Manglam Infra and Engineering Limited IPO

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They are an infrastructure consultancy company specializing in project management consultancy services. Their services include detailed project reports (DPRs), supervision and quality control (SQC), and operation & maintenance (O&M) for highways, roads, bridges, tunnels, buildings, and urban development projects. They undertake projects both independently and through joint ventures and memorandums of understanding (MoUs) with other industry players.

Projects and Clients

They have served various state governments, including Madhya Pradesh, Jammu & Kashmir, Bihar, Arunachal Pradesh, Jharkhand, Himachal Pradesh, Uttar Pradesh, Manipur, Nagaland, Maharashtra, Assam, Rajasthan, Uttarakhand, and Haryana, as well as the central government. They have completed 127 projects, with 116 undertaken independently and 11 through joint ventures and MoUs. Currently, They have 45 ongoing projects, with 22 being independent and 23 through joint ventures and MoUs.

Conclusion

Manglam Infra & Engineering Limited is dedicated to providing comprehensive infrastructure consultancy services. Our strong project management capabilities, extensive industry experience, and strategic partnerships enable us to deliver high-quality solutions and drive sustained growth in the infrastructure sector.

Objects of the Manglam Infra and Engineering Limited IPO:

The company intend to utilize the proceeds of the issue to meet the following objectives: i. To meet the working capital requirements, and ii. General corporate purposes;

Manglam Infra and Engineering Limited IPO Details:

Open Date: Jul 24 2024
Close Date: Jul 26 2024
Total Shares: 4,932,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 27.62 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 53 - 56 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 31 2024

Promoters And Management:

Ajay Verma, aged 43, is the Promoter and Managing Director of the company. He was a partner at M/s Manglam Associates since its inception and joined the organization in 2010. He holds a Bachelor's and Master's degree in Civil Engineering from NIILM University, Kaithal, and has over 13 years of experience in infrastructure consultancy services. Ajay specializes in liaising with government and non-government entities and has been involved in various projects, including EPC, Build–operate–transfer, Annuity, Public-private partnerships, and state corporations. Yogendra Kumar Singh, aged 51, is the promoter, chairman, and whole-time director of the company. He was a partner at M/s Manglam Associates since its inception. He holds a Diploma in Industrial and Civil Engineering and a Master of Science in Engineering from Donbas State Academy of Civil Engineering and Architecture. With over 25 years of experience in infrastructure consultancy services, he oversees project supervision, including monitoring progress, planning, and providing suggestions to expedite work. Previously, he was associated with Valecha Engineering Limited, Nirvana Earth Movers, M/s Deo Construction, and BSC-RBM-PATI (Joint Venture). Divyani, aged 30, is a Non-Executive Director of the company, a role she has held since October 15, 2023. She holds a Bachelor of Engineering in Information Technology and a Master's in Computer Science & Engineering from the University of Technology of Madhya Pradesh. She has additional certifications in C and C++ Programming, Java desktop technologies, Cloud Computing, and is a Certified Information Security Specialist. She has been acknowledged for her work on “Efficient Image Compression using Reverse Bio-Orthogonal Wavelet Filtering with Hard Thresholding” and “Extensive Review on Color Image Compression Methods.” Previously, she worked as a Technical Coordinator at Sirius Foods Private Limited.

Financials of Manglam Infra and Engineering Limited IPO:

Particular (In lakh) Mar-24 Mar-23 Mar-22
Revenue from Operations 4,024 3,442 2,581
Consultancy Expenses 1447 1326 1048
Employee Cost 1004 832 701
Other Expenses 534 414 362
EBITDA 1039 870 470
EBIDTA Margin 25.82% 25.28% 18.21%
Other income 26 36 97
Depreciation 99 78 50
Interest 36 58 52
Profit before tax 928 770 464
Tax 252 215 131
Net profit 676 555 333
NPM (%) 16.69% 15.96% 12.43%
EPS 3.84 3.15 1.89

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP Mcap
Manglam Infra & Engineering Limited 40 6.76 3.84 14.5 56 98.5
Rudrabhishek Enterprises Limited 101 14 8.1 21.7 176 305
*All the data is as per FY2024

Recommendation on Manglam Infra and Engineering Limited IPO:

The company specializes in project management consultancy services, including detailed project reports (DPRs), supervision and quality control (SQC), and operation and maintenance (O&M) for various infrastructure projects. Business Model: Manglam Infra operates independently and through joint ventures, serving state governments and central agencies across India. The company has a robust in-house team for design, engineering, procurement, construction, and quality assurance, ensuring cost-effective and timely project delivery. Presence and Reach: Manglam Infra has a significant presence in over 10 states in India, including Madhya Pradesh, Jammu & Kashmir, Bihar, Arunachal Pradesh, Jharkhand, Himachal Pradesh, Uttar Pradesh, Manipur, Nagaland, Maharashtra, Assam, Rajasthan, Uttarakhand, and Haryana. The company has completed 127 projects and is currently working on 45 ongoing projects. Services: The company offers a wide range of services, including: Highways/Roads: Detailed project reports, supervision, and quality control. Bridges: Design, engineering, supervision, and quality control. Buildings/Urban Development: Project management, supervision, and quality control. Water Supply: Pipeline projects and sustainable water management. Tunnels: Design and construction management. Facilities and Branches: The company's registered office is located in Bhopal, with a corporate office also in Bhopal. It employs over 300 qualified professionals, including 159 engineers. Financial Performance: Revenue from operations has grown from ₹2,581.16 lakhs in FY 2022 to ₹4,024.36 lakhs in FY 2024, a CAGR of 22.98%. EBITDA increased from ₹469.48 lakhs in FY 2022 to ₹1,037.79 lakhs in FY 2024, with margins improving from 18.19% to 25.79%. Profit after tax (PAT) rose from ₹332.96 lakhs in FY 2022 to ₹676.41 lakhs in FY 2024, a CAGR of 42.53%. Debt Profile: As of the latest financial statements, the company has long-term debt of ₹1.38 crore and short-term debt of ₹3.08 crore, increased from FY2022 and FY2023 Market Cap and P/E, IPO: Manglam Infra is preparing for an IPO aiming to raise ₹27.62 crore, with a post-IPO market capitalization of ₹98.5 crore and a P/E ratio of 14.5x. Strengths: (i) Strong financial growth. (ii) Diversified project portfolio. (iii) Strategic geographic expansion. (iv) Robust operational and managerial capabilities. Weaknesses: (i) Heavy reliance on revenue from Gujarat. (ii) Intense competition in the infrastructure sector. Conclusion: Manglam Infra & Engineering Limited has established itself as a significant player in the infrastructure sector, with a focus on high-quality project execution and strategic expansion. The company's IPO aims to support further growth, positioning it well for future opportunities in the Indian infrastructure market.

Lead Manager of Manglam Infra and Engineering Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of Manglam Infra and Engineering Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Manglam Infra and Engineering Limited H.NO.46, Nikhil Nestles Jatkhedi Hoshangabad Road, University (Bhopal) Huzur, Bhopal - 462026, Phone: +0755 4289475 Email: cs@manglaminfra.com Website: https://www.manglaminfra.com/

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