Konstelec Engineers' IPO is set to open today

Mumbai, Jan 19: The Initial Public Offering (IPO) for Konstelec Engineers Limited (KEL) is all set to open today, January 19. The issue will be closed on Tuesday, January 23, 2024. The company intends to raise approximately Rs. 28.70 crore (at upper hand) from the offering and aims to be listed with NSE Emerge. The price band for the issue has been fixed at Rs. 66–70 per share. The lot size will be 2,000 shares.

Beeline Capital Advisors Private Limited is the Book Running Lead Manager, and Skyline Financial Services Private Limited is the Registrar to the Issue.

The IPO comprises a fresh issue of 41 lakh Equity Shares with a face value of Rs 10/- through the book-building route. While 2.06 lakh equity shares have been reserved for Market Maker, 5.86 lakh equity shares are for NIIs, 19.44 lakh equity shares are allocated for the QIB portion, including anchor reservations, and the Retail (RII) portion accounts for 13.64 lakh equity shares.

Konstelec plans to utilize a majority of proceeds towards the working capital expenses for procuring high-quality products for its long-term projects and to provide collateral security to various clients. The remaining funds will be used for general corporate purposes and to meet public-issue expenses.

Konstelec Engineers recorded a revenue of Rs. 93.05 crore, an EBITDA of Rs. 7.08 crore, and a profit (PAT) of Rs. 4.56 crore in the first half of the current financial year, which ended September 30, 2023. In FY2022-23, KEL posted a revenue of Rs. 153.40 crore, up from Rs. 107.05 crore in FY2021-22. The company's EBITDA stood at Rs. 14.15 crore in FY2022-23, up from Rs. 5.84 crore in FY2021-22. KEL registered over two-fold growth in profit (PAT) at Rs. 7.78 crore in FY2022-23, compared to Rs. 3.52 crore in FY2021-22.

KEL, a Mumbai-based EPC contractor, offers full-scale project management, procurement support, and engineering services for electrical infrastructure, instrumentation, and automation projects in various manufacturing industries, such as oil & gas, refinery, steel, cement, pharmaceuticals, textiles, hospitals, and health care, across India and abroad. Founded by first-generation entrepreneur Biharilal Ravilal Shah in 1995, KEL has a strong order book of over 50 major projects worth Rs. 573 crore. The company's ongoing projects include electrical, construction power work, and instrumentation work for leading corporates like JSW Vijayanagar Metallics Ltd, Rajasthan Refinery Project, HRRL Pachpadra, Mangalore Terminal Expansion Project, Karnataka State, and Benue Cement Plant in Nigeria. KEL has clients including Reliance Industries Limited, Engineers India Limited, Tata Steel Limited, JSW Steel, Adani, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, NTPC, Navin Fluorine International Ltd, and IGPL.