Konstelec Engineers
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Jan 2024 – 24 Jan 2024
- Listing date
- 30 Jan 2024
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹28.70 Cr
- Market cap at offer price
- ₹106 Cr
- Promoter holding
- 91.65% → 66.77% pre-issue → post-issue
- ISIN
- INE0QEI01011
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- 308, Creative Industrial Estate, Sundar Nagar Lane No.2, Kalina, Santacruz (East), Maharashtra
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 | 11,66,000 | — | — |
| Market maker | 2,06,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
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.
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 (₹) | 7.07 | 6.04 |
| P/E (×) | 9.90 | 11.59 |
| Price to book (×) | 1.24 | — |
| Market cap | — | ₹106 Cr |
Key performance indicators
- Return on net worth
- 12.56%
- ROCE
- 16.81%
- Debt / equity
- 0.57
- PAT margin
- 5.07%
- NAV per share
- ₹56.29
- Price to book
- 1.24
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Konstelec Engineers
Konstelec Engineers Limited was incorporated on December 5, 1995, as a private limited company and started operations as a Design Engineering Company. It was converted to a public limited company in 2023. The company specializes in delivering full-scale project management, procurement support, and detailed engineering services for electrical infrastructure projects. It operates as an EPC contractor offering services spanning engineering design and drawings, procurement, operations and maintenance, project management, and construction and commissioning. The company has executed over 200 projects, including 45 major projects worth more than ₹400 crores. As of August 31, 2023, it maintains an order book of around ₹565 crores from over 50 major projects at various implementation stages. The company serves distinguished clients including Reliance Industries Limited, Engineers India Limited, JSW Steel, Indian Oil, BPCL, HPCL, and others.
Company Analysis
from RHPKonstelec Engineers Limited is an EPC (Engineering, Procurement, and Construction/Commissioning) contractor providing full-range electrical infrastructure and instrumentation services across oil & gas, refinery, steel, cement, pharmaceuticals, textile, and healthcare sectors in India and abroad.
Konstelec Engineers Limited was incorporated on December 5, 1995, as a private limited company and started operations as a Design Engineering Company. It was converted to a public limited company in 2023. The company specializes in delivering full-scale project management, procurement support, and detailed engineering services for electrical infrastructure projects. It operates as an EPC contractor offering services spanning engineering design and drawings, procurement, operations and maintenance, project management, and construction and commissioning. The company has executed over 200 projects, including 45 major projects worth more than ₹400 crores. As of August 31, 2023, it maintains an order book of around ₹565 crores from over 50 major projects at various implementation stages. The company serves distinguished clients including Reliance Industries Limited, Engineers India Limited, JSW Steel, Indian Oil, BPCL, HPCL, and others.
Objects of the Issue
- To Meet Working Capital Requirements ₹1,800.00 lakhs p.21
- General corporate purposes p.21
- To Meet Working Capital Requirements ₹1,800.00 Lakhs p.106
- General corporate purposes [●] Lakhs p.106
- To meet Public Issue Expenses [●] Lakhs p.105
- To Meet Working Capital Requirements ₹1,800.00 lakhs p.114
- General Corporate Purpose [●] lakhs (not specified in this part) p.114
- General corporate purposes p.247
Issue Structure
- Total Issue
- 4,100,000 equity shares aggregating to ₹[●] lakhs
- Fresh Issue
- 4,100,000 equity shares of face value ₹10 each aggregating to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- [●] (to be determined in consultation with Book Running Lead Manager)
- Lot Size
- [●]
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue from four key business verticals: (1) Engineering Design & Consultancy Services, (2) Construction and commissioning, (3) Operation and maintenance, and (4) Project Management. It acquires direct infrastructure project contracts through tender biddings or direct orders from clients, procures products on behalf of clients, and provides design, construction, and allied services as a bundled solution. The company derives approximately 90% of revenue from operations in India, with exports primarily to Nigeria.
