Konstelec Engineers IPO to open on Jan 19; check price band, listing and other details

The initial public offering (IPO) of Konstelec Engineers will open for bidding on Friday, January 19, 2024. The company will be selling its shares in the fixed price band of Rs 66-70 apiece with a lot size of 2,000 equity shares. The bidding for the issue will conclude on Wednesday, January 24, 2024.

Incorporated in December 1995, Konstelec Engineers is active in the fields of engineering, procurement and construction (EPC) space. The company offers a wide range of services including engineering and drawings, procurement, operations and maintenance, project management and construction and commissioning.

Konstelec Engineers will be raising a total of Rs 28.70 crore via SME IPO, which entirely includes 41 lakh equity shares. Retail investors can apply for a single lot only or 2,000 equity shares amounting to Rs 1.4 lakh at the upper end of the price band. HNI investors need to apply for a minimum of two lots or 4,000 equity shares.

The net proceeds from the fresh Issue shall be utilized towards meeting working capital requirements; general corporate purposes; and to meet Public Issue Expenses. Biharilal Ravilal Shah and Mr. Amish Biharilal Shah are the promoters of the company.

The company's areas of expertise include electrical installation, solar power plant installation, instrumentation and automation. The company has completed more than 200 projects of varying size and complexity, including 45 major projects worth over 400 crores. The company provides services in more than 15 states in India and Nigeria.

The company's clients include Reliance Industries, Engineers India, JSW Steel, Indian Oil, Bharat Petroleum, Hindustan Petroleum , Chennai Petroleum Corporation, Mangalore Refinery and Petrochemicals (MRPL), Indian Space Research Organisation (ISRO), ACC, BARC, Dangote Industries , Adani Group, NTPC, Tata Steel , Navin Fluorine International, IGPL and more.

Konstelec Engineers reported a net profit of Rs 4.56 crore with a revenue of Rs 94.34 crore for the period ended on September 30, 2023. The company clocked a net profit of Rs 7.78 crore with a revenue of Rs 155 crore for the financial year ended on March 31, 2023.

Konstelec Engineers has reserved 2,06,000 shares as market maker portion for SpreadX Securities The company has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) get 15 per cent of the net issue. Retail investors will get the remaining 35 per cent of the net issue.

Beeline Capital Advisors is the book running lead manager of the Konstelec Engineers IPO, while Skyline Financial Services is the registrar for the issue. Shares of the company shall be listed on emerge platform of the NSE with Monday, January 29 as the tentative date of listing.

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