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Enviro Infra Engineers Ltd: SUBSCRIBE

enviro-infra-engineers-logo-min
  • Date

    22nd Nov 2024 - 26th Nov 2024

  • Price Range

    Rs. 140 to Rs. 148

  • Minimum Order Quantity

    101

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Price Lot Size Issue Date Issue Size
₹ 140 to ₹ 148 101 22nd Nov, 2024 – 26th Nov, 2024 ₹ 650.43 Cr

About Enviro Infra Engineers Ltd IPO

Enviro Infra Engineers Ltd. (EIEL) is a leading Indian company specializing in the design, construction, operation, and maintenance of Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities and public sector bodies. The company’s portfolio includes projects such as Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), Sewerage Schemes (SS), and Water Treatment Plants (WTPs), along with associated infrastructure like pumping stations and pipeline networks. EIEL’s projects are largely funded through Central Government schemes such as AMRUT, NMCG, and JJM, in collaboration with state governments and Urban Local Bodies (ULBs). With over seven years of experience, EIEL has successfully developed 28 WWTPs and WSSPs, including 22 projects with capacities of 10 MLD and above. The company operates with an in-house team of 180 engineers, complemented by third-party consultants and industry experts, enabling it to maintain high standards of quality and compliance. EIEL’s service offerings span the entire project lifecycle – from design and procurement to site execution, commissioning, and post-commissioning operations and maintenance. In addition to its independent project execution, EIEL also enters into joint ventures with other infrastructure firms to enhance technical and financial capabilities for bidding on large-scale projects. The company is committed to sustainability, integrating solar power and Compressed Bio Gas (CBG) plants into its projects to reduce carbon emissions and promote environmental sustainability. As of June 30, 2024, EIEL’s order book stood at Rs. 1,906.3 crores, and employs 939 people. The company’s comprehensive product mix and focus on wastewater treatment solutions have enabled it to maintain strong margins and position itself for continued growth in the infrastructure sector.

Objective of the Enviro Infra Engineers Ltd IPO

The company proposes to utilize proceeds from the fresh issue towards funding the following objectives:

  • To meet the working capital requirements;
  • Infusion of funds in the subsidiary, EIEL Mathura Infra Engineers Pvt. Ltd. (EIEL Mathura) to build 60 MLD STP under the project titled ‘Mathura Sewerage Scheme” at Mathura in Uttar Pradesh through hybrid annuity based PPP mode;
  • Repayment/prepayment in full or in part, of certain of the outstanding borrowings; and
  • Funding inorganic growth through unidentified acquisitions and general corporate purposes.    

Rationale To Invest In Enviro Infra Engineers Ltd IPO

Strong in-house capabilities and technological expertise positions it well in an emerging sector  

EIEL has strong in-house capabilities in designing, engineering, and executing complex water and wastewater treatment projects. With a team of 180 skilled engineers, the company reduces its reliance on third-party consultants, ensuring greater control over project quality and timelines. EIEL’s engineering expertise covers a wide range of technologies for designing and implementing Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), and Water Supply Scheme Projects (WSSPs). EIEL’s strong technical capabilities, reputation for delivering high-quality projects on time, and its established expertise in design, engineering, construction, and operations have made it a competitive player in the industry. The company’s use of advanced technologies such as Sequential Batch Reactors (SBR), High Rate Anaerobic Digestors (HRAD), and Moving Bed Biological Reactors (MBBR), along with Biological Nutrient Removal (BNR) systems, enables it to meet stringent environmental regulations while delivering cost-effective solutions. EIEL also employs tertiary treatment processes like UV treatment, activated carbon filters, and ultra-filtration, ensuring high water quality and Zero Liquid Discharge (ZLD) compliance across its plants. The company’s established track record of completing complex projects on time, along with its comprehensive approach to project execution – from design to operations and maintenance – enhances its ability to win high-value tenders and secure steady cash flows. These capabilities, combined with a focus on technological innovation and operational efficiency, position EIEL to capitalize on the growing water and  wastewater treatment sector.

