Konstelec Engineers Limited IPO

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Konstelec Engineers Limited, established in 1995 as a private limited company, has evolved into a leading Engineering, Procurement, and Construction (EPC) company. The firm’s initial focus on design engineering has broadened to include a comprehensive array of services in electrical infrastructure projects, both in India and internationally.

As an EPC contractor, Konstelec Engineers Limited offers end-to-end project management, procurement support, and detailed engineering services. Their expertise spans the entire project lifecycle, from conception to completion. This includes engineering design and drawings, procurement, operations and maintenance, project management, construction, and commissioning. They specialize in electrical installations, solar power plant setup, and instrumentation & automation.

Their adaptability to market changes and technological advancements has equipped them to handle projects of varying sizes and complexities. The company has successfully executed over 200 projects, including 45 major projects worth over ₹ 400 Crores. As of August 31, 2023, they have a strong order book with more than 50 major projects worth approximately ₹ 565 Crores.

Konstelec Engineers Limited prides itself on its ability to provide one-stop solutions for diverse engineering projects. Their services find applications in industries like oil & gas, refinery, steel, cement, pharmaceuticals, textiles, hospitals, healthcare, and commercial complexes. Their clientele includes prominent names like Reliance Industries Limited, Engineers India Limited, JSW Steel, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, Adani, NTPC, Tata Steel Ltd, Navin Fluorine International Ltd, and IGPL.

The company’s success is largely attributed to the vision and leadership of its promoters, Mr. Biharilal Ravilal Shah and Mr. Amish Biharilal Shah, whose six decades of experience have been instrumental in driving efficiency and success. The team, comprising professionally trained and qualified engineers, brings a diverse set of skills and expertise to the table, ensuring effective solutions across various project scales and complexities.

Konstelec Engineers Limited’s revenue streams include:

  • Engineering Design & Consultancy Services
  • Construction and Commissioning
  • Operation and Maintenance
  • Project Management

Their commitment to quality, safety, and client satisfaction makes them a reliable partner in the EPC sector. The company continues to strive for growth and expansion, consistently enhancing its service offerings to meet the evolving needs of its clients.

Objects of the Konstelec Engineers Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Working Capital Requirements ii. General corporate purposes iii. To meet Public Issue Expenses.
DRHP of Konstelec Engineers Limited IPO
RHP of Konstelec Engineers Limited IPO

Konstelec Engineers Limited IPO Details:

Open Date: Jan 19 2024
Close Date: Jan 23 2024
Total Shares: 4,100,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 28.70 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 66 - 70 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 29 2024

Promoters And Management:

Mr. Biharilal Ravilal Shah aged 74 years is Promoter of the company as well as Chairman cum Managing Director of the Company. He holds degree of B.E. (Electronics Engineering) from Shivaji University and Diploma in Fundamentals of Microprocessors & Microcomputers: Architecture, Software & Application from Indian Institute of Cybernetics. He has more than 43 years of experience in the Engineering, Procurement, and Construction/ Commissioning (EPC) of Electrical Works. Initially, He was appointed under Promoter Category as an Executive Director of the Company since incorporation of the company i.e., December 05, 1995. Thereafter, Pursuant to approval of Board of Director in the Board Meeting held on February 26, 2015, he was appointed as a Managing Director of the Company with effect from March 1st, 2015 for a period of 5 years. Now, pursuant to the approval of member in the Extra Ordinary general meeting held on June 30, 2023, he was re-appointed as a Chairman cum Managing director of the Company with effect from July 01, 2023. Mr. Amish Biharilal Shah aged 43 years is Whole Time Director of the company. He holds degree of B.E. (Electronics Engineering) from University of Mumbai and Master of Science (Electrical Engineering) from Syracuse University and Post Graduate Program in Management (Family Managed Business) from S.P Jain Institute of Management and Research. He has more than 16 years of experience in the Engineering, Procurement, and Construction/ Commissioning (EPC) of Electrical Works. He was appointed under Promoter Category as an Additional Executive Director of the Company w.e.f. April 02, 2016. Subsequently, pursuant to the approval of members in the Annual General Meeting held on September 30, 2016 he was appointed as Executive Director of the company. Thereafter, pursuant to the approval of members in the Extra Ordinary General Meeting held on June 30, 2023, he was appointed as a whole-time director of the company with effect from July 01, 2023 Mr. Jigar Dhiresh Shah aged 38 years, is Whole Time Director of the company. He holds degree of Bachelor of Engineering in Chemical Engineering from Visveswaraiah Technological University, Belgaum, Karnataka and Master of Business Administration in Agri Business from Symbiosis International University, Pune. He has more than 10 years of experience in the field of Marketing and Project Management. He was appointed as Additional Executive Director of the company on March 27, 2023. Subsequently, pursuant to the approval of members in the Extra Ordinary General Meeting held on June 30, 2023, he was appointed as a whole-time director of the company with effect from July 01, 2023.

Financials of Konstelec Engineers Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 10,489 10,705 15,340 9,305
Other Income 128 198 160 129
Total Revenue 10,617 10,902 15,500 9,434
Purchases 4,065 4,013 7,399 4,248
Employees Benefit Expenses 1,720 1,779 2,373 1,448
Other Expenses 4,223 4,329 4,154 2,901
EBITDA 608 782 1,574 837
Depreciation & Amortisation 92 78 81 47
Finance costs 237 223 379 249
EBIT 516 704 1,493 789
OPM (%) 5.73% 7.17% 10.16% 8.87%
PBT 279 481 1114 540
Tax 89 129 336 84
PAT 190 352 778 456
NPM (%) 1.79% 3.23% 5.02% 4.84%
No.of Shares 151 151 151 151
EPS 1.26 2.33 5.15 3.02

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Konstelec Engineers limited 153 8 5.15 13.6 70 106
Skipper Limited 1,980 33 2.90 46.5 251 2,835
* All the data is as per FY23.

Recommendation on Konstelec Engineers Limited IPO:

Review and Recommendation on Konstelec Engineers Limited SME IPO by IZ team is 5/10

Lead Manager of Konstelec Engineers Limited IPO:

  1. Beeline Broking Limited

Registrar of Konstelec Engineers Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Konstelec Engineers Limited 308, Creative Industrial Estate Sundar Nagar Lane No. 2, Kalina, Santacruz (East), Mumbai- 400098 Phone: +91 2243 421551 Email: compliance@konstelec.com Website: https://www.konstelec.com/

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