Balaji Solutions Limited (Foxin) IPO Company Profile :
Balaji Solutions Limited is an IT hardware & peripherals and mobile accessories company engaged in the business of (i) manufacturing and branding of products under our flagship brand i.e. “Foxin” (“Foxin Products”); (ii) original equipment manufacturers (“OEMs”) ranging from sourcing of components, manufacturing, designing, quality testing as per the specifications provided by certain brand owners; and (iii) distribution of various IT hardware & peripherals, consumables, mobile accessories, and surveillance products of certain brand owners. Over the years the company has been able to build its presence in India through a wide range of quality consumer products at affordable prices and through its dealer channels in the electronic industry.
Balaji Solutions Limited (Foxin) IPO Business Verticals:
- Manufacturing: Balaji Solutions Limited carries out the business of manufacturing products under its flagship brand “Foxin” such as. These include the following:
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Mobile accessories (USB data cables, power bank, mobile chargers),
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Wearables and audio products (earphones, true wireless stereo (“TWS”), headphones and neckband), etc.
- Branding: Balaji Solutions Limited carries out the business of marketing and selling its products which are manufactured and sourced from third parties across India under its flagship brand “Foxin”. These include the following:
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Hearables and audio products (multi-media Bluetooth speakers, TWS, tower speakers, portable speakers, headphones, and gaming headphones).
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IT hardware & peripherals (monitor, CPU cabinets, keyboards (wired and wireless), gaming keyboards (wired 156 and wireless) and mouse (wired and wireless), motherboard, solid-state drive (“SSD”), uninterrupted power supply (“UPS”), switched mode power supply (“SMPS”)).
- Wearable products (smartwatch).
- Imaging products (compatible toner cartridges for laser printers).
- Distribution: Balaji Solutions Limited carries out the business of distribution of IT hardware & peripherals, mobile accessories, consumables, surveillance products, etc., for certain brand owners.
Balaji Solutions Limited commenced operations in 2001, under the leadership of the Promoter, Rajendra Sakseria. The company started its business with sub-distribution and established a channel network over the years. In order to cater to the growing and varied demand for IT hardware & peripherals and mobile accessories, the Company launched its own brand with the name “Foxin” which is dedicated to manufacture products and meet the demand of the consumers. Since the launch of the Foxin brand, as of June 30, 2022, the company has established 27 branches in India. In 2019, the company established the Manufacturing Facility and commenced manufacturing of mobile accessories, hearables, and audio products. Considering the demand for these products and for scaling the utilization of the Manufacturing Facility, the company also recently commenced OEM for certain brand owners.
Balaji Solutions Limited (Foxin) IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹10 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | Not Available |
| Fresh Issue | [●] shares
(aggregating up to ₹1200.00 Cr) |
| Offer for Sale | 75,00,000 shares
(aggregating up to ₹[●]Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Promoters | Rajendra Seksaria |
Balaji Solutions Limited (Foxin) IPO Financial Analysis:
| Particulars | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR (FY-20 to FY-22) |
| Revenue from Operations | 482.25 | 483.48 | 452.16 | 2.2% |
| Other Income | 3.33 | 4.76 | 1.47 | |
| Cost Of Goods Sold | 418.11 | 419.80 | 413.29 | |
| Employee Cost | 25.61 | 22.22 | 17.40 | |
| Other expenses | 10.95 | 13.34 | 8.30 | |
| Sales & Marketing Expenses | 3.89 | 4.23 | 2.36 | |
| EBITDA | 27.02 | 28.66 | 12.28 | 30.1% |
| EBITDA margin% | 5.60% | 5.93% | 2.72% | |
| Depreciation | 2.99 | 2.81 | 2.35 | |
| Interest | 2.96 | 3.31 | 5.35 | |
| PBT | 21.07 | 22.55 | 4.59 | 66.2% |
| Total tax | 5.69 | 6.30 | 1.26 | |
| PAT | 15.39 | 16.25 | 3.33 | 66.6% |
| PAT margin% | 3.19% | 3.36% | 0.74% | |
| Dep./revenue% | 0.62% | 0.58% | 0.52% | |
| Int./revenue% | 0.61% | 0.68% | 1.18% |
Balaji Solutions Limited (Foxin) IPO Revenue from Operations Details:
| Segment | FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % | CAGR (FY-20 to FY-22) |
| Sale of goods traded | 448.60 | 93.02% | 447.82 | 92.62% | 437.21 | 96.69% | 0.9% |
| Sale of Products Manufactured | 28.04 | 5.82% | 33.53 | 6.93% | 10.00 | 2.21% | 41.0% |
| Sale of services | 4.62 | 0.96% | 2.13 | 0.44% | 4.40 | 0.97% | 1.7% |
| Unbilled Revenue | 0.99 | 0.20% | 0.00 | 0.00% | 0.55 | 0.12% | 21.8% |
| Total | 482.25 | 100.00% | 483.48 | 100.00% | 452.16 | 100.00% | 2.2% |