Diversified order book of projects across India provides revenue visibility going ahead

EIEL has built a diversified and robust order book, with a total of 21 projects currently under execution across India, valued at Rs. 1,906.3 crores as of June 30, 2024. These projects are strategically distributed across various types of water and wastewater treatment plants, reflecting the company’s extensive expertise in the sector. The order book includes nine Sewage Treatment Plants (STPs), all being executed on an EPC basis, one Common Effluent Treatment Plant (CETP), also under the EPC model, five Sewerage Schemes (SS) projects, and five Water Supply Scheme Projects (WSSPs), all of which are being executed on an EPC basis. Additionally, there is one project under the Hybrid Annuity Model (HAM), specifically for an STP. The company’s ability to execute projects across both EPC and HAM models enables it to leverage multiple revenue streams, which bolsters its growth and financial stability. Moreover, the inclusion of Operations and Maintenance (O&M) services in many of its projects ensures consistent cash flows, adding to its profitability. With such a varied and growing order book, EIEL is well-positioned for continued growth in the water and wastewater treatment space.

Valuation of Enviro Infra Engineers Ltd IPO

India’s water and wastewater treatment sector is expanding rapidly, driven by increasing water demand, urbanization, and government initiatives such as the Hybrid Annuity Model (HAM) and Namami Gange. EIEL is well-positioned to capitalize on this growth, with a strong order book of Rs. 1,906.3 crores as of June 30, 2024, and a proven track record of executing high-quality projects across India. The company specializes in designing, constructing, and maintaining water treatment plants, including Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), and Water Supply Scheme Projects (WSSPs). With 180 in-house engineers and advanced technologies like Sequential Batch Reactors (SBR) and Moving Bed Biological Reactors (MBBR), EIEL consistently delivers complex projects on time, maintaining a competitive edge. Its diversified portfolio of 21 ongoing projects, combined with its focus on EPC and HAM models, enhances its revenue streams. The company is also integrating sustainable practices, such as solar power and Compressed Biogas (CBG) plants, into its projects to align with growing environmental concerns. However, EIEL faces certain risks, including its reliance on government contracts awarded through competitive bidding, high working capital requirements, and contingent liabilities totalling Rs. 2,588.3 million. Financially, the company has demonstrated consistent growth, with a revenue CAGR of 80.6%, increasing from Rs. 2,235 million in FY22 to Rs. 7,289 million in FY24, and a profit CAGR of 78.9%, from Rs. 345 million in FY22 to Rs. 1,086 million in FY24. The company’s stable growth, along with a debt-equity ratio of 0.95x as of June 30, 2024, positions it to fund strategic initiatives and pursue further expansion opportunities. The current issue is priced at a P/E of 18.2x on the upper band, based on FY24 earnings, which is relatively lower than its peers. Given the company’s strong technological capabilities and its focus on growth strategies such as geographical expansion and waste-to-energy initiatives, the company is well-positioned for continued business traction. Therefore, we recommend a “SUBSCRIBE” rating for the issue, with a medium- to long-term investment perspective.

What is the Enviro Infra Engineers Ltd IPO?

Enviro Infra Engineers IPO is a book built issue of Rs 650.43 crores. The issue is a combination of fresh issue of 3.87 crore shares aggregating to Rs 572.46 crores and offer for sale of 0.53 crore shares aggregating to Rs 77.97 crores. Login to your account now.

To apply for the Enviro Infra Engineers Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Enviro Infra Engineers Ltd IPO is opening on 22nd November 2024.  Apply Now

The Lot Size of Enviro Infra Engineers Ltd IPO is 101 equity shares. Login to your account now

The allotment Date for  Enviro Infra Engineers Ltd IPO is 27th November  2024.  Login to your account now.

The listing Date for Enviro Infra Engineers Ltd IPO is 29th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,948. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 194,324. Login to your account now

  • The company relies heavily on winning government-awarded projects through competitive bidding. While it meets technical and financial qualifications for CETP and up to 200 MLD STP projects, there is no guarantee it will qualify for or win future projects. Changes in qualification criteria, project delays, or legal disputes could adversely affect its ability to secure contracts. If the company fails to qualify independently or partner effectively, it may hinder growth and negatively impact its revenue, operations, and profitability.
  • The company requires high working capital, which could impact operations if cash flows are insufficient. Delays in client payments, changes in terms, or project delays may increase financial burden. Reliance on debt, bank guarantees, and receivables could strain finances.
  • As of June 30, 2024, the company had contingent liabilities totalling Rs. 2,588.3 million, including demands from tax authorities, TDS defaults, and bank guarantees. These liabilities are not provided for in the financial statements. If they materialize, the company may face significant financial strain, adversely impacting its condition and operations.

