Highlights

• Will issue 27.12 lakh shares of face value of Rs 10 under IPO
• The price band for the IPO has been fixed at Rs 78 per share.
• 8.5 crore will be used for loan repayment, 8.54 crore for capital expenditure requirements

IPO details

Silicon Rental Solutions Limited (SRSL), an IT equipment outsourcing company, has launched its public issue of 27.12 lakhs equity shares on the BSE SME Platform. The Company aims to raise ₹21.15 crore from its public issue with a fixed price brand of ₹98 per equity share. 50 per cent of the issue will be reserved for HNIs, and 50 per cent for the issue has been reserved for retail investors. The issue will close 30 September 2022. Allotment of shares is likely on 6th October 2022 and listing of shares on 11th October 2022. The Lead Manager to the Issue is Hem Securities Limited, a leader in SME IPOs and the Registrar to the Offer is Bigshare Services Pvt. Ltd.

Promoted by Sanjay Harish Motiani (Chairman& Managing Director) and Kanchan Sanjay Motiani (Whole Time Director), the company started the business of renting IT equipment in the year 1994, and possesses an experience of over 28 years each in the IT industry.

Sanjay Harish Motiani, Chairman& Managing Director, said  “Out of the proceeds of the IPO, Rs 8.55 crore will be used to meet the capital expenditure requirements. At the same time, Rs 8.5 crore will be used for loan repayment and the remaining amount will be used for general corporate purposes”

Securities Ltd said “Despite volatility in broader markets, we are confident of good investor response for the IPO as the investor sentiments remain positive for the SME primary market. The valuations are right and the Company has shown strong growth in financials and bottom-line. Runaway returns delivered by some recent issues and the auspicious time of Navratri set the mood for a record number of 14 SME IPOs that are being launched in a single week. The record for highest number of 24 SME IPOs in a single month (October 2018) is also being broken this month with the launch of 27 IPOs in September 2022.  

While the secondary markets have been volatile, but demand for SME IPOs has been better this year. A total of 79 IPOs have debuted on the SME platforms and successfully raised Rs 1363 crore so far in 2022. This year, the demand to list on the SME platform has been robust compared to 59 listings in 2021that raised a total amount Rs 787crore.

SRSL is an IT equipment outsourcing company, engaged in providing end to end IT equipment on a rental and returnable basis in India. The Company serves over 275 customers, across different business sectors, located at over 16 States and 3 Union Territories of India. The proceeds from the proposed public offering will be used by the company for repayment of loans, and working capital requirements.

Its key clients include Tata Motors Insurance Broking, Reliance Broadcast Network, Mahindra Integrated Business Solutions, Bewakoof Brands, Grab a Grub, Epicenter Technologies and Sitel India among many others.

Hem Securities further said “The Company is managed by a team of experienced management having experience in different aspects of the IT hardware industry. We believe the knowledge, strength and entrepreneurial vision of promoters and senior management has been instrumental in driving the strong growth and leverage significant competitive advantage as they seek to grow their business going forward”

 “The Company’s focus on functional and operational excellence has contributed to its track record of strong financial performance. In the Fiscal 2022, Fiscal 2021 and Fiscal 2020, they generated total revenue of Rs. 2467.91 lakhs, Rs. 1375.65 lakhs and Rs. 1227.85 lakhs respectively, EBITDA of Rs. 1930.55 lakhs, Rs. 953.88 lakhs and Rs. 791.21 lakhs respectively and net profit after tax of Rs. 746.54 lakhs, Rs. 270.39 lakhs and Rs. 215.50 lakhs respectively. The Company has reported Return on Net Worth of 43.95%, 31.70% and 36.99% for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. The steady operating cash flows enable the Company to meet the present and future needs of its customers while the strong balance sheet and financial performance instill confidence in the overall health of business”

Contact information

Thanks and Regards

Mr. Aryan Prem Rana

AARYANA MATASCO,

Emerging Company Reputation Management Solutions

 aryan.rana@aarayana.ind.in, aaryanamatatasco@gmail.com