Silicon Rental Solutions SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Sep 2022 – 30 Sep 2022
- Listing date
- 10 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹78 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹21.15 Cr
- Market cap at offer price
- ₹80.12 Cr
- Promoter holding
- 99.79% → 73.44% pre-issue → post-issue
- ISIN
- INE0MNV01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 5, Mohini Heights, Ground Floor, Plot No.579/580, 5th Road, Khar (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,36,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹78
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,24,800 |
| S-HNI (min) | 2 | 3,200 | ₹2,49,600 |
| S-HNI (max) | 8 | 12,800 | ₹9,98,400 |
| B-HNI (min) | 9 | 14,400 | ₹11,23,200 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 12.48 | — |
| P/E (×) | 6.25 | — |
| Market cap | — | ₹80.12 Cr |
Key performance indicators
- Return on net worth
- 43.95%
- ROCE
- 30.80%
- Debt / equity
- 0.98
- PAT margin
- 30.25%
- NAV per share
- ₹28.40
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Silicon Rental Solutions SME
Silicon Rental Solutions Limited, incorporated on January 28, 2016 and converted to a public company on July 22, 2022, is an IT equipment outsourcing company engaged in providing end-to-end IT equipment rentals on a returnable basis across India. The company provides laptops, desktops, printers, servers and other peripherals like CCTV cameras, projectors, and storage devices on rental basis primarily to small, medium and large corporates. Based on client IT requirements, the company offers tailor-made rental schemes suited to customer needs, providing flexibility and advantages to acquire requisite equipment while maximizing productivity without compromising IT budgets. Additionally, the company sells used IT equipment to clients as per their requirements. The company generated total income of ₹2,467.91 lakhs in FY2022 with a profit after tax of ₹746.54 lakhs.
Company Analysis
from RHPSilicon Rental Solutions Limited is an IT equipment outsourcing company that provides laptops, desktops, printers, servers and peripherals on rental and returnable basis in India.
Silicon Rental Solutions Limited, incorporated on January 28, 2016 and converted to a public company on July 22, 2022, is an IT equipment outsourcing company engaged in providing end-to-end IT equipment rentals on a returnable basis across India. The company provides laptops, desktops, printers, servers and other peripherals like CCTV cameras, projectors, and storage devices on rental basis primarily to small, medium and large corporates. Based on client IT requirements, the company offers tailor-made rental schemes suited to customer needs, providing flexibility and advantages to acquire requisite equipment while maximizing productivity without compromising IT budgets. Additionally, the company sells used IT equipment to clients as per their requirements. The company generated total income of ₹2,467.91 lakhs in FY2022 with a profit after tax of ₹746.54 lakhs.
Objects of the Issue
- Capital Expenditure requirements relating to IT equipments ₹854.78 lakhs p.19
- Prepayment or repayment of all or a portion of certain outstanding borrowings ₹850.00 lakhs p.19
- General Corporate Purpose ₹258.74 lakhs p.19
- To meet Capital Expenditure requirements relating to IT equipments ₹854.78 Lakhs p.67
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company ₹850.00 Lakhs p.67
- General Corporate Purpose ₹258.74 Lakhs p.67
- Issue expenses ₹151.84 Lakhs p.70
- Repayment of borrowings Rs. 850 lakhs p.164
Issue Structure
- Total Issue
- ₹2,115.36 lakhs
- Fresh Issue
- ₹2,115.36 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹78 per equity share
- Lot Size
- 1,600 Equity shares
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through rental of IT equipment to corporate clients on flexible lease terms (typically 30-60 days credit period), and supplementary revenue from sale of used IT equipment. Revenue from operations in FY2022 was ₹2,460.94 lakhs.
