IPO News

Vishnu Prakash R Punglia has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO comprises a fresh issue of 3.12 crore equity shares with no offer-for-sale (OFS) component.

The IPO size is expected to be Rs 300 crore. Proceeds from the fresh issuance to the tune of Rs 58.64 crore will be utilised for purchasing capital equipment, Rs 140 crore will be used for funding the working capital requirements of the company and the balance for general corporate purposes. Choice Capital Advisors and Pantomath Capital Advisors are the book-running lead managers. The equity shares are proposed to be listed on BSE and NSE.

The Jodhpur-based company has experience in the design and construction of major infrastructure projects for the central and state governments, with ongoing projects in nine states.

Go Digit General Insurance has refilled draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) after making certain changes to its employee stock appreciation rights scheme. This came after SEBI returned Go Digit's draft IPO papers on January 30 and asked the company to refile the documents with certain updates. The company had first filed the DRHP with Sebi in August 2022 to raise funds through an initial share sale.

The size of the company's IPO remain unchanged in the revised documents. The IPO comprises fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders. Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes. ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the issue. The equity shares of the company will be listed on BSE and NSE.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

Zaggle Prepaid Ocean Services has received the Securities and Exchange Board of Indiaís (SEBI) approval to float an initial public offering (IPO).

Proceeds from the fresh issue would be utilised towards customer acquisition and retention, development of technology and products, payment of debt and for general corporate purposes. ICICI Securities, Equirus Capital, IIFL Securities and JM Financial have been appointed as merchant bankers to manage the IPO. The equity shares of the company will be listed on the BSE and NSE.

Founded in 2011, Zaggle Prepaid Ocean Services operates in the business-to-business-to-customer segment. It has created a market niche in the country by offering a combined solution for spend management through prepaid cards and employee management (through SaaS).

Cyient DLM has received the Securities and Exchange Board of Indiaís (SEBI) approval to float an initial public offering (IPO).

The funds raised through the IPO would be utilised for funding incremental capital requirements, capital expenditure, debt payment, achieving inorganic growth through acquisitions as well as for general corporate purposes. Axis Capital and JM Financial are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Cyient DLM, a subsidiary of Cyient, is the leading integrated EMS and solutions provider with a focus on the entire life cycle of a product, including design, build and maintenance. It has three state manufacturing facilities in Hyderabad, Bengaluru and Mysore.

Aeroflex Industries has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 350 crore through an initial public offering (IPO).

Proceeds from the fresh issue will be utilised to the extent of Rs 35 crore for the payment of debt, Rs 84 crore for funding its working capital requirements, and a certain amount will be used for general corporate purposes and acquisitions for inorganic growth. Pantomath Capital Advisors is the sole book-running lead manager to the issue. The companyís equity shares are proposed to be listed on the BSE and NSE.

Aeroflex is a manufacturer and supplier of metallic flexible flow solution products, catering to global markets. It exports its products to more than 80 countries including Europe, USA and others and generates 80 per cent of its revenue from exports.

SPC Lifesciences has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The Initial Public Offering (IPO) consists of fresh issuance of equity shares worth Rs 300 crore and an Offer For Sale (OFS) of 89.39 lakh equity shares by promoter -- Snehal Rajivbhai Patel.

The proceeds from the fresh issue will be used to pay debt, to support working capital needs and to fund capital expenditure requirements for setting up Phase-2 at its Dahej facility in order to expand product offerings of pharmaceutical intermediates, and for general corporate purpose. Ambit and HDFC Bank are the book running lead managers to the issue. The shares of the company will be listed on the BSE and NSE.

SPC Lifesciences is a leading manufacturers of advanced intermediates for certain key active pharmaceutical ingredients.

Netweb Technologies India has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 700 crore through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth Rs 257 crore and an offer for sales of 85 lakh equity shares by promoters.

Proceeds of the fresh issue to the tune of Rs 32.77 crore will be used to fund capital expenditure, Rs 128.02 crore to support long-term working capital, Rs 22.5 crore for debt payment, besides, general corporate purposes. Equirus Capital and IIFL Securities are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Netweb Technologies is one of the country's leading high-end computing solutions (HCS) providers. It is one of the few original equipment manufacturers (OEMs) in the country and is a recipient of production-linked incentives schemes of the Government of India.

