Qualitek Labs Limited IPO

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This company, operating in the field of testing, inspection, homologation, certification, and consultancy, has shown significant growth and development within five years of its inception. Here’s an overview of your business:

  1. Establishment and Expansion:
    • 2018: Initiated operations with a testing laboratory in Pune.
    • 2022: Expanded by establishing a second laboratory in Bhubaneswar.
    • Future Expansion: Plans to set up two more laboratories in Pune and Noida.
  2. Financial Growth:
    • Turnover Increase: Grew from Rs. 635.49 lakhs in FY 2020-21 to Rs. 1913.66 lakhs in FY 2022-2023, showcasing a strong financial trajectory.
  3. Certifications and Recognitions:
    • 2019: Accredited through test correlation with Ford Motor Company Laboratories.
    • 2020: Recognized for supplier competence by Renault Nissan Technology & Business Centre India.
    • 2021: Recognized as a certified laboratory service provider for Volkswagen.
    • 2022-24: Accredited by NABL for ISO/IEC 17025:2017 at the Pune facility.
    • 2021-23: Accredited by NABL for ISO/IEC 17025:2017 at the Bhubaneswar facility.
    • 2022-23: Achieved ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environment Management), and ISO 45001:2018 (Health and Safety Management) certifications.
  4. Team and Operational Model:
    • Your team comprises professionals with deep industry knowledge and experience. They understand the challenges in the industry and contribute to an effective business model. This model controls various processes like raw material procurement, marketing, and sales, facilitated through a well-established network.

This company’s impressive growth, notable achievements, and strong leadership indicate a robust presence in the testing, inspection, and certification industry. The expansion plans, along with the diverse range of industries served, position your company as a key player in this sector.

Objects of the Qualitek Labs Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Funding capital expenditure towards the installation of plant and machinery for new & existing laboratories and expansion of laboratories; ii. Repayment of unsecured loans to Promoter; iii. Funding of working capital requirements; and iv. General corporate purposes.
DRHP of Qualitek Labs Limited IPO
RHP of Qualitek Labs Limited IPO

Qualitek Labs Limited IPO Details:

Open Date: Jan 18 2024
Close Date: Jan 22 2024
Total Shares: 1,964,400
Face Value: ₹ 10 Per Equity Share
Issue Size: 19.64 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 100 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 28 2024

Promoters And Management:

Mr. Alok Kumar Agarwal is a qualified Chartered Accountant, Insolvency Professional and a successful entrepreneur with over 27 years of experience. He is involved into business related advisory services. After more than 20 years of successful venture in finance, consulting, advisory and taxation field, Mr. Alok Kumar Agarwal ventured in testing, inspection and certification (TIC) business by establishing TIC Services Private Limited. Subsequently he established the Company for testing, inspection and certification business in the year 2018. Both TIC and Qualitek have demonstrated a growth and Mr. Alok Kumar Agarwal is responsible for strategic investment, management of funds, expansion, getting new businesses and setting up appropriate control mechanism in the business. Mr. Kamal Grover has an extensive experience of more than 20 years. He has completed his bachelors in mechanical engineering and post graduate diploma in marketing management. He was a Sr. Manager - Business Development (Marketing) at Bureau Veritas Consumer Product Services (I) Pvt. Ltd. Mr. Grover is currently responsible for entire Sales of TIC Service Group of Companies including Interstellar Testing Centre Private Limited and the Company. He has successfully managed to empanel various marquee clients. Mr. Antaryami Nayak is a qualified cost accountant and has a vast experience in the corporate world particularly in testing, inspection and certification Sector. He has worked with Companies like Avery Dennison (India) Pvt. Ltd. and Bureau Veritas Consumer Product Services (I) Pvt. Ltd which is a testing, inspection and certification player in the world. He was the Regional Financial Director for South Asia & South East Asia of Bureau Veritas, the French Multinational. He holds a strong background in financial performance, business strategy, expansion, M&A aiming to multiply shareholder’s value and proving to be a magnum opus in delivering revenue growth. He is currently Director of TIC Services Private Limited and is responsible for Interstellar Testing Centre Private Limited and the Company. He deals with various regulatory and government bodies and ensures that the various standards and norms set up by regulatory bodies are duly taken care.

Financials of Qualitek Labs Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 635 1,197 1,914 1,249
Other Income 2 5 21 2
Total Revenue 637 1,202 1,935 1,251
Direct Expenses 151 189 425 259
Employees Benefit Expenses 128 336 366 253
Other Expenses 253 440 593 362
EBITDA 105 236 551 377
Depreciation & Amortisation 35 50 84 59
Finance costs 1 32 70 48
EBIT 71 186 467 318
OPM (%) 16.52% 19.65% 28.49% 30.11%
PBT 69 154 397 270
Tax 23 41 100 69
PAT 46 114 297 201
NPM (%) 7.23% 9.45% 15.34% 16.06%
No.of Shares 73.71 73.71 73.71 73.71
EPS 0.62 1.54 4.02 2.72

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Qualitek Labs Limited 19 3 4.02 24.8 100 74
Choksi Laboratories Ltd. 34 3 4.61 37.9 67 47
* All the data is as per FY23.

Lead Manager of Qualitek Labs Limited IPO:

  1. Oneview Corporate Advisors Pvt. Ltd.

Registrar of Qualitek Labs Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Qualitek Labs Limited 73, National Park Lajpat Nagar- IV New Delhi, South Delhi - 110024 Phone: +011-41729056 Email: info@qualiteklab.com Website: http://www.qualiteklab.com/

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