ROX Hi-Tech Limited IPO

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ROX, headquartered in Chennai, India, operates as a customer-centric IT solutions provider with a strong commitment to excellence. With over 22 years of industry experience, the company has evolved from an IBM Business Partner into a prominent player in the IT sector. Their business model revolves around being a comprehensive end-to-end IT solution provider. They offer a wide range of services and solutions across various IT domains, as outlined below:

1. Digital Transformation Solutions: ROX provides intelligent and sustainable digital transformation solutions. They have a strategic partnership with SAP, which has elevated them to Gold Partner status. This partnership highlights their robust capabilities in SAP solutions, including S/4 HANA and RISE with SAP. They emphasize their success in Rise with SAP Public and Private cloud solutions, indicating their commitment to intelligent and sustainable enterprise progression.

2. Network and Collaboration: ROX’s network and collaboration solutions focus on leveraging data and technology to provide proactive solutions. They aim to amplify data availability and enrich user experiences. Their adaptive network doubles as a sensor and protector, with 360-degree visibility and robust automation. ROX offers active and passive networking solutions to supercharge their clients’ network experiences. As a solution partner, they provide seamless implementation and expert consulting to help clients achieve their business goals. They emphasize optimizing connectivity, productivity, and security across clients’ operations.

3. IT And OT Security: While not explicitly detailed in the provided information, IT and OT security is likely an integral part of their offerings to ensure that their clients’ information technology and operational technology environments remain secure from threats and vulnerabilities.

4. Data Center Solutions (On-premises and Cloud): ROX’s data center solutions empower clients to handle demanding workloads. They leverage IBM Servers and Storage and partner with IBM, Lenovo, Google Cloud, Nutanix, Cisco, and Vertiv to deliver state-of-the-art data center solutions. This includes cloud technologies, analytics, Artificial Intelligence (AI), and Modern High-Performance Computing (HPC). They focus on delivering cutting-edge capabilities in both on-premises and cloud-based data center solutions.

5. IoT, SMART, and MEDIA: This category involves seamlessly connecting devices, exchanging data, and providing real-time insights for enhanced efficiency and innovation. It appears to encompass a range of technologies related to the Internet of Things (IoT), smart devices, and media services.

6. Smart Edge Devices: Smart edge devices likely involve providing clients with hardware and devices that can process and manage data at the edge of networks, closer to data sources. This is important for applications where real-time processing and decision-making are critical.

Opensource: ROX offers open-source solutions that enable clients to elevate their hybrid cloud and standardize their cloud sphere. They focus on overseeing hybrid cloud, multi-cloud, and edge deployments, while also fostering scalable automation systems. Their partnership with Red Hat showcases their commitment to open-source innovation.

Objects of the ROX Hi-Tech Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: 1. Funding for Capital Expenditure: i. Setting up a Network Operations Centre (NOC) & Security Operations Centre (SOC) at Chennai; ii. Setting up a Chennai Medical Automation Centre; and iii. Setting up a Global Software Delivery Center in Noida. 2. Funding our working capital requirements, and 3. General Corporate Expenses. 4. Total number of shares are issues: - i. Fresh Issue is 6,017,600 shares. ii. Offer for Sale is 547,200 shares.

ROX Hi-Tech Limited IPO Details:

Open Date: Nov 07 2023
Close Date: Nov 09 2023
Total Shares: 6,564,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 54.49 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 80 - 83 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 20 2023

