Promax Power SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2021 – 04 Oct 2021
- Listing date
- 12 Oct 2021
- Face value
- ₹10 per share
- Issue price
- ₹10 per share
- Lot size
- 10,000 shares
- Total issue size
- ₹1.60 Cr
- Market cap at offer price
- ₹6 Cr
- Promoter holding
- 99.99% → 73.33% pre-issue → post-issue
- ISIN
- INE0I2F01015
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- House No: 1575, Ground Floor, Sector-38B, Chandigarh
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 | 80,000 | — | — |
Application size
Minimum 10,000 shares per lot, in multiples, at ₹10
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10,000 | ₹1,00,000 |
| Retail (max) | 2 | 20,000 | ₹2,00,000 |
| S-HNI (min) | 3 | 30,000 | ₹3,00,000 |
| S-HNI (max) | 10 | 1,00,000 | ₹10,00,000 |
| B-HNI (min) | 11 | 1,10,000 | ₹11,00,000 |
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 |
|---|---|---|
| Market cap | — | ₹6 Cr |
About Promax Power SME
Promax Power Limited is a project execution company incorporated on August 21, 2017, and converted to a public limited company on April 20, 2021. The company specializes in the execution of Engineering, Procurement, Construction (EPC) projects for the power sector, including electrification, power substations, and underground cabling from 11kV to 220kV. Additionally, the company provides turnkey execution services for civil infrastructure projects such as industrial buildings and water infrastructure management projects including water transmission and distribution work. The company took over the project management and execution business of M/s Promax Technologies (proprietorship firm of Mr. Vishal Bhardwaj) through a slump sale effective March 31, 2020. The company is registered in Chandigarh with corporate offices in Mohali, Punjab, and branch offices in Delhi, Bangalore, and Kolkata.
Company Analysis
from DRHPPromax Power Limited executes Engineering, Procurement, and Construction (EPC) projects for power electrification, substations, and underground cabling (11kV to 220kV), plus civil infrastructure and water management projects.
Promax Power Limited is a project execution company incorporated on August 21, 2017, and converted to a public limited company on April 20, 2021. The company specializes in the execution of Engineering, Procurement, Construction (EPC) projects for the power sector, including electrification, power substations, and underground cabling from 11kV to 220kV. Additionally, the company provides turnkey execution services for civil infrastructure projects such as industrial buildings and water infrastructure management projects including water transmission and distribution work. The company took over the project management and execution business of M/s Promax Technologies (proprietorship firm of Mr. Vishal Bhardwaj) through a slump sale effective March 31, 2020. The company is registered in Chandigarh with corporate offices in Mohali, Punjab, and branch offices in Delhi, Bangalore, and Kolkata.
Objects of the Issue
- To Meet working capital requirement ₹121.85 Lakhs p.15
- Public issue expenses ₹28.15 Lakhs p.15
- General corporate purpose ₹10.00 Lakhs p.15
- To meet the working capital requirements of the company ₹121.85 Lakhs p.51
- To meet the Issue Expenses ₹28.15 Lakhs p.51
- General Corporate Purposes ₹10.00 Lakhs p.51
- General corporate purposes
Issue Structure
- Total Issue
- ₹160.00 Lakhs
- Fresh Issue
- 16,00,000 Equity Shares of ₹10/- each for cash at a price of ₹10/- per Equity Share, aggregating to ₹160.00 Lakhs
- Price Band
- ₹10/- per Equity Share at par
- Lot Size
- 10,000 Equity Shares (Minimum)
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through the execution of EPC contracts for power sector projects (electrification, substations, underground cabling) and civil infrastructure projects (industrial buildings, water transmission and distribution). Revenue is generated on a project basis as construction work is completed. The company operates on a cost-plus model with contracts that may or may not include price escalation clauses for materials, labour, and other inputs.
