Storage Technologies & Automation Ltd IPO (Racks & Rollers IPO)

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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.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

Who are the promoters of the company?

Answer Field

The promoters of the company are Mr Hanif A. Khatri, Mr Khasim Sait, Mr Syed Azeem, Mr Mohammad Arif Abdul Gaffar Dor, Mr Nuumaan Khasim and Mr Afzal Hussain.

Who are the book-running lead managers of the Racks and Rollers IPO?

Answer Field

Oneview Corporate Advisors Private Limited is the book-running lead manager of Racks and Rollers IPO issue.

What is the fresh issue size of the Racks and Rollers IPO?

Answer Field

The fresh issue size of Racks and Rollers IPO has not yet been declared by the company, however, it is composed of 38,40,000 equity shares.

Who is the registrar of the Racks and Rollers IPO?

Answer Field

Integrated Registry Management Services Private Ltd is the registrar of Racks and Rollers IPO.

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