Kay Cee Energy & Infra
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Dec 2023 – 02 Jan 2024
- Listing date
- 05 Jan 2024
- Face value
- ₹10 per share
- Issue price
- ₹54 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹15.93 Cr
- Market cap at offer price
- ₹59.18 Cr
- Promoter holding
- 96.12% → 70.32% pre-issue → post-issue
- ISIN
- INE0RCG01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- 9 Krishna Vihar, Near Chungi Naka, Nanta Road, Kunhadi Kotal In Ladpura, Rajasthan
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 | 8,00,000 | — | — |
| Market maker | 1,90,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹54
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,80,000 |
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.
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 |
|---|---|---|
| EPS (₹) | 7.11 | — |
| P/E (×) | 7.59 | — |
| Market cap | — | ₹59.18 Cr |
Key performance indicators
- Return on net worth
- 25.13%
- ROCE
- 22.32%
- Debt / equity
- 1.04
- PAT margin
- 9.01%
- NAV per share
- ₹876.54
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kay Cee Energy & Infra
Kay Cee Energy & Infra Limited, incorporated on January 23, 2015 and converted to a public company on October 12, 2023, is an EPC contractor specializing in commissioning EHV power transmission lines. The company undertakes projects for government entities including Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) and private entities. Its service portfolio includes handling, erection, testing, and commissioning of equipment and materials for laying high voltage under-current power lines, establishing power distribution networks, testing and commissioning substations, underground cable laying, upgradation and modification of existing power systems, and setting up emergency restoration system structures. The company also undertakes turnkey jobs for supply, civil, erection, testing and commissioning of all types of electrical systems for government and private entities. The company is based in Kota, Rajasthan with registered office at 9 Krishna Vihar, Near Chungi Naka, Nanta Road, Kunhadi Kotal In Ladpura, Kota-324001.
Company Analysis
from RHPKay Cee Energy & Infra Limited is an Engineering, Procurement and Construction (EPC) company providing specialized commissioning services for Extra High Voltage (EHV) power transmission lines to government authorities and private entities in India.
Kay Cee Energy & Infra Limited, incorporated on January 23, 2015 and converted to a public company on October 12, 2023, is an EPC contractor specializing in commissioning EHV power transmission lines. The company undertakes projects for government entities including Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) and private entities. Its service portfolio includes handling, erection, testing, and commissioning of equipment and materials for laying high voltage under-current power lines, establishing power distribution networks, testing and commissioning substations, underground cable laying, upgradation and modification of existing power systems, and setting up emergency restoration system structures. The company also undertakes turnkey jobs for supply, civil, erection, testing and commissioning of all types of electrical systems for government and private entities. The company is based in Kota, Rajasthan with registered office at 9 Krishna Vihar, Near Chungi Naka, Nanta Road, Kunhadi Kotal In Ladpura, Kota-324001.
Objects of the Issue
- Funding of the working capital requirement of our Company Upto ₹1,300 lakhs p.21
- General corporate purposes [●] (not exceeding 25% of gross proceeds of the Issue) p.21
- Funding working capital requirements of our Company Up to ₹1,300 lakhs p.62
- General Corporate Purposes [●] (not to exceed 25% of Gross Proceeds of the Issue) p.62
- Working capital and general corporate purposes p.179
Issue Structure
- Total Issue
- Up to 29,50,000 equity shares of face value of ₹10 each aggregating up to ₹[●] lakhs
- Fresh Issue
- Up to 29,50,000 equity shares of face value of ₹10 each aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil (Entire issue constitutes fresh issue of equity shares)
- Price Band
- [●] (to be decided by the company in consultation with the Book Running Lead Manager)
- Lot Size
- [●] (Bid Lot to be finalized)
- Face Value
- ₹10 per equity share
Business Model
The company operates on a project-based, purchase order model. It derives revenue primarily from EPC contracts awarded through competitive bidding processes by government entities and private sector clients. Revenue for the period ended June 30, 2023 was ₹955.18 lakhs, with the company's top five customers contributing 100% of revenues in that period. The company is working capital intensive due to longer execution periods and material price fluctuations.
