Storage Technologies and Automation Private Limited, well known for its brand Racks and Rollers Limited, is amongst the leading players in the Warehousing, Automation and Storage industry and is all set to launch its IPO. Presently, India currently has about 45% of the total market for industrial racking systems, and it is likely to see significant growth over the next decade. If you are looking forward to leveraging the industry, you can consider investing in the Racks and Rollers IPO.
Keep reading to get a thorough understanding of this company, including its IPO details, financial summary, competitive advantages and the risks associated with its business.
Explore: Storage Technologies & Automation Ltd IPO
IPO Details
The Racks and Rollers Private Limited is coming up with an IPO to raise approximately Rs. 29.95 crore entirely through fresh issues. Here are the details of the IPO:
IPO Opening Date
| 30th April, 2024
|
IPO Closing Date
| 3rd May, 2024
|
Total Issue Size
| Rs. 29.95 crore (comprising 38,40,000 shares)
|
Fresh Issue Size
| Rs. 29.95 crore (comprising 38,40,000 shares)
|
Issue Type
| Book Built IPO
|
Listing At
| BSE SME
|
Face Value
| Rs. 10 shares
|
Price Range
| Rs. 73 to Rs. 78 per share
|
Lot Size
| 1,600 shares
|
About the Company
Storage Technologies and Automation Private Limited, established in 2010, has emerged as one of the leading players in the Storage, Warehousing and Automation industry. The Bangalore-based company is primarily into designing, manufacturing and offering installation services storage racks, automated warehousing facilities and other storage solutions. It caters with its storage and warehousing solutions to a wide range of industries such as automotive components & aerospace, pharmaceuticals, oil & gas, food & beverages, FMCG and more.
The company is primarily driven by a customer-centric approach and is focused on operational efficiency, innovation and delivering top-quality storage products and services. Currently, the company is going for a public issue primarily to meet its rising working capital requirements.
Additional Read: Upcoming IPOs in May 2024
IPO Tentative Timetable
Here is the tentative timetable for Racks and Rollers IPO:
IPO Opening Date
| 30th April, 2024
|
IPO Closing Date
| 3rd May, 2024
|
Cut-off Time for UPI Mandate
| 5 pm, 3rd May, 2024
|
Basis of Allotment
| 6th May 2024
|
Date of Refund Initiation
| 7th May, 2024
|
Credit of Shares to Demat
| 7th May, 2024
|
Listing Date
| 8th May, 2024
|
IPO Lot Size
Here is the lot size of the Racks and Rollers IPO showing minimum/ maximum investment by a retail investor and an HNI.
Application Type
| Number of Lots
| Amount
|
Minimum (Retail Investors)
| 1
| 1,24,800
|
Maximum (Retail Investors)
| 1
| 1,24,800
|
Minimum (S-HNI)
| 2
| 2,49,600
|
Additional Read: How to Invest in an IPO Online
Company Financials
Here is the financial summary of Racks and Rollers IPO for the last three financial years.
Parameters as per the year ending on
| 31st March 2023
(Rs. in millions except EPS)
| 31st March 2022
(Rs. in millions except EPS)
| 31st March 2021
(Rs. in millions except EPS)
|
Total Assets
| 4,004.01
| 3,567.70
| 3,113.04
|
Total Liabilities
| 3,393.62
| 2,507.86
| 2,542.29
|
Total Expenses
| 8,058.38
| 6,991.29
| 4,665.43
|
Total Revenue
| 8,137.12
| 6,989.72
| 4,852.38
|
Profit After Tax
| 48.30
| (20.49)
| 118.42
|
EBITDA
| 435.71
| 268.49
| 303.39
|
Earnings per Share (Basic and Diluted) (Pre-bonus)
| 1.61
| (2.05)
| 11.84
|
Earnings per Share (Basic and Diluted) (Post-bonus)
| 1.61
| (0.68)
| 3.95
|
Additional Read: Difference Between NFO and IPO
Strengths
Here are some of the strengths of Racks and Rollers:
- The company is focused on delivering top-quality storage and warehousing solutions in the industry, as it firmly believes that long-term brand loyalty and positive customer experiences are achieved through quality.
- It is led by a qualified, skilled and experienced senior management team who are backed by a multiple team of experts for a specified field. Moreover, the promoters of the company have extensive industry knowledge and a cumulative industry experience of more than 20 years.
- It offers a wide range of storage and warehousing solutions focusing on economic sustainability and ensuring optimal solutions to the clients rather than just focusing on profitability.
- Its ability to develop and optimise product designs is supported by its integrated manufacturing operations, location-focused approach and commitment to quality and cost-effective processes. This ensures repeat orders from clients and overall consumer satisfaction.
Additional Read: Successful IPO Stories
Risk Involved
All businesses face certain internal and external risk factors. Below are some of the risk factors associated with the business of Racks and Rollers:
- The company is dependent on a few large (high order volume) clients and contributes a major portion of the company's revenue. Therefore, the loss of any of these clients can have a significant impact on the profitability.
- The promoters and directors of the company are parties to several outstanding litigations (lawsuits). Thus, any adverse outcome in any of those lawsuits can have a negative impact on the overall business and profitability.
- The operation and profitability of the company are highly influenced by the availability of raw materials and its price. The company does not have any long-term agreements with its suppliers and any unforeseen situations such as loss of suppliers, price fluctuations and quality issues can directly hamper the overall business of the company.
Additional Read: IPO Blogs
Summary
To wrap up, Storage Technologies & Automation Limited, well known for its brand Racks and Rollers Limited, is all set to launch its IPO on 30th April 2024. As a prominent player in the Storage, Warehousing, and Automation sectors, the company is currently seeking funds to meet its rising working capital needs.
If you are looking forward to investing in the Racks and Rollers IPO, make sure to go through the Red Herring Prospectus carefully.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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