Introduction to Rosmerta Digital Services
Rosmerta Digital Services, a dynamic division of the renowned Rosmerta Group, has quickly emerged as a leader in E-governance, Transport, and Road Safety in India. With an ambitious goal to impact 100 million Indians by 2030, the company focuses on leveraging cutting-edge technology to provide innovative solutions across various sectors. As a rapidly expanding player in the market, Rosmerta Digital Services' upcoming IPO (Initial Public Offering) is attracting attention from investors.

IPO Overview
Rosmerta Digital Services plans to raise ₹206.32 Crores through a Fresh Issue of 140.36 Lakh shares in the IPO. The price band is set between ₹140 and ₹147 per equity share, which places the market capitalization at ₹780.36 Crores, assuming the upper price of ₹147. The lot size for the IPO is set at 1,000 shares, and investors must make a minimum investment of ₹1,47,000 for retail participants and ₹2,94,000 for High-Net-Worth Individuals (HNIs) investing in 2 lots (2,000 shares). The subscription period is still to be announced, so investors should keep an eye on the timeline.

Key Investors and Lead Managers
The IPO is managed by Narnolia Financial Services Limited and Beeline Capital Advisors Private Limited as the book-running lead managers. The registrar for the IPO is Link Intime India Private Limited, and the Market Maker for the IPO is Spread X Securities Private Limited.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Rosmerta Digital Services IPO has remained stagnant at ₹0. This is not surprising, considering the company’s financials and current market sentiment. The GMP provides an indication of demand but is not a reliable indicator of listing gains. It is important to note that GMP can fluctuate based on demand and supply in the unofficial market and is not always a true reflection of the IPO's performance.

Day-wise GMP Trend
Recent updates show that the GMP for Rosmerta Digital Services IPO has remained constant at ₹0 for several days:

• 04 December 2024: IPO Price ₹147, Expected Listing Price ₹147, GMP ₹0
• 03 December 2024: IPO Price ₹147, Expected Listing Price ₹147, GMP ₹0
• 02 December 2024: IPO Price ₹147, Expected Listing Price ₹147, GMP ₹0

Anchor Investors
Rosmerta Digital Services has secured ₹58.77 Crores from Anchor Investors at a price of ₹147 per share. The company has allocated 39,98,000 equity shares to these investors, who typically subscribe at the upper end of the price band. Anchor investors are crucial in generating early confidence in the IPO, but the lack of GMP movement suggests that the response has been lukewarm.

IPO Objectives
The funds raised through the IPO will be utilized for various capital expenditures and working capital requirements, including:

1. ₹1,98,625 Thousand for purchasing office space in Mumbai.
2. ₹98,275 Thousand for setting up warehouses, model workshops, and experience centers across India.
3. ₹1,38,480 Thousand for enhancing IT infrastructure.
4. ₹7,50,000 Thousand to fund working capital requirements.
5. Funds will also be directed towards inorganic growth through acquisitions and other strategic initiatives.
   
   

   The Upcoming IPOs in this week and coming weeks are Jungle Camps, Toss The Coin, Sai Life Sciences, Mobikwik, Vishal Mega Mart, Supreme Facility, Purple United, Yash Highvoltage, International Gemmological, Inventurus Knowledge, Rosmerta Digital and Avanse Financial.

   The Current active IPO is Dhanlaxmi Corp and Emerald Tyre Manufacturers.

Financial Performance
Rosmerta Digital Services has shown significant revenue growth. For the period ending September 30, 2024, the revenue from operations stood at ₹9,25,357 Thousand, compared to ₹8,41,907 Thousand for FY23. The EBITDA also saw a notable increase to ₹2,02,438 Thousand. The company's profit after tax (PAT) for the same period reached ₹1,48,372 Thousand, which is a sharp rise from the losses recorded in FY22. These numbers suggest strong growth potential, though ROCE (Return on Capital Employed) and RoE (Return on Equity) for FY24 stand at relatively modest levels, which are below the industry average.

Valuation and Investment Insights
The company is offering shares with a pre-issue EPS of ₹3.00 and a post-issue EPS of ₹2.00, translating to a P/E ratio of 48.84x pre-issue and 73.47x post-issue. In comparison, the industry average P/E ratio is around 282x, indicating that Rosmerta Digital Services is priced more attractively compared to its industry peers. However, the GMP trend and overall pricing suggest that the IPO is fully priced, and there may not be significant listing gains.

IPO Review and Recommendations
Given the current financial performance, Grey Market Premium, and valuation of the Rosmerta Digital Services IPO, the recommendation is to avoid this IPO for listing gains. The financials indicate growth, but the IPO is priced aggressively and the GMP suggests that short-term market sentiment may not drive immediate gains. For long-term investment, investors may want to consider waiting for post-listing performance to reassess the company’s potential.

For further IPO updates and analysis, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

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