IPO Overview

Rosmerta Digital Services, a prominent division of the Rosmerta Group, has announced its upcoming IPO valued at ₹206.32 Crores. The issue is entirely a fresh issuance of 140.36 lakh equity shares.

• Price Band: ₹140 to ₹147 per share.
• Market Capitalization: ₹780.36 Crores at the upper price band.
• Lot Size: 1,000 shares, requiring a minimum investment of ₹1,47,000 for retail investors and ₹2,94,000 for HNIs (2 lots).
• Lead Managers: Narnolia Financial Services Limited and Beeline Capital Advisors Private Limited.
• Registrar: Link Intime India Private Limited.
• Market Maker: Spread X Securities Private Limited.

IPO Objectives

Proceeds from the IPO will support strategic growth initiatives:

1. ₹1.99 Crores: Purchase of office space in Mumbai.
2. ₹98.28 Crores: Establishing warehouses, model workshops, and experience centers.
3. ₹1.38 Crores: Setting up IT infrastructure.
4. ₹7.5 Crores: Working capital requirements.
5. Funding acquisitions and corporate purposes.

About Rosmerta Digital Services

Rosmerta Digital Services Limited is a subsidiary of Rosmerta Technologies Limited. Initially focused on vehicle registration for OEMs, the company has diversified into services such as garage solutions, last-mile delivery, and auto accessories sales. With a mission to impact 100 million Indians by 2030, the company leverages its promoter's extensive expertise in transport and road safety.

Key strengths include:

1. Early entry into digital registration.
2. Proprietary URJA Software.
3. Pan-India presence and strong OEM partnerships.

Industry Analysis

E-Governance in India

India’s e-governance initiatives are revolutionizing service delivery, driven by a robust digital infrastructure. Key developments include:

• Over 900 million internet users.
• Programs like the National e-Governance Plan (NeGP), focusing on accessibility and transparency.
• Direct Benefit Transfers (DBT), which have grown by 192% since 2015.

Indian Automotive Sector

India’s automobile industry plays a pivotal role in the economy, contributing 7.1% to GDP and employing 19 million people. Highlights:

• Production: 25.9 million vehicles in FY23.
• Exports: 47.6 lakh vehicles in FY23.
• Trends: Electrification of vehicles and increasing rural market penetration.

Automotive Components Industry

With a market value of ₹2.9 lakh crore, the auto components sector is projected to reach US$ 200 billion by FY26. Exports are growing, with North America and Europe as major destinations.

Electric Vehicles (EVs)

India’s EV market is set to grow at a CAGR of 66.52%, driven by government incentives like FAME and rising consumer demand. Goals include:

• 80 million EVs on roads by 2030.
• Establishing 1.32 million EV charging stations nationwide.

Growth Strategies

Rosmerta Digital plans to enhance its footprint through:

1. Expansion into vehicle ownership and aftermarket segments.
2. Scaling M2M KYC services and IT infrastructure.
3. Strengthening retail networks for auto components and accessories.

Risk Factors

1. Heavy reliance on revenues from Karnataka and Maharashtra.
2. Dependence on a single customer for significant revenue.
3. Vulnerability to automotive sector performance fluctuations.

The Upcoming IPOs in this week and coming weeks are Nisus Finance, Emerald Tyre Manufacturers, Jungle Camps, Purple United, Rosmerta Digital and Avanse Financial.The Current active IPO is Ganesh Infraworld and Suraksha Diagnostic.For more details on upcoming IPOs, you can visit our page at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with the latest news on IPO updates on Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in Choice Broking FinX.