Business Segments
SWOT Analysis
- • Established EPC contractor with extensive experience delivering complex projects(p.22)
- • Strong order book of ₹565 Crores with 50+ major projects at various implementation stages(p.22)
- • Proven track record with over 200 completed projects including 45 major projects worth over ₹400 Crores(p.22)
- • Reputable client portfolio including major corporations like Reliance, JSW Steel, NTPC, Tata Steel, and ISRO(p.22)
- • In-house capabilities enabling end-to-end project delivery from conceptualization to completion(p.22)
- • Experienced promoters with over six decades of combined industry experience(p.22)
- • Established EPC capabilities with diversified industry expertise(p.105)
- • Long operational history and experience since 1995(p.105)
- • Comprehensive service offerings across project lifecycle(p.105)
- • Multi-sector industry presence(p.105)
- • Experienced promoters with extensive industry knowledge(p.135)
- • Strong track record with 200+ completed projects including 47 major projects worth ₹400+ Crores(p.135)
- • Robust order book of ₹573 Crores as of November 2023(p.135)
- • Comprehensive EPC service portfolio with in-house capabilities(p.135)
- • Diverse and skilled workforce of 884 employees across multiple locations(p.140)
- • Strong relationships with leading industrial clients(p.135)
- • Pan-India geographic presence across 15+ states and international operations in Nigeria(p.136)
- • High gross profit margins demonstrating operational efficiency(p.136)
- • Long operational history with safety achievements(p.179)
- • Consistent safety performance and awards(p.174)
- • No time and cost overruns in projects(p.179)
- • Experienced management with 43+ years in EPC(p.189)
- • Revenue growth trajectory(p.174)
- • No material labour disputes(p.179)
- • No defaults with financial institutions(p.179)
- • High customer concentration with top 10 customers accounting for 57.47%-85.16% of revenues(p.29)
- • Supplier concentration with top 10 suppliers contributing 45.40%-64.11% of total purchases(p.29)
- • Geographic concentration with approximately 90% of revenue from India only(p.29)
- • Outstanding tax litigations totaling ₹496.71 Lakhs involving 33 cases(p.30)
- • Negative cash flows from operations in recent periods (FY2023: ₹-516.80 Lakhs; FY2022: ₹-457.09 Lakhs)(p.41)
- • High working capital requirements creating significant financing pressures(p.31)
- • Delays in filing EPF returns due to salary reconciliation and cash flow discrepancies(p.40)
- • Pending trademark registration for 'KONSTELEC' brand with Registrar of Trademarks(p.42)
- • High dependence on secured debt with asset-based pledges(p.44)
- • Significant unsecured demand loans at risk(p.44)
- • Contingent liabilities exposure(p.45)
- • Covenant compliance risks limiting operational flexibility(p.44)
- • Dependent on key promoters and senior management(p.48)
- • Vulnerability to employee misconduct and operational errors(p.49)
- • High customer concentration risk with top customer contributing 22.26% of revenue(p.118)
- • Significant supplier concentration with top supplier at 26.22% of purchases(p.118)
- • High working capital requirements with 241 net working capital days(p.117)
- • Composite supply business model creates extended working capital duration(p.112)
- • Negative operating cash flows indicating working capital strain(p.117)
- • Declining revenue growth with only 2.05% growth in FY2022(p.117)
- • Revenue concentration in composite supply at 86.33% to 89.40%(p.112)
- • High concentration of revenue from few customers via EPC contracts(p.223)
- • Significant dependence on unbilled revenue(p.220)
- • High leverage with short-term borrowings(p.227)
- • Significant trade receivables concentration(p.232)
- • Aging receivables indicate collection challenges(p.232)
- • Dependence on promoter guarantees for borrowings(p.227)
- • India's infrastructure investment with ₹10 lakh crore budget allocation for infrastructure sector(p.21)
- • Expansion of National Infrastructure Pipeline to 9,335 projects(p.21)
- • Growing private sector involvement in infrastructure segments(p.21)
- • India's logistics market projected to reach $320 billion by 2025 with 10% CAGR(p.21)
- • International expansion opportunity through established KEPL EPC Nigeria Limited(p.39)
- • Infrastructure expansion and industrial development across India(p.105)