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | No. of Equity Shares
held |
Percentage of the pre-Offer paid
Up equity share capital (%) |
| 1. | Rajendra Seksaria | 4,80,00,000 | 80.00% |
| 2. | Rajendra Seksaria HUF | 1,02,80,000 | 17.13% |
| Total | 5,82,80,000 | 97.13% | |
| Other Shareholders (Promoters & Promoter Group) | |||
| 3. | Sangeeta Seksaria (w/o Rajendra Seksaria) | 17,14,000 | 2.86% |
| Total | 5,99,94,000 | 99.99% | |
Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Number of Equity Shares
being offered in the Offer for Sale (Up to) |
| 1. | Rajendra Seksaria | 15,00,000 Equity Shares |
| 2. | Rajendra Seksaria HUF | 60,00,000 Equity Shares |
Balaji Solutions Limited (Foxin) IPO Strengths:
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Balaji Solutions Limited’s brand presence and extensive sales and distribution network in the country have enabled it to cater to diverse customer requirements and grow its business effectively. The company’s competitive advantage is further augmented by the high entry barriers into the industry in which it operates. Such entry barriers include the development of a supplier eco-system, developing a robust channel network, and building customer confidence, which can only be achieved over a period of time
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Balaji Solutions Limited maintains the flexibility of its Manufacturing Facility through multiple-function training and standardization of equipment, which allows it to quickly redeploy its production lines to meet variations in customer demand. The scale of production and flexibility of its Manufacturing Facility enables it to offer high-quality, timely, and cost-effective solutions to customers while limiting individual order volatility and maintaining competitiveness and margins
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Large base of the young population, who are technology-driven and brand conscious is a major growth driver for the wearables market in India. The company is well-positioned to capitalize on this growing market opportunity and address the increasing demand for IT hardware & peripherals and mobile accessories.
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Balaji Solutions Limited’s Foxin Products are sold through a dealer network of 1,873 dealers in India. The company is also a national distributor for certain brand owners wherein, it carries out distribution of IT hardware & peripherals, mobile accessories, consumables, surveillance products, etc., across India. This distribution network ensures that the products of the company are easily available to its customers in India. Strong and recognizable brands are a key attribute in the electronics industry as they, influence purchase decisions and increase customer confidence. Since its incorporation, the company has built its brand by leveraging the strength of its marketing and distribution network
Balaji Solutions Limited (Foxin) IPO Risk Factors:
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Balaji Solutions Limited’s business is dependent on the distribution of products of the brand owners and the loss of one or more such brand owners or a reduction in demand for their products could adversely affect the business, results of operations, financial condition, and cash flows of the company
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Balaji Solutions Limited operates in an industry with several competitors and any increase in competition may lead to reduced prices, operating margins, and profits and further result in loss of market share across product categories.
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Balaji Solutions Limited’s business is concentrated in the hearable and audio products, IT peripherals, and mobile accessories categories as well as to a lesser extent the wearables and imaging category, and variations in consumer demand as well as market sentiment for these product categories could adversely affect the business, results of operations and financial condition of the company.
Balaji Solutions Limited (Foxin) IPO Objects of the Offer:
The net proceeds of Fresh Issue, i.e. gross proceeds of the Fresh Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:
- Funding incremental working capital requirements of the Company; and
- General corporate purposes.
Balaji Solutions Limited (Foxin) IPO Prospectus:
- Balaji Solutions Limited (Foxin) IPO DRHP–
- Balaji Solutions Limited (Foxin) IPO RHP –
Registrar to the offer:
KFin Technologies Private Limited
Tel: + 91 40 6716 2222
E-mail: bsl.ipo@kfintech.com
Website: www.kfintech.com
Investor Grievance ID: einward.ris@kfintech.com
Contact Person: M. Murali Krishna
SEBI Registration No: INR000000221
Balaji Solutions (Foxin) IPO FAQ
Ans. Balaji Solutions (Foxin) IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Balaji Solutions (Foxin) IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.