Teerth Gopicon
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Apr 2024 – 10 Apr 2024
- Listing date
- 16 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹111 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹44.40 Cr
- Market cap at offer price
- ₹133 Cr
- Promoter holding
- 96.50% → 64.33% pre-issue → post-issue
- ISIN
- INE0K6601012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 703, Sapath Complex-I, Opp.Rajpath Club, Near Madhur Hotel, Bodakdev, Gujarat
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 | 2,00,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹111
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,33,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,66,400 |
| S-HNI (max) | 7 | 8,400 | ₹9,32,400 |
| B-HNI (min) | 8 | 9,600 | ₹10,65,600 |
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 (₹) | 2.24 | 7.84 |
| P/E (×) | 49.55 | 14.16 |
| Price to book (×) | 5.65 | — |
| Market cap | — | ₹133 Cr |
Key performance indicators
- Return on net worth
- 22.72%
- ROCE
- 48.40%
- Debt / equity
- 0.60
- PAT margin
- 11.26%
- NAV per share
- ₹19.66
- Price to book
- 5.65
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Teerth Gopicon
Teerth Gopicon Limited, incorporated as a private limited company on October 2, 2020, was converted to a public limited company on March 31, 2024. The company is an engineering construction and development company primarily engaged in the construction of roads, sewerage work, and water distribution work in Madhya Pradesh. It operates as an EPC (Engineering, Procurement and Construction) contractor, offering detailed engineering, procurement of construction materials, plant and machinery, construction and execution of projects, and operation and maintenance services. The company has a track record of over 5 years as a corporate entity, though the promoter Maheshbhai Kumbhani started as a proprietor under the name Gopi Construction in 2009. The company executes a wide range of civil engineering projects including building construction, water supply, pipelines, sewerage networks, sewerage treatment plants, road work, and lake rejuvenation. It is ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified and is registered as an 'A' class civil and electrical contractor.
Company Analysis
from RHPTeerth Gopicon Limited is an engineering construction and development company engaged in the construction of roads, sewerage work, and water distribution work, primarily in Madhya Pradesh, operating as an EPC contractor.
Teerth Gopicon Limited, incorporated as a private limited company on October 2, 2020, was converted to a public limited company on March 31, 2024. The company is an engineering construction and development company primarily engaged in the construction of roads, sewerage work, and water distribution work in Madhya Pradesh. It operates as an EPC (Engineering, Procurement and Construction) contractor, offering detailed engineering, procurement of construction materials, plant and machinery, construction and execution of projects, and operation and maintenance services. The company has a track record of over 5 years as a corporate entity, though the promoter Maheshbhai Kumbhani started as a proprietor under the name Gopi Construction in 2009. The company executes a wide range of civil engineering projects including building construction, water supply, pipelines, sewerage networks, sewerage treatment plants, road work, and lake rejuvenation. It is ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified and is registered as an 'A' class civil and electrical contractor.
Objects of the Issue
- Funding the working capital requirements of our Company ₹2,750.00 Lakhs p.18
- General Corporate Purpose ₹1,024.00 Lakhs p.18
- Funding the working capital requirements of the Company ₹3,340.00 lakhs p.66
- General Corporate Purpose ₹1,024.00 lakhs p.65
- Funding capex for purchase of machinery and equipment p.163
- General corporate purposes
Issue Structure
- Total Issue
- ₹4,439.56 Lakhs
- Fresh Issue
- 39,99,600 Equity Shares of face value of ₹10 each at ₹111 per share aggregating to ₹4,439.56 Lakhs
- Price Band
- ₹111 per Equity Share (Fixed Price Issue)
- Lot Size
- 1,200 Equity Shares (Application Lot) and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue by bidding for and executing infrastructure projects awarded by the Central/State Government and semi-government authorities through competitive tendering. As an EPC contractor, it earns revenue from the full scope of services including detailed engineering, procurement, construction and execution, and operation and maintenance of projects. The company's revenue generation is project-based and non-recurring in nature, with projects awarded through competitive bidding processes.
