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15 January 2024

Rockingdeals Circular Economy IPO: Revolutionizing Excess Inventory Management

Pioneering Circular Economy:

Rockingdeals Circular Economy IPO has successfully raised the bar, presenting a book-built issue of Rs 21.00 crores, entirely through a fresh issue of 15 lakh shares. The company specializes in bulk trading of excess inventory, re-commerce, and refurbished products, contributing to the circular economy.

Bidding Frenzy and Listing Triumph:

Kicking off on November 22, 2023, and concluding on November 24, 2023, the IPO garnered substantial attention. The allotment was finalized on Tuesday, November 28, 2023, and the shares found their place on the NSE SME platform on November 30, 2023.

Valuation Snapshot:

The IPO featured a price band of ₹136 to ₹140 per share, catering to investors with a minimum lot size of 1000 shares. Retail investors showed keen interest, with the minimum investment requirement set at ₹140,000. High Net Worth Individuals (HNIs) were required to invest a minimum of ₹280,000.

Market Performance Highlights:

The stock demonstrated resilience, opening at ₹489.00, with a high and low of ₹501.60 and ₹467.00, respectively, on January 15, 2024. The 52-week performance reflected a strong trajectory, reaching a high of ₹495.00 and a low of ₹456.00.

IPO Essentials:

- IPO Duration: November 22, 2023, to November 24, 2023
- Listing Date: November 30, 2023
- Face Value: ₹10 per share
- Price Band: ₹136 to ₹140 per share
- Lot Size: 1000 Shares
- Total Issue Size: 1,500,000 shares, aggregating up to ₹21.00 Cr
- Fresh Issue: 1,500,000 shares, aggregating up to ₹21.00 Cr
- Issue Type: Book Built Issue IPO
- Listing At: SME, NSE

Ownership Landscape:

The pre-issue and post-issue shareholding witnessed a transformation, escalating from 4,159,000 to 5,659,000 shares.

Reservation Dynamics:

The IPO distribution strategy comprised:

- QIB: 18.67%
- NII: 14.33%
- Retail: 33.33%
- Market Maker: 5.67%

Investor Allocation Details:

The meticulous allocation included 420,000 shares for anchor investors, 280,000 for QIBs, 215,000 for NIIs, and 500,000 for retail investors. Additionally, 85,000 shares were allocated for the market maker.

Anchor Investor Triumph:

Rockingdeals Circular Economy IPO made a significant stride by raising Rs 5.88 crores from anchor investors on November 21, 2023.

IPO Timeline Highlights:

- IPO Open Date: Wednesday, November 22, 2023
- IPO Close Date: Friday, November 24, 2023
- Basis of Allotment: Tuesday, November 28, 2023
- Initiation of Refunds: Wednesday, November 29, 2023
- Credit of Shares to Demat: Wednesday, November 29, 2023
- Listing Date: Thursday, November 30, 2023
- Cut-off time for UPI mandate confirmation: 5 PM on November 24, 2023

Lot Size Dynamics:

Investors had the flexibility to bid for a minimum of 1000 shares and in multiples thereof.

Application	Lots	Shares	Amount
Retail (Min)	1	1000	₹140,000
Retail (Max)	1	1000	₹140,000
HNI (Min)	2	2000	₹280,000

About Rockingdeals Circular Economy Limited:

Incorporated in 2005, *Rockingdeals* specializes in bulk trading of excess inventory, open-boxed inventory, re-commerce products, and refurbished products. The company facilitates a seamless and transparent process for companies to dispose of their excess inventory, creating a win-win scenario for both sellers and buyers.

Financial Snapshot:

As of June 30, 2023:

- Assets: ₹1,437.45 Lakhs
- Revenue: ₹958.15 Lakhs
- Profit After Tax: ₹125.15 Lakhs
- Net Worth: ₹818.46 Lakhs

Key Financial Indicators:

- ROE: 25.05%
- ROCE: 22.73%
- RoNW: 22.26%
- EPS (Rs): 4.2
- P/E (x): 51.28

Objects of the Issue:

The net proceeds from the IPO are intended for:
A. Meeting working capital requirements. B. Brand positioning, marketing, and advertisement. C. General corporate purposes.

Expert Analysis:

Investors are advised to approach this IPO with caution.

IPO Subscription Status:

As of November 24, 2023, the Rockingdeals Circular Economy IPO witnessed an overwhelming response, subscribing 213.64 times. Notable figures include 47.38 times in the QIB category, 458.60 times in the NII category, and an impressive 201.42 times in the retail category.

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of November 24, 2023.

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