Storage Technologies Racks and Rollers is engaged into storage racking system and specializes in design, manufacturing, installation services of metal storage racks, automated warehouses and other storage solutions. Storage Technologies Racks and Rollers IPO aims to raise Rs 29.95 crores. The issue is entirely a fresh issue of 38.4 lakh shares.

About Storage Technologies Racks and Rollers:

• Company was incorporated in the year 2010 and is engaged in a storage racking system.
• They specialise in design, manufacturing, installation services of metal storage racks, automated warehouses and other storage solutions.
• Their range of products and services demonstrates their commitment to providing innovative, efficient solutions for diverse warehousing needs, catering to a wide range of industries each with its own specific storage and logistical requirements, which includes oil & gas, automotive components & aerospace, food & beverages and cold storage, pharmaceutical, textile, retail, FMCG and others.
• Their expansive infrastructure, spanning approximately 56,250 square feet in Singanayakanahalli, Yelahanka Hobli, Karnataka and approximately 56,250 square feet of storage facility supports a streamlined manufacturing process.
• The promoters of the company, are Mr. Khasim Sait, Mr. Mohammad Arif Abdul Gaffar Dor, Mr. Hanif A Khatri, Mr. Syed Azeem, Mr. Afzal Hussain and Mr. Nuumaan Khasim

Financials: Storage Technologies Racks and Rollers IPO

Anchors: Storage Technologies Racks and Rollers IPO

Storage Technologies Racks and Rollers IPO: Salient Points

• The the number of warehouses in India is anticipated to double by the end of this decade. This will bring significant boost to the demand for industrial racking systems in the country.
• The company offers its clients with a wide variety of display and storage racks for commercial as well as industrial purposes
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• They have many clients in a diverse range of sectors.

• For a large automotive OEM they have implemented  fusion of cantilever racking, Multi Tier Long Span Shelving & Drive In racking
• Peers:  company has shown Alphalogic Ind. as their listed peers. Company is a larger player than this company . It is trading at a P/E of 116.
• Large players in India are Godrej & Boyce, Nilkamal ltd., Silver Lining Storage, Storage Technologies & Automation Pvt. Ltd. (Racks and Rollers), Jugenheinrich AG and SSI Schaefer.
• Booming e-commerce sector can act as a key driving factor. Efficient storage, retrieval, and product handling are critical for cost and operational efficiency in both traditional and emerging business models, such as E-commerce..
• Rack Supported Warehouses (RSWs) have emerged as a favoured solution in industrial settings, offering high-density storage and efficient vertical space utilization. Particularly relevant in regions like India and the Middle East & Africa (MEA), where land scarcity or cost is a concern, RSWs optimize storage within limited floor areas
• AS per Company management its poor financial performance in previous 2-3 years was due to big run up in steel prices for orders which were acquired during COVID times.
• Storage Technologies Racks and Rollers IPO is coming at a PE ratio of 207x (FY23 Earnings) and 16.3 x (fy24 annualized earnings)
• I intend to apply in Storage Technologies Racks and Rollers IPO subject to availability of funds. Even as the jump in profitability in recent times raises some eyebrows, the sector looks promising. Shall apply on day 2/3 after seeing the overall response to the issue which should pick up after a tepid response on Day 1.
• GMP as reported on social media has been Rs. 35.
• Oneview Corporate Advisors Private Limited has been the Lead Manager in few SME IPOs with a limited but satisfactory performance on the listing day. These include names like Qualitek Labs Limited, Eastern Logica Infoway Limited.
• SME IPO are much more risky and volatile 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.