,415.03
882.06
730.75
Earnings per Share (in ₹)
4.02
9.11
0.9
0.39
Net Asset Value per equity
18.38
14.36
5.24
4.34
Total borrowings
2,838.79
2,258.36
1,794.59
1,135.32
Post issue Share Capital
2,284
FV
10.0
IPO price
83.0
EPS Fy23
6.7
PE Fy23
12.4
EPS Fy24 (annualized)
8.9
PE Fy24 (annualized)
9.3
Market cap in Lacs
18,957.2
Market Cap/sales
1.4
Anchor: ROX Hi-Tech IPO
ROX Hi-Tech IPO: Salient Points
With over 22 years of industry experience, the Company have evolved from an IBM Business Partner into a prominent player in the IT segment providing end to end solutions.
Issue proceeds will be used for:
Sr. No.
Particulars
Estimated amount
1.
Funding for Capital Expenditure
Upto 2,200.73
2.
Funding our working capital requirements
Upto 1,500.00
3.
General corporate purposes
rest
More specifically, the Net Fresh Issue Proceeds will be used for :
Funding for Capital Expenditure:
Setting up a Network Operations Centre (NOC) & Security Operations Centre (SOC) at Chennai;
Setting up a Chennai Medical Automation Centre; and
Setting up a Global Software Delivery Center at Noida.
Funding working capital requirements and
General Corporate Expenses
Company has been recognized as preferred partner by the IT equipment manufacturers which include SAP, Cisco, IBM, Google and Lenovo. They presently have the following agreement with these IT companies:
Brand
Valid till
Brief description of the partnership
Area Coverage
SAP
Dec, 26
SAP Gold Partner – Implementation services on S/4 Hana, Private and Public Edition, License and AMS
Global
Cisco
Dec, 26
Premier Partner for Datacenter, Networking, Collaboration and Security
India & South Asia
IBM
Dec, 26
Platinum Partner for IBM Power Server Solution
India & South Asia
Google
Dec, 26
Google Cloud Partner and Google Workspace Partner
India
Lenovo
Sep, 27
Platinum Partner for Datacenter and Endpoints
India & South Asia
Company is working for IT projects for clients like :
Sr. No.
Name of Project in FY 2022-23
Name of Project in FY 2023-24
1
Micron Technology Operations India LLP
Micron Technology Operations India LLP
2
Vestas Technology India Pvt Ltd
Vestas Technology India Pvt Ltd
3
Computer Age Management Services
Vellore Institute of Technology
4
Nippon Paint India Pvt Ltd
Computer Age Management Services
5
Loyola Institute of Business Administration
Bharat Heavy Electricals Limited
6
Larsen and Toubro
Saint Gobain
7
SRM University
8
Transunion
9
Super Auto Forge
10
Nippon Paint India Pvt Ltd
Key Performance Indicators
Particulars / Rs Lacs
July 31, 2023,
Fiscal 2023
Fiscal 2022
Fiscal 2021
Revenue from Operations
4,995.96
13,332.79
10,286.22
6.407.18
Total Revenue
5,001.20
13,398.85
10,297.25
6,547.94
EBITDA
1,013.65
2,301.86
421.66
107.2
PAT
675.89
1,532.97
151.31
66.15
Net Worth
3,090.92
2,415.03
882.06
730.75
Debt To Equity Ratio
0.92
0.93
2.03
1.55
Current Ratio
1.52
1.52
1.16
1.26
Medical automation, powered by AI and advanced technologies, is a key focus area of the company.
ROX is committed to establishing a Centre of Excellence (COE) focused on medical automation, specifically to create an assist system for surgeons using deep learning and AI. These COEs are designed to unite interdisciplinary teams comprising clinicians, researchers, engineers, and data scientists.
It is going for a tie up for revolutionizing Cancer Treatment CyberKnife System with LINAC Technology.
. Company has a track record of financial performance and consistent growth. Its revenue from operations have increased from ₹10,286.22 lakhs in Fiscal 2022 to ₹ 13,332.79 lakhs in Fiscal 2023, thereby recording a growth of 29.62%. Also, during the same period profit after tax has increased from ₹ 151.31 lakhs in Fiscal 2022 to ₹ 1,532.97 lakhs in Fiscal 2023, a growth of 913.12%.
As per the RHP, company has shown Dynacons Syst. as their listed peer. It is trading at a P/E of 18.5.
ROX Hi-Tech IPO is coming at a PE ratio of 12.4x(fy23 earnings) and 13.5x (fy24 annualized earnings)
I intend to apply in ROX Hi-Tech IPO. Company’s performance has been good and its is operating in niche areas of IT infrastructure and end to end implementation of solutions and have a good client list.
GMP as reported on social media has been around Rs. 85 i.e. more than 100%.
Swaraj shares and securities private limited is the lead manager with limited record so far. The IPOs lead managed by them include Micropro Software Solutions, Shoora Designs.
SME IPO are more risky than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational 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.
