· Anchor book will be opened on January 18, 2024, while the issue will be closed on January 23, 2024
· IPO comprises of fresh issue of 41 lakh Equity Shares with a face value of Rs. 10 each through the book-building route
· Net proceeds from the issue to be utilised for working capital requirements for long-term projects and general corporate purposes
· Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and Skyline Financial Services Private Limited is the registrar to the issue
Mumbai, January 17, 2024: Konstelec Engineers Limited (The Company or KEL), India’s leading electrical EPC services company, today announced that its Initial Public Offer will open on Friday, January 19, 2024. The Anchor portion will be open on Thursday, January 18, 2024, and the issue will conclude on Tuesday, January 23, 2024. The company intends to raise approximately Rs. 28.70 crores (at upper hand) from the offering and aims to be listed with NSE Emerge. The price band for the issue has been fixed at Rs. 66 – Rs. 70 per share. The lot size will be 2,000 shares.
Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and Skyline Financial Services Private Limited is the Registrar to the Issue.
The IPO will comprise a fresh issue of 41 lakh Equity Shares with a face value of Rs 10/- through the book-building route. While 2.06 lakh equity shares have been reserved for Market Maker, 5.86 lakh equity shares for NIIs, 19.44 lakh equity shares allocated for QIB portion including anchor reservation, and Retail (RII) portion accounts for 13.64 lakh equity shares.
Konstelec plans to utilise a majority of funds raised proceeds towards the working capital expenses for procuring high-quality products for its long-term projects and to provide collateral security to various clients. It will use the remaining funds for general corporate purposes and to meet public-issue expenses.
The Mumbai-headquartered EPC contractor specialises in delivering full-scale project management, procurement support and comprehensive engineering services for various electrical infrastructure, instrumentation and automation projects across India and abroad. The company’s services are applicable in several manufacturing industries, such as oil & gas, refinery, steel, cement, pharmaceuticals, textiles, hospitals, and health care, both domestic and international.
Founded by a first-generation entrepreneur Mr. Biharilal Ravilal Shah in 1995, the company made giant strides under his visionary leadership and guidance. KEL currently has a strong order book of over 50 major projects amounting to Rs. 573 crore in order value, that are in various phases of implementation. The company’s ongoing projects include electrical, construction power work and instrumentation work for leading corporates such as JSW Vijayanagar Metallics Ltd, Rajasthan Refinery Project, HRRL Pachpadra, Mangalore Terminal Expansion Project, Karnataka State and Benue Cement Plant in Nigeria.
Konstelec Engineers recorded a revenue of Rs. 93.05 crore, EBITDA of Rs. 7.08 crore and a profit (PAT) of Rs. 4.56 crore in the first half of the current financial year which ended September 30, 2023. In FY2022-23, KEL posted a revenue of Rs. 153.40 crore, up from Rs. 107.05 crore in FY2021-22. The company’s EBITDA stood at Rs. 14.15 crore in FY2022-23, up from Rs. 5.84 crore in FY2021-22. KEL registered over two-fold growth in profit (PAT) at Rs. 7.78 crore in FY2022-23, compared to Rs. 3.52 crore in FY2021-22.
The company counts leading corporate conglomerates, including Reliance Industries Limited, Engineers India Limited, Tata Steel Limited, JSW Steel, Adani, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, NTPC, Navin Fluorine International Ltd and IGPL among its clientele.
For more information, please visit: https://www.konstelec.com/
DISCLAIMER: KONSTELEC ENGINEERS LIMITED IS PROPOSING, SUBJECT TO APPLICABLE STATUTORY AND REGULATORY REQUIREMENTS, RECEIPT OF REQUISITE APPROVALS, MARKET CONDITIONS AND OTHER CONSIDERATIONS, TO MAKE AN INITIAL PUBLIC OFFER OF ITS EQUITY SHARES AND HAS FILED THE DRHP WITH THE NSE EMERGE. THE DRHP IS AVAILABLE ON THE WEBSITE OF BRLM AND THE WEBSITE OF NSE. ANY POTENTIAL INVESTORS SHOULD NOTE THAT INVESTMENT IN EQUITY SHARES INVOLVES A HIGH DEGREE OF RISK, AND FOR DETAILS RELATING TO THE SAME, PLEASE REFER TO THE DRHP, INCLUDING THE SECTION TITLED “RISK FACTORS”, BEGINNING ON PAGE 27.
THE EQUITY SHARES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT) OR ANY STATE SECURITIES LAWS IN THE UNITED STATES, AND UNLESS SO REGISTERED, AND MAY NOT BE ISSUED OR SOLD WITHIN THE UNITED STATES, EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE U.S. STATE SECURITIES LAWS. THE EQUITY SHARES ARE BEING ISSUED AND SOLD OUTSIDE THE UNITED STATES IN ‘OFFSHORE TRANSACTIONS IN RELIANCE ON REGULATION “S* UNDER THE SECURITIES ACT AND THE APPLICABLE LAWS OF EACH JURISDICTION WHERE SUCH ISSUES AND SALES ARE MADE. THERE WILL BE NO PUBLIC OFFERING IN THE UNITED STATES.