Qualitek Labs
Fixed Price issueSME₹19.64 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹19.64 Cr
1 lot at cut-off
₹1,20,000
Lot size
1,200shares
Open
17 Jan 2024
Close
23 Jan 2024
Allotment
24 Jan 2024
Listing
29 Jan 2024
Listing performance
Issue price
₹100
Listed at
₹190
Listing-day close
₹199.50
Latest price
₹525
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
+425.00%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Jan 2024 – 23 Jan 2024
- Listing date
- 29 Jan 2024
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹19.64 Cr
- Market cap at offer price
- ₹73.72 Cr
- Promoter holding
- 99.99% → 73.35% pre-issue → post-issue
- ISIN
- INE0Q1R01012
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Oneview Corporate Advisors Pvt.Ltd.
- Registered office
- 73, National Park, Lajpat Nagar-IV, New Delhi
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 | 99,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹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.
Valuation and performance
Valuation at offer price
₹100 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.49 | 5.45 |
| P/E (×) | 18.21 | 18.35 |
| Price to book (×) | 4.04 | — |
| Market cap | — | ₹73.72 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.10%
- ROCE
- 13.76%
- PAT margin
- 15.52%
- NAV per share
- ₹24.74
- Price to book
- 4.04
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Qualitek Labs
Qualitek Labs Limited, incorporated on May 17, 2018, is a Testing, Inspection, and Certification (TIC) services provider serving various industries. The company generates the majority of its revenue from automotive testing (80.86% as of September 30, 2023), with operations primarily based in Pune, Maharashtra and Bhubaneswar, Orissa. The company operates through a network of laboratories providing specialized testing and certification services. As of September 30, 2023, the company had restated standalone revenue from operations of ₹1,248.92 lakhs and profit after tax of ₹200.93 lakhs.
Company Analysis
from RHPQualitek Labs Limited provides testing, inspection, homologation, certification and consultancy services across automotive, defense, minerals, environment & water, food & agriculture, pharma & healthcare, and metal & metallurgy industries.
Qualitek Labs Limited, incorporated on May 17, 2018, is a Testing, Inspection, and Certification (TIC) services provider serving various industries. The company generates the majority of its revenue from automotive testing (80.86% as of September 30, 2023), with operations primarily based in Pune, Maharashtra and Bhubaneswar, Orissa. The company operates through a network of laboratories providing specialized testing and certification services. As of September 30, 2023, the company had restated standalone revenue from operations of ₹1,248.92 lakhs and profit after tax of ₹200.93 lakhs.
automotivedefensemineralsenvironment & waterfood & agriculturepharma & healthcaremetal & metallurgy
Objects of the Issue
- Funding capital expenditure towards installation of plant and machinery for existing laboratories and for expansion of laboratories ₹622.38 lakhs p.26
- Repayment of unsecured loan to Promoter ₹818.16 lakhs p.26
- Funding of working capital requirements ₹250.00 lakhs p.26
- General corporate purposes ₹140.64 lakhs p.26
- Funding capital expenditure towards installation of plant and machinery for new & existing laboratories and for expansion of laboratories 622.38 lakhs p.103
- Repayment of unsecured loans to Promoter 818.16 lakhs p.103
- Funding of working capital requirements 250.00 lakhs p.103
- General corporate purposes 140.64 lakhs p.103
- Funding capex p.302
Issue Structure
- Total Issue
- ₹1,964.40 lakhs
- Fresh Issue
- 19,64,400 equity shares at ₹100 per share aggregating to ₹1,964.40 lakhs
- Offer for Sale
- NIL
- Price Band
- Fixed price of ₹100 per equity share
- Lot Size
- 1,200 equity shares and in multiples of 1,200 thereafter
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue primarily through fee-for-service contracts for testing, inspection, homologation, and certification services across multiple industry sectors. Contracts are priced on a full-time equivalent basis or on a fee-for-service basis with revenues agreed in contracts between the company and clients. The company is working capital intensive and relies on customer relationships maintained through purchase orders rather than long-term contracts.
