Silicon Rental Solutions IPO to open on BSE SME

 

Silicon Rental Solutions Limited (SRSL), an IT equipment outsourcing company, has launched its public issue of up to 27, 12,000 Equity Shares of face value of Rs. 10 each for cash at price of Rs. 78 per Equity Share, available in a lot size of 1600, for subscription on the BSE SME Exchange. The issue will close on 30 September 2022.  The Lead Manager to the Issue is Hem Securities Limited, a leader in SME IPOs and the Registrar to the Offer is Bigshare Services Pvt. Ltd.

The Company’s Chairman and Managing Director, Sanjay Harish Motiani said” We are an IT equipment outsourcing company, engaged in providing end to end IT equipment on a rental and returnable basis in India. The Company is raising Rs 2115.36 lakh through the public issue. Out of net offer proceeds, Rs. 854.78 Lakhs will be utilized to meet capital expenditure requirements, Rs 850 lakhs for repayment of borrowings and the balance towards general corporate purposes.

In Fiscal 2022, we served over 275 customers, across different business sectors, located at over 16 States and 3 Union Territories of India. We have established long-term relationships with our customers that include names such as Tata Motors Insurance Broking, Reliance Broadcast Network, Mahindra Integrated Business Solutions, Bewakoof Brands, Grab a Grub, Epicenter Technologies and Sitel India among many others. With the growing customer demand towards IT hardware renting in tier 2 and tier 3 cities, we plan to capitalize on the opportunity to grow our customer base. We are focusing on acquiring customers that can provide higher value business & margins through combined efforts of marketing strategies and service offerings enhancement to improve our services to attract customers.

We focus on emerging technologies and help businesses to expand easily with lower budgets and initial setup costs without any compromise on IT infrastructure. The combination of all these provide us an opportunity to make inroads in these emerging cities and would be a strong growth driver for our business in the future.” He added.

Mr Prateek Jain, Director, Hem Securities Ltd, highlighting the offer and investment rationale said “We are happy to bring this issue at an opportune time of improved market sentiments with right valuations as the Company has shown strong growth in financials and bottom-line. The Company is managed by a team of experienced management having experience in different aspects of the IT hardware industry. We believe the knowledge, strength and entrepreneurial vision of promoters and senior management has been instrumental in driving the strong growth and leverage significant competitive advantage as they seek to grow their business going forward”

Mr Gaurav Jain, Director, Hem Securities Ltd, said “The Company’s focus on functional and operational excellence has contributed to its track record of strong financial performance. In the Fiscal 2022, Fiscal 2021 and Fiscal 2020, they generated total revenue of Rs. 2467.91 lakhs, Rs. 1375.65 lakhs and Rs. 1227.85 lakhs respectively, EBITDA of Rs. 1930.55 lakhs, Rs. 953.88 lakhs and Rs. 791.21 lakhs respectively and net profit after tax of Rs. 746.54 lakhs, Rs. 270.39 lakhs and Rs. 215.50 lakhs respectively. The Company has reported Return on Net Worth of 43.95%, 31.70% and 36.99% for Fiscal 2022, Fiscal 2021 and Fiscal 2020, respectively. The steady operating cash flows enable the Company to meet the present and future needs of its customers while the strong balance sheet and financial performance instill confidence in the overall health of business”