The Rosmerta Digital Services IPO is a book-built issue valued at ₹206.33 crores, offering 140.36 lakh shares in a fresh issue. The IPO opens for subscription on November 18, 2024, and will close on November 21, 2024. The tentative listing date for the IPO is set for November 26, 2024, on the BSE SME platform.

• Issue Size: ₹206.33 crore (entirely fresh issue).
• Price Band: ₹140 to ₹147 per share.
• Lot Size: 1000 shares per lot.
• Minimum Retail Investment: ₹147,000 (1000 shares at ₹147 per share).
• HNI Minimum Investment: 2 lots (2000 shares), amounting to ₹294,000.
• Lead Managers: Narnolia Financial Services Ltd and Beeline Capital Advisors Pvt Ltd.
• Registrar: Link Intime India Private Ltd.
• Market Maker: Spread X Securities.

Objectives of the Rosmerta Digital Services IPO

The proceeds from the Rosmerta Digital Services IPO will be used for several growth initiatives, including:

1. Capital Expenditure for purchasing office space in Mumbai.
2. Capital Expenditure for setting up warehouses, model workshops, and experience centers across various locations in India.
3. Setting up IT infrastructure to enhance digital capabilities.
4. Working Capital Requirements to support ongoing operations.
5. Inorganic Growth through acquisitions and strategic initiatives.
6. General Corporate Purposes.

About Rosmerta Digital Services Limited

Rosmerta Digital Services Limited, a subsidiary of Rosmerta Technologies Limited (RTL), was established in 2021 and has rapidly grown into a significant player in the digitally-enabled services for the automotive industry. The company began with offering vehicle registration services to original equipment manufacturers (OEMs) and has since diversified into a range of services and products, including:

1. Digitally Enabled Services: Services like vehicle registrations, last-mile delivery, and garage services powered by their URJA platform.
2. Digital-Enabled Channel Sales: Distribution of automotive components and accessories, with over 150 partners, expanding into the electric vehicle sector.

The company has significant presence in the electric two-wheeler market, working with major OEMs like OLA Electric and Royal Enfield, and offers platforms such as MyRaasta app to support garage partners.

Competitive Strengths of Rosmerta Digital Services

• Early Entry: A leader in digital registration services for vehicles.
• Technology: Proprietary software like URJA and MyRaasta to streamline processes and enhance customer experience.
• OEM Partnerships: Strong agreements with key OEMs in the automotive sector.
• Pan India Presence: The company operates across India, with expanding reach into newer regions.
• Domain Knowledge: Expertise in automotive services and distribution channels.

As of September 30, 2024, Rosmerta Digital Services employs 505 people and is well-positioned for growth in the rapidly digitalizing automotive sector.

Investment Insights

With a price band set between ₹140 and ₹147, the IPO offers a unique opportunity to invest in a digital services company within the automotive sector, which is undergoing significant transformation. The company’s digital-first approach in vehicle registration and last-mile delivery is a strong competitive edge, particularly in the growing electric vehicle space.

Given the IPO's focus on expanding its infrastructure and technology, it could be attractive for investors seeking exposure to the automotive tech and digital services sectors. However, the relatively small size of the IPO and its niche focus on automotive services means that it might carry higher risk than more diversified investments.

Conclusion: Investment Recommendation

The Rosmerta Digital Services IPO presents a promising investment opportunity in a technology-driven automotive services company. The funds raised will help the company scale operations and expand its digital infrastructure. Investors with an interest in emerging tech in the automotive industry may find this IPO attractive, especially given the company's strong growth trajectory and strategic focus on electric vehicles.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Neelam Lines and Garments, Rosmerta Digital, NTPC Green, Avanse Financial and Zinka Logistics.

The Current active IPO is Sagility India Limited, Swiggy, ACME Solar Holdings and Niva Bupa Health .

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.