Konstelec Engineers IPO: Check GMP, third day subscription status, verification and other important details

Konstelec Engineers' IPO opened for subscription on Friday, January 19th and closes on Wednesday, January 24th. Konstelec Engineers' IPO dates were extended by a day as the stock market remained closed on Monday due to a holiday in the country due to the inauguration of the Ram temple in the northern city of Ayodhya.

The price range for the IPO of Konstelec Engineers is in the range of ₹66 to ₹70 each. The lot size of Konstelec Engineers' IPO consists of 1,000 shares. Investors can bid for at least 2,000 shares and multiples thereof.

Headquartered in Mumbai, Konstelec Engineers is the leading provider of electrical engineering, procurement and construction (EPC) services in India.

The company's clients include BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, Adani, NTPC, Tata Steel Ltd, Navin Fluorine International Ltd, IGPL and Reliance Industries Limited. The company offers its services in over fifteen states in Nigeria and India.

Between March 31, 2022 and March 31, 2023, Konstelec Engineers Limited's profit after tax (PAT) increased by 120.8% while revenue increased by 42.17%.

Also Read: Konstelec Engineers IPO Price Range Set. GMP, date and other details about upcoming IPO of NSE SME

Konstelec Engineers IPO details

The SME IPO consists of a fresh offering of up to 41 lakh shares at book-build price, each with a face value of ₹10.

The majority of the proceeds will go to working capital, purchasing high-quality products for long-term projects and securing collateral; the remaining funds are used for general corporate purposes and public spending.

The registrar of the issue is Skyline Financial Services Private Ltd and the underwriter is Beeline Capital Advisors Private Ltd.

Also read: Konstelec Engineers seeks raise ₹25 crore through SME IPO; for listing on NSE Emerge

Konstelec Engineers IPO Subscription Status

Konstelec Engineers' IPO subscription status is 240.69x on the third day so far. The issue received positive response from retail investors whose share was subscribed 351.47 times and non-institutional buyers whose share was subscribed 247.42 times, as per data available on chittorgarh.com. The Qualified Institutions Buyers (QIBs) were booked 41.39 times.

According to chittorgarh.com, the company has received offers for 65,65,96,000 shares against 27,28,000 shares on offer at 2:28 pm IST.

The subscription status for Konstelec Engineers IPO on the first day is 26.28 times and on the second day the issue was subscribed 146.03 times.

Also Read: Sebi takes action against three investment bankers who inflated IPO subscriptions: Book

Konstelec Engineers IPO GMP today

Konstelec Engineers IPO GMP or gray market premium is at +90, a big jump from yesterday's +57. This suggests that Konstelec Engineers' share price was trading at a premium of ₹90 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current gray market premium, Konstelec Engineers' estimated list price has been included ₹160 per piece, which is 128.57% higher than the IPO price of ₹70.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

Also Read: Qualitek Labs IPO Subscribed 6.55 Times So Far on Day 2; Check GMP and other details

Konstelec Engineers IPO Review

“Konstelec Engineering has an order backlog of ₹5,730 million (~3.7x of FY23 sales) and around ₹The order book worth 400 Crore is under execution and is expected to be completed in the next 12 to 18 months. The company has an order pipeline of ₹1,000 crore and the order win ratio is around 15-20%, which translates to an expected order book of around 1,000 crore ₹150 crore in the next quarter. The company is currently executing a major order ₹55 crore and is eligible to bid more than ₹100 crore for future.

We believe high ticket volume projects and specific industry-focused projects would lead to margin improvement in the future. The customer-centric approach, expanding customer base, innovation, leveraging cutting-edge technologies and exploring inorganic growth opportunities would drive future business growth. On the upper band of ₹70, the issue is valued at an EV/EBITDA of 7.7x based on FY23 TTM EBITDA and a P/E ratio of 5.2x based on FY23 EPS ₹5.2. “We recommend ‘Subscribe for the long term’ for this edition,” said brokerage firm Arihant Capital Markets Ltd.

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.

Discover a world of benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it's all here, just a click away! Log in now!

Topics that might interest you