Konstelec Engineers aims to raise ₹25 crore through SME IPO; to list on NSE Emerge
Konstelec Engineers Ltd intends to raise about ₹25 crores through an Initial Public Offering (IPO), the company said in a statement released today. In order to be listed on NSE Emerge, the company has already filed its draft red herring prospectus (DRHP) to Securities and Exchange Board of India (SEBI), the capital market regulator.
With its headquarters located in Mumbai, Konstelec Engineers is the top provider of electrical engineering, procurement, and construction (EPC) services in India. The small- and medium-sized business (SME) IPO is scheduled for January of this year.
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The SME IPO consists of a fresh offering of up to 41 lakh equity shares at book-build price, each having a face value of ₹10.
The majority of the proceeds raised will go towards working capital, high-quality product acquisition for long-term projects, and collateral security; the remaining funds will be utilised for general corporate purposes and public-issue expenses.
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The issue’s registrar is Skyline Financial Services Private Ltd, and the book running lead manager is Beeline Capital Advisors Private Ltd.
Konstelec Engineers’s revenue from operations increased to ₹153.40 crore in FY2022-23, from ₹107.05 crore in FY2021-22. The company’s EBITDA increased to ₹14.15 crore in FY2022-23 from ₹5.84 crore in FY2021-22. Konstelec Engineers reported a profit (PAT) increase of more than two times, to ₹7.78 crore in FY2022-23, up from ₹3.52 crore in FY2021-22, as per the DRHP.
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As clients, the company counts Reliance Industries Limited, Engineers India Limited, JSW Steel, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries, Adani, NTPC, Tata Steel, Navin Fluorine International, and IGPL among other top corporate conglomerates.
“Our combined experience of over six decades in this space, combined with the expertise of our exceptionally professional team, has driven our business beyond boundaries. Our robust order book and long-standing client relationships demonstrate our commitment to delivering high-quality, safe, and innovative solutions. We intend to use the proceeds from the IPO to meet working capital requirements for our long-term projects and efficiently carry on our operations in India and abroad,” said Biharilal Ravilal Shah, Chairman-cum-Managing Director of Konstelec Engineers Limited, in reference to the company’s plan for going public.
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Published: 08 Jan 2024, 02:07 PM IST
