Winsol Engineers Limited IPO

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Winsol Engineers Limited, originally founded as Winsol Engineers Private Limited on December 30, 2015, has evolved significantly from its initial establishment under the Companies Act, 2013, in Jamnagar, Gujarat. Marking a major milestone, the company transitioned from a private to a public limited company on December 21, 2023, as a result of a resolution passed by shareholders earlier that month.

Core Business and Services

The company is prominently positioned in the engineering sector, specializing in integrated engineering, procurement, construction, and commissioning services. These services cater primarily to the renewable energy sector, providing comprehensive Balance of Plant (BoP) Solutions. These solutions encompass a variety of critical functions including foundation work, substation civil and electrical work, right of way services, and cabling to substations and the grid, among others.

Winsol Engineers Limited is renowned for its robust track record in timely project completion, expertise, and cost efficiency, making it a preferred partner in the renewable energy industry. The company also extends its capabilities to include Operation and Maintenance (O&M) services, which support plant handling and monitoring, ensuring optimized performance and minimal downtime.

Certifications and Standards

The company’s commitment to quality and safety is underscored by its certifications in ISO-9001-2015, ISO-14001-2015, and ISO-45001-2018, reflecting its adherence to high standards of quality management and environmental safety.

Project Execution and Clientele

With a robust team of over 200 engineers and technicians, Winsol Engineers Limited has successfully executed numerous turnkey projects for significant players in the energy sector, including Suzlon, Adani Green Energy, Powerica Limited, and KP Energy Limited. Since 2018, the company has completed over 55 projects, accumulating a project value in excess of ₹17,000.00 lakhs.

As of the latest update in the Red Herring Prospectus, the company is handling 41 major ongoing projects, with a combined worth of approximately ₹11,953.31 lakhs. This includes invoices amounting to over ₹2,115.54 lakhs as of March 31, 2024, with an unexecuted or unbilled order book of ₹9,837.75 lakhs.

Expansion and Subsidiary Integration

In a strategic move to consolidate its market position, Winsol Engineers acquired Repower Infrastructure Private Limited, making it a wholly-owned subsidiary as of February 10, 2024. This acquisition aligns with the company’s broader objectives to expand its reach and enhance its service offerings within the renewable energy sector.

Revenue Streams

Winsol Engineers Limited derives its revenue from two primary business verticals:

1. BoP Solutions:
Engineering and Consulting work
Civil Construction work

2. Operation & Maintenance Services:
Includes comprehensive support for site operations, SCADA monitoring, maintenance supervision, and other critical operational services.

Future Outlook

With its established presence and proven expertise in the engineering and renewable energy fields, Winsol Engineers Limited aims to leverage its strengths and continue its expansion into new sectors, positioning the company on a trajectory for sustained growth and industry leadership.

Objects of the Winsol Engineers Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. Working Capital Requirements, ii. General Corporate Purposes.
DRHP of Winsol Engineers Limited IPO
RHP of Winsol Engineers Limited IPO

Winsol Engineers Limited IPO Details:

Open Date: May 06 2024
Close Date: May 09 2024
Total Shares: 3,115,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 23.36 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 71 - 75 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 14 2024

Promoters And Management:

Mr. Ramesh Jivabhai Pindariya aged 49 years is Promoter as well as Chairman cum Managing Director of the Company. He has qualified as a Chartered Engineer in Electrical Engineering in 2015 from The Institution of Engineers, Kolkata State. He is having more than 23 year of experience in the Wind Power and solar industry. He was appointed under Promoter Category as an Executive Director of the Company since incorporation of the company i.e., December 30, 2015. Subsequently, his designation was changed to Chairman cum Managing Director for period of 3 years, liable to retire by rotation w.e.f. December 09, 2023 by special resolution of shareholders in an Extra-ordinary General Meeting of the Company held on December 09, 2023. Mrs. Amri Ramesh Pindariya aged 44 years is Whole Time Director of the Company. She has passed matriculation exam. She is in Business with the Company from the incorporation of the Company having more than 7 years of experience in day to day office administration. She is associated with the company since its incorporation as a Non-Executive Director in Promoter Category. Later on, her designation was changed to Whole Time Director w.e.f. December 09, 2023 for a period of 3 years by Special Resolution passed in Extra Ordinary General Meeting of Shareholders held on December 09, 2023. Mr. Kishor Jivabhai Pindariya, aged 37, serves as both the Executive Director and CFO of the company. With a diploma in Electrical & Electronics Engineering, he brings over 13 years of experience in the operations and maintenance of wind and solar power energy systems. Initially appointed as an Additional Non-Executive Director on November 16, 2023, he transitioned to Non-Executive Director by December 4, 2023. He resigned from this role on January 1, 2024, for personal reasons but was appointed as Chief Financial Officer on January 3, 2024, and as Executive Director on February 2, 2024, positions he will hold for five years, subject to retirement by rotation.

