Advait Infratech SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Sep 2020 – 18 Sep 2020
- Listing date
- 28 Sep 2020
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹6.89 Cr
- Promoter holding
- 99.99% → 73.51% pre-issue → post-issue
- ISIN
- INE0ALI01010
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ISK Advisors Pvt.Ltd.
- Registered office
- A-801 To 803 Sankalp Iconic, Opp. Vikram Nagar, Iscon Temple Cross Road,, S.G Highway, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 68,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|
About Advait Infratech SME
Incorporated on March 15, 2010 as Advait Infratech Private Limited in Ahmedabad, Gujarat, and converted to a public limited company named Advait Infratech Limited on November 29, 2019, the company supplies products and solutions for power transmission, power substation and telecommunication infrastructure. Its key offerings are Optical Fibre Ground Wire (OPGW) and OFC cables and solutions, insulators for EHV transmission lines, stringing tools for transmission line construction, gas-insulated substations (GIS), earthing solutions and specialized transmission line/substation products. It earns money by trading these products, executing installation of OPGW/OFC cables and turnkey telecommunication projects, providing agency, liaising, marketing and branch support services to overseas companies for their Indian project execution, and through OEM manufacturing of stringing tools; it also holds 33.50% of TG Advait India Private Limited, a joint venture with China's Jiangsu Tongguang Optical Fiber Cable Co. Ltd (entered May 13, 2016) that manufactures OPGW and OFC cables. Business is done on an order-to-order basis serving power utilities and EPC contractors in India and abroad, with exports contributing about 10.62% of revenue from operations for the nine months ended December 31, 2019 and the top 10 customers accounting for 76.83% of revenue in that period. Standalone revenue from operations was ₹2,807.71 lakhs in FY2019 and ₹3,084.09 lakhs for the nine months ended December 31, 2019; the company employs 44 people and is proposing a fixed-price SME IPO on the BSE SME Platform.
Company Analysis
from DRHPAdvait Infratech Limited provides products and solutions for power transmission, power substation and telecommunication infrastructure, operating across trading, installation/turnkey projects, liaisoning-marketing services for overseas customers, and OEM manufacturing of stringing tools and optical fibre cables.
Incorporated on March 15, 2010 as Advait Infratech Private Limited in Ahmedabad, Gujarat, and converted to a public limited company named Advait Infratech Limited on November 29, 2019, the company supplies products and solutions for power transmission, power substation and telecommunication infrastructure. Its key offerings are Optical Fibre Ground Wire (OPGW) and OFC cables and solutions, insulators for EHV transmission lines, stringing tools for transmission line construction, gas-insulated substations (GIS), earthing solutions and specialized transmission line/substation products. It earns money by trading these products, executing installation of OPGW/OFC cables and turnkey telecommunication projects, providing agency, liaising, marketing and branch support services to overseas companies for their Indian project execution, and through OEM manufacturing of stringing tools; it also holds 33.50% of TG Advait India Private Limited, a joint venture with China's Jiangsu Tongguang Optical Fiber Cable Co. Ltd (entered May 13, 2016) that manufactures OPGW and OFC cables. Business is done on an order-to-order basis serving power utilities and EPC contractors in India and abroad, with exports contributing about 10.62% of revenue from operations for the nine months ended December 31, 2019 and the top 10 customers accounting for 76.83% of revenue in that period. Standalone revenue from operations was ₹2,807.71 lakhs in FY2019 and ₹3,084.09 lakhs for the nine months ended December 31, 2019; the company employs 44 people and is proposing a fixed-price SME IPO on the BSE SME Platform.
