Konstelec Engineers Ltd IPO - Review, Valuation, Date & GMP

Konstelec Engineers Limited IPO - Complete Overview

Konstelec Engineers Limited started in December 1995 as a small company doing design engineering. They've grown a lot since then and now do a bunch of things in the electrical and engineering world. They're known as EPC (Engineering, Procurement, and Construction) companies that provide everything needed to finish infrastructure projects. They offer all the necessary resources and take on the responsibility of completing the project from start to finish. This helps reduce the risk for the project owner by having a single point of contact for the entire process.

The company has worked on over 200 projects, with 45 big ones worth a lot of money. Their projects include things like setting up electrical systems, solar power plants, and automation. They've worked with some big names like Reliance Industries, JSW Steel, and ISRO.

They work on projects all over India and even in other countries.  The company serves clients in over 15 states in India and Nigeria. They're currently handling a hefty order book of over 50 major projects, totaling around 565 crores.

 

Konstelec Engineers Limited IPO Overview

Konstelec Engineers Limited IPO date is slated to be open for subscription from January 19, 2024, to January 24, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Konstelec Engineers Limited IPO price is fixed at Rs. 66 to Rs.70 per share per share. The upcoming NSE SME IPO listing date is not fixed yet.

The total issue size of this IPO amounts to Rs. 28.70 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

Konstelec Engineers Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	19 January 2024
IPO Closing Date	24 January 2024
IPO Allotment Date	25 January 2024
Refund initiation	29 January 2024
IPO Listing Date	30 January 2024

 

Konstelec Engineers Limited IPO Details

IPO Opening & Closing Date	19 January to 24 January 2024
Face Value	Rs. 10 per share
Issue Price	Rs. 66 - Rs. 70  per share
Lot Size	2000  Shares
Price of 1 Lot	Rs. 1,40,000
Total Issue Size	4,100,000 Shares (aggregating up to Rs. 28.70 Cr)
Fresh issue	4,100,000 Shares (aggregating up to Rs. 28.70 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Skyline Financial Services Private Ltd

 

Detailed Video

 

 

Konstelec Engineers Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2000
Maximum Lot Investment (Retail)	1 lot	2000
Minimum Lot Investment (HNI)	2 lot	4000

 

Konstelec Engineers Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

In FY23, Konstelec Engineers exhibited growth in its financials.

(Amount In Lakhs)

Period	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Total Assets	14,612.99	11,884.44	10,364.02
Total Revenue	15,500.05	10,902.31	10,617.16
PAT	777.77	352.25	190.34
Net worth	6,191.50	5,423.73	5,071.48
Reserve & Surplus	6,091.50	5,323.73	4,971.48
Total Borrowings	3,507.15	2,650.59	2,548.12

 

Particulars of Revenue Segment-wise

Konstelec Engineers' revenue in FY23 was diversified across product sales, services, and composite supply.

(In %age)

Particulars	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Sale of products	7.63%	22.16%	10.63%
Sale of services	19.51%	4.76%	3.04%
Composite Supply	72.86%	73.08%	86.33%
Total	100.00%	100.00%	100.00%

 

Category-wise Revenue Bifurcation

In FY23, the company relied on domestic sales, supplemented by export sales, resulting in overall robust revenue growth.

(In %age)

Particulars	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Domestic Sales	14,641.42	9,544.29	10,028.72
Export Sales	699.07	1,160.43	460.71
Total	15,340.49	10,704.72	10,489.43

 

Revenue by Operations

In the last financial year, Konstelec Engineers earned more money from their main operations.

(Amount In Lakhs)

Particulars	Mar 31, FY 23	Mar 31, FY 22	Mar 31, FY 21
Revenue from operations	15,340.49	10,704.72	10,489.43
Other Operating Income	159.56	197.59	127.72
Total Revenue from operations	15,500.05	10,902.31	10,617.16

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• To Meet Working Capital Requirements
• General corporate purposes
• To meet Public Issue Expenses

 

Promoters and Management of Konstelec Engineers Limited IPO

1. Mr. Biharilal Ravilal Shah.
2. Mr. Amish Biharilal Shah.

Pre-issue Promoter Shareholding	91.65%
Post-issue Promoter Shareholding

 

Konstelec Engineers Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd

 

Peers of Konstelec Engineers Limited IPO

Konstelec Engineers Limited has a higher face value and EPS compared to its peer, Skipper Limited.

Name of the Company	Face Value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Konstelec Engineers Limited	10.00	9.90	7.07
Skipper Limited	1.00	27.77	3.46

 

Evaluation

The IPO is priced at Rs. 66 to Rs. 70 per share.

Based on FY23 EPS of Rs 7.07, the P/E ratio is 9.90x. Considering the weighted EPS of Rs 4.89 for the last three years, the P/E ratio is 14.32x.

The industry's average P/E is 27.77x.

Hence, the IPO price range at a P/E of 9.90x to 14.32x is considered undervalued compared to the industry average of 27.77x.

 

 

Dividend Policy

The company distributed dividends in the financial year ending March 31, 2023, totaling Rs. 10.00 lakhs, with a dividend per share of Rs. 1.00 at a rate of 10%. The possibility of future dividend payments hinges on factors such as profits, historical dividend patterns, capital requirements, legal constraints, and other pertinent considerations assessed by our Board.

 

IPO's Strengths

• Experienced promoters
• Qualified Team
• Execution capacity with the latest technology
• Quality services
• Long Standing Client Relations
• Safety and Best execution Practices
• Almost Pan India reach

 

IPO's Weaknesses

• Customer concentration
• Management of working capital and high debt
• Low Penetration in Private Client

 

IPO GMP Today

The Latest GMP of Konstelec Engineers Limited IPO is Rs.105.

 

 

Conclusion

In conclusion, Konstelec Engineers Limited has showcased significant growth and expertise in the engineering and construction sector. The IPO offers an opportunity for investors to be part of a company with a diversified portfolio, experienced promoters, and a widespread presence in India and Nigeria. The pricing of the IPO, with a P/E ratio considered undervalued compared to industry averages, adds to its investment appeal. However, potential investors are advised to carefully consider the risks and weaknesses outlined, such as customer concentration and debt management. Staying updated on the latest news and reviews is recommended for informed investment decisions.

 

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.

 

 

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