EKI Energy Services SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Mar 2021 – 26 Mar 2021
- Listing date
- 07 Apr 2021
- Face value
- ₹10 per share
- Issue price
- ₹102 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹18.60 Cr
- Market cap at offer price
- ₹70.11 Cr
- Promoter holding
- 100.00% → 73.47% pre-issue → post-issue
- ISIN
- INE0CPR01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 201, Plot No.48., Scheme No.78, Part-II, Vijay Nagar (Near Brilliant Convention Centre), Madhya Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 5,17,200 | — | — |
| Market maker | 96,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹102
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,22,400 |
| S-HNI (min) | 2 | 2,400 | ₹2,44,800 |
| S-HNI (max) | 8 | 9,600 | ₹9,79,200 |
| B-HNI (min) | 9 | 10,800 | ₹11,01,600 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹70.11 Cr |
About EKI Energy Services SME
EKI Energy Services Limited, incorporated on May 03, 2011, is engaged in the business of Carbon Credits Trading and Climate Change Advisory Services, Business Excellence Advisory and Electrical Safety Audits. The company offers its services to various clients in the government and private sectors including power generation, waste management, clean development mechanism, and airports. The company began climate change advisory services in 2011, expanded into consultancy services for business excellence in 2013, started carbon credit trading in 2014 growing from 0.10 million credits in the first year to 20 million credits in FY 2020, and added electrical safety audit services in 2019. Total revenue from operations grew from Rs. 174.39 Lakhs in FY 2014-15 to Rs. 6590.44 Lakhs in FY 2019-20.
Company Analysis
from RHPEKI Energy Services Limited operates in carbon credits trading, climate change advisory services, business excellence advisory, and electrical safety audits across government and private sectors.
EKI Energy Services Limited, incorporated on May 03, 2011, is engaged in the business of Carbon Credits Trading and Climate Change Advisory Services, Business Excellence Advisory and Electrical Safety Audits. The company offers its services to various clients in the government and private sectors including power generation, waste management, clean development mechanism, and airports. The company began climate change advisory services in 2011, expanded into consultancy services for business excellence in 2013, started carbon credit trading in 2014 growing from 0.10 million credits in the first year to 20 million credits in FY 2020, and added electrical safety audit services in 2019. Total revenue from operations grew from Rs. 174.39 Lakhs in FY 2014-15 to Rs. 6590.44 Lakhs in FY 2019-20.
Objects of the Issue
- Working Capital Requirement Rs. 1400.00 Lakhs p.21
- General Corporate Purpose Rs. 278.78 Lakhs p.21
- Issue Expenses Rs. 181.70 Lakhs p.21
- To meet Working Capital requirements Rs 1,400.00 lakhs p.78
- General Corporate Purpose Rs 278.78 lakhs p.80
- To meet issue expenses Rs 181.70 lakhs p.80
Issue Structure
- Total Issue
- Rs. 1860.48 Lakhs
- Fresh Issue
- 18,24,000 Equity Shares of Face Value of Rs. 10/- each at a price of Rs. 102/- per Equity Share aggregating to Rs. 1860.48 Lakhs
- Price Band
- Rs. 100/- (Floor Price) to Rs. 102/- (Cap Price)
- Lot Size
- 1200 Equity Shares
- Face Value
- Rs. 10/- each
Business Model
The company generates revenue through: (1) Carbon credit trading - buying and selling carbon credits in international markets; (2) Climate change advisory services - helping organizations reduce carbon emissions and register projects under various GHG programs; (3) Business excellence advisory services - assisting organizations in acquiring quality management certifications; (4) Electrical safety audits - conducting safety audits for organizations. Carbon credit trading accounted for 98.26% of total revenue for the period ending September 30, 2020 (Rs. 5909.23 Lakhs) and 94.68% for FY 2019-20 (Rs. 6239.85 Lakhs).
