About the Company:
Rosmerta Digital Services Ltd, a subsidiary of Rosmerta Technologies Ltd (“RTL”), has been engaged in providing digitally enabled services and digitally enabled channel sales of automotive component & accessories.
Company initially offered vehicle registration services to Original Equipment Manufacturers (OEMs) and has since diversified into a comprehensive range of services, including garage services, last-mile delivery service, selling of automotive components and accessories, etc.
Company provides digitally enabled vehicle registration services, last-mile delivery and garage services to the customers.
Company provides uniquely customized solutions in the domain of vehicle registrations and other compliance related to RTOs and seamlessly integrate with our customers process and ensure a smooth post-purchase experience for vehicle owners.
About Promoter:
Rosmerta Technologies Limited (RTL) and its wholly owned subsidiaries boast over 3,254 employees across pan India. RTL operates across diverse domains: Identification, Sustainability, Connected
Electronics, Safety & Compliance, and Digital Services.
It has been consistently amongst the first entrants in its domains of operation, with a proven track record of scaling businesses. It has developed strong relationships over almost two decades, across a diverse array of stakeholders in automotive and non-automotive spaces – from Government entities to industry bodies to leading private sector players.
Rosmerta Safety Systems, a subsidiary of RTL, holds the distinction of being India’s #1 manufacturer of High Security Registration Plates. RTL introduced the technology of smart cards in the driver’s license and vehicle registration certificate market, and has one of India’s largest smart card manufacturing facilities.
The products of Rosmerta Autotech, one of the subsidiaries of RTL are AIS-140 certified^ for the vehicle telematics market. It also operates Automatic Testing Stations, Registered Vehicle Scrapping Facilities, Automated Driving Test Tracks, and a VDA (German Association of Automotive Industry) certified diesel exhaust fluid manufacturing facility.
Rosmerta Digital Services Limited operates in two main segments:
- Digitally Enabled Services.
- Digital Enabled Channel Sales.
Digitally Enabled Services:
Company provides digitally enabled vehicle registration services, last-mile delivery and garage services to the customers. Company operates on a business model that emphasizes eliminating manual interventions through technology-driven solutions to become the provider of tech-driven services across the automobile sector.
Company provides Vehicle Ownership Experience which includes services such as vehicle registration services, transfer of ownership, State Transport Authority approvals, Fame and State subsidy assistance, and other Regional Transport Office related support. For all these services, we help our customers understand the correct mandated government process and ensure all documentation follows the regulation.
The services are offered to OEMs or companies dealing in the sale of vehicles like Cars24. Our company’s in-house platform, URJA, is pivotal in optimizing these complex workflows, providing seamless integration and efficient management of services nationwide. This segment caters to our B2B customers. Further, we also provide Last Mile Service Delivery which includes offerings like HSRP Last Mile Enablement (Delivery of HSRPs to dealerships or customer’s home).
Digital Enabled Channel Sales:
Company has entered into the automotive component and accessories market, bolstered by a robust network of over 150 active channel partners, in 2023. This segment focuses on the sale of automotive components and accessories to retailers and garages.
Company has established a network of approximately 150 active channel partners to support this distribution. Company’s extensive network of channel partners positions us advantageously, ensuring seamless coordination and timely supply of ordered materials.
Additionally, company’s wide-reaching network of delivery agents ensures prompt and reliable delivery of orders, enhancing our overall efficiency and customer satisfaction.
Rosmerta Digital holds a significant share of Indian Electric Two Wheeler vehicle registrations, including with OLA Electric, and has recently partnered with Royal Enfield for their directto-consumer vehicle sales registrations. Additionally, it commands a significant market share in HSRP last-mile enablement.
Services Offered by the Company:
Digitally Enabled Services:
Company operates on a business model emphasizing eliminating manual interventions through technology driven solutions across the automobile industry. Traditionally, the vehicle registration process required OEMs to establish extensive dealership networks responsible for vehicle sales and registrations.
This conventional method involved vehicle owners making multiple visits to dealerships to submit documents and signatures, resulting in a turnaround time (TAT) of multiple days. We have revolutionized this industry by streamlining the entire registration process through advanced technology and our on-ground field team, reducing the TAT by 1-2 days (in most cases).
This technological transformation allows OEMs to rely on a single vendor for consistent and efficient service, enhancing convenience for vehicle owners. This approach has made Rosmerta Digital an indispensable partner for OEMs, especially those selling directly to consumers (D-2-C) without traditional dealerships.