Financials of Winsol Engineers Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 2,216 6,070 6,539 5,195
Other Income 8 10 6 7
Total Revenue 2,225 6,080 6,545 5,202
Cost of Material Consumed 1,351 4,579 3,894 2,523
Change in Inventories -167 13 458 -762
Employees Benefit Expenses 320 367 563 560
Other Expenses 558 886 839 1,886
EBITDA 163 236 790 996
Depreciation & Amortisation 42 35 34 27
Finance Cost 49 52 66 63
EBIT 135 202 756 953
OPM (%) 7.31% 3.88% 12.08% 19.14%
PBT 70 149 691 905
Tax 21 40 173 228
PAT 49 108 518 677
NPM (%) 2.22% 1.78% 7.92% 13.02%
No.of Shares 115.35 115.35 115.35 115.35
EPS 0.42 0.94 4.49 5.87

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Winsol Engineers Limited 65 5 4.49 16.7 75 87
Konstelec Engineers Limited 150 7 N/A 38.3 180 272
* All the data is as per FY23.

Recommendation on Winsol Engineers Limited IPO:

Review and Recommendation of Winsol Engineers by team IZ is 6/10. 1. Winsol Engineers operates primarily in the renewable energy sector, offering integrated Balance of Plant (BoP) Solutions for wind and solar power generation projects. The company's services encompass a broad range of activities essential for the setup and operation of renewable energy plants, including foundation work, civil and electrical work for substations, right of way services, cabling, and grid connection. This comprehensive suite of services positions Winsol as a preferred partner for renewable energy companies seeking reliable and efficient project execution. 2. The company is also engaged in the operation and maintenance of renewable energy facilities, ensuring optimal performance and minimal downtime. This includes supervising scheduled maintenance, SCADA monitoring, and conducting inspections and reporting on any abnormalities. 3. With a team of over 200 engineers and technicians, Winsol has successfully completed more than 55 major projects since 2018, with a cumulative worth exceeding ₹17,000.00 lakhs. The company currently has 41 major ongoing projects valued at approximately ₹11,953.31 lakhs. This demonstrates Winsol's robust project execution capabilities and its ability to handle large-scale and multiple projects simultaneously. 4. In a strategic move to consolidate its business, Winsol Engineers acquired Repower Infrastructure Private Limited on February 10, 2024, making it a wholly-owned subsidiary. This acquisition is part of Winsol's broader strategy to enhance its service offerings and deepen its market penetration. 5. Winsol Engineers Limited competes in a sector characterized by significant competition from well-established players with superior financial resources, broader market reach, and extensive product portfolios. Despite these challenges, Winsol continues to compete effectively, focusing on expanding its market share and exploring new market segments and geographical areas through innovative solutions and strategic expansion. 6. The Revenue has Increased from Rs.22 Crores in FY21 to Rs.65 Crores in FY23. 7. The EBITDA has Increased from 1.6 Crore in FY21 to 8 Crore in FY23. 8. The PAT has Increased from 49 Lakhs in FY21 to 5 Crore in FY23. 9. As per FY23, CFO/EBITDA is 1.01, As per FY24, EPS is 7.82, 10. Market Capitalization is 87 Crore & P/E is 9.58x based on FY24.

Lead Manager of Winsol Engineers Limited IPO:

  1. Beeline Broking Limited

Registrar of Winsol Engineers Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Winsol Engineers Limited Shop No. 301, Madhav Commercial Complex, Near Crystal Mall Khodiyar Colony, Jamnagar- 361006 Phone: 0288-271070 Email: info@winsol.info Website: https://winsol.info/

Discussion on Winsol Engineers Limited IPO:

1 Comment

    Apply. It is into Wind Energy Sector. Very Good Tailwinds in the Sector. Plus valuations are reasonable.

    Reply

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