JG Chemicals has received the Securities and Exchange Board of Indiaís (SEBI's) approval to float an initial public offering (IPO). The IPO comprises fresh issue of equity shares worth up to Rs 202.50 crore and an offer-for-sale (OFS) of 57 lakh equity shares by its existing promoter group shareholders. Equity shares of the company will be listed on BSE and NSE.

The company, which filed the draft red herring prospectus with the SEBI in January 2023, got the regulatorís approval on March 20, 2023. Proceeds from the fresh issue will be used for investment in its material subsidiary BDJ Oxides. It will use Rs 45 crore in repayment of borrowings availed by its arm, Rs 5.31 crore will be used for setting up a Research & Development centre, Rs 65 crore will be used to fund the long-term working capital requirements of its material arm. It will also use Rs 35 crore for funding the long-term working capital requirements of the company and other general corporate purposes. Centrum Capital, Emkay Global Financial Services and Keynote Financial Services are the book-running lead managers to the issue.

The Kolkata-based firm is India's largest zinc oxide manufacturer in terms of production and revenue.

IndiaFirst Life Insurance Company has received the Securities and Exchange Board of Indiaís (SEBI) approval to float an initial public offering (IPO). The IPO comprises a fresh issue of up to Rs 500 crore along with an offer for sale (OFS) of up to 14,12,99,422 equity shares by the promoters and existing shareholders of the company.

The company, which filed the draft red herring prospectus with the SEBI in October 2022, got the regulatorís approval on March 15, 2023. The net proceeds from the fresh issuance worth Rs 500 crore will be used towards augmentation of its capital base to support solvency levels.

ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers to the issue. The equity shares will be listed on the BSE and NSE.

IndiaFirst Life Insurance Company (IndiaFirst Life) is one of the fastest growing private life insurers in India. IndiaFirst Life is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India's biggest public sector banks.

Tata Technologies, a subsidiary of Tata Motors, has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The equity shares of the company are proposed to be listed on both -- NSE and BSE.

The IPO is purely an offer for sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital.  Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company. JM Financial, Citigroup Global Markets India and BofA Securities India are the book running lead managers to the issue.

Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs).

IPO Name Price Band Open Date Close Date Minimum Qty Apply
HOACFOODS 48 16-05-2024 21-05-2024 3000

IPO type

EQUITY

Face value

10

Lot size (qty)

3000

Category

Retail

Retail discount

0.00

Min - Max inv amt

48

Issue size

1155000

RULKA 223 - 235 16-05-2024 21-05-2024 600

IPO type

EQUITY

Face value

10

Lot size (qty)

600

Category

Retail

Retail discount

0.00

Min - Max inv amt

223 - 235

Issue size

804000

IHFL13 1000 13-05-2024 27-05-2024 10

IPO type

DEBT

Face value

1000

Lot size (qty)

10

Category

Retail

Retail discount

0.00

Min - Max inv amt

1000

Issue size

1000000

IPO Details

COMPANY NAME
Hoac Foods India Ltd.
ADDRESS
D-498, 1st Floor Palam Extension , Sector-7 Dwarka, Raj Nagar - I I , South West Delhi
CITY / STATE / PINCODE
New Delhi Delhi 110077
WEBSITE
www.hoacfoodsindia.com
PHONE
9717838568
EMAIL
info@attahariom.com
LEADMANAGER
GYR Capital Advisors Pvt Ltd.
PROMOTERS
Gaytri Thakur, Rambabu Thakur, Yashwant Thakur
PRE SHARE CAP
2688010
OFFER TO PUBLIC
1200000
PRE PROMOTER HOLDER
99.99
POST PROMOTER HOLD
REGISTRAR
K FIN Technologies Ltd.-(Karvy Fintech Pvt Ltd.)
ADDRESS
D-498, 1st Floor Palam Extension , Sector-7 Dwarka, Raj Nagar - I I , South West Delhi , 500032
Registrar Phone
040 - 67162222/18003094001
Registrar EMail
einward.ris@kfintech.com
Registrar Fax
Registrar WebSite
www.kfintech.com
Objective
a) Funding the working capital requirements of the companyb) General Corporate Purposes