Business Segments
SWOT Analysis
- • ISO certifications and government contractor registration(p.17)
- • Track record with established government clients(p.17)
- • Diverse project execution capabilities across infrastructure segments(p.17)
- • Significant owned fleet of machinery and equipment(p.25)
- • Extensive infrastructure project management and execution experience with demonstrated on-time, on-budget delivery(p.99)
- • Established market presence and strong track record in Madhya Pradesh, particularly in Smart Cities and water supply projects(p.99)
- • Significant owned fleet of construction equipment reducing dependence on third parties(p.100)
- • Focused specialization in high-margin water supply system projects aligned with government priorities(p.100)
- • Strong supplier relationships enabling cost-effective procurement and supply chain security(p.100)
- • Robust and visible order book representing strong future revenue pipeline(p.100)
- • Promoter possesses over two decades of industry experience in infrastructure construction(p.91)
- • ISO certifications across quality, environmental, and occupational health standards(p.160)
- • Established track record with government and municipal clients(p.160)
- • Diverse project execution capability across water, sewerage, and road infrastructure(p.160)
- • Significant profitability improvement with 11.26% net profit margin in stub period(p.162)
- • Strong promoter with 15+ years construction industry experience(p.119)
- • Business concentrated in single state with 100% reliance on government clients(p.23)
- • Rented office premises without ownership(p.24)
- • Significant revenue concentration from limited number of clients(p.24)
- • High working capital requirements(p.26)
- • History of compliance delays in regulatory filings(p.26)
- • Underutilization risk of owned machinery during off-peak periods(p.25)
- • Missing documentary evidence for educational qualifications of two directors(p.33)
- • Significant concentration of business revenue with top 5 clients representing 100% of revenue(p.92)
- • Heavy reliance on government and quasi-government contracts with single largest contract (Karanjiya Shahpura) representing 54% of order book(p.92)
- • Concentrated geographic footprint limited to Madhya Pradesh state(p.91)
- • Very recent corporate history with company incorporated only in 2019, limiting operational track record(p.90)
- • High proportion of top 10 suppliers concentrated at 81.20% of total supply requirements(p.92)
- • Small management team with 164 permanent employees creating potential execution and growth constraints(p.102)
- • Dependence on few customers with top 5 contributing 100% of revenue(p.166)
- • High inventory concentration with 46.56% of current assets as raw materials(p.142)
- • Significant increase in short-term debt during stub period(p.141)
- • Deterioration in current ratio from 1.79 to 1.10 over three years(p.152)
- • High trade receivables aging with amounts outstanding over 2+ years(p.143)
- • India's infrastructure development focus and government investment pipeline(p.17)
- • Government initiatives like Smart Cities Mission and Housing for All(p.17)
- • Target to reach US$5 trillion economy by 2025 requiring infrastructure expansion(p.18)
- • Expansion into additional services and geographic markets(p.30)
- • Expansion into multiple states to diversify geographic revenue base and reduce concentration risk(p.100)
- • Strategic focus on water supply projects aligned with massive government Jal Jeevan Mission investments(p.99)
- • Growth potential from AMRUT 2.0 scheme targeting universal water supply coverage in statutory towns(p.100)
- • Capitalize on Smart Cities Mission expansion and modernization across India(p.99)
- • Significant government capital expenditure increase on infrastructure providing expanded tender pipeline(p.86)
- • Diversification into adjacent infrastructure sectors beyond current sewerage, roads and water focus(p.90)
- • Government infrastructure focus providing project awards in water distribution and sewerage(p.163)
- • Expansion across Madhya Pradesh with presence in multiple cities(p.160)
- • Diversification into higher-margin water supply projects compared to low-margin sewerage(p.162)
- • Post-COVID recovery with increased government project allocations(p.163)
- • Highly competitive bidding environment for government contracts(p.24)
- • Project delays and non-compliance with contractual timelines(p.24)
- • Dependence on sub-contractors for project execution(p.25)
- • Seasonal variations and weather-dependent operations(p.31)
- • Labour shortage during monsoon and farming seasons(p.33)
- • Regulatory and compliance risk from environmental and labour laws(p.33)
- • Changes in government policies and regulatory framework(p.39)
- • Economic downturn in India impacting infrastructure spending(p.39)
- • Natural disasters and force majeure events(p.39)
- • Cost escalation and material price volatility(p.31)
- • High sensitivity to government budget allocations and tender award delays affecting revenue predictability(p.91)
- • Intense competitive bidding environment with price often determining tender awards(p.102)
- • Exposure to project execution risks including cost overruns, delays and quality issues on large contracts(p.99)
- • Dependency on skilled labor availability and retention in competitive construction labor market(p.101)
- • Input cost volatility for raw materials including cement, steel, sand, pipes and bitumen(p.103)
- • Regulatory and compliance complexity across multiple government agencies and jurisdictions(p.90)
- • Business concentration in single state of Madhya Pradesh(p.160)
- • Debarment by ISCDL for 5 years affecting tender participation(p.172)
- • GST demand notice of ₹1.46 crores under dispute(p.172)
- • Adverse weather impact on construction operations particularly during monsoon(p.166)
- • Litigation risk from defamation case with claim valuation of ₹1050 crores(p.173)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Maheshbhai Kumbhani | Promoter | 60.50% | 40.33% |
| Chandrikaben Kumbhani | Promoter | 15.00% | 10.00% |
| Pallav Kumbhani | Promoter | 7.00% | 4.67% |
| Ghanshyam Kumbhani | Promoter Group | 7.00% | 4.67% |
| Sanjay Kumbhani | Promoter Group | 7.00% | 4.67% |
| Maheshbhai Kumbhani | Promoter | 60.50% | 40.33% |
| Chandrikaben Kumbhani | Promoter | 15.00% | 10.00% |
| Pallav Kumbhani | Promoter | 7.00% | 4.67% |
| Ghanshyam Kumbhani | Promoter Group | 7.00% | 4.67% |
| Sanjay Kumbhani | Promoter Group | 7.00% | 4.67% |
| Maheshbhai Kumbhani | Promoter & Managing Director | 51.00% | — |
| Chandrikaben Kumbhani | Promoter & Whole Time Director | 15.00% | — |
| Pallav Kumbhani | Promoter & Non-Executive Director | 7.00% | — |
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.