Slone Infosystems
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 May 2024 – 07 May 2024
- Listing date
- 10 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹79 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹11.06 Cr
- Market cap at offer price
- ₹41.63 Cr
- Promoter holding
- 99.43% → 73.01% pre-issue → post-issue
- ISIN
- INE0SMA01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Jawa Capital Services Pvt.Ltd.
- Registered office
- Office 203, 2nd Floor, Mohini Heights CHS LTD, 5th Road Khar West Behind Rajasthan Hotel, Khar Delivery, 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 | 70,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹79
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,26,400 |
| S-HNI (min) | 2 | 3,200 | ₹2,52,800 |
| S-HNI (max) | 7 | 11,200 | ₹8,84,800 |
| B-HNI (min) | 8 | 12,800 | ₹10,11,200 |
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 (₹) | 1.93 | 7.20 |
| P/E (×) | 40.93 | 10.97 |
| Price to book (×) | 2.57 | — |
| Market cap | — | ₹41.63 Cr |
Key performance indicators
- Return on net worth
- 23.98%
- ROCE
- 34.44%
- Debt / equity
- 0.33
- PAT margin
- 8.36%
- NAV per share
- ₹30.69
- Price to book
- 2.57
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Slone Infosystems
Slone Infosystems Limited was incorporated on December 29, 2022 as a private limited company and subsequently acquired the business of M/s Sam Computers, a sole proprietorship of promoter Mr. Rajesh Srichand Khanna, on March 1, 2023. The company converted to public limited status on December 12, 2023. The company is engaged in trading and servicing of IT equipment including laptops, desktops, printers, servers and other peripherals on a rental and returnable basis to clients across various industries including BPO, media, pharmaceutical, and infotech sectors. Revenue is generated primarily from the sale and rental of IT equipment.
Company Analysis
from RHPSlone Infosystems Limited is an IT equipment outsourcing company providing end-to-end IT equipment on rental and returnable basis, operating in the IT services and rental sectors.
Slone Infosystems Limited was incorporated on December 29, 2022 as a private limited company and subsequently acquired the business of M/s Sam Computers, a sole proprietorship of promoter Mr. Rajesh Srichand Khanna, on March 1, 2023. The company converted to public limited status on December 12, 2023. The company is engaged in trading and servicing of IT equipment including laptops, desktops, printers, servers and other peripherals on a rental and returnable basis to clients across various industries including BPO, media, pharmaceutical, and infotech sectors. Revenue is generated primarily from the sale and rental of IT equipment.
Objects of the Issue
- Capital Expenditure towards purchase of Laptops, Desktops, SSD and RAM ₹500.76 Lakh p.19
- Repayment of Loan ₹392.12 Lakh p.19
- General Corporate Purpose ₹128.77 Lakh p.19
- To meet expenses related to the Issue ₹84.35 Lakh p.19
- Capital Expenditure towards purchase of Laptops, Desktops, SSD and RAM ₹500.76 Lakhs p.81
- Repayment/prepayment of certain borrowings availed by our Company ₹392.12 Lakhs p.81
- General Corporate Purpose ₹128.77 Lakhs p.81
Issue Structure
- Total Issue
- ₹1,106.00 Lakh
- Fresh Issue
- 14,00,000 Equity Shares aggregating ₹1,106.00 Lakh
- Offer for Sale
- Nil
- Price Band
- Fixed Price of ₹79 per Equity Share
- Lot Size
- 50 Equity Shares (minimum); based on Issue Price of ₹79, minimum lot size is 1,600 Equity Shares for market making
- Face Value
- ₹10 per Equity Share
Business Model
The company operates as an IT equipment outsourcing provider, generating revenue from the rental and sale of IT equipment (laptops, desktops, printers, servers and peripherals) on a returnable basis. For the nine months period ended December 31, 2023, revenue from sale of IT equipment represented 80.18% of total revenue. The company does not manufacture IT products but procures them from suppliers and provides them to customers on rental basis.
