Positron Energy Limited provides management and technical advisory for the oil and gas industry in India. Presently its major business is gas aggregation business focusing on natural gas and utilizes common carrier pipeline networks in the Indian market. Positron Energy IPO is set to raise f Rs 51.21 crores. The issue comprises of fresh issue only.
IPO opens
August 12 2024
IPO Closes
August 14, 2024
IPO Size (Rs.)
51.21 crores.
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹238 to ₹250 per share
Minimum Lot
600 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Beeline Capital Advisors Pvt Ltd
Registrar
Link Intime India
Market maker
Spread X Securities.
Positron Energy Limited provides management and technical advisory for the oil and gas industry in India.
They offer end-to-end gas distribution solutions, including management consultancy, project management, and operation and management services.
The company has developed a gas aggregation business focusing on natural gas and utilizes common carrier pipeline networks in the Indian market.
There Offerings are in three segments:
The promoters of the company are Mr. Rajiv Shankarankutty Menon, Mr. Manav Bahri and Mr. Sujit K Sugathan
Financials: Positron Energy IPO
Particulars / Rs. Cr
2024(12)
2023(12)
2022(12)
Revenue From Operations
13,473.25
5,142.64
869.04
EBITDA
1,204.27
299.74
88.97
Profit/(Loss) After Tax
878.78
212.8
57.98
Share Capital
555.2
34.7
34.7
Net worth
1,489.26
566.87
354.45
Total Borrowings
1,027.90
741.81
368.33
Post issue Share Capital
760
FV
10.0
IPO price
250.0
EPS Fy23
2.8
PE Fy23
89.3
EPS Fy24
11.6
PE Fy24
21.6
Market cap in Lacs
19,000
Market cap / Sales
1.41
Anchors: Positron Energy IPO
Positron Energy IPO: Salient Points
They aggregate gas from different sources at most competitive price to cater consumers.
They have expertise in maintaining the entire value chain from sourcing to supplying following PNGRB rules.
Net proceeds use is mainly for working capital.
Positron Energy Limited since 2008 has served 90 percent of the top 10 oil and gas companies of India in more than 125 projects.
Peers: No listed peers.
Company for the initially 11 years were only engaged in the Management & Technical Advisory Services of Oil and Gas Industry.
Later on, in the FY 2018-19, it commenced the aggregation business of Coal Bed Methane Gas (CBM) for supplying to industrial unit.
After having successful business of CBM Gas aggregation also, as per the demand of industrial units, Company in July 2022 decided to aggressively commence the business of Natural Gas aggregation for such industrial unit. This is now 80-85% of its business.
Revenues are high in Natural Gas aggregation business but margins are lower than the Advisory business. However growth in this sector is quote high.
Company has entered into collaboration agreement with ICOM North America LLC (New Hudson, MI) for installation of ICOM Dual Fuel LNG conversion systems in on-road trucks weighing over 3.5 tons in India. The new system when approved will result in reduction in emissions with the utilization of LNG contributing to environmental sustainability.
Last year their revenues grew 161.99%.
Positron Energy IPO is coming at a PE ratio of 21.6x (FY24 Earnings).
I intend to apply in Positron Energy IPO subject to availability of funds. The company intends to mainatain a blend of Management & Technical Advisory Services of Oil and Gas Industry (15%) and Natural/other Gas aggregation business at 85%. The 2nd business line is growing rapidly. Gas sector is set for a explosive growth& company seems to be on track to capture this.
GMP as reported on social media has been around 80%.
The lead manager has a good track record.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
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. These certifications are for limited period and are not valid as on date. 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.
