Konstelec Engineers Limited, a Mumbai-based electrical engineering, procurement, and construction (EPC) services company, has announced plans to raise approximately Rs. 25 crores through an Initial Public Offering (IPO) scheduled for January this year. The company, a key player in the electrical infrastructure sector, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) and aims to be listed on NSE Emerge. The IPO comprises a fresh issue of up to 41 lakh equity shares with a face value of Rs. 10 each at the book-build price. The Book Running Lead Manager for the IPO is Beeline Capital Advisors Private Limited, and Skyline Financial Services Private Limited will act as the registrar of the issue.
The primary objective of this fundraising endeavor is to secure funds for working capital, procurement of high-quality products for long-term projects, and collateral security. The company intends to utilize the remaining funds for general corporate purposes and public-issue expenses. Mr. Biharilal Ravilal Shah, Chairman-cum-Managing Director of Konstelec Engineers Limited, highlighted the company’s commitment to delivering high-quality, safe, and innovative solutions. He expressed the company’s dedication to using the IPO proceeds to meet working capital requirements for long-term projects and to efficiently conduct operations both in India and abroad.
Konstelec Engineers Limited specializes in providing project management, procurement support, and engineering services for electrical infrastructure, instrumentation, and automation projects in India and overseas. The company’s services cater to various manufacturing industries, including oil & gas, refineries, steel, cement, pharmaceuticals, textiles, hospitals, and healthcare. Currently managing over 50 major projects valued at around Rs. 565 crores, Konstelec Engineers is engaged in projects for prominent corporates such as JSW Vijayanagar Metallics Ltd., Rajasthan Refinery Project, HRRL Pachpadra, Mangalore Terminal Expansion Project, Karnataka State, and Benue Cement Plant in Nigeria.
The impressive client portfolio of Konstelec Engineers includes esteemed corporate conglomerates like Reliance Industries Limited, Engineers India Limited, JSW Steel, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, Adani, NTPC, Tata Steel Limited, Navin Fluorine International Ltd., and IGPL, among others.
In the financial year 2022-23, Konstelec Engineers Limited reported robust financial performance, with operating revenue reaching Rs. 153.40 crores, a significant increase from Rs. 107.05 crores in the previous fiscal year (2021-22). The company’s EBITDA witnessed substantial growth, rising from Rs. 5.84 crores in FY 2021-22 to Rs. 14.15 crores in FY 2022-23. Furthermore, Konstelec Engineers recorded over a two-fold increase in profit after tax (PAT), reaching Rs. 7.78 crores in FY 2022-23, compared to Rs. 3.52 crores in FY 2021-22.
The successful IPO would not only strengthen Konstelec Engineers Limited’s financial position but also contribute to its continued growth and successful execution of its diverse projects in the electrical infrastructure domain. Investors and industry enthusiasts will keenly observe the developments as Konstelec Engineers prepares to make its mark on the NSE Emerge platform this January.
