Rockingdeals Circular: SME Stock Locks At 52-Week High On Listing Day; Gains 125% From IPO Price

Rockingdeals Circular Economy made a blockbuster listing on NSE Emerge, an index meant for small and medium size companies to go public. After getting a stellar response in its initial public offering (IPO), massive fresh buying was seen in Rockingdeals on November 30th to the point that its share price locked on a new 52-week high and 5% upper circuits. This meant there were several buyers but no sellers in Rockingdeals during its debut. In a single day, the stock has managed to give approximately 125% returns against the IPO price.

On NSE, Rockingdeals' share price ended at Rs 315 apiece, up by 5%. This is also the new 52-week high levels and 5% upper circuits. The stock had debuted at a premium of a massive 114.3% from its IPO issue price of Rs 140 per share.

From the latest price level, the stock has already given a huge 125% return on investments in a single-day.

Rockingdeals launched its SME IPO from November 22nd to 24th. It received bids of a whopping 21.4434 crore equity shares against its offered size of 10.80 lakh equity shares. Overall, the IPO comprised a fresh issue of 15 lakh Equity Shares including shares for anchor investors with a face value of Rs 10/- through the book-building route.

The company looked to raise to Rs 21 crore and had fixed price bands in the range of Rs 136 to Rs 140 per share.

At the issue price of Rs 140 per share, the company has bagged a whopping Rs 3,002.07 crore from the IPO.

RDCEL had announced its plan to utilise proceeds from the issue towards working capital requirements, brand positioning, marketing and advertising, and general corporate purposes.

RDCEL is a part of Rockingdeals Group, founded by Yuvraj Aman Singh, who pioneered the concept of "Seconds" in India. RDCEL certifies and sells products across 18+ categories to its B2B customers, including Rockingdeals' retail arm (as its exclusive procurement partner). RDCEL has an exclusive supply to serve around 70,000 sq. ft. of retail space through Rockingdeals and its franchise network.

The company also procures unboxed and excess inventory from well-known brands such as affiliates of Flipkart, Snapdeal, Amazon, Whirlpool, Puma, Hindware, Godrej etc. RDCEL has sold over 10+ million units through a reputed network of B2B clientele, including its group company (Rocking Deals), Jindal Mega Mart, Shopclues, Brand Wala, VLE Bazaar, HIC International, PSUAVI, KRAT India and Zazz Technology. RDCEL operates a 30,000 sq. Ft. warehousing facility in Faridabad and an L4 service centre with an installed capacity to QC & Grading one million units each month. The Faridabad-headquartered company has 20+ employees with comprehensive experience in sourcing, grading and pricing products across categories. RDCEL's total revenues stood at Rs. 15.01 crore in FY23, while its EBITDA and PAT were Rs. 2.73 crore and Rs. 1.54 crore respectively. For Q1FY24, the company registered a total revenue of Rs. 9.58 crore, EBITDA of Rs. 1.87 crore and PAT of Rs. 1.25 crore.

Rockingdeals will be among the latest SME IPOs where investors have hedged multi-fold returns on its listing day.