Description
We are engaged in the manufacturing of flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oilin our product range and markets & sell it in and around Delhi-NCR under the brand name ‚ÄúHARIOM‚ÄĚ through our ExclusiveBrand Outlets. We handpick our raw materials from various parts of the country and process our products with utmost carewithout using artificial preservatives or chemicals, thereby creating a product portfolio of organic spices and flour, which carrythe freshness and goodness of each ingredient. Our unique model has helped us penetrate the niche segment of our market andestablish a customer base in and around Delhi-NCR. Since our inception, our objective has been to produce high-quality naturalspices and food products without artificial preservatives or synthetic substances. To achieve this, we have developed a uniquebusiness model in which we manufacture and package our products in quantities that can sustain a customer until the shelf lifeof the product, reducing waste and providing a diverse range of products with freshness and goodness.

COMPANY NAME
Rulka Electricals Ltd.
ADDRESS
A - 20, Shiva Industrial Estate Co. Ltd , Lake Road, Near Tata Power , Bhandup West
CITY / STATE / PINCODE
Mumbai Maharashtra 400078
WEBSITE
www.replservices.com
PHONE
022 41276806 / 49742
EMAIL
info@replservices.com
LEADMANAGER
Beeline Capital Advisors Pvt Ltd.
PROMOTERS
Nitin Indrakumar Aher, Rupesh Laxman Kasavkar
PRE SHARE CAP
2945920
OFFER TO PUBLIC
1123200
PRE PROMOTER HOLDER
86.24
POST PROMOTER HOLD
REGISTRAR
Bigshare Services Pvt Ltd
ADDRESS
A - 20, Shiva Industrial Estate Co. Ltd , Lake Road, Near Tata Power , Bhandup West , 400093
Registrar Phone
91-022-62638200
Registrar EMail
Investor@bigshareonline.com
Registrar Fax
91-022-62638299
Registrar WebSite
Objective
1. To Meet Working Capital Requirement2. General Corporate Purpose3. To Meet the Offer Expenses

Description
Our company is in business of turn key projects contractor engaged in offering solution for all types of Electrical & Fire FightingTurnkey Projects. Our company offers wide range of services like Electrical Solutions, Electrical Panels, Solar EPC Contracts, TurnKey Electrical Warehousing Projects, Electric Commercial Industrial Services, Maintenance Services, Electrical Contracting andData & Voice Cabling Installation across the Industrial Sector, Commercial, Retail and Theatre sector. We offer electricalcontracting services for all types of industrial plants.
IPO Analysis

HOAC Foods India coming with IPO to raise Rs 5.54 crore

The issue will open for subscription on May 16, 2024 and will close on May 21, 2024

Details

HOAC Foods India

  • HOAC Foods India is coming out with an initial public offering (IPO) of 11,55,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 48 per equity share. 
  • The issue will open for subscription on May 16, 2024 and will close on May 21, 2024.
  • The shares will be listed on NSE Emerge Platform.
  • The share is priced at 4.80 times higher to its face value of Rs 10.
  • Book running lead manager to the issue is GYR Capital Advisors.
  • Compliance Officer for the issue is Bhawna Agarwal.

Profile of the company

The company is engaged in the manufacturing of flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil in its product range and markets & sells it in and around Delhi-NCR under the brand name ‚ÄėHARIOM‚Äô through its Exclusive Brand Outlets. It handpick its raw materials from various parts of the country and process its products with utmost care without using artificial preservatives or chemicals, thereby creating a product portfolio of organic spices and flour, which carry the freshness and goodness of each ingredient. Its model has helped the company penetrate the niche segment of its market and establish a customer base in and around Delhi-NCR. Since its inception, its objective has been to produce high-quality natural spices and food products without artificial preservatives or synthetic substances. To achieve this, it has developed a business model in which it manufactures and packages its products in quantities that can sustain a customer until the shelf life of the product, reducing waste and providing a diverse range of products with freshness and goodness.