Business Segments
SWOT Analysis
- • Early-mover advantage in carbon credit trading business with significant growth trajectory(p.29)
- • Strong revenue growth from Rs. 174.39 Lakhs to Rs. 6,590.44 Lakhs over 6 years(p.29)
- • Diversified service portfolio across carbon credits, business excellence advisory, and electrical safety audits(p.21)
- • Profitable operations with positive earnings per share(p.46)
- • Qualified and experienced team of 70 professionals(p.33)
- • ISO 9001:2015 certified provider with comprehensive service offerings(p.187)
- • Diversified revenue streams across multiple service lines(p.187)
- • Strong profitability with growing net profit margins(p.183)
- • Significant international revenue generation, particularly from Europe and Australia(p.180)
- • Diversified revenue streams across carbon credits, climate advisory, and business excellence services(p.189)
- • Strong revenue growth with 233.60% increase in operations YoY (2018-19 to 2019-20)(p.190)
- • High profitability with 557.61% increase in net profit after tax(p.190)
- • Positive net-worth and strong balance sheet strength(p.212)
- • International credentials and memberships including IETA, CDP gold accreditation, and CII membership(p.202)
- • ISO 9001:2015 certification demonstrating quality management standards(p.203)
- • Heavy concentration of revenue from carbon credit trading business (98.26% of revenue for period ending September 30, 2020)(p.28)
- • Significant customer concentration with top 5 clients contributing 58.38% of revenue(p.29)
- • Dependence on leased premises with no long-term ownership security(p.31)
- • High trade receivables representing significant portion of current assets (9.76% of revenue for period ending September 30, 2020)(p.35)
- • Significant outstanding litigation and contingent liabilities of Rs. 63.47 Lakhs as of September 30, 2020(p.35)
- • No long-term contracts with customers; operates on order-by-order basis(p.32)
- • Promoter and related parties will retain 73.47% post-issue shareholding allowing dominant control(p.41)
- • Limited experience in businesses started recently (electrical safety audits from 2019)(p.28)
- • Group company (Carbon Neutral Europe OU) under liquidation since January 30, 2020(p.33)
- • High concentration in carbon credits trading as primary revenue source(p.178)
- • Significant dependence on foreign exchange fluctuations affecting revenues(p.159)
- • High operating expense ratio relative to revenues(p.188)
- • Gratuity provision not fully compliant with accounting standards requirements(p.155)
- • Promoter holds 70% ownership with significant control concentration(p.142)
- • High dependence on a limited number of customers(p.192)
- • Contingent tax liabilities and ongoing TDS-related disputes(p.195)
- • Outstanding litigation including Rs. 49.85 lakhs pending civil case regarding non-performance of work order(p.196)
- • Material receivables concentration with 6 creditors owing Rs. 436.15 Lakhs (exceeding 5% of trade payables)(p.199)
- • Growing global focus on carbon neutrality and climate change mitigation driving demand(p.27)
- • Expansion of renewable energy investments in developing markets creating additional carbon credit supply(p.28)
- • International carbon trading mechanisms (Kyoto Protocol, Paris Agreement) enabling market growth(p.43)
- • Opportunity to expand into new geographic markets and service offerings(p.33)
- • Increasing corporate demand for ESG reporting and sustainability disclosures(p.27)
- • Government thrust on clean and green India supporting market expansion(p.187)
- • Paris Agreement and Article 6 mechanisms creating carbon credit trading opportunities(p.116)
- • Global carbon pricing mechanism driving demand for carbon credit services(p.116)
- • International expansion into Southeast Asian markets(p.124)
- • Entry into electrical safety audits as new growth vertical(p.124)
- • Expansion into main board listing following SME platform success(p.225)
- • Business expansion through carbon credits trading which was main driver of recent growth(p.190)
- • Market-making arrangements ensuring liquidity and investor confidence for 3 years post-listing(p.226)
- • Listing on SME platform provides access to public capital markets for growth initiatives(p.211)
- • Weak and immature carbon market regulation vulnerable to manipulation and fraud(p.26)
- • Potential regulatory uncertainty and changes in carbon trading regime in India(p.27)
- • Demand dependent on voluntary adoption without mandatory regulations in India(p.27)
- • Carbon pricing subject to market supply-demand dynamics and volatility(p.27)
- • Increased supply of carbon credits from developing markets reducing prices and margins(p.27)
- • Potential retreat from Kyoto Protocol or loss of flexibility in Paris Agreement(p.43)
- • Political and regulatory uncertainty affecting carbon trading mechanisms(p.34)
- • Foreign exchange volatility with significant import-export exposure(p.33)
- • Intense price competition and competitive bidding for government contracts(p.34)
- • Macroeconomic slowdown, inflation, and currency fluctuations affecting demand(p.43)
- • Natural disasters and pandemics disrupting operations (evidenced by COVID-19 impact)(p.44)
- • Potential fraud and measurement manipulation in carbon credit generation(p.28)
- • Regulatory changes in carbon credit markets and emissions trading frameworks(p.188)
- • Global economic conditions affecting client demand and financial position(p.188)
- • Foreign exchange volatility impacting international revenues(p.188)
- • Competition in climate change advisory and energy services sectors(p.188)
- • Fraud or misappropriation risks related to carbon credits(p.188)
- • Intense competition from group companies and potential promoter conflict of interest(p.209)
- • Carbon credit market subject to regulatory and policy changes affecting business model(p.192)
- • Contingent indirect tax liabilities with pending service tax disputes(p.196)
- • Business volatility given non-seasonal but concentrated customer base dependent on specific projects(p.192)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Manish Kumar Dabkara | Promoter | 70.00% | — |
| Mrs. Vidhya Dabkara | Promoter Group | 20.00% | — |
| Mrs. Priyanka Dabkara (Sister of Manish Dabkara) | Promoter Group | 2.6% | — |
| Mrs. Priyanka Dabkara (W/O of Manish Dabkara) | Promoter Group | 5.8% | — |
| Mr. Naveen Sharma | Promoter Group | 0.7% | — |
| Mrs. Sonali Sheikh | Promoter Group | 0.7% | — |
| Mrs. Shweta Porwal | Promoter Group | 0.2% | — |
| Mr. Manish Kumar Dabkara | Promoter | 70.00% | 51.43% |
| Mrs. Vidhya Dabkara | Promoter Group | 20.00% | 14.69% |
| Mrs. Priyanka Dabkara (W/o of Manish Dabkara) | Promoter Group | 5.80% | 4.26% |
| Mrs. Priyanka Dabkara (Sister of Manish Dabkara) | Promoter Group | 2.60% | 1.91% |
| Mr. Naveen Sharma | Promoter Group | 0.70% | 0.51% |
| Mrs. Sonali Sheikh | Promoter Group | 0.70% | 0.51% |
| Mrs. Shweta Porwal | Promoter Group | 0.20% | 0.15% |
| Mr. Manish Kumar Dabkara | Promoter | 70.00% | — |
| Mr. Manish Kumar Dabkara | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP 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 RHP before relying on it.