Objects of the Issue
- Working Capital Requirement ₹ 425.00 lakhs p.58
- General Corporate Purposes p.60
Issue Structure
- Total Issue
- Upto 13,50,000 Equity Shares of ₹ 10 each for cash at a price of ₹ [●] per share aggregating ₹ [●] lakhs (constituting 26.47% of post-issue paid-up capital)
- Fresh Issue
- Entire issue of Upto 13,50,000 Equity Shares of ₹ 10 each is a present issue of Equity Shares by our Company (Net Issue to the Public of Upto 12,82,000 Equity Shares after Market Maker Reservation of Upto 68,000 Equity Shares)
- Lot Size
- Subject to a minimum allotment of 2,000 Equity Shares to the successful applicants (market/trading lot stated as [●])
- Face Value
- ₹ 10
Business Model
Revenue is earned from (i) sale of traded products — OPGW, OFC cables, stringing tools (clamps, pulleys, winches, aerial rollers), insulators, GIS, earthing materials and other transmission solutions; (ii) services — site installation of OPGW/OFC cables (including splicing, termination and FODP installation at sub-station ends) and turnkey telecommunication projects; (iii) agency, liaising, marketing and branch support services provided to foreign companies for their Indian project execution; and (iv) manufacturing of OPGW/OFC through its 33.50%-owned joint venture TG Advait India Private Limited (consolidated on a proportionate basis). Restated statements split revenue from operations into 'Sale of products' and 'Sale of services', recognized on an accrual basis, with business executed order-to-order.
Business Segments
SWOT Analysis
- • Established client base across private/public sector utilities and EPC players generating repeat orders(p.77)
- • Track record of efficient and timely delivery of products and services(p.77)
- • Diversified product portfolio for power transmission and substation with a strong order book(p.77)
- • Low-debt balance sheet position(p.77)
- • Experienced promoter directors instrumental in consistent growth(p.77)
- • Selective bidding supported by extensive due diligence and execution focus(p.77)
- • Optimal utilization of resources via continuous process improvement(p.77)
- • Heavy revenue concentration among top 10 customers (up to 93.22% of standalone revenue in FY2018-19)(p.20)
- • Pending direct tax proceedings against the Company, Promoters and Directors(p.17)
- • Trademark/logo used in business is unregistered; design registrations not obtained(p.19)
- • Working-capital-intensive business with substantial trade receivables forming part of current assets and net worth(p.19)
- • Critical dependence on promoters' continued services and relationships(p.22)
- • Registered Office and Godown leased from promoters, not owned by the Company(p.22)
- • Unsecured loans from promoter directors (₹175.23 lakhs) recallable at any time(p.24)
- • Group/JV company TG Advait India Private Limited loss-making in 2 of preceding 3 financial years(p.25)
- • Capitalize on growing power-infrastructure demand under the Government's 24x7 Power for All initiative(p.78)
- • Move up the supply chain via OPGW manufacturing through the TG Advait joint venture(p.78)
- • Increase market share and profitability through deeper regional penetration and functional efficiencies(p.78)
- • Power consumption growth to 1,894.7 TWh by 2022 on rising electrification and per-capita usage(p.72)
- • Renewable energy opportunity from the 175 GW installed-capacity target by FY22(p.72)
- • Forecast Rs 11.56 trillion (US$ 179.31 billion) investment inflow into Indian power sector during 2017-2022(p.72)
- • Competition from organized and unorganized players pressuring pricing and margins(p.20)
- • Foreign exchange rate fluctuations affecting import costs and export realizations(p.21)
- • Price volatility in core traded products driven by trade policies and supply-demand shifts beyond company control(p.21)
- • India–China trade tensions impacting Chinese-linked agency and manufacturing arrangements(p.18)
- • COVID-19 pandemic and lockdown disruptions to business continuity and profitability(p.18)
- • Adverse changes in government electricity-sector expenditure, subsidy and incentive policies(p.28)
- • Changing laws, rules, regulations and tax regimes (including GST) raising compliance costs and uncertainty(p.30)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Shalin Sheth | Promoter & Managing Director | 76.00% | 55.88% |
| Mrs. Rejal Sheth | Promoter, Whole-Time Director & CFO | 22.99% | 16.90% |
| Mr. Rahul Sheth | Promoter Group | 1.00% | 0.74% |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.