Business Segments
SWOT Analysis
- • Established track record and organizational stability with proven management expertise(p.72)
- • Strong customer relationships and repeat business generation(p.72)
- • Qualified and experienced management team with technical expertise(p.72)
- • ISO certifications demonstrating quality standards(p.69)
- • Extensive experience in high-voltage transmission and substations up to 220 KV(p.71)
- • Strong supplier relationships protecting business terms and pricing(p.72)
- • Established governance structure with audit and stakeholder committees(p.94)
- • Positive financial net-worth and tangible assets meeting SME Platform eligibility(p.142)
- • Revenue growth from EPC project execution with track record exceeding 3 years(p.135)
- • Compliance with mandatory registrations and certifications(p.139)
- • Outstanding litigation involving company/promoters/directors that may adversely affect business and reputation(p.17)
- • Business dependent on few customers with risk of revenue volatility and contract loss(p.18)
- • Manpower-intensive operations vulnerable to labor shortages and wage pressures(p.19)
- • Business concentrated in northern, eastern and southern India with regional risks(p.20)
- • Substantial indebtedness exposing company to financial and operational risks(p.21)
- • Registered office and branch offices not owned by company, creating relocation risk(p.22)
- • Negative cash flow from operating activities in FY2020 indicating liquidity challenges(p.23)
- • Promoters yet to obtain lender consent for the IPO, creating potential default risk(p.19)
- • Limited geographic presence and market reach(p.73)
- • Heavy dependence on external suppliers(p.73)
- • High working capital requirements for business operations(p.73)
- • Limited pricing power due to industry fragmentation(p.73)
- • Capacity dependent on workforce rather than fixed plant and machinery(p.74)
- • Significant dependence on a limited number of customers for revenue(p.133)
- • High financial leverage with substantial debt obligations(p.129)
- • Lack of formal dividend policy(p.104)
- • Promoter litigation involving civil and criminal matters(p.136)
- • No employee stock option or stock purchase schemes(p.97)
- • Growing Indian power sector with increased renewable energy targets and capacity expansion(p.15)
- • Government focus on 'Power for all' accelerating capacity addition and infrastructure development(p.15)
- • Turnkey execution services across power, civil infrastructure, and water infrastructure segments(p.15)
- • Expansion into new geographic regions with growth potential(p.72)
- • Government thrust for infrastructure development driving demand growth(p.73)
- • Opportunity to provide value-added services beyond current offerings(p.73)
- • Growing renewable energy capacity targets creating market opportunities(p.65)
- • Significant capital allocation for power distribution sector modernization(p.62)
- • Growth in power sector EPC projects and infrastructure development(p.121)
- • Expansion into civil infrastructure and water management projects(p.121)
- • SME Platform listing enabling capital access and market visibility(p.133)
- • Compulsory market-making arrangement providing liquidity support(p.142)
- • Inability to secure new contracts due to competitive bidding and pre-qualification requirements(p.18)
- • Delays in project completion could trigger termination, liquidated damages, or cost overruns(p.19)
- • Highly competitive and fragmented industry with low entry barriers(p.20)
- • Cost variations in EPC contracts without price escalation clauses creating profitability risk(p.21)
- • COVID-19 pandemic creating uncertainty in business operations and economic impact(p.23)
- • Changes in government regulations and policies could disrupt operations and increase compliance costs(p.26)
- • Political instability and changes in economic liberalization policies affecting business environment(p.27)
- • Natural calamities and terrorism could negatively impact Indian economy and business(p.28)
- • Increased competition from large organized players with greater resources(p.73)
- • No entry barriers in industry exposing to new competition(p.73)
- • Rising labor wages pressuring operational costs(p.73)
- • Potential margin compression in future periods(p.73)
- • Change in government policies and regulatory environment(p.73)
- • Rapid technological advancement and inability to keep pace(p.133)
- • Increased competition in power sector and infrastructure industries(p.133)
- • Economic downturn affecting power and infrastructure demand(p.133)
- • Regulatory and legal compliance risks(p.133)
- • Natural or man-made disasters affecting operations(p.133)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vishal Bhardwaj | Promoter | 79.034% | — |
| Shweta Bhardwaj | Promoter | 20.965% | — |
| Vishal Bhardwaj | Promoter | 79.034% | 57.96% |
| Shweta Bhardwaj | Promoter | 20.965% | 15.37% |
| Pawan Kumar Jain | Promoter Group | — | — |
| Mr. Vishal Bhardwaj | Founder Promoter and Managing Director | 79.03% | — |
| Mrs. Shweta Bhardwaj | Founder Promoter and Executive Director | 20.97% | — |
| Vishal Bhardwaj | Promoter/Founder Director | — | — |
| Shweta Bhardwaj | Promoter/Founder Director | — | — |
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.