Balaji Solutions Limited IPO

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i. Balaji Solutions is an IT hardware & peripherals and mobile accessories company engaged in the business of
(i) manufacturing and branding of products under the flagship brand i.e. “Foxin” (“Foxin Products”);
(ii) original equipment manufacturers (“OEMs”) ranging from sourcing of components, designing, manufacturing, quality testing as per the specifications provided by certain brand owners; and
(iii) distribution of various IT hardware & peripherals, mobile accessories, consumables and surveillance products of certain brand owners.

ii. Over the years they have been able to build its presence in India through a wide range of quality consumer products at affordable prices and through their dealer channels in the electronic industry.

iii. The company currently classify its business under the following 3 (three) verticals:

Manufacturing: They carry out the business of manufacturing of products under its flagship brand “Foxin” such as. These includes the following:
 i. mobile accessories (USB data cables, power bank, mobile chargers),
ii. hearables and audio products (earphones, true wireless stereo (“TWS”), headphone and neckband) etc.,

Branding: They carry out the business of marketing and selling of their products which are manufactured and sourced from third parties across India under its flagship brand “Foxin”. These include the following:
i.  hearables and audio products (multi-media bluetooth speakers, TWS, tower speakers, portable speakers, headphones and gaming headphones).
ii.  IT hardware & peripherals (monitor, CPU cabinets, keyboards (wired and wireless), gaming keyboards (wired

Distribution: They carry out the business of distribution of IT hardware & peripherals, mobile accessories, consumables, surveillance products etc., for certain brand owners.

iv. The comapny has sold its products in 28 states and 5 union territories through a network of 3,726 dealers of which 1,873 dealers specifically deal in its Foxin Products. As of 2022 they had 27 branch offices (some of which are also used as warehouses and service centres) in India which are supported by a sales team of 248 employees, who are responsible for managing their sales and dealer channels.

v. Competitive Strengths

i. Established presence with over two decades of operations in the electronic industry.
ii. Diversified business vertical with wide range of product portfolio and consistent focus on quality
iii. Established distribution network and long term relationship with the customers

 

 

 

Objects of the Balaji Solutions Limited IPO:

The net proceeds of Fresh Issue,are proposed to be utilised in the following manner: i. Funding incremental working capital requirements of the Company; and ii. General corporate purposes.      
DRHP of Balaji Solutions Limited IPO

Balaji Solutions Limited IPO Details:

Promoters And Management:

i. Rajendra Seksaria, is the Chairman and Managing Director of the Company. He has passed Higher Secondary examination. He has been actively associated with the Company since its incorporation and has more than 2 decades of experience in IT peripheral and mobile accessories industry. He is responsible for general conduct and management of the whole of the business and affairs of the Company. ii. Dinesh Bajaj, is a Whole-time Director and Chief Financial Officer of the Company. He holds a bachelor’s degree in Commerce from the University of Calcutta. He has been associated with the Company since its incorporation and was appointed as Director in the year 2007. has more than 2 decades of experience in IT peripheral and mobile accessories industry. He is responsible for financial planning and analysis, treasury, tax and other finance operations. iii. Rakesh Kumar Agarwal, is a Non-Executive Director of the Company. He holds a bachelor’s degree in Commerce from the University of Calcutta and a member of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. He is currently working as Partner in KSA &Co. Chartered Accountants and has over 3 decades of experience in the field of accounts, audit and taxation.  

Financials of Balaji Solutions Limited IPO:

Particulares ( In Crore ) 2022 2021 2020
Revenue From Operations 482 483 452
Other Income 3 4 1
Revenue 485 488 453
Cost of Material Comsumed 15 22 6
Change in Inventories 8 -16 21
Purchase of traded goods 393 413 385
Employees Benefit Expenses 25 22 17
Sales & Marketing Expenses 3 4 2
Operating and Administrative Exp. 10 13 8
EBITDA 27 28 12
Depreciation 2 2 2
EBIT 24 25 9
OPM (%) 5.57% 5,87% 2.71%
Finance Cost 2 3 5
PBT 21 22 4
Tax 5 6 1
PAT 15 16 3
NPM (%) 3.17% 3.33% 0.73%
No. of Shares 6 6 6
EPS 2.5 2.6 0.5

Comparison With Peers:

As Per DRHP there is no listed peers.
 

Recommendation on Balaji Solutions Limited IPO:

To be updated once Balaji Solutions files for RHP.
 

Lead Manager of Balaji Solutions Limited IPO:

  1. Affinity Global Capital Markets Pvt Ltd
  2. IDBI Capital Market Services Limited

Registrar of Balaji Solutions Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Anmol South City Infra Park, Plot No. B4 and B5, Mouza Jagdishpur, JL No. 2, Dist. P.S. Liluah, Howrah, West Bengal – 711 115, India;  

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