Business Segments
SWOT Analysis
- • Established EPC specialization in power transmission(p.20)
- • Strong client relationships with government entities(p.20)
- • Comprehensive service portfolio across power infrastructure(p.20)
- • Growing Indian power generation capacity(p.20)
- • Strong power demand growth trajectory(p.20)
- • Strong order book of ₹54,990.27 lakhs from public sector units and government entities(p.90)
- • Fully integrated in-house business model reducing dependence on third parties(p.91)
- • ISO 9001:2015 certification for quality management system(p.91)
- • Experienced management team with over a decade of industry experience(p.91)
- • Long-standing customer relationships including PSU and private entities(p.95)
- • Specialized EPC capabilities including EHV transmission lines up to 765 kV(p.92)
- • Significant experience in EHV transmission line construction across multiple voltage levels(p.99)
- • Expertise in underground transmission technology with multiple project deliveries(p.99)
- • Established relationships with state power utilities and private sector clients(p.106)
- • Substantial order book providing revenue visibility(p.100)
- • Operational expertise in Emergency Restoration System (ERS) technology for high-voltage restoration(p.102)
- • Hierarchical skilled workforce and multi-tiered project monitoring for quality assurance(p.104)
- • Established track record in EPC and O&M services with consistent revenue growth over multiple years(p.147)
- • Positive profitability and improving margins with strong PAT growth trajectory(p.147)
- • Operational resilience demonstrated through recovery post-COVID-19 pandemic(p.149)
- • Positive EBITDA with strong operational margins(p.180)
- • Extreme dependence on few large customers(p.26)
- • High reliance on promoter involvement in operations(p.26)
- • Registered office not owned by company(p.27)
- • Geographic concentration in Rajasthan(p.27)
- • High debt burden and restrictive covenants(p.29)
- • Prior litigation and compliance issues(p.31)
- • CSR non-compliance in prior year(p.32)
- • High debt-to-equity ratio of 1.04, indicating significant financial leverage(p.91)
- • Heavy dependence on a few major customers in public sector(p.91)
- • Geographic concentration of operations primarily in Rajasthan(p.95)
- • Negative cash flow from operations in Fiscal 2023 and Q1 FY2024 stub period(p.44)
- • New manufacturing business with unproven commercial viability(p.91)
- • High customer concentration with top 5 customers generating majority of revenue(p.106)
- • Significant debt burden with high leverage in capital structure(p.144)
- • Personal guarantees provided by promoters for bank loans indicating financial risk concentration(p.122)
- • Dependence on related party financing with directors providing unsecured loans(p.156)
- • Promoter litigation history - former director resigned due to health issues(p.122)
- • High dependence on a few major customers for significant portion of revenue(p.156)
- • Significant reliance on top few suppliers for raw materials and services(p.156)
- • High leverage with debt-to-equity ratio of 1.04 and interest expense burden increasing significantly(p.154)
- • Delayed payment obligations to creditors with significant aged payables outstanding(p.159)
- • Outstanding GST tax disputes and compliance issues(p.157)
- • Expansion in growing Indian power sector(p.20)
- • Substantial pipeline of government power projects(p.20)
- • Turnkey project capabilities for private sector(p.20)
- • Rising power demand supporting infrastructure investment(p.20)
- • Projected electricity demand growth at 4.5-5.3% CAGR through FY2032(p.85)
- • Planned expansion into renewable energy EPC projects for solar plants(p.92)
- • Government investment in power transmission infrastructure through transmission line additions(p.85)
- • Diversification into manufacturing of EHV transmission and substation materials(p.92)
- • Expansion beyond Rajasthan into other Indian states and geographic markets(p.95)
- • Opportunities to execute larger projects through strategic partnerships(p.95)
- • Government thrust on power transmission infrastructure expansion under renewable energy and grid modernization(p.100)
- • Expansion of underground cabling technology adoption in urban transmission networks(p.100)
- • Growth in Operations and Maintenance services for substations and transmission lines(p.102)
- • Strategy to develop new customer relationships and secure additional business from existing clients(p.106)
- • Enhancement of operational efficiencies through professional deployment and industry best practices adoption(p.96)
- • Expansion of operations into new geographic markets and emerging territories as part of business diversification strategy(p.148)
- • Growing energy infrastructure demand in India with sustained economic growth trajectory(p.147)
- • SME IPO platform listing with provisions for migration to main board upon meeting financial criteria(p.176)
- • Revenue dependent on bid acceptance by government agencies(p.25)
- • Project delays and cost overruns from execution risks(p.26)
- • Liquidity risk from working capital intensive operations(p.26)
- • Penalties from project schedule delays and performance failures(p.26)
- • Labor disputes and workforce availability risks(p.33)
- • General economic slowdown and cyclical demand(p.31)
- • Regulatory and policy changes in power sector(p.30)
- • Interest rate fluctuations affecting debt servicing(p.38)
- • Natural calamities and force majeure events(p.37)
- • Dependence on government authorities for major project awards and contract execution(p.90)
- • Regulatory changes and policy risks affecting power sector investment and tariffs(p.88)
- • Commodity price volatility affecting project costs and margins(p.63)
- • Weather-dependent risks including potential El Niño impacting infrastructure projects(p.79)
- • Competitive intensity in EPC contracting and transmission infrastructure services(p.95)
- • Geopolitical and macroeconomic uncertainties affecting global and Indian economic growth(p.79)
- • Significant competition from organized and unorganized players in transmission sector(p.106)
- • Tariff-based competitive bidding reducing margins through price competition(p.106)
- • Regulatory changes in labor codes affecting employment costs and compliance(p.111)
- • Dependence on input availability and supply chain for critical materials and equipment(p.100)
- • Project execution risks including terrain, weather conditions, and right-of-way issues(p.102)
- • Intense competitive pressure from domestic and global competitors with varying resources and capabilities(p.147)
- • Fragmented industry with low barriers to entry enabling new competitors and capacity expansion(p.148)
- • Economic volatility and unpredictable global events impacting demand and purchasing capability(p.147)
- • Potential regulatory changes and statutory compliance requirements affecting operations(p.147)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Lokendra Jain | Promoter | 94.33% | — |
| Shalini Jain | Promoter | 1.35% | — |
| Lokendra Jain | Promoter | 94.33% | [●] |
| Shalini Jain | Promoter | 1.35% | [●] |
| Kanak Jain | Promoter Group | 0.19% | [●] |
| Kusum Lata Jain | Promoter Group | 0.24% | [●] |
| Purvika Jain | Promoter Group | 0.001% | [●] |
| Lokendra Jain | Promoter/Chairman and Managing Director | 75,56,000 shares (94.33%) | — |
| Shalini Jain | Promoter/Whole-time Director and CFO | 1,08,500 shares (1.35%) | — |
| Lokendra Jain | Promoter/Managing Director | — | — |
| Shalini Jain | Promoter/Director & CFO | — | — |
| Kanak Jain | Promoter/Director | — | — |
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.