Business Segments
Testing services for the automotive industry
Testing services for automotive products including EV battery testing, reliability testing, polymer testing, paint testing, climate and vibration testing, ingress protection testing, and material testing
Testing services for defence products including accidental drop tests and temperature drop tests
Testing services for metals and metallurgy including Charpy impact strength testing, tensile strength testing, elongation testing, and hardness testing
Testing services for environmental and water samples including DG set, DG stack, and DG noise testing
Testing services for minerals including charcoal mineral testing
Testing services for food and agricultural products including soft drink testing
Testing services for pharmaceutical and healthcare products
Provides testing, inspection and certification services across automobiles, electronics & electricals, pharmaceuticals, food, environmental products, minerals and other sectors
SWOT Analysis
Strengths
- • Growing TIC market with strong CAGR; Indian testing, inspection, and certification (TIC) market projected to reach USD 47 million by 2030(p.25)
- • Diversified service offerings across multiple industries reducing segment concentration risk(p.25)
- • Experienced management team with deep industry expertise(p.142)
- • Established NABL-accredited brand with multiple certifications(p.143)
- • Customer-centric service model with quality assurance(p.143)
- • Robust technical infrastructure and IT capabilities(p.143)
- • Strong revenue growth within 5 years of incorporation(p.140)
- • Recognition from leading automotive OEMs (Ford, VW, Renault-Nissan)(p.163)
- • Experienced promoters in testing, inspection & certification sector(p.170)
- • Qualified leadership team with deep TIC sector expertise(p.171)
- • Sales leadership with extensive client relationships(p.171)
- • NABL accreditation and state-of-the-art laboratory facilities(p.210)
- • Revenue growth trajectory(p.208)
- • State-of-the-art NABL-accredited laboratories across multiple geographies(p.249)
- • Diversified service offerings across multiple industries(p.271)
- • Strong revenue growth trajectory(p.276)
- • Improved profitability with expanding margins(p.277)
Weaknesses
- • Severe customer concentration; top 5 customers represent 21.50%-38.61% of revenues over multiple periods(p.35)
- • Company and promoters involved in multiple legal proceedings across various forums(p.36)
- • Non-compliance with micro and small enterprises payment obligations; dues outstanding for over 45 days(p.39)
- • Violation of Companies Act 2013 Section 185 regarding loans to directors; officers provided unsecured loans of Rs. 11.59 Lakhs and Rs. 31.00 Lakhs(p.40)
- • High leverage with unsecured loans of Rs. 992.99 Lakhs repayable on demand(p.40)
- • Multiple regulatory compliance gaps including missing environmental consents and approvals for lab operations(p.41)
- • Non-compliance with labour laws; EPF not paid for 20 trainees and ESI not contributed for 14 employees(p.42)
- • Overlap with group company in same business line creating conflict of interest; Interstellar Testing Centre Private Limited operates in testing business(p.43)
- • No formal LIMS software license agreement with group company despite operational reliance(p.47)
- • Properties used for offices and labs are not owned; rented from related parties and others creating relocation risk(p.48)
- • Trademark registered in director's name (Kamal Grover) with only license agreement for use(p.60)
- • Working capital intensive business with significant reliance on bank borrowings and promoter loans(p.46)
- • Concentration of revenue in single geographic location and customer segment(p.142)
- • High dependence on few major customers(p.150)
- • Significant outstanding unsecured borrowings from promoter(p.113)
- • History of labour law non-compliance(p.150)
- • High leverage with debt-to-equity ratio of 2.38(p.230)
- • Negative working capital position(p.207)
- • Low debt service coverage ratio of 0.39(p.230)
- • Conflict of interest with group companies in similar business(p.199)
- • Dependence on related party borrowings(p.217)
- • High dependence on top customers for revenue(p.278)
- • Elevated short-term borrowings relative to capital(p.246)
