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About Rosmerta Digital Services Ltd IPO
Rosmerta Digital Services is set to roll out a Rs 206.33 crore book. This issue will be a complete fresh issue of 140.36 lakh shares. The company is set to debut on BSE SME.
Retail investors need to invest a minimum of Rs 147,000. HNI investors require a minimum investment of Rs 294,000 for 2,000 shares, which is 2 lots.
Link Intime India Pvt Ltd is serving as the registrar for the issue. Narnolia Financial Services Ltd and Beeline Capital Advisors Pvt Ltd are the book running lead managers in this IPO. The market maker for the same is Spread X Securities.
Rosmerta Digital Services IPO GMP Details:
The most recent GMP of the IPO is Rs 31, as of 6th November, 2024 12:59 PM. The IPO has a price band of Rs 147. The estimated listing price for Rosmerta Digital Services is Rs 178, reflecting a potential gain of 21.09% per share.
Rosmerta Digital Services Ltd IPO Details
| Rosmerta Digital Services Ltd IPO Opening Date and Closing Date | 18th November to 21st November |
| Face Value | Rs 2 per share |
| Price Band | Rs 140 to Rs 147 per share |
| Lot Size | 1,000 Shares |
| Total Issue Size | 14,036,000 shares (aggregating up to Rs 206.33 Cr) |
| Fresh Issue | 14,036,000 shares (aggregating up to Rs 206.33 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | BSE SME |
| Shareholding Pre-Issue | 39,050,000 |
| Shareholding Post Issue | 53,086,000 |
| Market Maker Portion | 703,000 Shares – Spread X Securities |
| Basis of Allotment | Friday, 22nd November, 2024 |
| Refund Initiation | Monday, 25th November, 2024 |
| Credit of Shares in Demat | Monday, 25h November, 2024 |
| Listing Date | Tuesday, 26th November, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 21st November, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Rosmerta Digital Services Ltd Company Insights
Rosmerta Digital Services Limited, founded in 2021 as a part of Rosmerta Technologies Limited (RTL), offers digital services and distribution channels for automotive components and accessories.
Rosmerta Digital Services initially provided vehicle registration services for OEMs and has expanded to offer garage services, last-mile delivery, and sales of automotive parts and accessories.
The company focuses on two main areas: Digitally Enabled Services and Digitally Enabled Channel Sales.
Digitally Enabled Services includes tech-based vehicle registrations, last-mile delivery, and garage services, simplifying processes for clients like Cars24. Its URJA platform supports tasks like title transfers, regulatory approvals, and HSRP delivery.
Digital Enabled Channel Sales, launched in 2023, distributes automotive components through 150+ partners. Rosmerta is a leader in electric two-wheeler registration and collaborates with OLA Electric and Royal Enfield.
The company’s MyRaasta app supports garage partners, enhancing its efficiency and customer satisfaction.
As of 30th September, 2024, the company had a total of 505 employees.
Rosmerta Digital Services Ltd Lot Size, Shares, And Their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1,000 | Rs 147,000 |
| Retail (Max) | 1 | 1,000 | Rs 147,000 |
| HNI (Min) | 2 | 2,000 | Rs 294,000 |
Investor categories and Rosmerta Digital Services Ltd shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Rosmerta Digital Services Ltd IPO Anchor Investors Details
| Bid Date | 14th November, 2024 |
| Shares Offered | 3,998,000 |
| Anchor Portion Size (in Cr) | 58.77 |
| Anchor lock-in period end date for 50% shares (30 Days) | 22nd December, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | 20th February, 2025 |
Rosmerta Digital Services Ltd Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 3,744.53 Lakh | Rs 1,932.43 Lakh |
| Revenue | Rs 8,419.07 Lakh | Rs 2,978.91 Lakh |
| Profit After Tax | Rs 1,056.52 Lakh | Rs 161.87 Lakh |
| Net Worth | Rs 1,221.32 Lakh | Rs 159.16 Lakh |
| Reserves and Supplies | Rs 1,220.32 Lakh | Rs 158.16 Lakh |
| Total Borrowing | Rs 1,499.01 Lakh | Rs 1,318.28 Lakh |
Should You Invest in the Rosmerta Digital Services Ltd IPO?
Financial Performance:
Revenue: The company generated Rs 9,253.57 lakh in revenue during the period ended on 30th September, 2024.
Profit After Tax (PAT): The company earned a profit of Rs 1,483.72 lakh after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 7,099.34 lakh.
Financial Position:
Assets: The company’s total assets amounted to Rs 10,013.07 lakh.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 6,318.34 lakh.
Rosmerta IPO Key Performance Indicators (KPI) and Their values:
The market capitalisation of Rosmerta Digital Services Ltd IPO is Rs 780.36 crore. As of 30th September, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 0.36% |
| Return on Capital Employed (ROCE) | 0.28% |
| Return on Net Worth (RoNW) | 20.72% |
| Price to Book Value (P/BV) | 8.09 |
| PAT Margin (%) | 16.08 |
Objectives of Rosmerta Digital IPO:
The company plans to use the net proceeds from the issue to:
- Fund capital expenses for purchasing office space in Mumbai.
- Finance setting up warehouses, workshops, and experience centres across India.
- Invest in IT infrastructure.
- Meet the company’s working capital needs.
- Support growth through acquisitions and strategic initiatives.
- Cover general corporate purposes.
Some major risks associated with the Rosmerta IPO are:
- Regulatory Dependence: The company’s revenue may be affected by changes in government policies in the automotive sector.
- High-Cost Expansion: Rosmerta’s plans for new warehouses and IT infrastructure could pressure cash flows if not well-managed.
- Rising Competition: More companies entering the digital automotive services market may impact Rosmerta’s market share.
Frequently Asked Questions (FAQs)
What is the price band of Rosmerta Digital Services’ IPO?
Price band has been fixed at Rs 140 and Rs 147 per share.
What is the retail investor quota of Rosmerta Digital Services’ IPO?
A minimum of 35% shares shall go to the retail investors.
Where can I track Rosmerta Digital Services’ stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Rosmerta Digital Services’ Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Rosmerta Digital Services?
The cut-off time is 21st November, 2024, at 5 PM; however, most brokers stop accepting applications between 1-3 PM.
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