Vehicle Ownership Experience:
Company provides uniquely customized solutions in the domain of vehicle registrations and other compliance related to RTOs and seamlessly integrate with our customers process and ensure a smooth post-purchase experience for vehicle owners.
Rosmerta Digital delivers vehicle registration solutions along with other compliance solutions to OEMs and and other companies who need registration services for vehicle sales (like Cars24), fleet owners and B2B2C customers. Company also offers the same services to individual vehicle owners through our mobile application MyRaasta.
Vehicle Registration Services:
Company is engaged in the vehicle registration industry through our efficient & tech-driven approach. Company offers comprehensive services for OEMs, including vehicle registration, ownership transfer, hypothecation terminal and addition, and state transport approvals, we streamline the entire process, reducing turnaround times (TAT) to just one day.
FAME and State Subsidy Processing:
Rosmerta Digital assist Electric Vehicle (EV) OEMs by preparing the necessary documentation and uploading claims for the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy with the Department of Heavy Industry (DHI) on behalf of the OEMs. We also do the same process in states that have individual State level subsidies being offered for Electric Vehicles.
State Transport Approval:
As per the requirement of laws of different states, whenever a new vehicle model or variant is launched by the OEMs, the OEMs are required to take various approvals from the state transport authority to sell it within that jurisdiction. At Rosmerta Digital, we provide assistance to our OEMs in navigating these approval processes.
Trade Certificate / Trade License:
Rosmerta Digital helps OEMs with the documentation and application process required to obtain trade certificates or trade licenses, which are necessary for conducting business.
HSRP last Mile Enablement:
Under HSRP last mile enablement, company deliver the registration plates across 20+ states with the help of team strength of 524 people engaged in delivering HSRP plates from embossing centers to dealerships or customer homes. We at RDSL streamline order routing, tracking, and inventory management, providing a seamless and reliable service.
This technology-driven approach ensures compliance with regulatory standards and enhances customer convenience. In a short span of time we have made a presence across 20+ states, with a team strength of 524 people (as on May 31, 2024) delivering HSRPs from 105 embossing centers to automotive dealerships across the country.
State wise Revenue Bifurcation (Top 5 States): (Rupees in Thousand)
Segment wise Revenue Bifurcation:(Rupees in Thousand)
Management Team:
- Mr. Akhil Gupta (Designation: Whole Time Director and Chief Executive Officer)
- Mr. Sanjay Sharma (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs.206.32 cr)
- Funding the capitl expenditure for purchase of office space in Mumbai.
- Funding the capital expenditure for setting up warehouses, model workshops and experience centers in various parts of India.
- Funding the capital expenditure for setting up IT infrastructure.
- Funding the Working Capital Requirement of our Company.
- Funding expenditure for inorganic growth through acquisitions & other strategic initiatives.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| Funding the capital expenditure for purchase of office space in Mumbai | 19.8 cr |
| Funding the capital expenditure for setting up warehouses, model workshops and experience centers in various parts of India. | 9.8 cr |
| Funding the capital expenditure for setting up IT infrastructure | 13.8 cr |
| Funding the Working Capital Requirement of our Company | 75 cr |
Positives for the Company:
Early entrant in Digital Registration services.
- Rosmerta Digital Services Limited has established itself as service provider in the vehicle registration services sector by being an early entrant and building capabilities rapidly.
- By leveraging advanced technology to streamline the traditionally cumbersome vehicle registration process, and inculcating learnings from the experience of working with OEMs who were early entrants into the D2C sales channel.
- Rosmerta Digital has set new industry standards. Company’s innovative approach has significantly reduced turnaround times from days to just 1 day (in most cases), offering unparalleled convenience and efficiency. This pioneering effort has not only positioned Rosmerta Digital at the forefront of the market but has also made it the preferred partner for major OEMs, particularly those in the rapidly growing electric vehicle sector.
Agreements with OEMs.
- Company has a wide network of OEMs to whom we are providing Digitally enabled services, i.e., Vehicle Ownership Experience which offers vehicle registration services, transfer of ownership, state transport approvals, state subsidy processing assistance, and Fame subsidy processing assistance.
- The services are offerings to OEMs like, or companies dealing in sale of vehicles like Cars24, OLA, Okinawa, Royal Enfield and many other. Our company’s in-house platform, URJA, is pivotal in optimizing these complex workflows, providing seamless integration and efficient management of services nationwide. It enhances our value proposition as our integrated services support business operations OEMs and vehicle sellers.
