The Initial Public Offering (IPO) of Mumbai-based Konstelec Engineers Limited witnessed a tremendous response from the investors. The issue registered 3X subscription within 30 minutes of opening. The IPO will close on Tuesday, January 23. The company has successfully raised Rs. 8.16 crore from the anchor book subscription on Thursday, January 18, 2024.
The price band for the issue has been fixed at Rs. 66-70 per share. The lot size is 2,000 equity shares. The company is planning to raise approximately Rs. 28.70 crores from the offering and aims to be listed with NSE Emerge. Konstelec plans to utilise a majority of funds raised proceeds towards the working capital expenses for procuring high-quality products for its long-term projects and to provide collateral security to various clients. It will use the remaining funds for general corporate purposes and to meet public-issue expenses.
The EPC contractor specialises in delivering full-scale project management, procurement support and comprehensive engineering services for various electrical infrastructure, instrumentation and automation projects across India and abroad. The company’s services are applicable in several manufacturing industries, such as oil & gas, refinery, steel, cement, pharmaceuticals, textiles, hospitals, and health care, both domestic and international.
Konstelec Engineers recorded a revenue of Rs. 93.05 crore, EBITDA of Rs. 7.08 crore and a profit of Rs. 4.56 crore in the first half of the current financial year which ended
September 30, 2023. The company counts leading corporate conglomerates, including Reliance Industries Limited, Engineers India Limited, Tata Steel Limited, JSW Steel, Adani, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, NTPC, Navin Fluorine International Ltd and IGPL among its clientele.
