ROX Hi-Tech IPO (NSE SME) Overview

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 opensNov 7, 2023
IPO ClosesNov 9, 2023
IPO Size (Rs.)₹54.49 Cr
IPO Size (shares)6,564,800 shares
BreakupFresh issue ₹49.95 Cr + OFS ₹4.54 Cr
Face Value:₹ 10
IPO Price in Rs :₹80 to ₹83
Minimum Lot1600 Shares
Listing AtNSE SME
QIB (includes anchor)~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerSwaraj shares and securities
RegistrarPurva Sharegistry India
Market makerShare 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. LacsJuly 31, 2023March 31, 2023March 31, 2022March 31, 2021
Revenue from operations4,995.9613,332.7910,286.226,407.18
Profit before tax 906.162,047.50208.0490.04
Profit after Tax675.891,532.97151.3166.15
Share Capital1,681.88747.5747.5325
Net Worth3,090.922,415.03882.06730.75
Earnings per Share (in ₹)
Net  Asset  Value  per equity18.3814.365.244.34
Total borrowings2,838.792,258.361,794.591,135.32
Post issue Share Capital2,284   
IPO price83.0   
EPS Fy236.7   
PE Fy2312.4   
EPS Fy24 (annualized)8.9   
PE Fy24  (annualized)9.3   
Market cap in Lacs18,957.2   
Market Cap/sales1.4   

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.ParticularsEstimated amount
1.Funding for Capital ExpenditureUpto 2,200.73
2.Funding our working capital requirementsUpto 1,500.00
3.General corporate purposesrest
  • 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:
BrandValid tillBrief description of the partnershipArea Coverage
SAPDec, 26SAP Gold Partner – Implementation services  on  S/4 Hana, Private and Public Edition, License and AMSGlobal
CiscoDec, 26Premier    Partner    for    Datacenter,    Networking, Collaboration and SecurityIndia & South Asia
IBMDec, 26Platinum Partner for IBM Power Server SolutionIndia & South Asia
GoogleDec, 26Google Cloud Partner and Google Workspace PartnerIndia
LenovoSep, 27Platinum Partner for Datacenter and EndpointsIndia & South Asia

Company is working for IT projects for clients like :

Sr. No.Name of Project in FY 2022-23Name of Project in FY 2023-24
1Micron Technology Operations India LLPMicron Technology Operations India LLP
2Vestas Technology India Pvt LtdVestas Technology India Pvt Ltd
3Computer Age Management ServicesVellore Institute of Technology
4Nippon Paint India Pvt LtdComputer Age Management Services
5Loyola Institute of Business AdministrationBharat Heavy Electricals Limited
6Larsen and ToubroSaint Gobain
7 SRM University
8 Transunion
9 Super Auto Forge
10 Nippon Paint India Pvt Ltd

 Key Performance Indicators

Particulars / Rs LacsJuly 31, 2023,Fiscal 2023Fiscal 2022Fiscal 2021
Revenue from Operations4,995.9613,332.7910,286.226.407.18
Total Revenue5,001.2013,398.8510,297.256,547.94
Net Worth3,090.922,415.03882.06730.75
Debt To Equity Ratio0.920.932.031.55
Current Ratio1.521.521.161.26
  • 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.

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