It also relies on D2C platform through ist in-house built Mobile Application both on Google Play Store and Apple’s App Store and Company website which is available for sale of its products. It has implemented a franchisee management system that helps the company coordinate with its franchise owners, store managers and provides the visibility on its inventory levels and franchisee and store sales, enabling the company to optimize its distribution network and reduce the time between the food product manufactured in its facility to consumer’s kitchen which is around within same day to maximum 1 day. This strong approach towards good supply-chain management across different business processes enables it to preserve the freshness, taste and nutritional value of its products.

Its range of flour includes MP Sharbati Atta, MP Lok One Atta, Multi-grain Atta along with different healthy flours. Over the years, it has leveraged its experience and understanding of the preferences and tastes of its consumers, and target markets to develop a wide range of products, which has strengthened its foothold in the Delhi-NCR region specifically in Indian Flour, Spice and Foods category. Its product portfolio comprised of 4 categories which include products such as, Spices & Herbs, Oil, Wheat Flour (Chakki Atta) & Healthy Flour, Pulses, Rice & Grain and other food products with 153 product SKUs, thereby addressing a wide variety of tastes and preferences.

Proceed is being used for:

  • Funding the working capital requirements of the company
  • General corporate purposes

Industry overview

The fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector and has been expanding at a healthy rate over the years as a result of rising disposable income, a rising youth population, and rising brand awareness among consumers. With household and personal care accounting for 50% of FMCG sales in India, the industry is an important contributor to India’s GDP. India is a country that no FMCG player can afford to ignore due to its middle-class population which is larger than the total population of the USA. The Indian FMCG market continues to rise as more people start to move up the economic ladder and the benefits of economic progress become accessible to the general public. More crucially, with a median age of just 27, India's population is becoming more consumerist due to rising ambitions. This has been further aided by government initiatives to increase financial inclusion and establish social safety nets.

India is the world’s largest spice producer. It is also the largest consumer and exporter of spices. The production of different spices has been growing rapidly over the last few years. Production in 2021-22 stood at 10.88 million tonnes. During 2020-21, the export of spices reached an all-time high both in terms of value and volume by registering a growth of 17% in US$ value terms and 30% in volume terms. During 2021-22, the single largest spice exported from India was chili followed by spice oils and oleoresins, mint products, cumin, and turmeric. India produces about 75 of the 109 varieties which are listed by the International Organization for Standardization (ISO). The most produced and exported spices are pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils and oleoresins. Out of these spices, chilli, cumin, turmeric, ginger and coriander makeup about 76% of the total production.

Pros and strengths

Cluster-based distribution through retail outlet network: It has leveraged its Omni channel database of consumers to select store locations, design brand and assortment mix, direct traffic to its stores, plan offline marketing events and campaigns in housing society to create more brand awareness and relevance and as a result it helps it in creating an experiential based, educational and personalized shopping experience. It also developed its hyper-local delivery capability which allows it to use its physical stores and manufacturing unit as last mile delivery hubs for online orders across Delhi-NCR, which is its focus market. This has helped it improve its speed of delivery and optimize its inventory by making it more fungible.

Robust supply-chain management: An efficient and effective supply chain management system is crucial for any organization in the FMCG sector, particularly in wheat flour and spices segment. Since this industry is competitive, it decided to adopt a strategy different from its industry peers in order to have sticky customer base and repeated orders. A key aspect of supply chain management is ensuring customer satisfaction and HOAC is very cautious about this aspect, therefore it ensures that its customer service is excellent which ensures it to address any issues in the quality of the product or concerns that arise during the ordering and delivery process.

In-house manufacturing capabilities: It grinds and combines spices in its manufacturing facility located in Village- Bhondsi, Near Geeta Nand Ashram tehsil, Sohna, Gurugram. It is equipped with plant and machinery which enables it to process, grade, and package manufactured spices in a clean and safe manner. Its manufacturing facilities have an FSSAI license under the Food Safety and Standards Act of 2006. It installed a cleaning equipment and a specific grinding facility to grind each variety of spice into powder, such as chili, turmeric, cumin, and coriander. The majority of its manufacturing operations are mechanized, reducing the need of physical labor.

