Steelman Telecom Limited IPO
i. Steelman Telecom offers support services and solutions to address the Network requirements of Telecom industry. Over the years they have been successfully implementing various projects and have been recognized by their clients for quality and timely execution of the projects undertaken. This expertise and capability has helped us to achieve continuous growth and success.
ii. The company provide services for Network Survey and Planning, Installation and Commissioning, Network Testing and Optimization, Network Solutions and Managed Services for network maintenance. The strong technical background enables them to effectively carry out end-to-end services thereby covering the entire network & technology service solutions. The understanding of critical aspects of a technology and utilizing the same to improve coverage, capacity & quality of today’s networks leads to network quality improvement; thereby enhancing every subscriber’s experience. Our technically skilled field workforce ensures effective planning and execution of the projects.
iii. The company is headquartered in Kolkata. The branch offices are located at Bhubaneshwar & Gurgaon. Company is having presence in PAN India. They have Project Sites in various Telecom Circles across India.
- Experienced management and skilled team.
- Established relationships with existing customers.
- Comprehensive Telecom Support Services.
- Timely Delivery of Projects.
Objects of the Steelman Telecom Limited IPO:
Steelman Telecom Limited IPO Details:
|Open Date:||Sep 26 2022|
|Close Date:||Sep 29 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||26 Cr.|
|Lot Size:||1200 Shares|
|Issue Price:||₹ 96 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Oct 10 2022|
Promoters And Management:
Financials of Steelman Telecom Limited IPO:
|Particulars (in crores)||Mar-22||Mar-21||Mar-20|
|Revenue from operations||100||88||86|
|Cost of Operations||50||44||33|
|Change in inventories||0.21||0.91||0.77|
|Employee Benifit Expense||42||40||47|
|Profit (Loss) before tax||5||1||1|
|Profit (Loss) for the period||3||1||-0.22|
|No of Share||0.9||0.9||0.9|
|Earnings per share||3.3||1.1||-0.2|
Comparison With Peers:
|Name of the Company||CMP||FV||EPS||P/E|
|Steelman Telecom Limited||96||10||5.23||18.35|
|Indus Towers Limited||193||10||23.65||10|
Recommendation on Steelman Telecom Limited IPO:
Review and Recommendation of Steelman Telecom SME IPO by IZ team is 3/10
1. Steelman provides services for Network Survey and Planning, Installation and Commissioning, Network Testing and Optimization, Network Solutions and Managed Services for network maintenance. So, in short they help telecom companies in Operation and maintenance. There are lot of companies in India which are doing this work. So, no moat in the business. 2. They install BTS, Microwave Antenna, or other related equipment to increased mobile coverage for telecom players. 3. Steelman has shown good growth in the revenue in the last 3 years. That is the revenue has increased from 87 Cr in Fy20 to 100 Crores in Fy22. 4. In FY22, ~9 Crores is stuck in Working Capital due to which the cash flow from operation is negative in Fy22. 5. As on 31.03.2022, the total debt on books is ~15 Crores and Net-worth is ~14 Crores, so, D/E is more than 1. 6. EPS of FY22 is 4 per share. So, P/E is 24x. The peer Indus tower is trading at P/E of 9x and HFCL is trading tat 35x. But there is no point of comparison because the size of Steelman is very small in comparison to Indus and HFCL.