- • Significant reliance on related party funding(p.255)
- • Low current ratio indicating liquidity constraints(p.269)
Opportunities
- • Government emphasis on quality and safety; implementation of regulations (BIS, FSSAI, BEE) driving demand for TIC services(p.25)
- • Expansion of manufacturing and automotive sectors creating demand for testing and certification services(p.25)
- • Installation of new plant and machinery and expansion of laboratories planned using IPO proceeds(p.26)
- • Expansion into new geographies with established infrastructure(p.144)
- • Growing Indian TIC market with strong regulatory drivers(p.135)
- • Diversification into new service segments and industries(p.145)
- • Infrastructure and manufacturing sector growth driving TIC demand(p.137)
- • Government emphasis on quality and safety standards(p.135)
- • Expansion of laboratory testing services across sectors(p.210)
- • Capital work in progress indicates facility expansion(p.219)
- • Potential for margin improvement through operational efficiency(p.230)
- • Expansion into new geographic markets and lab locations(p.299)
- • Growth through migration to Main Board and capital raising(p.319)
- • Increasing demand for testing and certification services across industries(p.271)
Threats
- • High dependency on automotive sector; 73.79%-80.86% of revenues from automotive testing(p.58)
- • Geographic concentration risk; 84.81%-86.40% of revenues from Pune, Maharashtra(p.58)
- • Fragmented and highly competitive TIC industry with larger competitors having greater resources(p.57)
- • COVID-19 pandemic impacts including supply chain disruptions and travel restrictions continuing to affect operations(p.50)
- • Economic slowdown in India could reduce demand for TIC services across customer base(p.63)
- • Government policy changes and regulatory shifts affecting TIC industry and automotive sector(p.63)
- • Intense competition from organized and unorganized TIC players globally(p.150)
- • High capital requirements and cost barriers for TIC services(p.136)
- • Potential delays and cost overruns in setting up new laboratories(p.111)
- • Regulatory compliance requirements and changing standards(p.138)
- • Dependence on maintaining accreditations and certifications(p.150)
- • Concentration of promoter shareholding with single entity(p.213)
- • Competition and industry cyclicality risks(p.199)
- • Regulatory dependence on accreditations(p.210)
- • Cash conversion and liquidity pressure(p.223)
- • Regulatory changes and compliance requirements(p.273)
- • Macroeconomic volatility and market conditions(p.273)
- • Technology disruption and rapid market changes(p.273)
- • Intense competitive pressure in testing services sector(p.278)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| TIC Services Private Limited | Promoter | 99.99% | 73.35% |
| Alok Kumar Agarwal | Promoter | Negligible | — |
| Antaryami Nayak | Promoter | Negligible | — |
| Kamal Grover | Promoter | Negligible | — |
| TIC Services Private Limited | Promoter | 99.99% | 73.35% |
| Alok Kumar Agarwal | Promoter (Nominee shareholder) | Negligible | Negligible |
| Antaryami Nayak | Promoter (Nominee shareholder) | Negligible | Negligible |
| Kamal Grover | Promoter (Nominee shareholder) | Negligible | Negligible |
| Anju Agarwal | Promoter Group | Negligible | Negligible |
| TIC Services Private Limited | Promoter | 99.99% | — |
| Alok Kumar Agarwal | Individual Promoter | Negligible | — |
| Antaryami Nayak | Individual Promoter | Negligible | — |
| Kamal Grover | Individual Promoter | Negligible | — |
| TIC Services Private Limited | Promoter Group | 99.99% | — |
| Alok Kumar Agarwal | Promoter | 0.01% | — |
Leadership
Antaryami Nayak · Managing Director
Kamal Grover · Whole Time Director
Alok Kumar Agarwal · Non-Executive Director
Navneet Gupta · CFO
Ashima Bhatnagar · Company Secretary and Compliance Officer
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.
Qualitek Labs IPO FAQs
What is the lot size of Qualitek Labs IPO?
The minimum lot size of Qualitek Labs IPO is 1,200 shares. One lot costs ₹1,20,000 at the cut-off price.
When does Qualitek Labs IPO open and close?
Qualitek Labs IPO opened for subscription on 17 Jan 2024 and closed on 23 Jan 2024.
What is the listing date of Qualitek Labs IPO?
Qualitek Labs IPO listed on 29 Jan 2024.