Konstelec Engineers Ltd IPO Timeline
Konstelec Engineers Ltd IPO opens on 19-Jan-2024, and closes on 24-Jan-2024. The Konstelec Engineers Ltd IPO bid date is from 19-Jan-2024 to 24-Jan-2024. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
|Konstelec Engineers Ltd IPO Opening Date
|Konstelec Engineers Ltd IPO Closing Date
|Basis of Allotment
|Initiation of Refunds
|Credit of Shares to Demat
|Konstelec Engineers Ltd IPO Listing Date
Konstelec Engineers Ltd IPO Lot Size
Konstelec Engineers Ltd IPO lot size is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or 140000).
Konstelec Engineers Ltd IPO Details
|Konstelec Engineers Ltd IPO Date
|19-Jan-2024 to 24-Jan-2024
|Konstelec Engineers Ltd IPO Face Value
|Shares of ₹10 per share
|Konstelec Engineers Ltd IPO Price
|₹66 to ₹70 per share
|Konstelec Engineers Ltd IPO Lot Size
|Shares of ₹10 (aggregating up to ₹28.7 Cr)
|Shares of ₹10 (aggregating up to ₹28.7 Cr)
|Offer for Sale
|Book Building - SME
|NSE - SME
|QIB Shares Offered
|Retail Shares Offered
|NII (HNI) Shares Offered
|Biharilal Ravilal Shah, Amish Biharilal Shah.
Objects of the Issue
The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- 1 To meet working capital requirements
- 2 General corporate purposes
Konstelec Engineers Ltd Financial Information (Restated)
|Profit After Tax
|Amount in ₹ Crore
- Expertise and Experience.
- Strong Project Management.
- Comprehensive Service Offering.
- Diverse and Skilled Workforce.
- Robust Technical Infrastructure.
- Commitment to Quality and Safety.
- Robust Order Book.
- Strong Client Relationships.
- Geographical Presence.
- Track Record of Successful Projects.
- Adherence to Regulatory Compliance.
- The Company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect its revenues and profitability.
- The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.
- Majority of its revenue from operations are generated from India. Any adverse development affecting its operations in India could have an adverse impact on its business, financial condition and results of operations.
- The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
- The company has experienced significant working capital requirements in past and may continue to experience in future also. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
- Non-compliance with increasingly stringent safety, health, environmental and labour laws and other applicable regulations, may adversely affect its business, results of operations, cash flows and financial condition. Further, its may not be able to renew or maintain the company statutory and regulatory permits and approvals required to operate its business.
- Its Consolidated Restated Financial Statements are reviewed and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of ICDR.
- Its revenues from the company's projects are difficult to predict and are subject to seasonal variations.
- Its may be unable to identify or acquire new projects and its bids for new projects may not always be successful, which may stunt its business growth. Further, any delay in the commencement or cancellation of the projects awarded to it may adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.
- Any inaccuracies in estimating project risks, revenues, or costs could have a detrimental impact on its profitability and operational outcomes. The actual costs incurred during project execution may deviate substantially from its initial bid assumptions, creating difficulties in recouping additional expenses. Such discrepancies have the potential to significantly and adversely affect its operational results, cash flows, and overall financial condition.
- Its source a large part of the company new orders from its relationships with corporates and other customers, both present and past. Any failure to maintain its long-standing relationships with its existing customers or forge similar relationships with new ones would have a material adverse effect on its business operations and profitability.
- Failure to successfully implement its business strategies may materially and adversely affect the company's business, prospects, financial condition and results of operations.
- Its current Order Book does not guarantee full realization of future income. Some orders may be subject to modifications, cancellations, delays, holds, or partial payments by customers, which could have adverse effects on its operational results.
- The construction, operation and maintenance of its transmission systems involves significant risks that may cause injury to people or property and that may lead to significant disruption to its business and consequent decreases in the company's revenues.
- The company is engage sub-contractors and other agencies in its business. The timely and successful completion of its projects in certain cases depends upon the cooperation of the company sub-contractors, and any failure or delay in successful completion could adversely affect the quality of its developments and adversely affect its profitability, business and reputation.
- Its reliance on raw material suppliers for its business operations exposes it to a variety of risks which could materially disrupt the company operations.
- Its projects require deployment of labour and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.
- Its operations could be adversely affected by strikes, work stoppages or increased wage demands by the company employees or any other kind of disputes with its employees.
- Its success depends on its ability to attract and retain the company key management personnel. If its unable to do so, it would adversely affect its business and results of operations.
- Its insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.
- In addition to regular remuneration, other benefits and expense reimbursement its Promoters and Directors hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.
- The Company has in the past has made certain inadvertent erroneous filings under Companies Act, 2013 with the RoC in its statutory filings. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- The company operate its business from rented premises. Few of lease agreements are not renewed by the landlord and lease agreement for few leased properties are not in the name of the company.
