Advait Infratech Limited SME IPO

Apply 0
Avoid 0

(i) The company is into the business of providing products and solutions for power transmission, power substation, and telecommunication infrastructure fields. They operate with various verticals such as Turnkey Telecommunication Projects, Installation of the Power Transmission, Sub Station and Telecom Products, Liasioning-marketing and providing end to end solutions for the overseas customers operating in the field Power Transmission and Sub Station, Trading of similar products, and manufacturing through OEM of the stringing Tools.

(ii) The major Products and Solutions offered by the company are as below :
a) Optical Fibre Ground Wire (OPGW) and OFC cables and its solutions.
b) Insulators for the EHV – Extra High Voltage Transmission Lines.
c) Stringing Tools for the construction of Transmission lines.
d) Gas Insulators Sub Stations supply from our partners and providing end to end solutions.
e) Earthing Solutions.
f) Transmission line and Sub Station Lines specialized products.

(iii) The Company has expanded its verticals by venturing into the manufacturing of OPGW (Optical Fibre Ground Wire) and OFC Cables. The company has put up a manufacturing company, TG Advait India Private Limited through a joint venture with Jiangsu Tongguang Optical Fiber Cable Co.,Ltd.

Objects of the Advait Infratech Limited SME IPO:

The Company is raising 6.89 Crores for the following purpose. 1. To meet the general working capital requirement of the business 2. To meet general corporate purposes

Advait Infratech Limited SME IPO Details:

Open Date: Sep 15 2020
Close Date: Sep 18 2020
Total Shares: 1,350,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 6.89 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 28 2020

Promoters And Management:

Mr. Shalin Sheth and Mrs. Rejal Sheth are the promoters of the company.

Financials of Advait Infratech Limited SME IPO:

Particulars(in Lakhs) Mar-17 Mar-18 Mar-19 9MFY20
Revenue 2,873 4,342 2,804 3,279
COGS 1,476 2,821 1,862 2,432
Employee Cost 114 133 149 166
Other Expense 690 685 406 248
EBITDA 593 703 387 433
OPM 21% 16% 14% 13%
Other Income 89 192 48 104
Interest Cost 18 28 2 68
Depreciation 12 18 37 155
Profit before tax 652 849 396 314
Exceptional Item 0 0 0 37
Tax 223 224 145 219
Net Profit 429 625 251 132
NPM 15% 14% 9% 4%
Shares 51 51 51 51
EPS in Rs 8 12 5 3

Comparison With Peers:

As per RHP, AIL has no listed peers to compare with.

Recommendation on Advait Infratech Limited SME IPO:

Review and Recommendation of InvestorZone are 1/10. [ The company has inconsistent financials. The asking P/E of 17x is over-valued. Moreover, the sector in which the company is working is not very lucrative.]

Lead Manager of Advait Infratech Limited SME IPO:

  1. ISK Advisors Private Limited

Registrar of Advait Infratech Limited SME IPO:

  1. Kfin Technology Private Limited

Discussion on Advait Infratech Limited SME IPO: