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Ztech India Ltd IPO: Review, Valuation, Date & GMP

  


Ztech India Limited IPO - Complete Overview

Established in 1994, Z-Tech (India) Limited specializes in designing civil engineering products and services, with a state-of-the-art focus on Geo-Technical Specialized Solutions for infrastructure and civil construction projects in India. 

The company is actively involved in the waste management sector, emphasizing the creation of theme parks using recycled scrap materials. 

Z-Tech is dedicated to providing innovative, safe, and eco-friendly engineering solutions across three major categories: 

(i) Sustainable Theme Park Development

(ii) Industrial Waste Water Management

(iii) Geo-Technical Specialized Solutions. 

The company's clientele includes prominent names such as Bhartia Infra Projects Limited, Dilip Buildcon Limited, GMR Infra Limited, Punj Lloyd Limited, NCC Limited, MEP Infrastructure Developers Limited, IRCON International Limited, Hindustan Construction Co. Ltd., Madhucon Sugar and Power Industries Limited, and GVR Infra Projects Limited. 

As of March 31, 2024, Z-Tech has generated revenue of Rs. 6,737.02 lakhs.

 

Ztech India Limited IPO Overview

Ztech India Limited IPO date is slated to be open for subscription from May 29, 2024, to May 31, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Ztech India Limited IPO price is fixed in the range of at Rs.104 to Rs.110 per share. 

The total issue size of this IPO amounts to Rs.37.30 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2024, and March 31, 2023, Ztech India Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing has also increased.

Amount in Lakhs

Period

31 Mar 2024

31 Mar 2023

31 Mar 2022

Total Assets 

4,192.24

2,339.62

1,925.11

Total Revenue

6,737.02

2,588.40

3,083.89

PAT

779.83

196.71

8.42

Net worth

2,191.00

998.95

802.24

Reserve & Surplus 

1,250.39

888.95

692.25

Total Borrowings

130.84

71.03

71.74

 

Segment-wise Revenue Break Up

(Amount in Lakhs)

Particular

March 31, 2024 

March 2023 

March 2022

Civil Engineering 

1,890.79 

1,741.56 

2,585.81

WasteWater 

915.64 

482.35 

478.12

Specialized Park Development

3,925.39 

348.59

-

Total 

6,731.82 

2,572.50 

3,063.92

 

Geography-wise Revenue Break Up

(Amount in Lakhs)

State 

March 2024 

March 2023 

March 2022

Domestic Sales

     

Assam 

377.37 

25.77 

203.12 

Bihar 

40.21 

52.54 

223.40 

Chattisgarh 

78.00 

186.90

Delhi 

3,881.81 

711.00 

842.15

Gujarat

54.40 

Goa 

-

-

6.75

Haryana

171.94 

136.92 

10.22

Jharkhand 

33.06 

52.06 

221.63

Karnataka 

-

-

4.84

Kerala 

13.33 

269.13

Madhya Pradesh

30.01 

30.01

Maharashtra 

29.25 

200.88 

411.64

Odisha 

-

43.65

Rajasthan 

26.40 

-

-

Sikkim

-

-

-

Tamil Nadu 

397.51

413.37 

256.48

Telangana 

50.37 

71.54

Uttarakhand 

70.36 

106.66

-

Uttar Pradesh 

1,172.21 

312.17

-

West Bengal 

531.70 

303.54

242.96

Export Sales

     

Sarjah, United Arab Emirates 

31.46 

39.50

Total 

6,731.82 

2,572.50 

3,063.92

 

Region-wise Revenue Break Up

(Amount in Lakhs)

Particular

March 2024 

March 2023 

March 2022

East 

982.34 

511.91 

1,121.65

North 

5,322.72 

1,296.77

882.39 

West 

29.25 

286.75 

457.89

South 

397.51 

477.07 

601.99 

Total 

6,731.82 

2,572.50 

3,063.92

 

Revenue Break up Private Contracts and Goverment Contracts

(Amount in Lakhs)

Particulars 

March 31, 2024 

March 31, 2023 

March 31, 2022

Government Tenders

999.39 

79.15 

91.88

Other than Government Tenders

5,732.43 

2,493.35 

2,972.04

Total 

6,731.82

2,572.50 

3,063.92

 

The Objective of the Issue

The objectives of the issue are:

1. To meet the working capital requirements of the company.

2. To fund general corporate purposes.

3. To cover the issue expenses.

Peers of Ztech India Limited IPO

Name of the Company

Face Value (Rs)

EPS (Rs)

P/E Ratio

Z Tech India Limited

10

36.94

-

Ion Exchange (India) Limited

10

6.64

67.77

Felix Industries Limited

10

1.48

229.16

Wonderla Holidays Limited

10

26.33

28.89

H.G. Infra Engineering Limited

10

27.63

32.00

Nicco Parks & Resorts Limited

10

2.96

46.79

NCC Limited

10

3.68

58.53

 

Evaluation

The IPO is priced within the range of Rs.104 to Rs.110 per share.

