Rocking Deals Circular Economy Limited IPO
Nature of Business: Rockingdeals Circular Economy Ltd. (Rockingdeals CE) operates primarily as a B2B re-commerce player. The company focuses on bulk trading of excess inventory, open-boxed items, re-commerce, and refurbished products. These products span various categories such as small home appliances, apparel, kitchenware, household items, speaker and mobile accessories, large appliances, footwear, etc. The inventory includes products from well-known brands like Samsung, Thomson, MI, ZARA, Nike, JBL, and others.
Supplier and Client Relationships: Rockingdeals CE sources products in bulk from various dealers, including those of Inalsa, Khaitan, and others. The company then supplies these products to clients, which include major entities like Jindal Mega Mart, Brand Wala, VLE Bazaar Private Limited, HIC International, PSUAVI, KRAT India, Zazz Technology, and sister companies (Rockingdeals Private Limited, Rockingdeals (HYD) Private Limited, Harkrishanji Products Private Limited).
Product Categories and Procurement Channels: The company deals with over 18 categories of Stock Keeping Units (SKUs), including electrical appliances, apparels & footwear, speakers, mobiles, and accessories. Products are procured from various sources such as ecommerce vendors (Snapdeal, Flipkart, Amazon), companies like GO Auto, Salora International, Zazz Technology Connect Private Limited, and dealers/distributors like Matrix Housewares, Raj Agency, Sudhi Enterprises.
Warehousing and Logistics: Rockingdeals CE operates a spacious warehouse located in Faridabad, Haryana, well-connected to the National Highway No. 02. This facility allows the company to store products in bulk quantities, facilitating efficient supply chain management.
Distribution Channels: The company employs both offline and online distribution models. Offline distribution involves distributors across various states selling products through retailers. For online sales, the company utilizes the ecommerce platform of Shopclues. Marketing efforts have been strengthened with the deployment of personnel, and a dedicated call center underpins customer relationship management.
Unique Selling Proposition (USP): The primary USP of Rockingdeals CE lies in its ability to offer unmatched final discounts on products. This is attributed to the vast experience of the team. The business model focuses on providing customers with the opportunity to save money by purchasing high-quality products at reduced prices, which may be particularly appealing to budget-conscious consumers.
Revenue Breakdown: The B2B segment constitutes a significant portion of Rockingdeals CE’s revenue, contributing 97.43% in FY 2022-23, 96.84% in FY 2021-22, and 99.94% in FY 2020-21. The company also engages in the B2C market, catering to unorganized retailers who procure products in large quantities, although this constitutes a relatively small portion of the total revenue.
Strategic Focus: The company’s prime focus is on efficiently managing surplus inventory from various brands within the B2B sector, indicating a strategic alignment with sustainability and circular economy principles
Objects of the Rocking Deals Circular Economy Limited IPO:
Rocking Deals Circular Economy Limited IPO Details:
|Open Date:||Nov 22 2023|
|Close Date:||Nov 24 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||21 Cr.|
|Lot Size:||1000 Shares|
|Issue Price:||₹ 136 - 140 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Nov 30 2023|
Promoters And Management:
Financials of Rocking Deals Circular Economy Limited IPO:
|Particulars ( In Lakhs )||FY21||FY22||FY23||3MFY24|
|Revenue from Operations||1055.63||1482.82||1501.01||958.15|
|Profit before Tax||2.18||18.33||204.84||169.28|
|Profit for the Period||-1.48||14.37||154.34||125.15|
|Outstanding Shares (Post IPO)||56.59||56.59||56.59||56.59|
Comparison With Peers:
No listed peer is available in the market .