The Enviro Infra Engineers Ltd IPO be credited to the account on allotment date which is 28th November 2024. Login to your account now 

The prospectus of Enviro Infra Engineers Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateFriday, November 22, 2024
IPO Close DateTuesday, November 26, 2024
Basis of AllotmentWednesday, November 27, 2024
Initiation of RefundsWednesday, November 27, 2024
Credit of Shares to DematThursday, November 28, 2024
Listing DateFriday, November 29, 2024
Cut-off time for UPI mandate confirmation5 PM on November 26, 2024

NTPC Green Energy Limited: SUBSCRIBE

NTPC_Green_Logo
  • Date

    19th Nov 2024 - 22nd Nov 2024

  • Price Range

    Rs. 102 to Rs. 108

  • Minimum Order Quantity

    138

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Price Lot Size Issue Date Issue Size
₹ 102 to ₹ 108 138 19th Nov, 2024 – 22nd Nov, 2024 ₹ 10,000.00 Cr

About NTPC Green Energy Limited IPO

NTPC Green Energy Limited, incorporated in April 2022, is a wholly-owned subsidiary of NTPC Limited, a ‘Maharatna’ Central Public Sector Enterprise. It is India’s largest renewable energy public sector enterprise (excluding hydro) based on operational capacity and power generation. Its renewable energy portfolio includes 3,220 MW of solar power and 100 MW of wind power, strategically located across more than six states to mitigate risks associated with location-specific generation variability. As of September 30, 2024, its portfolio consisted of 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. The company develops utility-scale renewable energy projects for public sector undertakings (PSUs) and Indian corporates. These projects feed renewable power into the grid, supplying energy to utilities or off-takers. The company benefits from the expertise, resources, and strategic vision of NTPC Limited, which operates under the Ministry of Power, Government of India (GoI) and its consolidated subsidiaries, associates and joint ventures (NTPC Group) that aims to transition 45-50% of its portfolio to non-fossil-based energy sources, targeting a renewable energy capacity of 60 GW by 2032. NTPC Group has strong in-house experience, which helps in the execution and procurement of renewable energy projects. Many PSUs have chosen the company as a partner to fulfil their renewable energy development goals. The company regularly evaluates its plant performance by focusing on key industry measures and generation/capacity utilization factor (CUF), which is lower in solar power plants than in thermal power plants, given the nature of operations. The company has established joint ventures with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), Mahatma Phule Renewable Energy & Infrastructure Technology Limited (MAHAPRET), and Damodar Valley Corporation (DVC), among others, to produce renewable power. Additionally, NGEL has signed MOUs and term sheets with private corporations to expand its footprint further.

Objective of the NTPC Green Energy Limited IPO

The company proposes to utilize the net proceeds towards funding the following objects:

  • Investment in its wholly owned subsidiary, NTPC Renewable Energy Limited (NREL), for repayment/prepayment, in full or in part of certain outstanding borrowings availed by NREL; and
  • General corporate purposes.

Rationale To Invest In NTPC Green Energy Limited IPO

Robust backing from NTPC and strategic resource utilization fuel growth

NTPC Green Energy is one of the top 10 players in terms of operational capacity in the renewable energy segment in India. As the renewable energy arm and subsidiary of NTPC Ltd, the company benefits from NTPC’s legacy of five decades, long-term experience, extensive pan-India presence, top credit rating, and strong financial backing, including ₹75,000 million in equity contributions. The company boasts a skilled in-house team that collaborates with third-party contractors to manage land acquisition processes. Leveraging NTPC’s resources, strategic partnerships with PSUs, and robust market positioning, NTPC Green Energy aligns with NTPC’s target of achieving 60 GW of renewable capacity by 2032. The company utilizes its in-house expertise and publicly available data to assess the power evacuation capacity of nearby inter-state and intra-state substations, ensuring that project commissioning timelines are strategically aligned with the readiness of these substations for efficient power evacuation. The company leverages NTPC’s economies of scale to secure cost-effective procurement and maintains a rigorous quality assurance and vendor empanelment process from approved domestic and international suppliers. The selection of vendors is done by its in-house procurement team on the basis of commercial conditions, manufacturing capacity, track record, quality, warranty coverage, ease of installation and other ancillary costs. Furthermore, NTPC Green Energy integrates advanced O&M technologies, such as robotic dry cleaning of photovoltaic arrays, drone thermography, and live dashboards for generation performance monitoring, to enhance the operational efficiency of its plants.

