Slone Infosystems Limited IPO

Apply 0
Avoid 0

Slone Infosystems Limited, originally founded by Mr. Rajesh Srichand Khanna in 1999 as a sole proprietorship under the name M/s SAM Computers, has a storied history in the IT hardware solutions sector. In 2022, Mr. Khanna made a strategic decision to restructure the business into a corporate entity, leading to the incorporation of Slone Infosystems Private Limited on December 29, 2022. This move was designed to enhance the organizational structure and facilitate growth.

The company took a significant step forward by acquiring the business operations of M/s SAM Computers through a Slump Sale Agreement on March 1, 2023. This acquisition was on a going concern basis, ensuring continuity and stability in operations. In late 2023, the company transitioned from a private to a public limited company, changing its name to Slone Infosystems Limited, a change formalized with a new Certificate of Incorporation issued on December 12, 2023.

Core Business and Services

Slone Infosystems Limited operates primarily in the IT hardware solutions industry within India. The company specializes in the sale and rental of IT equipment, including laptops, desktops, servers, and workstations. It also offers comprehensive IT service solutions such as cloud server management and IT equipment servicing, catering to corporate clients.

The business model is highly client-centric, offering tailor-made solutions to meet specific IT requirements. Slone Infosystems not only procures IT equipment for its clients but also provides options to purchase or rent, thereby offering flexibility and helping clients maintain their IT budgets. The company also engages in the sale of used IT equipment, meeting diverse client needs.

Operational Segments

The operations of Slone Infosystems Limited are segmented into four main areas:

1.Sale of Laptops, Computers, and Computer Peripherals: This segment forms the backbone of the company’s operations, providing a range of IT hardware to meet varied customer requirements.

2. Sale of Other IT Related Products: Beyond core computing devices, the company offers a variety of IT-related products, which further diversifies its business offerings and market reach.

3. IT Service Solutions: This segment includes services like managing cloud servers and servicing IT equipment, crucial for maintaining the operational efficiency of corporate clients’ IT infrastructure.

4. Rental Services: The company provides rental solutions for IT equipment, allowing businesses to access the latest technology without the upfront costs associated with purchasing.

Strategic Direction and Growth Prospects

With a well-established foundation and a strategic shift towards a more structured corporate format, Slone Infosystems Limited is positioned for continued growth and expansion in the IT sector. The company’s ability to adapt to client needs and its flexible service offerings make it a competitive player in the market. As it continues to evolve, Slone Infosystems will likely focus on expanding its service offerings and potentially exploring new markets to enhance its business footprint further.

Objects of the Slone Infosystems Limited IPO:

The objects of the present issue of Equity Shares are: i. Capital Expenditure towards purchase of Laptops, Desktops, SSD and RAM. ii. Repayment/prepayment of certain borrowings availed by the Company; and iii. General Corporate Purpose.
DRHP of Slone Infosystems Limited IPO
RHP of Slone Infosystems Limited IPO

Slone Infosystems Limited IPO Details:

Open Date: May 03 2024
Close Date: May 07 2024
Total Shares: 1,400,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 11.06 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 79 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 10 2024

Promoters And Management:

Mr. Rajesh Srichand Khanna (DIN:09843089), aged about 52 Years is a Promoter and Managing Director of the Company. He has done is graduation in commerce from University of Bombay. He started his career in the year 1993, working as accountant for private limited companies, before starting his own venture under his sole proprietorship M/s SAM Computers. M/s Sam Computers, was inter-alia engaged in business of trading and renting of computers, laptops, desktops and other IT equipment. He has been in the said business since 1999. He has a vast and rich experience of almost 25 years in this field. Mrs. Manisha Rajesh Khanna (DIN:09843090), aged about 53 Years, is a Director in the Company. She has been appointed on the Board of the Company as a Non-Executive Director. She is an undergraduate. She is Proprietor of M/s Nutty Delite Dry Fruits & Spices, a Sole Proprietorship engaged in dealing in dry fruits and spices of all kinds. Mr. Mohit Rajesh Khanna (DIN:10037002) aged about 24 years is a Whole Time Director and Chief Financial Officer of the Company. He has done his Bachelors in Management Studies from Smt. Mithibai Motiram Kundnani College of Commerce and Economics, University of Mumbai. He possesses rich and diversified experience in financial and accounting management. Mr. Mohit Rajesh Khanna is an Integral part of their core management team and is responsible for leading, managing, planning, directing, and controlling all aspects of accounts payable, accounts receivable, IT systems, and cash control. He oversees sales, finance, cash handling, risk management, and guest relations. He leads the Company’s operational team and is instrumental in identifying new opportunities, new product ideas, growth prospects and financial impact of various strategies on business of the Company.