Business Segments
SWOT Analysis
- • Significant revenue growth trajectory(p.25)
- • Growing profitability and positive cash generation(p.20)
- • Strong net worth improvement(p.20)
- • Expanding asset base for operations(p.24)
- • Positive cash position(p.42)
- • Wide range of IT equipment offerings with customization capability(p.90)
- • Diverse customer base across multiple industries and geographies(p.90)
- • Experienced management team with 28 years in IT hardware industry(p.91)
- • Strong long-term customer relationships with high retention(p.91)
- • Strong and growing financial performance(p.91)
- • Cost-effective integrated offerings with quality focus(p.93)
- • Experienced management team with IT industry background(p.122)
- • Strong revenue growth trajectory(p.159)
- • Improved profitability and net profit margin(p.160)
- • Substantial fixed asset base and operational infrastructure(p.129)
- • Positive cash position and liquidity(p.129)
- • Heavy dependence on small number of major clients(p.25)
- • Lack of formal agreements with majority of clients(p.28)
- • High concentration in single geographic region(p.31)
- • High debt burden and personal guarantees by promoters(p.34)
- • Dependence on key promoter and management personnel(p.32)
- • Non-compliance with regulatory requirements(p.29)
- • Unregistered trademark and intellectual property concerns(p.32)
- • High exposure to customer credit risk(p.31)
- • Concentrated revenue from single state; Maharashtra accounts for 87.26% of revenue(p.89)
- • Small scale operations with only 27 employees as of July 31, 2022(p.94)
- • No intellectual property assets owned by company(p.94)
- • Dependence on third-party logistics and service vendors for operations(p.94)
- • Heavy dependence on few major customers(p.162)
- • Dependence on limited number of suppliers(p.162)
- • High leverage and debt burden(p.151)
- • Significant finance costs from borrowings(p.160)
- • Concentration of ownership among promoters(p.121)
- • Income tax litigations involving promoters and company(p.166)
- • Expansion of IT equipment rental market in India(p.19)
- • Growing FDI in IT sector(p.19)
- • Expected growth in IT industry revenue(p.19)
- • Planned expansion into new geographic markets(p.31)
- • Capital investment planned for equipment acquisition(p.32)
- • Expansion into Tier 2 and Tier 3 cities with growing IT infrastructure demand(p.91)
- • Growing IT equipment rental demand driven by digitalization and work-from-home trends(p.87)
- • India's IT sector growth with expected investment increase to US$ 101.8 billion by 2022(p.83)
- • Opportunity to expand customer base through acquisition of higher-value customers(p.91)
- • Rapid digitalization creating demand for IT infrastructure(p.157)
- • Growing market for IT equipment rental services(p.157)
- • Cost optimization opportunity for customers through rental model(p.157)
- • Expansion in supply of diverse IT equipment categories(p.157)
- • Rapid technological obsolescence of IT equipment inventory(p.25)
- • Heavy reliance on single supplier(p.26)
- • Intense competition in IT equipment rental market(p.33)
- • Competition from promoter group entity(p.33)
- • Risk of equipment theft and damage at client premises(p.29)
- • COVID-19 pandemic uncertainty(p.37)
- • Indian economic slowdown risk(p.38)
- • Changes in Indian tax laws and regulations(p.38)
- • Natural calamities impact(p.39)
- • Political instability in India(p.39)
- • Inadequate insurance coverage(p.28)
- • Highly competitive IT products and services market with low entry barriers(p.93)
- • Risk of rapid technology obsolescence in IT hardware sector(p.92)
- • Global economic slowdown and uncertainty affecting IT spending(p.77)
- • Supply chain disruptions and inflation pressures affecting equipment costs(p.78)
- • Regulatory changes and compliance costs(p.158)
- • Rapid technological obsolescence of rental equipment(p.158)
- • Economic cycles affecting corporate IT spending(p.158)
- • COVID-19 and pandemic-related disruptions(p.158)
- • Competition in IT equipment rental market(p.162)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sanjay Harish Motiani | Promoter | 56.93% | 41.90% |
| Kanchan Sanjay Motiani | Promoter | 21.43% | 15.77% |
| Anushka Sanjay Motiani | Promoter | 10.71% | 7.89% |
| Nikhil Sanjay Motiani | Promoter | 10.71% | 7.89% |
| Sanjay Harish Motiani | Promoter | 56.93% | 41.90% |
| Kanchan Sanjay Motiani | Promoter | 21.43% | 15.77% |
| Anushka Sanjay Motiani | Promoter | 10.71% | 7.89% |
| Nikhil Sanjay Motiani | Promoter | 10.71% | 7.89% |
| Sanjay Harish Motiani | Promoter | 56.93% | — |
| Kanchan Sanjay Motiani | Promoter | 21.43% | — |
| Anushka Sanjay Motiani | Promoter | 10.71% | — |
| Nikhil Sanjay Motiani | Promoter | 10.71% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.