Evaluation of P/E Ratio

  • Considering the FY23 EPS of Rs 2.25 from the last year, the resulting P/E ratio is 48.88x.

  • Taking into account the weighted EPS of Rs 8.64 for the last three years, the P/E ratio amounts to 12.73x.

Comparative Analysis with Listed Peers

  • The industry's average P/E is x.77.19

As a result, the IPO price range, with a P/E ratio ranging from 48.88x to 12.73x, seems fully priced to the industry average of 77.19x.

 

IPO's Strengths

  • Experienced and qualified management team

  • Well-organized organizational structure

  • Efficient business model

  • Strong execution capabilities with extensive industry experience

  • Commitment to quality assurance and high standards

 

IPO's Weaknesses

  • Operating in three distinct segments without connections poses a significant risk to the company's business.

  • A substantial portion of revenue is derived from the newly introduced Sustainable Theme Park business, compared to Geo-Technical Specialized Solutions and Waste Water Management.

  • The current promoters are first-generation entrepreneurs.

  • The promoter or holding company has incurred losses in the past and may continue to do so in the future.

  • The company has experienced negative cash flows in the past and may continue to experience them in the future.

  • The company's business is subject to seasonal fluctuations that could cause delays or disruptions in operations.

  • A mismatch between water samples and actual water quality may lead to significant financial losses and harm the integrity and viability of the company's industrial setups.

  • For the past three years, the majority of the company's state-wise revenue from operations has been derived from Delhi. Any adverse developments affecting operations in this state could negatively impact revenue.

  • The company relies on government tenders for a portion of its operational revenue.

  • Non-compliance with environmental laws and other regulatory requirements related to Waste Water Management may adversely affect the business.

  • The company depends on a limited number of customers for a significant portion of its revenues.

 

IPO GMP Today

The Latest GMP of Ztech India Limited is Rs.27 

Ztech India Limited IPO timetable (Tentative)

Ztech India Limited IPO is scheduled from May 29 to May 31, 2024, with allotment on June 3, refund initiation on June 4, and listing on June 4, 2024.

Events 

Date

IPO Opening Date

May 29, 2024

IPO Closing Date

May 31, 2024

IPO Allotment Date 

June 3, 2024

Refund initiation 

June 4, 2024

IPO Listing Date

June 4, 2024

 

Ztech India Limited IPO Details 

Ztech India Limited IPO, with a face value of Rs.10 per share, opens on May 29 and closes on May 31, 2024, offering 3,391,200 shares at Rs.104 to Rs.110 per share, with a lot size of 1200 shares, aiming to raise Rs.37.30 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date 

May 29, 2024 to May 31, 2024

Face Value 

Rs.10 per share

Issue Price

Rs.104 to Rs.110 per share

Lot Size

1200 shares

Price of 1 lot

Rs. 132,000

Issue Size

3,391,200 shares (aggregating up to ₹37.30 Cr)

Offer for Sale 

NA

Fresh Issue 

3,391,200 shares (aggregating up to ₹37.30 Cr)

Listing at

NSE SME

Issue Type 

Book Built Issue IPO

Registrar 

Maashitla Securities Private Limited 

 

Ztech India Limited IPO Lot Details 

For Ztech India Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.132,000 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.264,000.

Minimum Lot Investment (Retail) 

1 lot

Maximum Lot Investment (Retail) 

1 lot

Minimum Lot Investment (HNI) 

2 lot

 

Ztech India Limited IPO Reservation

Institutional Share Portion

50%

Non-institutional Share Portion

15%

Retail share Portion

35%

 

Promoters and Management of Ztech India Limited

  • Ms Sanghamitra Borgohain 

  • M/s Terramaya Enterprises Private Limited.

Pre-issue Promoter shareholding

82.65%

Post-issue Promoter shareholding

60.75%

 

Ztech India Limited IPO Lead Managers

  • Narnolia Financial Services Ltd

 

Dividend Policy

The company has not paid any dividends on equity shares in the past financial years.

 

Conclusion

The company operates in three different sectors, with the majority of its revenue generated from the business of sustainable theme parks. It demonstrated strong performance in FY24 and has numerous projects in the pipeline. Investors can consider applying for the upcoming IPO to achieve optimal gains.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

 

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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Frequently Asked Questions

+

The IPO is scheduled to open for subscription on May 29, 2024.

 

+

The issue price for Ztech India Limited IPO is set in the range of Rs. 104 to Rs.110 per share.

 

+

The total issue size of the IPO is Rs.37.30 Cr, with 35% reserved for retail investors.

 

+

The IPO is set to close on May 31, 2024.

 

+

The net proceeds from the IPO will be allocated towards meeting the company's working capital requirements, funding general corporate purposes, and covering issue expenses.

 



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