- • Growing demand across multiple industrial sectors(p.105)
- • Listing to enhance market visibility and access to capital(p.105)
- • Expansion potential through technology upgradation and modernization(p.44)
- • Government infrastructure spending increase to ₹10 lakh crore with 33% increase in capital investment(p.134)
- • National Infrastructure Pipeline with projects worth ₹108 trillion under implementation(p.134)
- • Growing renewable energy capacity with solar energy at 63.3 GW and target expansion(p.131)
- • Expansion of private sector involvement in infrastructure development(p.130)
- • India expected to remain fastest-growing major economy with 6.3% growth projected(p.129)
- • Organic and inorganic growth strategy through technological advancement and partnerships(p.143)
- • Logistics sector growth estimated to reach US$ 320 billion by 2025(p.130)
- • Expansion of EPC business in electrical transmission(p.177)
- • Entry into new geographic markets(p.207)
- • Growth in electrical switchyards and instrumentation(p.179)
- • Manpower recruitment and placement services(p.177)
- • Leverage growing energy sector in India(p.191)
- • Global economic slowdown and potential recession affecting infrastructure investments(p.20)
- • Seasonal revenue variations affecting project execution efficiency during monsoon and summer(p.32)
- • Competitive bidding processes with no guarantee of contract awards(p.32)
- • Regulatory and compliance risks including stringent safety, health, environmental and labour laws(p.31)
- • Foreign exchange fluctuation risk from Nigeria export operations(p.41)
- • Fixed-price contract risks with potential cost overruns from unforeseen conditions(p.40)
- • Dependence on sub-contractors whose delays or failures could impact project completion(p.35)
- • Labour availability and cost inflation risks from increasing labour law compliance requirements(p.35)
- • Payment delays and collection risks from clients with outstanding receivables over 6 months(p.41)
- • Retention money disputes extending defect liability period of 12-18 months(p.41)
- • Regulatory changes and GST implementation impact(p.52)
- • Economic slowdown and cyclicality in Indian economy(p.54)
- • Infrastructure and logistics constraints(p.53)
- • Political instability and social unrest(p.53)
- • Global financial market volatility and external economic shocks(p.54)
- • Natural disasters and unforeseen calamities(p.54)
- • Technology obsolescence risks(p.44)
- • Project execution delays impact revenue recognition and working capital(p.112)
- • High inflation and elevated borrowing costs constraining private consumption(p.129)
- • Highly competitive industry with no entry barriers(p.143)
- • Risk of economic recession affecting infrastructure spending(p.128)
- • Global economic precariousness amid overlapping negative shocks(p.127)
- • Commodity price volatility and supply chain disruptions(p.127)
- • Dependence on project site facilities provided by clients(p.159)
- • Reliance on third-party transporters for material delivery(p.159)
- • Regulatory changes in electricity and power sector(p.180)
- • Environmental compliance and hazardous waste regulations(p.186)
- • Contract performance and project execution risks(p.223)
- • Foreign exchange and currency volatility(p.223)
- • Compliance burden under multiple labour laws(p.181)
- • VAT recovery uncertainty(p.225)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Biharilal Ravilal Shah | Promoter | 60.70% | 44.22% |
| Mr. Amish Biharilal Shah | Promoter | 18.49% | 13.47% |
| Mr. Biharilal Ravilal Shah | Promoter | 60.70% | 44.22% |
| Mr. Amish Biharilal Shah | Promoter | 18.49% | 13.47% |
| Mrs. Nirupama Shah | Promoter Group | 4.64% | 3.38% |
| Mrs. Dipti Jigar Shah | Promoter Group | 2.02% | 1.47% |
| Mrs. Rajul Shah | Promoter Group | 2.60% | 1.89% |
| Mr. Jigar Dhiresh Shah | Promoter Group | 3.20% | 2.33% |
| Biharilal Ravilal Shah | Promoter | — | — |
| Biharilal Shah HUF | Promoter Group | — | — |
| Mr. Biharilal Ravilal Shah | Promoter/Chairman cum Managing Director | 65.25% (as at 31 March 2023) | 60.70% (as at 30 September 2023) |
| Mr. Amish Biharilal Shah | Promoter/Whole Time Director | 15.19% (as at 31 March 2023) | 18.49% (as at 30 September 2023) |
| Biharilal R. Shah | Promoter | — | — |
| Amish B. Shah | 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.