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Akanksha Power and Infrastructure IPO intends to garner Rs 27.49 crores and comprises of an entirely fresh issue of 49.98 lakh shares. Akanksha Power and Infrastructure Limited manufactures electrical equipment such as switchboards, transformers and vacuum contactors for institutions, industries and utilities.

About Akanksha Power and Infrastructure:

• Founded in 1998
• Company is engaged in the business of manufacturing of electric equipments, including electrical panels, instrument transformers, and vacuum contactors, catering to consumers from institutions, industries, electricity transmission and distribution utilities.
• Company has two plants to manufacture the products with emphasis on quality and performance. The manufacturing facilities / works located at Nashik, Maharashtra.
• In addition to production and manufacturing, they are also into providing services related to distribution and management of power in which their operation includes establishment of electrical infrastructure which involves power quality audit, site analysis, online cloud based multiple monitoring and data analysis for better management to reduce losses at Transmission, distribution and User level.
• They are also engaged in managing electrical distribution network for the distribution companies (“DISCOMs”).
• Company is also engaged in turnkey projects which involves supply, installation, erection, commissioning, and maintenance of electrical infrastructure up to 33 KV, managing greenfield LED streetlight and technical operation and maintenance of one of the electrical division in Odisha.
• It also has the Technology Partnership “PQS Technology Partner” with TDK (EPCOS), to manufacture LV and MV electrical APFC, Hybrid APFC (Active filter + APFC), MCC, PCC, VFD Panels, Indoor and Outdoor current transformer (CT), Voltage transformer (PT) and Residual Voltage Transformer (RVT) up to 33kV.

Financials: Akanksha Power and Infrastructure Limited

Anchor: Akanksha Power and Infrastructure IPO

Akanksha Power and Infrastructure IPO: Salient Points

• There is a fluctuation in company’s revenue as company had a franchise agreement with NESCO since 2010 till 2021, through which theyused to supply power to some districts of Orissa. After 2021, Orissa electricity distribution companies were taken over by Tata. After which, they entered into the contract of AMC (Annual Maintenance Contract) with Tata, under which they take care of operation and maintenance only.

• The Company has been working in the field of AT&C loss reduction initiatives, in reactive power compensation to reduce the technical losses in transmission & distribution as well as the AMI infrastructure to control the commercial losses.
• The Metering Division was started during 2021. They claim to be a technology leader in Automated Metering Infrastructure (AMI) in the retail electricity market. Using the latest hybrid communication technology (PLC + RF) and with a modern and world class manufacturing facility, the company makes high quality smart energy meters to ensure 100% data redundancy. A powerful analytic software “UDREAM” of the Company integrates the meters to the Meter Data Management & Billing system.
• Company has made a strategic move into the Smart Energy Meter segment and will participate in government tenders for the smart energy meter segment. This sector currently represents a significant untapped markets for metering companies and if company is successful in bagging orders it may emerge as a primary revenue stream for the company in the coming years.
• In order to manufacture the Hybrid smart energy meters (single phase, 3 phase meter, data concentrator unit and distribution transformer meter/ high tension meters), Gas & water smart meter (Bulk and Consumer meters), which our company is going to manufactured., company intend to buy certain Second-Hand machineries from Hanbit Automation Technologies Private Limited.
• Company had planned an IPO few months back butt dropped it at the ;last moment. It was then at price band from Rs. 40 – Rs. 45 per share. 3 months down the line it is coming with an IPO at Rs. 52 – Rs. 55 per share . As per company this is due to certain new order wins and good potential of its products.
• Akanksha Power and Infrastructure IPO is coming at a PE ratio of 35.1x(fy23 earnings) and 35.8x (fy24 annualized earnings)
• I intend to apply in Akanksha Power and Infrastructure IPO subject to availability of funds. will take some risk in this.
• GMP as reported on social media has been Rs. 15.
• Narnolia Financial Services Ltd is the Lead Manager and has a reasonable record. Past issues handled by them include WomanCart Limited, Inspire Films, Cellecor Gadgets, Yudiz Solutions Limited, Drone Destination.
• SME IPO are more risky than mainboard IPOs.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.