Rulka Electricals Limited IPO

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Rulka Electricals Limited is a company specializing in comprehensive turnkey project solutions for electrical and fire fighting systems. Established initially as a private limited company under the name “Rulka Electricals Private Limited” on May 30, 2013, it was later converted into a public limited company and renamed in August 2023. The company is based in Mumbai, Maharashtra, and operates across several sectors including industrial, commercial, retail, theatre, hospital, and hospitality.

The core services offered by Rulka Electricals encompass a broad spectrum of electrical contracting work, including the design, supply, installation, testing, and commissioning of various projects. This extensive range includes electrical solutions, panels, solar EPC contracts, warehousing projects, and data & voice cabling installation. Their expertise covers not only new installations but also ongoing maintenance and support across diverse environments.

Operations and Maintenance (O&M) services form a crucial part of their offerings, tailored specifically for electrical and fire-fighting systems. These services are designed to ensure the longevity and reliability of the systems installed, including routine inspections, preventive maintenance, and emergency responses. Additionally, the company offers Annual Maintenance Contracts (AMC), which provide a dedicated team of technicians and engineers to maintain systems at optimal operational standards.

Financially, the company’s O&M and AMC services have contributed incrementally to its revenue over the last three years, reflecting a growing reliance on these services for consistent revenue streams. The company’s commitment to maintaining high-quality infrastructure at its premises is evident in its regular updates and maintenance of tools and equipment necessary for fabrication, testing, and installation tasks.

Overall, Rulka Electricals Limited positions itself as a key player in the electrical contracting and fire safety solutions industry, with a strong emphasis on quality, reliability, and comprehensive client support. The company’s integrated approach to project handling and maintenance services showcases its capability to meet the complex and varied needs of its clientele effectively.

Objects of the Rulka Electricals Limited IPO:

The company intends to utilize the proceeds of the Offer to meet the following objects: - i. To Meet Working Capital Requirement ii. General Corporate Purpose iii. To Meet the Offer Expenses Total number of shares issue :- i. Fresh issue is 842,400 shares, ii. Offer for sale is 280,800 shares.
DRHP of Rulka Electricals Limited IPO
RHP of Rulka Electricals Limited IPO

Rulka Electricals Limited IPO Details:

Open Date: May 16 2024
Close Date: May 21 2024
Total Shares: 1,123,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 26.40 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 223 - 235 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 24 2024

Promoters And Management:

Mr Rupesh Laxman Kasavkar, aged 43 years is Chairman cum Managing Director and also the founding Promoter of the Company. He was appointed on the Board on May 30, 2013 and further designated as the Chairman cum Managing Director of the Company w.e.f March 1, 2023 for a period of 5 years. He holds Diploma in Electrical Engineering. He is having experience of 20 years in this sector. He has worked with Blue Star Ltd. on the designation of Apprentice Trainee Engineer. He has also worked with Vishal Electricals and R.K. Electricals as site supervisor/engineer. He has in-depth experience of site supervising and electrical maintenance work. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the sustained growth of the Company and managing the overall business affairs of the Company. His experience and exposure helps the Board to take appropriate strategic decision in the current competitive business era. Mr. Nitin Indrakumar Aher, aged 43 years is the Whole Time Director and also founding Promoter of the Company. He holds Diploma in Electrical Engineering and Diploma in Software Technology. He was originally appointed on the Board on May 30, 2013 and further reappointed as Whole Time Director w.e.f. March 1, 2023 for a period of 5 years. He is having experience of 20 years in the field of Electrical & Associated work. He has worked with Bharat Parekh & Associates and A D Associates on the designation of CAD Electrical Engineer and Site/ Project Engineer respectively. He is instrumental in promoting the overall strategy and growth of the Company and has been responsible for strategizing the management and expansion of the business. Mr. Milind Ramnath Dhumal, aged 45 years, is the Non-Executive and Independent Director of the Company. He holds degree in Bachelor of Engineering (Electrical). He was appointed on the Board as Independent Director w.e.f. September 9, 2023.He is having of experience of 18 years in the field of Sales and Marketing.