Risks and concerns

Unable to grow business in additional geographic regions: The Company seeks to grow its market reach domestically to explore untapped markets and segments; however, it cannot assures that it will be able to grow its business as planned. Infrastructure and logistical challenges in addition to the advancement of research and development in the food and spices industry, changing customers’ taste and preferences may prevent it from expanding its presence or increasing the penetration of its products. Further, customers may be price conscious and it may be unable to compete effectively with the products of its competitors. If it are unable to grow its business in these new markets effectively, its business prospects, results of operations and financial condition may be adversely affected.

Delays and/or defaults in customer payments: It is exposed to payment delays and/or defaults by its customers. It financial position and financial performance are dependent on the creditworthiness of its customers. As per its business network model, it supplies its products directly to its customers without taking any advance payment or security deposit against the orders placed by them. Such delays in payments may require its Company to make a working capital investment. If a customer defaults in making its payments on an order on which the Company has devoted significant resources, or if an order in which the Company has invested significant resources is delayed, cancelled or does not proceed to completion, it could have a material adverse effect on the Company‚Äôs results of operations and financial condition.

Operate in competitive business environment: The food and spices industry in India is competitive with both organized and unorganized markets. However, it is required to compete both in the domestic and international markets. It may be unable to compete with the prices and products offered by its competitors.  Its competitors may have access to greater financial, manufacturing, research and development, marketing, distribution and other resources and more experience in obtaining the relevant regulatory approvals. Increasing competition may result in pricing pressures and decreasing profit margins or loss of market share or failure to improve its market position, any of which could substantially harm its business and results of operations.

Outlook

HOAC Foods India is engaged in the manufacturing of flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil in its product range and markets & sells it in and around Delhi-NCR under the brand name ‚ÄėHARIOM‚Äô through its Exclusive Brand Outlets. It handpick its raw materials from various parts of the country and process its products with utmost care without using artificial preservatives or chemicals, thereby creating a product portfolio of organic spices and flour, which carry the freshness and goodness of each ingredient. On the concern side, its industry is highly fragmented as there is competition from various organized and unorganized players. There are some of the organized players like: Gandhi Spices (Hathi Masala), Adani Food Products, Ramdev Food, MDH Masala, Baadshah Masala, Everest Masala. In the listed space it faces competition from NHC Food. Other than the organized players it also faces competition from unorganized local suppliers. Its competitors may also engage in aggressive and negative marketing or public relations strategies which may harm its reputation and increase its marketing expenses. Any of these events could substantially harm its results of operations.

The company is coming out with an IPO of 11,55,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 48 per equity share to mobilize Rs 5.54 crore. On performance front, revenue from operations of the company for fiscal year 2023 was Rs 1,208.56 lakh against Rs 1,087.27 lakh total income for Fiscal year 2022. An increase 11.16% in revenue from operations. Profit after tax for the Fiscal 2023 was at Rs 58.79 lakh against profit after tax of Rs 27.33 lakh in fiscal 2022, a 115.11% increase. Going forward, it intends to continue to gain market share and strengthen its leadership position in its core market of Delhi-NCR. It intends to deepen penetration in Delhi-NCR with a focus on increasing its market share in this region by leveraging its distribution networks via Retail Outlets and other Supermarket stores of Delhi-NCR.

Rulka Electricals coming with IPO to raise Rs 26.40 crore

The issue will open for subscription on May 16, 2024 and will close on May 21, 2024

Details

Rulka Electricals 

  • Rulka Electricals is coming out with initial public offering (IPO) of 11,23,200 shares of Rs 10 each in a price band Rs 223-235 per equity share.   
  • The issue will open for subscription on May 16, 2024 and will close on May 21, 2024.
  • The shares will be listed on NSE Emerge Platform.
  • The face value of the share is Rs 10 and is priced 22.30 times of its face value on the lower side and 23.50 times on the higher side.
  • Book running lead manager to the issue is Beeline Capital Advisors.
  • Compliance Officer for the issue is Kejal Niken Shah.

Profile of the company

The company is in business of turn key projects contractor engaged in offering solution for all types of Electrical & Fire Fighting Turnkey Projects. The company offers wide range of services like Electrical Solutions, Electrical Panels, Solar EPC Contracts, Turn Key Electrical Warehousing Projects, Electric Commercial Industrial Services, Maintenance Services, Electrical Contracting and Data & Voice Cabling Installation across the Industrial Sector, Commercial, Retail and Theatre sector. It offers electrical contracting services for all types of industrial plants.

