Knowledge Marine & Engineering Works IPO (KMEW IPO)

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The Company is engaged in the business of owning and operating of Marine Crafts for dredging along with repairs and maintenance/refits of Marine Crafts and Marine Infrastructure. Their group started their business in the year 2013 under the name Kamal Marine & Engineering Works Private Limited, which undertakes the business of repair/ refits of marine crafts. With a two years of marine engineering experience and sustainable financial growth, the group expanded to owning and operating small crafts under the flagship of Knowledge Marine & Engineering Works Private Limited with its head office at Mumbai. Over the years they have become an established player in the small-craft business segment in India and have evolved from a small ship-repair unit to a ship-owning Company.

Their Company was incorporated in the year 2015 with a vision to own and operate marine craft for the Government of India. Their Company has an approximate asset value of around Rs. 25 crores and an order book of over Rs. 100 crores. Their Company has two major segments which includes following:

1. Owning and operating of Marine crafts for dredging services; and

2. Ancillary services – conducting marine hydrographic & magnetometer survey, providing technical manpower solutions for maintenance and operation of vessels and repairs and Maintenance/ Refits of Marine Crafts and Marine Infrastructure.

They, as a KMEW group, operate with other 3 (three) companies formed as a special purpose vehicle (SPV) through joint venture agreement to meet the CPC guideline set by the Government of India for large contracts and to secure them for the group’s growth. They handle the contracts which involves following:

1. repairs, refit and renewals of marine crafts, hiring of tug, survey-cum-pilot launch, barges and other marine vessels;

2. dredging at various ports of India;

3. manning, technical maintenance, operations of marine vessels; and

4. hydrographical and magnetometer surveys.

Objects of the Knowledge Marine & Engineering Works IPO (KMEW IPO):

The Issue includes a fresh Issue of up to 27,36,000 Equity Shares. The fresh issue will be used for the following purposes; 1. Business Expansion (Building new craft River Pearl 5, 20 Knots speed Patrol Boat for Visakhapatnam) 2. To meet Working Capital requirements 3. General Corporate Purpose 4. To meet issue expenses

Knowledge Marine & Engineering Works IPO (KMEW IPO) Details:

Open Date: Mar 09 2021
Close Date: Mar 12 2021
Total Shares: 27,36,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 10.12 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 37 Per Equity Share
Listing At: BSE SME

Promoters And Management:

1)  Mr. Saurabh M. Daswani, 2) Mrs. Kanak S. Kewalramani.

Financials of Knowledge Marine & Engineering Works IPO (KMEW IPO):

Particulars (Lakhs) 6MFY21 Mar-20 Mar-19 Mar-18
Sales 1,632 2,391 1,057 1,060
Direct Expenses 781 1,284 294 606
Changes in Inventories -10 -27 0 0
Employee Benefit Expenses 93 164 162 104
Other expenses 105 203 172 97
Operating Profit 663 767 429 253
OPM % 40.63% 32.08% 40.59% 23.87%
Other Income 3 27 3 4
Interest 55 111 51 19
Depreciation 102 151 80 21
Profit before tax 508 532 300 218
Net Profit 380 425 271 144
No. of shares 102.36 102.36 102.36 102.36
EPS in Rs 3.71 4.15 2.65 1.41

Comparison With Peers:

Name of the company 5-year Revenue Growth 5 year PAT Growth EBITDA Margin (FY20) ROE  (FY20) D/E P/E
Knowledge Marine (3 Years) 50% 72% 32% 38% 1.39 8.91
Dredging Corporation 0% -38% 19% 0.35% 0.24 0

Recommendation on Knowledge Marine & Engineering Works IPO (KMEW IPO):

Review and Recommendation of InvestorZone are 5/10 [The company has good business model and asking P/E of 11x looks reasonable.]

Lead Manager of Knowledge Marine & Engineering Works IPO (KMEW IPO):

  1. Hem Securities Limited

Registrar of Knowledge Marine & Engineering Works IPO (KMEW IPO):

  1. Link Intime India Private Limited

Company Address:

Office No. 402, Sai Samarath Business Park, Deonar Village Road, Govandi (East) Mumbai - 400088, Maharashtra, India

Discussion on Knowledge Marine & Engineering Works IPO (KMEW IPO):


    Competitive strengths

    Diversified range of modern technology Marine Crafts.
    Leading player in the small-crafts segment in India.
    Experienced and qualified management.
    Strong order book value.
    Consistent financial performance track record.

    Motives of the Issue:

    To raise funds for business expansion (Building new craft river pearl 5, 20 Knots speed patrol boat for Visakhapatnam).
    To meet business working capital requirements.
    To meet general corporate purposes.
    To meet issue related expenditures.

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