RBM Infracon SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Dec 2022 – 27 Dec 2022
- Listing date
- 04 Jan 2023
- Face value
- ₹10 per share
- Issue price
- ₹36 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹8.37 Cr
- Market cap at offer price
- ₹30.39 Cr
- Promoter holding
- 100.00% → 72.45% pre-issue → post-issue
- ISIN
- INE0NA301016
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- C/O Rahul Mani Tripathi Mb Complex, Main Road, Baitalpur, Uttar 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 |
|---|---|---|---|
| Market maker | 1,17,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹36
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 30,000 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.12 | — |
| P/E (×) | 11.54 | — |
| Market cap | — | ₹30.39 Cr |
Key performance indicators
- Return on net worth
- 29.22%
- ROCE
- 19.70%
- Debt / equity
- 2.83
- PAT margin
- 4.02%
- NAV per share
- ₹10.69
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About RBM Infracon SME
RBM Infracon Limited, incorporated on April 1, 2013, and converted to a public limited company in October 2022, is engaged in the business of engineering, execution, testing, commissioning, operation and maintenance, particularly in the field of mechanical and rotary equipment for Oil & Gas Refineries, Gas Cracker Plants, Coal/Gas/WHR based Power Plants, Petrochemical, Chemicals, Cement, and Fertilizers industries. The company is a Class-I certified Boiler Repairer/Erector and System/Feed Line fabricator/Erector service provider under Indian Boiler Regulations-1950. It provides services including fabrication and erection of structural work, piping, annual rate contract (ARC) maintenance, turnaround (shutdown) services, blasting and painting, insulation and refractory work, electrical and instrumentation, wagon tipplers, conveying systems, scaffolding work, torquing and bolting, and NDT services. The company has executed around 14 turnaround shutdowns for major clients including Reliance Industries Limited, Nayara Energy Limited, and Yara Fertilisers India Limited, operating with approximately 650 manpower. As of September 6, 2022, the company had a work order book of approximately ₹121 crores and recently received a letter of intent from Malco Energy Limited (part of Vedanta Group) worth ₹200 crores for Operations and Maintenance of Metcoke Manufacturing Plant for 3 years.
Company Analysis
from RHPRBM Infracon Limited provides engineering, execution, testing, commissioning, operation and maintenance services for mechanical and rotary equipment in oil & gas refineries, petrochemical plants, power plants, and other industrial sectors.
RBM Infracon Limited, incorporated on April 1, 2013, and converted to a public limited company in October 2022, is engaged in the business of engineering, execution, testing, commissioning, operation and maintenance, particularly in the field of mechanical and rotary equipment for Oil & Gas Refineries, Gas Cracker Plants, Coal/Gas/WHR based Power Plants, Petrochemical, Chemicals, Cement, and Fertilizers industries. The company is a Class-I certified Boiler Repairer/Erector and System/Feed Line fabricator/Erector service provider under Indian Boiler Regulations-1950. It provides services including fabrication and erection of structural work, piping, annual rate contract (ARC) maintenance, turnaround (shutdown) services, blasting and painting, insulation and refractory work, electrical and instrumentation, wagon tipplers, conveying systems, scaffolding work, torquing and bolting, and NDT services. The company has executed around 14 turnaround shutdowns for major clients including Reliance Industries Limited, Nayara Energy Limited, and Yara Fertilisers India Limited, operating with approximately 650 manpower. As of September 6, 2022, the company had a work order book of approximately ₹121 crores and recently received a letter of intent from Malco Energy Limited (part of Vedanta Group) worth ₹200 crores for Operations and Maintenance of Metcoke Manufacturing Plant for 3 years.
Objects of the Issue
- To Meet Working Capital Requirements ₹700.00 Lakhs p.16
- General Corporate Purpose ₹100.00 Lakhs p.16
- To Meet Working Capital Requirements ₹700.00 Lakhs p.67
- General Corporate Purpose ₹100.00 Lakhs p.67
- To meet Public Issue Expenses ₹37.00 Lakhs p.67
Issue Structure
- Total Issue
- ₹837.00 Lakhs (2,325,000 Equity Shares)
- Fresh Issue
- ₹837.00 Lakhs (2,325,000 Equity Shares aggregating to ₹837.00 Lakhs)
- Offer for Sale
- Nil
- Price Band
- ₹36 per Equity Share (Fixed Price Issue)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through fixed-price and cost-reimbursable contracts for engineering, construction, and maintenance services. Services are provided to industrial clients in the oil & gas, petrochemical, chemical, cement, and fertilizer sectors. Contracts are generally secured through one-to-one negotiation with most contracts coming from existing clients. Pricing is determined based on type of work, estimated duration, and equipment required through direct negotiation with clients. Services are generally provided on credit with customers settling accounts on a periodic basis.
Business Segments
SWOT Analysis
- • Established presence in Oil & Gas infrastructure with specialized services(p.14)
- • Class-I certification and regulatory standing(p.14)
- • Significant order book and recent major contract wins(p.14)
- • Substantial workforce and operational capacity(p.14)
- • Proven track record in executing challenging industrial projects(p.96)
- • Established client relationships with major oil & gas companies(p.93)
- • Significant order backlog and pipeline(p.93)
- • Experienced management with deep industry expertise(p.98)
- • Class I certified Boiler Repairer and Erector credentials(p.93)
- • Comprehensive in-house equipment and machinery assets(p.94)
- • Experienced promoter with 20+ years in industrial mechanical work(p.137)
- • Class-I certification for boiler repair and system fabrication(p.131)
- • Multiple awards and recognitions from major clients(p.131)
- • High customer retention and growing customer base(p.131)
- • Significant work order book of approximately ₹121 Crores(p.184)
- • Heavy geographic concentration of business in Gujarat/Jamnagar region(p.24)
- • Extreme customer concentration with top 5 customers representing over 85% of revenue(p.25)
- • High dependence on limited supplier base(p.25)
- • History of net losses in recent years(p.25)
- • No owned immovable property; reliance on leased premises(p.26)
- • Limited management experience in key directors(p.26)
- • Unsecured loans repayable on demand creating cash flow vulnerability(p.27)
- • Potential conflicts of interest with promoter group entities in same business(p.27)
- • Promoter and promoter group will maintain majority control post-IPO(p.27)
- • Negative cash flows from operations in some periods(p.34)
- • Pending tax proceedings against company and promoter(p.18)
- • Geographic concentration outside core operational region(p.99)
- • High working capital requirement(p.99)
- • Dependence on infrastructure industry growth(p.99)
- • Historical losses in prior fiscal years(p.95)
- • High dependence on few major customers(p.191)
- • Significant loss incurred in FY2020-21(p.175)
- • High debt-to-equity ratio(p.175)
- • High dependence on few suppliers(p.191)
- • Pending income tax demand and show cause notice(p.195)
- • Indian infrastructure sector receiving massive government push with ₹10 lakh crore allocation(p.16)
- • India expected to become third-largest construction market globally by 2022(p.16)
- • Strong recovery in Indian economy post-COVID with 9.2% GDP expansion(p.15)
- • Private sector emerging as key player in infrastructure with 100% FDI allowed(p.16)
- • Expansion into new geographic markets and customer segments(p.24)
- • Opportunity to execute larger, higher-margin projects(p.27)
- • Government infrastructure investment push(p.88)
- • Rapid urbanization and infrastructure development(p.99)
- • High capital allocation for National Infrastructure Pipeline(p.92)
- • Growing oil & gas refinery modernization and maintenance contracts(p.98)
- • Expansion into new geographic markets and sectors(p.98)
- • Letter of intent for ₹200 Crore operations and maintenance contract with Vedanta group entity(p.184)
- • Executed multiple turnaround shutdowns and positioning for growth in industrial maintenance(p.183)
- • Diversified service offerings across multiple plant operations(p.183)
- • Revenue growth trajectory showing recovery post-COVID(p.189)
- • Global economic slowdown impacting India's growth(p.15)
- • Global inflation pressures and monetary policy tightening(p.15)
- • Intense competition from established and new competitors(p.30)
- • Regulatory risks and changes in government policy(p.37)
- • Weather and natural calamities affecting operations(p.28)
- • Seasonality affecting revenue and profitability(p.28)
- • Interest rate volatility impacting borrowing costs(p.36)
- • Tax and regulatory changes affecting profitability(p.38)
- • 100% revenue dependence on India economy(p.37)
- • Risk of contract delays, cancellations, and non-payment(p.30)
- • Foreign investment restrictions under Indian law(p.38)
- • Terrorist attacks and civil unrest risks(p.38)
- • COVID-19 pandemic ongoing threats(p.38)
- • Low entry barriers and intense competition(p.99)
- • Vulnerability to government policy changes(p.99)
- • Customer concentration risk(p.94)
- • Commodity and raw material price volatility(p.99)
- • Global economic slowdown impacting infrastructure investment(p.82)
- • Dependence on oil & gas and refineries industry cyclicality(p.183)
- • COVID-19 pandemic impact on business operations(p.186)
- • Competition from existing market players(p.191)
- • Exposure to material cost and labour cost inflation(p.190)
- • Wide regulatory compliance requirements(p.130)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jaybajrang Ramaishish Mani | Promoter | 98.20% | 71.15% |
| Jaybajrang Ramaishish Mani | Promoter | 98.20% | 71.15% |
| Seema Mani | Promoter Group | 1.79% | 1.30% |
| Aditya Mani | Promoter Group | Negligible | Negligible |
| Payal Mani | Promoter Group | Negligible | Negligible |
| Tulshi Prasad Sukla | Promoter Group | Negligible | Negligible |
| Sriniwash Mishra | Promoter Group | Negligible | Negligible |
| Mr. Jaybajrang Ramaishish Mani | Promoter | 98.20% | — |
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.