Rockingdeals NSE SME RI review - (Not Rated)

•    The company is engaged as recommerce enterprise specializing in sourcing and selling diverse range of products.
•    It marked growth in its top lines, but bottom lines remained almost static.
•    Based on its recent financial data, the RI appears aggressively priced. 
•    It can be termed as a costly bet with “High Risk/Low Return”.
•    Only well-informed investors may park moderate funds for medium term.

ABOUT COMPANY:
Rockingdeals Circular Economy Ltd. (RCEL) is a leading recommerce enterprise specializing in sourcing and selling a diverse range of products across multiple categories, including Home Appliances, Fashion & Apparel, Household Essentials, and Grocery. It partners with several well-known brands to offer a wide variety of products to customers. The company procures inventory from a wide network of sources, including dealers, brands, e-commerce channels, and brand partners. These products are then distributed through its multiple channels such as own retail stores, franchise outlets, B2B channels, barter arrangements, and dedicated e-commerce platform.

The company has a subsidiary namely, Sustainquest Private Limited (SQPL) and through subsidiary, it has entered the Alpha Sellers segment for quick-commerce. SQPL has partnered with multiple brands to supply products to all major quick-commerce platforms. It also specializes in the procurement and sale of bulk inventories, sourcing from a strong dealer network. Its core clientele primarily consists of B2B entities.

Currently, its inventory includes over 18 Stock Keeping Units (SKUs) across a wide range of categories, including electrical appliances from various brands. RCEL’s robust sourcing channels comprise e-commerce vendors, affiliates of major platforms, and long-standing relationships with dealers and distributors. Furthermore, in this digital era, it has not restricted to only offline modes, but believe in offline as well as online distribution model for sale of products. It has its offline distributors spread across various states who in turn sells its products through various retailers. Under B2C online sales, it sells products through the e-commerce platform. Also, it has a dedicated call centre staffed with a team of skilled individuals under the customer relationship management initiative. The initiative allows it to engage with customers and potential clients on a broader scale, reaching every corner of the nation. Through this call centre, it can provide personalized assistance, gather valuable feedback, and address inquiries promptly.

The USP of its business model lies in the final discount which is unmatchable with any of the manufacturer, company or distributor and this is possible here because of its vast team experience. RCEL’s business model allows customers to save money by purchasing products at a reduced price. This can be especially beneficial for consumers who are looking for high-quality products but may not be able to afford brand new products at their original prices. The offer document is silent on its employees’ strength. 

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 2829500 equity shares of Rs. 10 each at a fixed price of Rs. 160 per share to mobilize Rs. 45.27 cr. The RI has already opened for subscription on November 07, 2025, and will close on November 21, 2025. The company is offering RI in the ratio of 1 for 2 to its eligible stakeholders as of the record date of October 29, 2025. The company is asking for 50% money (Rs. 80 per share) on application for the number of shares applied. Rest by one or more calls as decided by the company from time to time. Post allotment, RI shares will be listed on NSE SME Emerge. The market lot for this RI shall be 125 shares. The company is spending Rs. 0.80 cr. for this RI process, and from the net proceeds, it will utilize Rs. 24.72 cr. for working capital, Rs. 9.06 cr. for E-Waste management and recycling unit, and Rs. 10.68 cr. for general corporate purposes. 

The RI is self-managed by the company itself, and Bigshare Services Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 5.66 cr. will stand enhanced to Rs. 8.49 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 135.82 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 49.86 cr. / Rs. 5.21 cr. (FY24), Rs. 55.54 cr. / Rs. 5.34 cr. (FY25). Its NAV stood at 95.52 as of March 31, 2025, against 70.93 as of March 31, 2024. For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 1.33 cr. on a total income of Rs. 22.89 cr.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

SCRIP PERFORMANCE: BASED ON NSE WEBSITE DATA: SCRIP CODE: ROCKINGDCE (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 257.90 on October 28, 2025, and opened on an ex-right basis at Rs. 190 on October 30, 2025. Since then, it has marked a high/low of Rs. 245.00 / Rs. 180. The scrip last closed at Rs. 206.10 as of November 13, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 565.22 / Rs. 139.61. 

The promoters’ holding has declined to 64.11% for the quarter ended with September 30, 2025, against 65.11% for quarter ended as of March 31, 2025. The counter is trading above the RI price, with well managed counter by the vested interest quarters.