Kay Cee Energy & Infra IPO aims to raise Rs 15.93 crores. The issue is entirely a fresh issue of 29.5 lakh shares. Kay Cee Energy & Infra Limited is an EPC firm specializing in power transmission and distribution systems,

About Kay Cee Energy & Infra:

• Kay Cee Energy & Infra Iis an Engineering, Procurement and Construction (“EPC”) company providing specialized services of commissioning EHV Power transmission lines to various government authorities and private entities.
• They undertake EPC projects for various government entities, including but not limited to Rajasthan Rajya Vidyut Prasaran Nigam Limited (“RRVPNL”).
• Their service portfolio includes handling, erection, testing, commissioning of equipment and materials for laying of high voltage under- current power lines, establishing power distribution network, testing and commissioning of sub-station, underground cable laying, upgradation and modification of existing power system, setting up emergency restoration system structures etc.
• Our service portfolio includes handling, erection, testing, commissioning of equipment and materials for power transmission & distribution System including lines, substation construction, automation, augmentation/ modification and extension of existing power system. The service portfolio of our Company also includes the Operation and Maintenance of 132 kV Substations, Maintenance of substations up to 400 kV Level and Maintenance of EHV Lines up to 765 kV Level including deployment of Emergency Restoration System (ERS) for breakdown maintenance etc. We undertake turnkey, partial turnkey and labour contract jobs for supply, civil, erection, testing & commissioning of all types of electrical system works for government and private entities.
• They also undertake turnkey jobs for supply, civil, erection, testing & commissioning of all types of electrical system for government and private entities.
• Promoters of Company are Mr. Lokendra Jain and Mrs. Shalini Jain.

Financials: Kay Cee Energy & Infra

Anchors: Kay Cee Energy & Infra IPO

Kay Cee Energy & Infra IPO: Salient Points

• The promoters currently hold 96.12% of the equity and post IPO their shareholding shall stand diluted to 70.25%.
• In addition to independently undertaking projects, theyhave also entered into a collaboration with other engineering companies such as Sterlite Power Transmission Limited, Jost Engineering Limited, to jointly bid and execute larger projects. As of September 30, 2023, they have been awarded three projects by Rajasthan Rajya Vidyut Prasaran Nigam Limited having an aggregate value of ₹ 36,296.34 lakhs which shall executed in collaboration with Jost’s Engineering Company Limited as other partner.
• In addition to executing EPC projects for various public sector units and government entities, they also undertake EPC projects for private entities such as, Wonder Cement Limited, H G Infra Engineering Limited, Gawar Construction Limited, Raj Shyama Constructions Private Limited, DRAIPL-GCC (JV), DMIA Nyati LLP, Larsen & Turbo Limited, Sadbhav Engineering Limited, to name a few. As part of EPC projects for private entities, they offer services including but not limited to, shifting of high voltage transmission lines, dismantling of previous transmission lines, handling, erection, installation, testing, commissioning of new transmission lines along with equipment and materials, obtaining necessary approvals for creation or shifting of transmission lines from the relevant state government authorities, etc.
• Company proposes to utilise up to ₹ 1,300 lakhs from the Net Proceeds towards funding its working capital requirements in Fiscal 2024.
• The turnover of the company has increased from ₹ 3,477.33 Lakhs in FY 2020-21 to ₹ 4,959.36 Lakhs in FY 2021-22 and ₹ 6,109.18 Lakhs in FY 2022-23.
• Ativir Alternative Investment Fund, a CATEGORY I – SME FUND, held 1.49% stake in the company.
• More han 3/4 of its revenue is derived from Public sector units and State Government agencies.
• As on September 30, 2023, the Company has 15 projects in hand with an aggregate order book value of approximately ₹ 54,990.27 lakhs.
• Peers: Among its peers listed in RHP, Kay Cee Energy & Infra has the lower P/E 12x, compared to Viviana Power Tech Limited P/E ratio of 34.3x, and Kec International Limited with P/E ratio of 80.6x.
• Kay Cee Energy & Infra IPO is coming at a PE ratio of 10.7x(fy23 earnings) and 12.2x (fy24 annualized earnings)
• I intend to apply in Kay Cee Energy & Infra IPO subject to availability of funds. will take some risk in this.
• GMP as reported on social media has been Rs. 60.
• GYR Capital Advisors Pvt. Ltd is the Lead Manager to the issue. Past issues handled by them include Trident Techlabs Limited, Maitreya Medicare Limited, Basilic Fly Studio Limited, Srivari Spices and Foods Limited, Essen Speciality Films Limited, MCON Rasayan India Limited, Agarwal Float Glass India Limited, Anlon Technology Solutions Limited, Uma Converter Limited, Sabar Flex India Limited, Mafia Trends Limited, Pritika Engineering Components etc.
• SME IPO are more risky and volatile 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.