The company has integrated operations which involve Designing, Supplying, Installation, Testing & Commissioning of the project. It also maintains the projects as per the Requirements. It has completed Warehouses projects across country. Also, it has completed Retail Stores projects, theatres project across country & many more Hospitals & Hospitality. As part of its on-going commitment to delivering comprehensive solutions and ensuring the longevity of the systems it installs, it provides Operations and Maintenance (O&M) services, specifically tailored for electrical and fire-fighting systems. The O&M services are designed to proactively address the needs of its Clients systems, offering a range of services including routine inspections, preventive maintenance, prompt issue resolution, and emergency response. It also provides Annual Maintenance which are customized to meet the specific requirements of systems and operations. Under an Annual Maintenance Contacts, it provides dedicated team of technicians and engineers, ensuring that systems are consistently maintained to the highest standards. 

Proceed is being used for:

  • Meeting Working Capital Requirement.
  • General Corporate Purpose.
  • Meeting the Offer Expenses.

Industry overview

Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. The fundamental principle of India’s power industry has been to provide universal access to affordable power in a sustainable way. The Ministry of Power has made significant efforts over the past few years to turn the country from one with a power shortage to one with a surplus by establishing a single national grid, fortifying the distribution network, and achieving universal household electrification. India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, to viable non-conventional sources such as wind, solar, agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. India was ranked fourth in wind power capacity and solar power capacity and fourth in renewable power installed capacity, as of 2021. India is the only country among the G20 nations that is on track to achieve the targets under the Paris Agreement.

The Indian electrical industry has a diversified, mature and strong manufacturing base, with robust supply chain, fully equipped to meet domestic demand and any capacity addition. A rugged performance design of domestically manufactured electrical equipment has evolved over the years to meet the tough network demand in the country. The industry is fully geared up to meet the demand power infrastructure demand of the country. Currently operating at around 60-70 per cent capacity utilization, the Power Equipment Industry Production size in 2021-22 was $30 Billion. While exports were $10 Billion, it imported $11 Billion and the share of Capital Goods Sector was Over 50 percent. Power Equipment Industry growth in FY2021-22 & Estimated Half year FY23 over FY22. 

Pros and strengths

Quality Assurance and Standards: Quality standards followed right from the beginning are very stringent, and adhere during the services and assembling process. The company is very particular from usage of right person at right place to render specialized services to its clients. Its dedicated efforts towards the quality of services, processes and inputs have helped it gain a competitive advantage over others. Its quality services have earned it a goodwill from its customers, which has resulted in repeat services orders from many of them.

Existing client relationship: The company has earned reputation based upon which it has been successful in retaining its reputed clients. Its existing customer relationship helps it to get repeat business from its customers. This has helped it maintain a long-term working relationship with its customers and improve its customer retention strategy. Its relationship with the existing customers represents a competitive advantage in gaining new customers and increasing its business.

Diversified Client Base: The company serves a diverse mix of end markets across several industry sectors which are warehouse clients, retail clients, Industrial clients and Hotel/Hospital clients. In its business, it serves a number of customers with variety of services. Since it caters to a diverse customer base, it has historically been able to pass a significant portion of increases in operating costs such as infrastructure cost, and other operating expenses through review. 

Risks and concerns

Operation and maintenance of electrical services involves significant risks: The operation and maintenance of the company‚Äôs electrical installations involves significant risks and a number of factors could increase its maintenance needs, reduce the availability of its transmission systems, or result in forced outages, suspension of its operations, personal injury, loss of life, or damage to property. In addition, its business requires its employees and contractors to work under potentially dangerous circumstances (such as being exposed to electricals equipments). Its operations are subject to hazards associated with the handling of dangerous materials, working on heights and working on live lines. Despite compliance with requisite safety requirements and standards, due to the nature of the materials and circumstances its employees and contractors work under, it may be liable for certain costs, including costs for healthrelated claims, or removal or treatment of hazardous substances, including claims and litigation from its current or former employees for injuries arising from occupational exposure to materials or other hazards at its project site. This could subject it to significant disruption in its business and to legal and regulatory actions, which could materially adversely affect its business, prospects, financial condition, cash flows and results of operations. 