Financials of Slone Infosystems Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 1,100 2,579 3,022 3,407
Other Income 57 80 55 28
Total Revenue 1,157 2,659 3,077 3,435
Purchases of Stock in Trade 1,044 2,496 2,780 2,671
Change in Inventories 0 0 -14 -134
Employees Benefit Expenses 23 23 37 89
Other Expenses 13 5 87 335
EBITDA 77 135 188 475
Depreciation & Amortisation 21 52 68 66
Finance Cost 21 34 34 23
EBIT 56 83 120 409
OPM (%) 6.68% 5.08% 6.10% 13.82%
PBT 35 50 86 385
Tax 7 11 11 101
PAT 28 38 75 285
NPM (%) 2.38% 1.44% 2.43% 8.29%
No.of Shares 52.69 52.69 52.69 52.69
EPS 0.52 0.72 1.41 5.40

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Slone Infosystems Limited 30 0.74 1.41 55.8 79 42
Brisk Technovision Ltd 18 1.99 9.95 13.9 138 28
Benchmark Computer Solutions Ltd 32 2 N/A 18.8 57 39
* All the data is as per FY23.

Recommendation on Slone Infosystems Limited IPO:

Review and Recommendation of Slone Infosystems by team IZ is 3/10. 1. Slone Infosystems operates in the IT hardware solutions sector, focusing on both the sale and rental of IT equipment, alongside providing comprehensive IT service solutions in India. The company’s business model is centered on addressing diverse client requirements by offering tailored IT solutions, whether through sales or leasing arrangements. They ensure their offerings are flexible enough to suit varying IT budgets and functional needs without compromising on efficiency or technological adequacy. 2. The company operates across several segments: i. Sales of laptops, computers, and peripherals.        ii. Sales of other IT-related products. iii. IT service solutions.                                                  iv. Rental services. 3. Their product portfolio is extensive, catering to various IT hardware needs: - Laptops (available in high, economical, and basic configurations) - Desktops (offered in high configuration systems, economical systems, and customizable setups) - Peripherals (including keyboards, mice, speakers, webcams, and more) - Servers (such as rack-mount, tower, and blade servers) - LED monitors - Firewalls - Printers - CCTV security hardware - Other IT hardware and peripherals like network bridges, modems, and UPS devices. 4. Competition Slone Infosystems faces challenges from both organized and unorganized sectors within the IT industry. The competitive landscape is marked by attributes such as service quality, customer support, pricing, and delivery timeliness. Despite the fragmented nature of the industry and the entry of new players who might adopt aggressive pricing strategies to gain market share, established companies like Slone Infosystems leverage their experience, extensive product portfolio, and customer service to maintain and expand their market presence. 5. The Revenue has Increased from Rs.11 Crores in FY21 to Rs.30 Crores in FY23. 6. The EBITDA has Increased from 77 Lakhs in FY21 to 1.8 Crore in FY23. 7. The PAT has Increased from 28 Lakhs in FY21 to 75 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 0.83, As per FY24, EPS is 7.20, 9. Market Capitalization is 42 Crore & P/E is 10.96x based on FY24.

Lead Manager of Slone Infosystems Limited IPO:

  1. Jawa Capital Services Private Limited

Registrar of Slone Infosystems Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Slone Infosystems Limited Office 203, 2nd Floor, Mohini Heights CHS LTD, 5th Road Khar West Behind Rajasthan Hotel Khar Delivery, Mumbai-400052 Phone: 9820324640 Email: cs@sloneinfosystems.com Website: http://www.sloneinfosystems.com/

Discussion on Slone Infosystems Limited IPO:

Leave a Reply