Balaji-Solutions-Limited-(Foxin)-IPO-Elitewealth

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:
  • Mobile accessories (USB data cables, power bank, mobile chargers),

  • 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:
  • Hearables and audio products (multi-media Bluetooth speakers, TWS, tower speakers, portable speakers, headphones, and gaming headphones).

  • 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.

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    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:

    • 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

    • 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

    • 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.

    • 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:

    • 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

    • 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.

    • 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:

    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