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Storage Technologies and Automation Ltd IPO Review: Storage Technologies & Automation Limited’s IPO comprises of a new issuance of 38,40,000 lakh shares for INR 29.95 crores. The company intends to use the funds for working capital and other corporate objectives.
Storage Technologies and Automation Ltd IPO – Important Dates
| Storage Technologies & Automation IPO Date | April 30, 2024 to May 3, 2024 |
| Storage Technologies & Automation IPO Listing Date | May 8, 2024 |
| Storage Technologies & Automation IPO Price | INR 73-78 per share |
| Storage Technologies & Automation IPO Lot Size | 1600 Shares |
| Storage Technologies & Automation IPO Total Issue Size | INR 29.95 crores |
| Storage Technologies & Automation IPO Basis of Allotment | May 6, 2024 |
| Storage Technologies & Automation IPO Initiation of Refunds | May 7, 2024 |
| Storage Technologies & Automation IPO Credit of Shares to Demat | May 7, 2024 |
| Storage Technologies & Automation IPO Issue Type | Book Built Issue IPO |
| Storage Technologies & Automation IPO Listing At | BSE SME |
Storage Technologies and Automation Ltd IPO – Company Profile
Established in 2010, Storage Technologies & Automation specializes in creating metal storage racks, automated warehouses, and customized solutions. Their solutions appeal to a wide range of industries, meeting specific logistical requirements with efficiency and skill.
They provide a variety of display and storage racks for commercial and industrial applications, with a focus on client satisfaction and innovation. With ISO 9001:2015 accreditation, their commitment to quality is supported by a strong infrastructure in Bangalore.
They use specialized infrastructure to manage product design, manufacturing, quality control, packaging, and delivery. Their committed team ensures strict surveillance. They exceed customer expectations by using creative approaches and an emphasis on quality to provide economically feasible solutions.
Storage Technologies and Automation Ltd IPO Financials
The financial study for Storage Technologies and Automation Technologies shows a mixed result. Revenue initially increased but eventually fell short. Profitability and equity increased, while return on net worth decreased, indicating contrasting facets of the company’s performance.
- Revenue Trend: The revenue rose from ₹6,986.65 lakhs in March 2022 to ₹8,131.94 lakhs in March 2023. The revenue for the current year’s seven-month period ending October 2023 is INR 5,291.70 lakhs, which falls short of the previous year’s benchmark.
- Equity and Liabilities: Both equity and total liabilities have consistently increased over time, indicating future growth and expansion.
- Profitability: Profit after tax (PAT) has risen from ₹20.49 lakhs in March 2022 to ₹358.91 lakhs by October 2023. This increase in profitability could boost investor confidence.
- Earnings per Share (EPS): The diluted EPS increased from ₹ (0.68) in March 2022 to ₹11.96 in October 2023, indicating better earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has increased from (3.75%) to 37.64%, suggesting an improvement in the company’s ability to create returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth.
Storage Technologies and Automation Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 October 2023 |
| Revenue (₹ in lakhs) | 6,986.65 | 8,131.94 | 5,291.70 |
| Equity (₹ in lakhs) | 549.84 | 610.39 | 968.72 |
| Expenses (₹ in lakhs) | 6,991.29 | 8,058.38 | 4,832.02 |
| Profit and Loss After Tax (₹ in lakhs) | (20.49) | 48.30 | 358.91 |
| Diluted EPS only (₹) | (0.68) | 1.61 | 11.96 |
| Return on Net Worth (%) | (3.75) | 20.89 | 37.64 |
| NAV per Equity Share (₹) | 18.21 | 19.82 | 31.78 |
| Total Assets (in lakhs) | 3,567.70 | 4,004.01 | 6,375.77 |
| Total Liabilities (in lakhs) | 3,017.86 | 3,393.62 | 5,407.05 |
Storage Technologies and Automation Ltd IPO Peer Comparison
Racks & Rollers (Storage Technologies & Automation Limited) has a RoNW, whereas Alphalogic Industries has a larger P/E ratio, indicating a more stable performance.
| Company | CMP (₹ in lakhs) | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) | Total Income (₹) |
| Storage Technologies and Automation Limited | NA | 10 | NA | 1.61 | 8.12 | 19.82 | 8,137.12 |
| Alphalogic Industries Limited | 200 | 10 | 33.17 | 6.03 | 50.60 | 138.64 | 1,823.14 |
Storage Technologies and Automation Ltd IPO Objective
The primary goal of Storage Technologies & Automation Limited is to meet working capital requirements.
- To Meet Working Capital Requirements: The company aims to use INR 2,750 lakhs from the Net Proceeds of the Issue in Fiscal 2025 to meet its working capital requirements, supplemented by borrowings and internal accruals as needed.
- General Corporate Purposes: The company will allocate funds to broad corporate aims, such as operating expenses, unidentified project costs, and business development; monies will be used to improve the company’s capabilities and meet its needs.
Storage Technologies and Automation Ltd IPO Risks and Challenges
Racks & Rollers’ risk factors include a high reliance on important customers, a lack of price escalation clauses, which leads to cost variances, erroneous project estimation, supply chain vulnerabilities, and pricing issues that affect profitability.
- The company’s strong reliance on key clients jeopardizes sales and financial stability. While efforts to diversify continue, issues in retaining existing connections and obtaining new clients remain.
- In some projects, the lack of price escalation clauses exposes the organization to cost changes, potentially affecting profitability. Inaccurately predicting project risks, revenues, and expenses causes financial and operational issues.
- The lack of long-term supplier contracts makes the company vulnerable to supply chain disruptions and pricing changes, particularly in steel. Substandard materials endanger reputation and lead to lawsuit, whilst price issues have an influence on profitability.
Storage Technologies and Automation Ltd IPO – Industry & Market Potential
The global industrial racking systems market, valued at US$12.5 billion in 2023, is expected to rise at an 8.5% CAGR to US$2,768.9 million by 2033. With a 45% market share, India expects tremendous growth, fueled by expanding e-commerce.The global industrial racking systems market, valued at US$12.5 billion in 2023, is expected to rise at an 8.5% CAGR to US$2,768.9 million by 2033. With a 45% market share, India expects tremendous growth, fueled by expanding e-commerce.
The expansion of e-commerce fuels demand for smart warehousing systems that combine AI, robots, and IoT to improve productivity. Automation is increasing to minimize complexity and optimize space, with rack-supported warehouses preferred for versatility and space efficiency.
The India and MEA industrial racking systems market is expected to grow, particularly in India, at an 8.9% CAGR. Selective racking systems generate the most revenue, but rental rack systems are rapidly expanding. Market competitiveness depends on a variety of techniques, including cost efficiency and innovation.
Storage Technologies and Automation Ltd IPO Allotment Structure
According to SEBI regulations, Storage Technologies and Automation will be allocated as follows: 50% to qualified institutional buyers (QIB), 35% to non-institutional investors (NII), and 15% to retail individual investors (RII).Storage Technologies and Automation allocation will be as follows: According to SEBI regulations, 50% is allocated to Qualified Institutional Buyers (QIB), 35% to Non-Institutional Investors (NII), and 15% to Retail Individual Investors (RII).
● Qualified Institutional Buyers (QIB): According to SEBI norms, 50% of the shares offered in the IPO would be reserved for Qualified Institutional Buyers. These include banks, mutual funds, and insurance businesses.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for non-institutional investors. These often include corporate entities or individuals who invest more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allocated to retail individual investors. These individual investors apply for shares worth less than Rs. 2 lakhs.
Storage Technologies and Automation Ltd IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 30 April to 3 May 2024 | 78 | 9 | 87 (11.54%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