Promoters And Management:

i. Jim Rakesh is the Chairman and Managing Director of the company. He holds a Bachelor degree in Technology in Computer Science from Govind Ballabh Pant University of Agriculture and Technology, Uttar Pradesh. He is having more than 25 years of experience in the IT & System Integration space, and effectively translates it to his customers. He has assisted some of the largest organization across India to increase efficiency, reduce infrastructure cost and scale to meet customer needs. He handles day to day operations of the Company. He is associated with the Company since inception. ii. Sukanya Rakesh is a Whole-Time Director and Chief Financial Officer of the Company. She has done MS in Information Technology at BIM and management studies at IIM Bangalore. She is multilinguist, avid reader and compassionate Leader. She is having more than 20 years in IT implementation and System Integration, administration, finance and HR related matters. She handles the finance, HR and Admin departments in the company. Under her able command ROX has entered the agricultural vertical as well. ii. Munusamy Murugan Senthil Kumar is the Whole-Time Director of the Company. He specializes in transforming and optimizing IT investments for maximum efficiency. Additionally, he has a rich experience in designing complete infrastructure solutions in Network security, Datacentre Collaboration, and Industrial IoT solutions.

Financials of ROX Hi-Tech Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 6,407 10,286 13,333 4,996
Other Income 141 11 66 5
Total Revenue 6,548 10,297 13,399 5,001
Cost of Consumption 5,847 9,193 10,351 3,760
Employee benefits expenses 251 340 395 137
Other Expenses 202 339 285 85
EBITDA 248 426 2,368 1,019
Depreciation & Amortisation 15 22 23 10
Finance Cost 143 196 297 102
EBIT 233 404 2,345 1,009
OPM (%) 3.79% 4.13% 17.67% 20.37%
PBT 90 208 2048 906
Tax 24 57 515 230
PAT 66 151 1533 676
NPM (%) 1.01% 1.47% 11.44% 13.51%
No.of Shares 228.36 228.36 228.36 228.36
EPS 0.28 0.66 6.71 2.95

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
ROX Hi-Tech Limited 133 15 6.71 12.4 83 190
Dynacons Systems & Solutions Ltd 804 33 26.30 18.8 689 875
* All the data is as per FY23.

Recommendation on ROX Hi-Tech Limited IPO:

Review and Recommendation of Rox Hi-Tech SME IPO by IZ team is 5/10 1. ROX Hi-Tech Limited appears to be a well-established entity in the IT solutions and services sector, with a history dating back to the post-Y2K era. The company specializes in application modernization, network upgrades, and IT security solutions, indicating a strong technological foundation and a commitment to staying at the forefront of industry trends. 2. Key Partnerships and Specializations: a) Established in 2001, ROX Hi-Tech has over two decades of experience in the IT industry.
They have formed strategic partnerships with industry leaders like Cisco and IBM/Lenovo. b) The company offers SAP services for application modernization and robust ERP solutions. 3. Innovation and Future Focus: a) ROX Hi-Tech is leveraging artificial intelligence and automation to enhance the medical industry, focusing on patient care and treatment outcomes. b) Plans are in place to establish operation centers for consistent network and IT security monitoring. 4. Hyperautomation and Generative AI: a) The company provides hyperautomation solutions integrating RPA, AI, and machine learning. b) They offer generative AI solutions, showcasing their capability to handle high-end technological needs. 5. Business Model and Customer Base:
 a)  The company enjoys high customer retention, indicative of a trusted and reliable service provider. b) They follow a business model with a typical five-year IT solution lifecycle, ensuring repeat business. c) Their client base includes prominent companies like Micron, Vestas, and VIT. 6. Financial Performance: a) ROX Hi-Tech has a strong financial standing with a revenue of 133 crores and a profit after tax of 15 crores in FY23. b) The company has experienced growth post-COVID, with an increased demand for remote work solutions. c) The IPO is coming at P/E if 12x. Overall, ROX Hi-Tech Limited is positioning itself as a forward-thinking company, ready to capitalize on opportunities for growth and expansion in both domestic and international arenas. The forthcoming IPO represents a significant milestone in their journey towards scaling up and enhancing their technological capabilities.

Lead Manager of ROX Hi-Tech Limited IPO:

  1. Swaraj Shares and Securities Private Limited

Registrar of ROX Hi-Tech Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

ROX Hi-Tech Limited Old No.101B, New No.160, 1st & 3rd Floor Mahalingapuram Main Road, Nungambakkam, Chennai - 600034 Phone: + 91 44 4206 8316 Email: Website

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