Konstelec Engineers aims to raise Rs 28.70 crores. The issue is entirely a fresh issue of 41 lakh shares. Konstelec Engineers Limited is leading provider of electrical EPC services in India, Their expertise besides Electrical EPC includes Solar Power Plant Setup, Instrumentation & Automation.

About Konstelec Engineers IPO:

• Konstelec Engineers Limited was incorporated on December 05, 1995 as a private Limited Company and started business operations as Design Engineering Company.
• Over the years, they have expanded their services, constantly upgraded our technologies, systems, and processes and diversified business operations. As an EPC company, they specialize in delivering full-scale project management, procurement support, and detailed engineering services for various kinds of electrical infrastructure projects across India and abroad.
• Their expertise covers the entire project lifecycle, ensuring timely delivery and successful outcomes for even the most complex projects.
• Their services find applications across several processing and various kinds of manufacturing industries such as oil & gas, refinery, steel, cement, pharmaceuticals, textile, hospital, health care and commercial complexes, domestically and internationally. they have designed, developed, and executed several complex and integrated projects requiring cutting-edge electrical, instrumentation and automation systems.
• Their key offerings include engineering design and drawings, procurement, operations and maintenance, project management and construction and commissioning. Their expertise includes Electrical Installation, Solar Power Plant Setup, Instrumentation & Automation.
• They acquire direct infrastructure project contracts through tender biddings or direct orders from the clients.
• As of August 31, 2023, the size of their workforce comprised more than 800 employees.
• Promoter of Our Company is Mr. Biharilal Ravilal Shah and Mr. Amish Biharilal Shah.

Financials: Konstelec Engineers IPO

Anchors: Konstelec Engineers IPO

Konstelec Engineers IPO: Salient Points

• We derive almost 90% of our revenue from operations from India and exports are only made in one country i.e. Nigeria.
• company is an EPC contractor having Pan-India presence and ongoing projects in 15 states.
• It has specialization in electrical installations and has orders worth Rs. 380 cr. for ongoing projects. .
• The company’s clients include Reliance Industries Limited, Engineers India Limited, JSW Steel, Toyo Engineering, Indian Oil, BPCL, HPCL, CPCL, HPCL-Mittal Energy Limited-Bhatinda, MRPL, ISRO, IFFCO, ACC, BARC, Dangote Industries Limited, Adani, NTPC, Tata Steel Ltd, Nayara Energy Limitred, Navin Fluorine International Ltd and IGPL, etc.
• Konstelec boasts a dedicated and skilled permanent workforce comprising more than 120 engineers, 250 technicians, and various other locally employed personnel, totaling to over 800 work force across diverse project sites in India and Africa. Their manpower allocation aligns precisely with contractual obligations and client specifications.

• The Net Proceeds are proposed to be utilized in the manner set forth below:

• FINANCIAL KPIs of Company:

• Though their forte is electrical equipment projects, Konstelec has been actively involved in various Solar Power plant projects under the Jawaharlal Nehru National Solar Mission (JNNSM), an initiative by the Government of India to promote solar energy adoption. These projects have been undertaken in collaboration with various EPC consultants. Additionally, Company has taken up the responsibility of operating and maintaining these solar power plants post-construction.
• They have successfully undertaken and executed various key projects in the solar power sector. Some of the major works completed by company include:
  • Erection, Installation, Testing & Commissioning for 17 MW Power Plant.
  • Electrical Works for 5 MW Solar Photovoltaic Power Plant.
  • Supply, Erection, Installation, Testing & Commissioning of 66KV Switchyard with 11KV Pooling Station, including Civil Work
• They also have presence in Instrumentation and automation projects too.
• As on September 30, 2023,Company had unsecured loans amounting to ₹ 482.88 lakhs and had secured outstanding debt of ₹ 3626.59 lakhs as on September 30, 2023 from banks like Bank of Baroda, HDFC Bank, ICICI Bank.
• Peers

• They have the advantage of having an empanelment status with various PSUs.
• They are a licensed electrical contractor and have successfully completed over more than 200 Project of various size and complexities of which there were 45 Major Projects worth more than ₹ 400 Crores in India and abroad. As on August 31, 2023, we have an order book of more than 50 Major Projects worth around ₹ 565 Crores from our major projects suggesting strong order book which are at different stages of implementation.
• They possess the necessary resources, including Hydra/cranes , Containers/Commercial Vehicles, Stores, and Manpower, meticulously meeting all contractual commitments.
• Konstelec Engineers IPO is coming at a PE ratio of 13.6x(fy23 earnings) and 11.6x (fy24 annualized earnings).
• I intend to apply in Konstelec Engineers IPO subject to availability of funds. The issue is reasonably priced, has good clients and significant order book.
• GMP as reported on social media has been Rs.70/-.
• Narnolia Financial Services Ltd is the Lead Manager and has a reasonable record. Past issues handled by them include Akanksha Power and Infrastructure Limited, Supreme Power Equipment Limited, WomanCart Limited, Inspire Films, Cellecor Gadgets, Yudiz Solutions Limited, Drone Destination.
• SME IPO are much 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.