Konstelec Engineers Limited (KEL), one of India’s premier electrical EPC services providers, has officially revealed that its Initial Public Offering (IPO) is set to commence on January 19, 2024. The announcement follows the opening of the Anchor portion on January 18, 2024, and the IPO will conclude on January 23, 2024. With an aim to raise approximately Rs. 28.70 crores at the upper band, KEL aspires to secure a listing on NSE Emerge.
The price band for the IPO has been established at Rs. 66 – Rs. 70 per share, with a lot size of 2,000 shares. Beeline Capital Advisors Private Limited is entrusted with the role of Book Running Lead Manager, while Skyline Financial Services Private Limited has been appointed as the Registrar to the Issue.
The IPO comprises a fresh issue of 41 lakh Equity Shares, each with a face value of Rs. 10, utilizing the book-building route. Market Maker has been reserved 2.06 lakh equity shares, 5.86 lakh equity shares for Non-Institutional Investors (NIIs), 19.44 lakh equity shares for the Qualified Institutional Buyers (QIB) portion, including anchor reservation, and the Retail (RII) portion accounts for 13.64 lakh equity shares.
The company’s primary objective for the capital raised is to meet working capital requirements for long-term projects. This includes procuring high-quality products and providing collateral security to various clients. Additionally, the funds will be allocated for general corporate purposes and to cover public-issue expenses.
Headquartered in Mumbai, Konstelec Engineers Limited specializes in comprehensive project management, procurement support, and engineering services for electrical infrastructure, instrumentation, and automation projects. The company’s services cater to a diverse range of manufacturing industries both domestically and internationally, including oil & gas, refinery, steel, cement, pharmaceuticals, textiles, hospitals, and health care.
Founded in 1995 by first-generation entrepreneur Mr. Biharilal Ravilal Shah, KEL has flourished under his visionary leadership. Presently, the company boasts a robust order book with over 50 major projects valued at Rs. 573 crores in various stages of implementation. Notable ongoing projects involve collaborations with industry giants such as JSW Vijayanagar Metallics Ltd, Rajasthan Refinery Project, HRRL Pachpadra, Mangalore Terminal Expansion Project, Karnataka State, and Benue Cement Plant in Nigeria.
In the first half of the current financial year ending September 30, 2023, Konstelec Engineers recorded a revenue of Rs. 93.05 crores, EBITDA of Rs. 7.08 crores, and a profit after tax (PAT) of Rs. 4.56 crores. For the entire FY2022-23, the company reported a revenue of Rs. 153.40 crores, marking significant growth from Rs. 107.05 crores in FY2021-22. EBITDA stood at Rs. 14.15 crores, compared to Rs. 5.84 crores in the previous fiscal year. The profit after tax registered over a two-fold increase at Rs. 7.78 crores in FY2022-23, up from Rs. 3.52 crores in FY2021-22.
KEL’s extensive clientele includes prestigious corporate conglomerates such as Reliance Industries Limited, Engineers India Limited, Tata Steel Limited, JSW Steel, Adani, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, NTPC, Navin Fluorine International Ltd, and IGPL.
As Konstelec Engineers gears up for its IPO, market observers anticipate a positive response from investors, given the company’s strong financial performance, diversified client base, and leadership in the electrical EPC services sector. The IPO is expected to play a pivotal role in fueling the company’s future growth and expansion plans.
