Konstelec Engineers IPO: Check GMP, subscription status on day 3, review, other key details
- Konstelec Engineers IPO is open for subscription from January 19 to January 24. The price band is set at ₹66 to ₹70 per share, with a lot size of 1,000 shares. The company provides electrical engineering, procurement, and construction services in India.
Konstelec Engineers IPO has opened for subscription on Friday, January 19, and will close on Wednesday, January 24. Konstelec Engineers IPO dates has been extended by a day as the equity market remained closed on Monday on account of a public holiday in the country celebrating the inauguration of the Ram Temple in the northern city of Ayodhya.
Konstelec Engineers IPO price band has been set in the range of ₹66 to ₹70 apiece. Konstelec Engineers IPO lot size consists of 1,000 shares. Investors can bid for a minimum of 2,000 shares and in multiples thereof.
With its headquarters located in Mumbai, Konstelec Engineers is the top provider of electrical engineering, procurement, and construction (EPC) services in India.
A few of the company's clients are BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, Adani, NTPC, Tata Steel Ltd, Navin Fluorine International Ltd, IGPL, and Reliance Industries Limited. The company offers its services in over fifteen states in Nigeria and India.
Between March 31, 2022, and March 31, 2023, Konstelec Engineers Limited's profit after tax (PAT) climbed by 120.8%, while its revenue increased by 42.17%.
Konstelec Engineers IPO details
The SME IPO consists of a fresh offering of up to 41 lakh equity shares at book-build price, each having a face value of ₹10.
The majority of the proceeds raised will go towards working capital, high-quality product acquisition for long-term projects, and collateral security; the remaining funds will be utilised for general corporate purposes and public-issue expenses.
The issue's registrar is Skyline Financial Services Private Ltd, and the book running lead manager is Beeline Capital Advisors Private Ltd.
Konstelec Engineers IPO subscription status
Konstelec Engineers IPO subscription status is 341.80 times on day 3. The issue received positive response from retail investors who's portion set was subscribed 437.67 times, and non-institutional buyers who's portion was subscribed 421.36 times, as per data available on chittorgarh.com. The Qualified Institutions Buyers (QIBs) were booked 113.80 times.
The company has received bids for 93,24,30,000 shares against 27,28,000 shares on offer, according to data on chittorgarh.com.
Konstelec Engineers IPO subscription status is 26.28 times on day 1, and the issue was subscribed 146.03 times on day 2.
Konstelec Engineers IPO GMP today
Konstelec Engineers IPO GMP or grey market premium is +90, a big jump from yesterday's +57. This indicates Konstelec Engineers share price were trading at a premium of ₹90 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Konstelec Engineers was indicated at ₹160 apiece, which is 128.57% higher than the IPO price of ₹70.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Konstelec Engineers IPO Review
"Konstelec Engineering has an order book of ₹5,730mn (~3.7x of FY23 revenue) and around ₹400 crore order book is under execution and expected to be completed in the next 12-18 months. The company has an order pipeline of ₹1,000 crore and the order winning ratio is around 15%-20% showing an expected order book of around ₹150 crore in the next quarter. The company is currently executing a big order of ₹55 crore and is eligible to bid more than ₹100 crore going forward.
We believe, the high ticket size projects and specific industry-focused projects would lead to margin improvement going forward. The customer-centric approach, expanding customer base, innovation, leveraging cutting-edge technologies, and exploring in-organic growth opportunities would lead the business growth going forward. At the upper band of ₹70, the issue is valued at an EV/EBITDA of 7.7x based on FY23 TTM EBITDA and PE of 5.2x based on FY23 EPS of ₹5.2. We are recommending “Subscribe for Long Term” for this issue," said brokerage Arihant Capital Markets Ltd.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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