Steelman Telecom Limited IPO

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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.

Competitive Strengths:

  • 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:

The company intends to utilize the Net Fresh Issue Proceeds for the following Objects: a) Investment in Subsidiary. b) Working Capital Requirements. c) General Corporate Purposes.

Steelman Telecom Limited IPO Details:

Open Date: Sep 26 2022
Close Date: Sep 29 2022
Total Shares: 2,710,800
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:

i. Mr. Mahendra Bindal, aged 59 years, is the Managing Director of our Company. He was appointed as Managing Director with effect from May 17, 2022. He holds a bachelor’s degree in commerce and Business Administration. He is a dynamic leader with more than 19 years of experience in the telecom Sector. As a leader, He always delivers value to the customers and endeavour in fulfilling / exceeding their expectations. He is the founding member & the First Director of Steelman Telecom Limited. His experience spans over one decade of running Business entities across Telecom and Information and Communications Technology (ICT) Sector. His acumen in Business is well respected across the Telecom & ICT Sector in India. His focus on Technology, Customer Experience and Introducing new Services has been well acknowledged in the industry. He has been instrumental in taking the company through various phases of the Telecom Transformation and instrumental in placing Steelman as a known Service Company. ii. Mr. Girish Bindal, aged 58 years, is the Chairman and Executive Director of our Company. He is an Innovative thinker with Broad Based Expertise of more than 19 years in Telecom and Information and Communications Technology (ICT) Sector. He has proven ability to quickly analyse key business drivers and develop strategies to grow the bottomline. He is a high integrity energetic leader known for ability to envision and create successful outcomes in complex situations. He is Self-Motivated with exceptionally good negotiating skills and has a solid understanding of Technology and Business Management. Mr. Girish handles the office situated in Bhubaneshwar; he is responsible for the overall operations of the Company. In the Company, he is responsible for providing strategic and guidance to the members of the board, to keep them aware of developments within the industry and ensure that the appropriate policies are developed to meet the company’s mission and objectives and to comply with all relevant statutory and other regulations. He is a high integrity energetic leader known for ability to envision and create successful outcomes in complex situations. iii. Ms. Saloni Bindal, aged 35 years, is the Non-Executive Director of our Company. She was appointed as NonExecutive Director w.e.f. July 01, 2022. She has completed her Bachelor of Commerce. She has been a successful Business Manager engaged in multiple roles throughout her career. Her experience spans across domains like Finance, Marketing, EHS and Driving various Transformation projects across departments. Currently she is engaged as Senior Manager with EDP Software Limited managing Healthcare Solutions Group.

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
Other Expense 1 1 2
Operating Profit 6.79 2.09 3.23
OPM% 6.79% 2.38% 3.76%
Finance Cost 0.83 1 1
Depreciation 0.69 0.67 0.9
Other Income 0.69 1 1
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
HFCL Limited 73 1 2.27 35.8
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. 

Lead Manager of Steelman Telecom Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Steelman Telecom Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Steelman Telecom Limited Rishi Tower, Premises No. 02-315, Street No. 315, New Town, Kolkata- 700156 Phone: 8443022233 Email: Website

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