Pan India Presence.
- Company has a qualified and experienced management team in all the segments and has been responsible for the growth of our business and operation. Our Corporate promoter is in the automotive industry since 2006. Company believe that our motivated team of management and key managerial personnel along with our internal systems and processes complement each other to enable us deliver high levels of client satisfaction.
Domain Knowledge.
- As a subsidiary of Rosmerta Technologies Limited, Rosmerta Digital Services Limited benefits significantly from the support and expertise of its parent company. Founded in 2006, Rosmerta Technologies is present in e-governance, transport, and road safety in India.
- This relationship provides Rosmerta Digital with substantial resources, including access to cutting-edge technology, a vast network of over 3,254 employees, and extensive industry experience. The parent company’s established reputation and infrastructure have been instrumental in accelerating Rosmerta Digital’s growth and enabling it to deliver high-quality, reliable services to its clients.
Growth in accessories distribution.
- Company is planning to expand our existing accessories distribution business by partnering with large manufacturers and enhancing global sourcing capabilities.
- The focus will be on high-demand, scarce, and customized parts, unlocking the potential to become an original equipment (OE) approved supplier, this expansion will not only increase the range of products offered but also open opportunities to distribute these OE-approved accessories to a wider customer base.
- To support the expansion in accessories, we are planning to build Experience Centres where customers will be able to come and try out and purchase various automotive accessories.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th Sept 24 |
|---|---|---|---|---|
| Revenue | 2.02 | 29.78 | 84.19 | 92.53 |
| Net Profit | (-0.3) | 1.61 | 10.56 | 14.83 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Rosmerta Digital Services Ltd |
2 | 3.01 | 36.57 | 86.51% | 50.34 |
| BLS E-services Ltd | 10 | 1.03 | 217.53 | 1.85% | 43.19 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 18th November 2024 |
| Issue Closes on | 21st November 2024 |
| Issue Price | Rs.140-147 |
| Face Value | Rs.2 |
| Minimum Lot | 1000 Shares |
| Minimum Investment | Rs.1,47,000 |
| Issue Constitutes | 26.44% |
| Issue Size | Rs.206.32 cr |
| Market Cap | Rs.780.36 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 1,40,36,000 (Rs.206.32 cr) |
| Equity Shares Prior to the Issue | 3,90,50,000 |
| Equity Shares after the Issue | 5,30,86,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 3.01 | 36.57 | 86.51% | 50.34 | 1.23 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Rosmerta Digital Services Ltd, a subsidiary of Rosmerta Technologies Ltd (RTL), specializes in digitally enabled services and channel sales of automotive components and accessories. Initially, Rosmerta Digital focused on providing vehicle registration services to Original Equipment Manufacturers (OEMs). Over time, it expanded its offerings to include garage services, last-mile delivery, and the sale of automotive components and accessories, creating a comprehensive suite of digital solutions in the automotive sector.
The company’s expertise lies in its digitally enabled vehicle registration services, which are seamlessly integrated into customer processes, ensuring a smooth post-purchase experience for vehicle owners. Rosmerta Digital’s customized solutions also support compliance with RTO regulations, streamlining processes for customers across India. RTL, the parent company, has over 3,254 employees and a strong presence across India. RTL operates in diverse areas, including Identification, Sustainability, Connected Electronics, Safety & Compliance, and Digital Services. Its reputation as an early entrant and consistent performer has helped RTL build valuable relationships with various stakeholders, from government entities to industry leaders. Another notable subsidiary, Rosmerta Safety Systems, is India’s leading manufacturer of High Security Registration Plates. RTL’s innovations also extend to smart card technology for driver’s licenses and vehicle registrations, supported by one of the largest smart card manufacturing facilities in India. Investors can Apply for Long Term. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 22nd November 2024 |
| Initiation of Refunds | on or Before 25th November 2024 |
| Credit of Equity Shares: | on or Before 25th November 2024 |
| Listing Date: | on or Before 26th November 2024 |
| Company Contact Info: |
|---|
| Rosmerta Digital Services Limited 402, 4th Floor, World Trade Tower, Barakhamba Lane, Connaught Place, Delhi, India, 110001 Phone No.: +91-92894 80509 Email id: cs@rosmertadigital.com Website: www.rosmertadigital.com |
| Registrar to the Issue: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West) Mumbai, Maharashtra – 400083, India Telephone: +91 8108114949 Email: rosmerta.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
