Rulka Electricals Limited (REL), a prominent turnkey project contractor specializing in electrical and firefighting services, is set to launch its initial public offering (IPO) on Thursday, May 16, 2024. The IPO will close on Tuesday, May 21, 2024, with the anchor book opening a day earlier on Wednesday, May 15, 2024. The price band for the IPO has been set at Rs. 223 to Rs. 235 per share, and the lot size will be 600 equity shares.
IPO Structure and Purpose
The IPO consists of a fresh issue of 8,42,400 equity shares and an offer for sale (OFS) of up to 2,80,800 equity shares, each with a face value of Rs. 10, through the book-building route. The total issue size at the upper price band amounts to Rs. 26.4 crore. The selling shareholder for the OFS is Abhay Kantilal Shah HUF.
REL plans to utilize Rs. 14 crore of the IPO proceeds to meet its working capital requirements for expanding its business activities. The remaining funds will be allocated for general corporate purposes and public offer expenses.
Allotment and Reservation Details
The IPO has specific allotments for various investor categories:
- Anchor Book: 3,19,200 equity shares
- Market Maker: 56,400 equity shares
- Retail Investors (RII): 3,73,800 equity shares
- High Net-Worth Individuals (HNI): 1,60,200 equity shares
- Qualified Institutional Buyers (QIB): 2,13,600 equity shares
Key Financials and Company Overview
REL, headquartered in Mumbai, offers a comprehensive suite of electrical services, including electrical solutions, electrical panels, solar EPC contracts, turnkey electrical warehousing projects, electrical commercial and industrial services, maintenance services, electrical contracting, and data & voice cabling installation. The company caters to a wide range of sectors, including industrial, commercial, retail, and theatre.
Incorporated in 2013, REL was founded by Rupesh Laxman Kasavkar and Nitin Indrakumar Aher, both of whom bring over two decades of experience in the electrical domain. Their expertise in site execution and project work has been pivotal in driving the company’s growth and strategic direction.
Financial Performance
REL has demonstrated robust financial performance, with revenues of Rs. 65.18 crore and a profit after tax (PAT) of Rs. 5.65 crore in the first eleven months of the financial year 2023-24, which ended on February 29, 2024. This compares favorably to the previous fiscal year, which saw revenues of Rs. 46.83 crore and a PAT of Rs. 2.8 crore.
Strategic Vision
John Loudermilk, President and Chief Executive Officer of Birla Carbon, expressed his pride in this achievement, stating, “We are immensely proud to achieve the ISCC PLUS certification for our plants in India. These milestones signify Birla Carbon’s commitment to environmental responsibility and sustainable practices. It also highlights our role in driving positive change within the Indian and the larger Asia manufacturing sector. As we expand our certification efforts globally, we reinforce our dedication to setting industry benchmarks and fostering a more sustainable future.”
The proceeds from the IPO will be instrumental in supporting REL’s expansion plans and enhancing its operational capabilities. By strengthening its working capital base, the company aims to capitalize on new business opportunities and drive sustainable growth.
Leadership and Governance
REL’s leadership team, led by the entrepreneurial duo Rupesh Laxman Kasavkar and Nitin Indrakumar Aher, has been instrumental in the company’s success. Their vision and strategic acumen have positioned REL as a trusted name in the electrical services industry.