- Its adherence to strict quality requirements is essential as any failure to comply with these standards could result in the cancellation of existing and future orders. Moreover, unsatisfied clientele can significantly impact its business operations and future prospects.
- Its vision to expand into new geographical areas entails certain risks that its must address effectively.
- Its business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.
- Some of the statutory forms filed with the Registrar of Companies and corporate records are not traceable.
- As the company continue to grow, its may not be able to effectively manage the company growth and the increased complexity of its business, which could negatively impact the company brand and financial performance.
- The company is exposed to significant risks on fixed-price or lump-sum turnkey contracts that could cause it to incur losses and adversely affect its business, results of operations and financial condition.
- The company face foreign exchange risks that could adversely affect its results of operations and cash flows.
- Its may be seriously affected by delays in the collection of receivables from its clients and may not be able to recover adequately on the company claims.
- A significant number of its project contracts prescribe a requirement for maintaining retention money during the defects liability period. Any dispute or failure to obtain a release of such retention monies in a timely manner or at all may have an adverse impact upon its profitability, results of operations and financial position.
- The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.
- Its may not be able to adequately protect or continue to use its intellectual property.
- Some of its Group Companies and its Promoter Group Entities are engaged in similar line of business. Any conflict of interest in future may occur between its group company or the company promoter group entities and its may adversely affect its business, prospects, results of operations and financial condition.
- The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them. Further as on the date of the Draft Red Herring Prospectus the Company has not received "No objection" certificate from its lenders to undertake this issue. Non receipt of such "No- Objection" certificate could lead to non-compliance of the terms of loan agreements entered into by the Company with said lenders.
- If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company's business, prospects, results of operations and financial condition.
- The Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its cash flows.
- Its lenders have charge over the company movable and immovable properties in respect of finance availed by it.
- Its contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
- Changes in technology may render its current technologies obsolete or requires the company to make substantial investments.
- Significant disruptions of information technology systems or breaches of data security could adversely affect its business.
- The company is dependent on its Promoters, its senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.
- The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price.
- The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures. Moreover, the company might not sustain historical dividend levels moving forward.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- Any future issuance of its Equity Shares may dilute prospective investors' shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
- The Issue price of its Equity Shares may not be indicative of the market price of the company's Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
- Its Promoters and Directors have provided personal guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failure or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact its business and operations.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".
- Industry information included in this Draft Red Herring Prospectus has been derived from an industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
- Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.
- In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.
- The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".
- Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of its Equity Shares.
- The requirements of being a public listed company may strain its resources and impose additional requirements.
- Technological Advancement.
- Strong Project Execution.
- Talent Development.
- Customer-Centric Approach & Sustainable Growth.
- Quality Assurance.
- Enhancing Brand Name.
- Improving Operational Efficiencies.
- Leveraging Market Skills and Relationships.
- Increasing Customer Reach.
- Growth Strategies.
- Effective Marketing Methods.
Konstelec Engineers Ltd IPO Promoter Holding
|Pre Issue Share Holding
|Post Issue Share Holding
Konstelec Engineers Ltd IPO Subscription Status (Bidding Detail)
The Konstelec Engineers Ltd IPO is subscribed - times on Jan 24, 2024 05:00:00 PM. The public issue subscribed - times in the retail category, - times in the QIB category, and - times in the NII category. Check Day by Day Subscription Details (Live Status)
Konstelec Engineers Ltd IPO Prospectus
Konstelec Engineers Ltd IPO Listing Date
|30 Jan 24
|NSE - SME
Konstelec Engineers Ltd IPO Registrar
Skyline Financial Services Pvt
Konstelec Engineers Ltd IPO Lead Manager(s)
- Beeline Capital Advisors Pvt Ltd
FAQs on Konstelec Engineers Ltd IPO
Konstelec Engineers Ltd IPO, which opens for subscription from 19-Jan-2024 to 24-Jan-2024 has an issue size of ₹28.7 crore. The issue type is book building issue.
In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Konstelec Engineers Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.
Konstelec Engineers Ltd IPO Opens for subscription from 19-Jan-2024 to 24-Jan-2024.
The lot size of Konstelec Engineers Ltd is 2000 shares. Retail investors can subscribe to minimum 1 lot and maximum 1 lots. The minimum and maximum application value is ₹140000 and ₹140000 respectively.
Allotment date for Konstelec Engineers Ltd is 25-Jan-2024 and refund of application amount (in case allotment is not received) will begin from 29-Jan-2024. If your allotment goes through, then shares will be credited in your Demat account by 29-Jan-2024.
The registrar for Konstelec Engineers Ltd IPO is Skyline Financial Services Pvt. You can check your IPO allotment status on the registrar's website.
The shares of Konstelec Engineers Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).