Financials of Rulka Electricals Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
11M-FY24
Revenue from Operations 1,959 3,627 4,684 6,519
Other Income 1 1 6 9
Total Revenue 1,960 3,627 4,690 6,528
Cost of Goods Sold 1,709 3,201 4,012 5,360
Purchases of Stock in Trade 2 16 5 33
Employees Benefit Expenses 82 101 132 156
Other Expenses 55 77 131 146
EBITDA 113 233 410 833
Depreciation & Amortisation 8 10 14 14
Finance Cost 31 33 34 62
EBIT 104 223 396 819
OPM (%) 5.75% 6.43% 8.75% 12.77%
PBT 73 190 362 757
Tax 19 78 81 191
PAT 54 112 281 566
NPM (%) 2.74% 3.09% 5.98% 8.67%
No.of Shares 42.58 42.58 42.58 42.58
EPS 1.26 2.63 6.58 13.28

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Rulka Electricals Limited 47 3 6.58 35.7 235 100
HEC Infra Projects Limited 52 1 0.78 18.7 94 95
* All the data is as per FY23.

Recommendation on Rulka Electricals Limited IPO:

Review and Recommendation of Rulka Electricals by team IZ is 5/10. 1. Rulka Electricals Limited specializes in a wide array of services including Electrical Solutions, Solar EPC Contracts, Electrical Contracting, and Data & Voice Cabling Installation, catering to various sectors like industrial, commercial, retail, and theatre. 2. Operational Highlights The company's core operations encompass the entire spectrum of project execution from design, supply, and installation to testing and commissioning. Rulka Electricals is renowned for its ability to manage extensive projects across the nation, such as warehouse projects, retail stores, theatres, and hospital facilities. The company also offers customized Operations and Maintenance (O&M) services, designed to ensure the longevity and efficiency of installed systems through routine inspections, preventive maintenance, and emergency responses. 3. Strategic Initiatives The company has made significant investments in infrastructure to support the growth and demands of its client base. Regular updates to tools and equipment enable Rulka Electricals to maintain its commitment to timely and efficient project completion. The company prides itself on the professional execution of turnkey projects, which encompass material, labor, engineering, design, and consultancy services, generating 100% of its revenue. 4. SWOT Analysis Strengths: i. Quality Services       ii. Skilled & experienced Staff      iii. Cordial Relationship with Customers Weaknesses: i. Low bargaining power with clients due to tender procurement Opportunities: i. Huge Growth Potential in our service segment Threats: i. Increased Competition from Local & Big Players         ii.  Change in Government Policies 5. Competition and Market Position Rulka Electricals operates in a competitive environment with major companies dominating the market through extensive service offerings and aggressive pricing strategies. Despite the presence of these large players, the company has carved a niche by focusing on high-quality, customized solutions that address the specific needs of their clients. The emergence of new startups introducing innovative technologies and business models presents both challenges and opportunities for Rulka Electricals in its pursuit of maintaining and enhancing its market position. 6. The Revenue has Increased from Rs.19 Crores in FY21 to Rs.46 Crores in FY23. 7. The EBITDA has Increased from 1 Crore in FY21 to 4 Crores in FY23. 8. The PAT has Increased from 54 Lakhs in FY21 to 3 Crores in FY23. 9. As per FY23, CFO/EBITDA is 1.02, As per FY24, EPS is 14.49, 10. Market Capitalization is 100 Crore & P/E is 16.21x based on FY24.

Lead Manager of Rulka Electricals Limited IPO:

  1. Beeline Broking Limited

Registrar of Rulka Electricals Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Rulka Electricals Limited A - 20, Shiva Industrial Estate Co. Ltd., Lake Road, Near Tata Power, Bhandup West Mumbai City, Mumbai- 400078, Phone: +022 41276806 Email: info@replservices.com Website: https://www.replservices.com/

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