Sathlokhar Synergys E&C Global Limited IPO

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Sathlokhar Synergys E&C Global Limited is a prominent player in the Engineering, Procurement, and Construction (EPC) sector, providing comprehensive design and build services. The company specializes in turnkey contracting, offering tailored solutions for the construction of various infrastructure facilities. Key areas of expertise include:

i. Industrial Projects: Extensive experience in constructing industrial facilities.
ii. Warehousing: Building state-of-the-art warehousing solutions.
iii. Commercial Projects: Developing commercial spaces to meet diverse business needs.
iv. Institutional Projects: Constructing educational and institutional facilities.
v. Pharmaceutical Projects: Specialized services for pharmaceutical infrastructure.
vi. Solar Projects: Expertise in solar power project installations.
vii. Healthcare: Construction of hospitals and healthcare facilities.
viii. Hospitality: Building hotels, resorts, and villas.

Geographical Presence

The company operates across several states in India, including Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal, and Pondicherry. Sathlokhar Synergys E&C Global Limited also undertakes government EPC projects through a competitive tender process.

Comprehensive Project Management

Sathlokhar Synergys E&C Global Limited provides end-to-end services across the project lifecycle:

i. Detailed Designing: Meticulous planning and designing tailored to client requirements.
ii. Procurement: Sourcing all necessary materials except for specialized work materials.
iii. Engineering: Comprehensive engineering solutions for complex projects.
iv. Project Execution: On-site project management ensuring timely completion.
v. Commissioning: Ensuring projects are delivered for their intended purpose.

The company also excels in the installation of Mechanical, Electrical, and Plumbing (MEP) networks, supported by a dedicated team of in-house professionals, MEP Designers, and Engineers.

Strategic Partnerships

Sathlokhar Synergys E&C Global Limited is an authorized channel partner for TATA Power Solar Systems Ltd. This partnership enables the company to offer installation, sales, commissioning, and maintenance services for solar power projects, adhering to mutually agreed terms.

Competitive Advantage

Sathlokhar Synergys E&C Global Limited prides itself on its integrated in-house capabilities, which facilitate efficient project delivery from conceptualization to completion. The company’s strategic focus on de-risking and managing the value chain, coupled with a strong emphasis on talent retention, maximizes value creation for clients. By independently bidding on government-funded projects and leveraging its expertise in managing large-scale EPC contracts, the company ensures faster turnaround times and superior project execution.

In summary, Sathlokhar Synergys E&C Global Limited is a dynamic and versatile EPC company with a proven track record in delivering high-quality infrastructure projects across India. Through its strategic partnerships, comprehensive service offerings, and commitment to international standards, the company continues to drive growth and excellence in the construction industry.

Objects of the Sathlokhar Synergys E&C Global Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objects: i. Working Capital ii. General Corporate Purposes
DRHP of Sathlokhar Synergys E&C Global Limited IPO
RHP of Sathlokhar Synergys E&C Global Limited IPO

Sathlokhar Synergys E&C Global Limited IPO Details:

Open Date: Jul 30 2024
Close Date: Aug 01 2024
Total Shares: 6,638,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 92.93 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 133 - 140 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 06 2024

Promoters And Management:

Ms. Sangeethaa Thiyagu, aged 45 years, is the Promoter, Whole Time Director and Chief Operating Officer (COO) of the Company. She holds Degree of Bachelor of Engineering from Bharathidasan University. She has been associated with the company since its incorporation i.e., from the year 2013. She has over 21 years of experience in Project Management and in construction industry. Her role is to design and implement business strategies, plans and procedure and contribute to overall growth and expansion of the company. Mr. G Thiyagu, aged 47 years, is the Promoter, Managing Director and Chief Executive Officer (CEO) of the company. He holds Degree of Diploma in Electrical and Electronics Engineering and Diploma in Industrial Safety and Masters of Arts in Public Administration, Masters of Business Administration and Doctor of Philosophy (Business Management). He has over 25 years of experience in various aspect of Real Estate industry. He has received Mahatma Gandhi Samman Award by NRI Welfare Society of India in the year 2018. He has been associated with the company since January 2024. His role is to ensuring smooth business processes, timely completion of work and to ensures financial integrity and regulatory compliance. Mr. B Sivasubramanian, aged 57 years, is the Whole Time Director and Chief Technical Officer (CTO) of the Company. He holds a Post Graduate Diploma in Construction Management from National Institute of Construction Management and Research, Pune. Maharashtra. He has over 35 years of experience in the civil industry. He has been associated with the company since October 2017. His role in the company is to operate day to day affairs of the company to ensure a smooth process. Additionally, reviewing progress, safety, and quality at construction sites with clients and coordinators is crucial for timely project completion and budget adherence.

Financials of Sathlokhar Synergys E&C Global Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 5,849 8,711 24,697
Other Income 3 5 35
Total Revenue 5,852 8,716 24,732
Cost of materials consumed 3,435 4,890 13,787
Direct Expenses 1,626 2,216 6,131
Employees Benefit Expenses 439 539 844
Other Expenses 170 222 378
EBITDA 181 848 3,593
OPM (%) 3.09% 9.73% 14.53%
Depreciation & Amortisation 7 8 26
EBIT 174 839 3,567
Finance Cost 57 108 66
PBT 118 732 3,500
Tax 30 186 879
PAT 88 546 2621
NPM (%) 1.50% 6.26% 10.60%
No.of Shares 241.37 241.37 241.37
EPS 0.36 2.26 10.86

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sathlokhar Synergys E&C Global Limited 247 26 10.86 12.9 140 338
K2 Infragen Limited 109 12 13.52 27.5 271 342
Suraj Estate Developers Limited 412 67 15.22 43.4 661 2,931
SRM Contractors Limited 342 27 16.11 21.1 248 570
* All the data is as per FY24.

Recommendation on Sathlokhar Synergys E&C Global Limited IPO:

1. Sathlokhar Synergys E&C Global Limited is an integrated engineering, procurement, and construction (EPC) company, specializing in turnkey contracting services across various sectors. 2. Their portfolio includes industrial buildings, warehousing, commercial and institutional facilities, pharmaceutical projects, solar projects, hospitals, hotels, resorts, and villas. They operate extensively across India, particularly in Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal, and Pondicherry. 3. Government Projects and Partnerships They actively participate in EPC projects for government entities through a tender offering process. As an authorized channel partner of TATA Power Solar Systems Ltd., they provide installation, sales, commissioning, and maintenance services for solar power projects. This partnership enhances their capabilities in renewable energy solutions. 4. Competitive Landscape The construction and EPC market is highly competitive, with numerous players ranging from small local firms to large regional and national companies. However, the industry's low entry barriers mean that competition is continuously intensifying. 5. The Revenue has Increased from Rs.58 Crores in FY22 to Rs.246 Crores in FY24. 6. The EBITDA has Increased from 2 Crores in FY22 to 36 Crores in FY24. 7. The PAT has Increased from 88 Lakhs in FY22 to 26 Crores in FY24. 8. As per FY24, CFO/EBITDA is 1.02, and EPS is 10.86, 9. Market Capitalization is 338 Crores and P/E is 12.9x based on FY24.

Lead Manager of Sathlokhar Synergys E&C Global Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of Sathlokhar Synergys E&C Global Limited IPO:

  1. Purva Sharegistry India Private Limited

Company Address:

Sathlokhar Synergys E&C Global Limited Plot No. 5171, 9th Street, Ram Nagar North Extension, Madipakkam, Kanchipuram, Saidapet - 600091 Phone: +91 7299541122 Email: cs@sathlokhar.com Website: http://www.sathlokhar.com/

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