Rosmerta Digital Services, biggest SME IPO, to open for subscription on Nov 18: Check details here

Rosmerta Digital Services

The Rs 206-crore initial share sale of Rosmerta Digital Services, the biggest ever IPO from the SME segment, is set to open for subscription on November 18, with a price band at Rs 140-147 per share. In fact, this is the first IPO with more than Rs 200 crore size

Before Rosmerta, Danish Power (Rs 197.9 crore), KP Green Engineering (Rs 189.5 crore), and Sahasra Electronics Solutions (Rs 186.16 crore) were the biggest IPOs. This seems to be indicating that the size of IPOs has gradually been increasing.

Furthermore, in 2024 so far, there are 10 IPOs (including Rosmerta) with minimum size of Rs 100 crore, against only one (Spectrum Talent Management) in the previous year.

In fact, this is even bigger than the smallest IPOs (in size) from the mainboard segments like Diffusion Engineers, Manba Finance, Shree Tirupati Balajee Agro Trading Company, Gala Precision Engineering, Saraswati Saree Depot, Vraj Iron and Steel, Akme Fintrade India, SRM Contractors, Vibhor Steel Tubes, and Nova AgriTech.

Rosmerta Digital Services provides digitally enabled services and digitally enabled channel sales of automotive component & accessories.

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Its book-built issue comprises of solely fresh issue of 1.4 crore equity shares. Thus, the entire IPO proceeds (excluding offer expenses) will be utilised by the company.

The Haryana-based company will spend Rs 118.5 crore out of the net issue proceeds for purchase of office space in Mumbai; setting up warehouses, model workshops and experience centers in various parts of India; setting up IT infrastructure; and working capital requirement. The remainder funds will be used for inorganic growth through acquisitions & other strategic initiatives and general corporate purposes.

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The anchor book for institutional investors will be opened for a day on November 14, while the maiden public issue will close for all investors on November 21.

The company will finalise the basis of allotment of its IPO shares by November 22, and the eligible investors will get their shares in the demat accounts by November 25.

Investors can start trading in Rosmerta shares on the BSE SME platform, effective November 26.

On the financials front, Rosmerta has reported net profit at Rs 10.6 crore for the year ended March 2024, increasing sharply from Rs 1.6 crore in the previous year. Revenue from operations during the same period jumped to Rs 84.19 crore, up from Rs 29.8 crore.

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In the six months period ended September 2024, i.e. in the current financial year so far, the company already crossed entire previous year's bottomline and topline numbers, recording profit at Rs 14.8 crore on revenue of Rs 92.2 crore.

Narnolia Financial Services, and Beeline Capital Advisors are acting as the merchant bankers to the issue.