Subject to performance risk from third-party contractors: The company relies on third-party contractors and its employees for the development, execution and operation of its projects as well as other business operations. While it maintains a diversified set of vendors, it remains subject to the risk that the third-party contractors will not perform their obligations. If the third-party contractors do not perform their obligations (including regulatory compliances) or if they deliver any components that have a manufacturing defect or do not comply with the specified quality standards and technical specifications, it may have to enter into new contracts with other contractors at a higher cost or suffer schedule disruptions. Changing a contractor may incur additional costs in finding a replacement service provider or experience significant delays. In addition, if any of its employees or third-party contractors take, convert, or misuse funds, documents, or data, or fail to follow protocol when interacting with consumers and regulators, it could be liable for damages and subject to regulatory actions and penalties. 

Business is manpower intensive: The company’s business is manpower intensive and it is dependent on the availability of its permanent employees and sometimes the supply of a sufficient pool of contract labourers at its project locations. Unavailability or shortage of such a pool of workmen or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations. The number of contract labourers employed by it varies from time to time based on the nature and extent of work contracted to it and the availability of contract labour. It may not be able to secure the required number of contractual labourers required for the timely execution of its projects for a variety of reasons including, but not limited to, possibility of disputes with sub-contractors, strikes, less competitive rates to its sub-contractors as compared to its competitors or changes in labour regulations that may limit availability of contractual labour.

Outlook

Rulka Electricals, a Home of Electrical and Fire Fighting solutions was established in the year 2004. It is a trusted and reliable turn key projects contractors from Mumbai (Maharashtra, India) engaged in offering excellent solution for all types of electrical works. For its clients, it can offer services like Electrical Solutions, Electrical Panels, Turn Key Electrical Warehousing Projects, Electric Commercial Industrial Services, Maintenance Services, Electrical Contracting and Data & Voice Cabling Installation. It can offer electrical contracting services for all types of industrial plants. It has fast growing in this domain due to the hard work and industrious efforts of its skilled professionals. Its team comprises skilled personnel including technicians, engineers, quality controllers and management experts. On the concern side, the company is exposed to counterparty credit risk in the usual course of its business dealings with its clients or other counterparties who may delay or fail to make payments or perform their other contractual obligations. The financial condition of its clients, business partners, suppliers and other counterparties may be affected by the performance of their business which may be impacted by several factors including general economic conditions.

The company is coming out with an IPO of 11,23,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 223-235 per equity share. The aggregate size of the offer is around Rs 25.05 crore to Rs 26.40 crore based on lower and upper price band respectively. On performance front, revenue from operations had increased by 29.15% from Rs 3626.51 lakh in Fiscal 2022 to Rs 4683.74 lakh in Fiscal 2023 was due to increase in sales of products during the year. The company reported a net profit of Rs 280.52 lakh in Fiscal 2023 as compared to a net profit of Rs 112.08 lakh in Fiscal 2022. Meanwhile, the company constantly endeavours to improve its service process to optimize the utilization of resources. It has invested resources, and intend to further invest in its activities to develop customized systems and processes to ensure effective management control. It plan to increase its customers by meeting orders in hand on time, maintaining its customer relationship and renewing its relationship with existing buyers.

IPO Name Price range Issue Size (in crores) Lot Size Open Date Close Date
NO UPCOMING IPO'S
IPO Name Type Price range Issue Size (in crores) Lot Size Open Date Close Date Apply
GODIGIT EQUITY 258 - 272 52869677 55 15-05-2024 17-05-2024
QUESTLAB EQUITY 93 - 97 3213600 1200 15-05-2024 17-05-2024
MANDEEP EQUITY 67 3768000 2000 13-05-2024 15-05-2024
VERITAAS EQUITY 109 - 114 570000 1200 13-05-2024 15-05-2024
IEML EQUITY 125 - 132 2301000 1000 13-05-2024 16-05-2024
PRLIND EQUITY 63 - 67 4310000 2000 10-05-2024 14-05-2024
ABSMARINE EQUITY 140 - 147 4709000 1000 10-05-2024 15-05-2024
IPO Name Type Price range Issue Size (in crores) Lot Size Open Date Close Date Apply
NO LISTED IPO'S