Business Segments
SWOT Analysis
- • Experienced promoter team with 25+ years in IT equipment rental sector(p.35)
- • Established customer base with significant revenue concentration(p.27)
- • Profitable operations with growing revenue trajectory(p.49)
- • Experienced promoter and management team with 28+ years in IT hardware(p.116)
- • Wide product portfolio for customized IT solutions across customer segments(p.116)
- • Diverse domestic customer base across multiple industries(p.116)
- • Strong customer relationships with high retention from repeat business(p.116)
- • Multiple ISO certifications demonstrating quality and management standards(p.110)
- • Strong revenue and EBITDA growth trajectory(p.99)
- • Established 25-year track record in IT equipment trading and rental business(p.135)
- • Strong revenue growth trajectory with EBITDA margin improvement(p.204)
- • Healthy current ratio indicating strong liquidity position(p.204)
- • Diversified revenue streams from sales, rentals and IT services(p.196)
- • Low debt-to-equity ratio indicating financial stability(p.197)
- • Diversified revenue streams with high-margin services segment(p.207)
- • Strong revenue growth trajectory over multiple years(p.209)
- • Significant profitability improvement year-on-year(p.209)
- • Multiple ISO certifications demonstrating quality and compliance standards(p.219)
- • Very limited operating history as a corporate entity(p.25)
- • History of deficiencies in regulatory filings and compliance(p.26)
- • Significant dependence on few key customers with no long-term agreements(p.27)
- • Dependence on limited number of external suppliers without long-term contracts(p.29)
- • Substantial outstanding borrowings with personal guarantees from promoter(p.31)
- • High concentration of trade receivables relative to assets and sales(p.36)
- • Negative cash flows from operations in recent periods(p.30)
- • Premises occupied under leave and licence agreements, not owned(p.31)
- • Extreme promoter concentration with 98.18% of pre-issue shareholding(p.76)
- • Significant outstanding debt requiring repayment from IPO proceeds(p.84)
- • Geographic revenue concentration with 95.73% from Maharashtra(p.110)
- • Very small employee base of only 8 permanent staff plus 6 contract workers(p.118)
- • Limited physical infrastructure with only 720 sq ft registered office and 500 sq ft corporate office(p.111)
- • No established supplier partnerships with IT equipment manufacturers(p.112)
- • Promoter concentration with 98.18% shareholding by single individual(p.175)
- • Heavy reliance on related party transactions and loans(p.192)
- • Negative operating cash flow in recent period despite profitability(p.204)
- • Recently converted from sole proprietorship with limited institutional governance history(p.171)
- • Heavy dependence on limited customer base(p.211)
- • Concentrated supplier dependency(p.212)
- • Highly leveraged capital structure with secured debt dependency(p.213)
- • Material liabilities owed to small and medium enterprises and creditors(p.216)
- • Low margin trading segment dominates revenue mix(p.207)
- • Growing IT equipment outsourcing and rental market in India(p.18)
- • Expansion into new geographic markets beyond Maharashtra(p.33)
- • Growth in emerging technologies and IT services demand(p.18)
- • Planned capital expenditure to enhance IT equipment inventory(p.19)
- • Listing on NSE-EMERGE to improve access to capital and brand visibility(p.2)
- • Expansion of rental services segment with growing market demand(p.83)
- • Growth in Indian IT hardware sector driven by emerging technologies and Make in India(p.106)
- • Rising demand for IT equipment rental due to work-from-home and business continuity needs(p.108)
- • Expansion of customer base through targeted marketing and service enhancement(p.117)
- • Integration of latest technologies to strengthen customer relationships(p.117)
- • Expansion into IT consulting and support services with emerging revenue contribution(p.196)
- • Growing demand for flexible IT equipment acquisition and rental solutions(p.198)
- • Penetration into corporate segment requiring managed IT solutions(p.198)
- • Growth in services segment with superior margins(p.207)
- • Expansion via customer onboarding and existing customer growth(p.209)
- • Migration to main board for expanded capital markets access(p.238)
- • High competition from organized and unorganized players in IT sector(p.29)
- • Exposure to rapid technological obsolescence of IT equipment(p.34)
- • Dependence on IT sector performance and business cycles in India(p.35)
- • Exposure to equipment theft, damage and non-recovery risks(p.35)
- • Vulnerability to changes in government taxes and regulatory policies(p.35)
- • Macroeconomic slowdown and reduced corporate IT spending(p.43)
- • Geographic concentration risk with 95.73% revenue from Maharashtra(p.33)
- • Working capital pressure from customer payment delays(p.38)
- • Highly fragmented IT sector with low entry barriers attracting new competitors(p.115)
- • Intense price competition from organized and unorganized players(p.115)
- • Competition from larger established players with greater resources and brand recognition(p.115)
- • Risk of pricing pressure and market share erosion from new entrants(p.115)
- • Dependence on working capital facilities from banks(p.84)
- • Vulnerability to changes in technology and rapid obsolescence of IT hardware(p.199)
- • Exposure to general economic downturns affecting corporate IT spending(p.199)
- • Regulatory and compliance risks in IT equipment business(p.199)
- • Cyclical and economically sensitive business operations(p.211)
- • Intense competitive pressure in the sector(p.212)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajesh Srichand Khanna | Promoter | 98.18% | 72.09% |
| Mrs. Manisha Rajesh Khanna | Promoter | 0.63% | 0.46% |
| Mr. Mohit Rajesh Khanna | Promoter | 0.62% | 0.46% |
| Rajesh Srichand Khanna | Promoter | 98.18% | 72.09% |
| Manisha Rajesh Khanna | Promoter | 0.63% | 0.46% |
| Mohit Rajesh Khanna | Promoter | 0.62% | 0.46% |
| Rajesh Srichand Khanna | Promoter | 98.18% | 72.09% |
| Manisha Rajesh Khanna | Promoter | 0.63% | 0.46% |
| Mohit Rajesh Khanna | Promoter | 0.62% | 0.46% |
| Rajesh Srichand Khanna | Promoter | — | at least 20% |
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.