Diversified renewable portfolio and long-term offtake agreements ensure stability

NTPC Green Energy has a large and diversified portfolio of utility-scale solar and wind energy projects, along with projects developed for PSUs and Indian corporates. As of September 30, 2024, the company’s portfolio includes 41 solar and 11 wind projects, with a total capacity of 16,896 MWs, comprising 3,320 MWs of operational projects and 13,576 MWs of contracted and awarded projects. The company’s pipeline capacity stands at 9,175 MWs, bringing the total portfolio and pipeline to 26,071 MWs. The company’s revenue-generating off-takers in the six months ending September 30, 2024, were government agencies and public utilities with whom NTPC Green Energy has long-term Power Purchase Agreements (PPAs) averaging 25 years. In the same period, renewable energy sales from solar and wind projects accounted for ~95.43% of the company’s revenue from operations. The company’s portfolio is primarily concentrated in resource-rich states like Rajasthan and Gujarat, which have strong potential for renewable energy development and have sustained healthy levels of demand for renewable energy. To mitigate concentration risks, NTPC Green Energy has expanded its projects across 7 other states in India. The company’s future growth is supported by a strong pipeline of development opportunities, with joint venture agreements signed with major PSUs such as Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), Mahatma Phule Renewable Energy & Infrastructure Technology Limited (MAHAPREIT), Damodar Valley Corporation (DVC), two other PSUs and through MOUs and term sheets with other private corporates.

Valuation of NTPC Green Energy Limited IPO

NTPC Green Energy, a wholly-owned subsidiary of NTPC Ltd., is one of the largest renewable energy public sector enterprises (excluding hydro) in terms of operating capacity and power generation, with a portfolio capacity of 3,220 MW of solar projects and 100 MW of wind projects across six states. The company generates revenue by selling solar and wind power under Power Purchase Agreements (PPAs) with Indian government agencies and public utilities. Renewable energy is a significant and growing industry in India, which ranks fourth globally in total renewable energy, wind, and solar installations. The country’s installed capacity of renewable energy sources has grown from approximately 63 GW in March 2012 to 201 GW in September 2024. NTPC Green Energy leverages NTPC’s five-decade legacy, extensive experience, strategic partnerships, advanced operations and maintenance (O&M) technologies, and in-house expertise to efficiently develop, procure, and operate renewable energy projects, aligning with NTPC’s target of achieving 60 GW of renewable capacity by 2032. The company boasts a diversified portfolio of 16,896 MW across solar and wind projects, a pipeline capacity of 9,175 MW, long-term PPAs with government agencies and public utilities, and widespread renewable energy development across India. On the financial front, the company’s revenue grew at a CAGR of 46.82% from Rs. 9,104.21 mn in FY22(on a special purpose carved-out basis) to Rs. 19,625.98 mn in FY24, with a PAT margin of 17.56%. It has demonstrated a Return on Equity of 17.76% in FY24. The company is valued at a PE ratio of 147.9 on the upper price band based on FY24 earnings, which is reasonable compared to its peers. Given its strategic development and strong financial growth, the company is well-positioned to capitalize on growth opportunities in the renewable energy sector. Therefore, we recommend a “SUBSCRIBE” rating for medium to long-term investment.

What is the NTPC Green Energy Limited IPO?

NTPC Green Energy IPO is a book built issue of Rs 10,000.00 crores. The issue is entirely a fresh issue of 92.59 crore shares. NTPC Green Energy IPO bidding opened for subscription on November 19, 2024 and will close on November 22, 2024. The allotment for the NTPC Green Energy IPO is expected to be finalized on Monday, November 25, 2024. NTPC Green Energy IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, November 27, 2024.. Login to your account now.

To apply for the NTPC Green Energy Limited IPO through StoxBox one can apply from the website and also from the app. Click here

NTPC Green Energy Limited IPO is opening on 19th November 2024. Apply Now

The Lot Size of NTPC Green Energy Limited IPO is 138 equity shares. Login to your account now

The allotment Date for  NTPC Green Energy Limited IPO is 25th November  2024.  Login to your account now.

The listing Date for NTPC Green Energy Limited IPO is 27th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,904. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 191,646. Login to your account now

  • The company has a concentrated pool of utilities and power purchasers for electricity generated by its plants and projects. More than 87% of its operational revenue in FY24 was derived from its top five off-takes, with its single largest off-taker contributing 50% to the revenue. The loss of any of these key customers or a deterioration in their financial condition could adversely impact the company’s business, operational results, and financial health.
  • The company’s business and profitability heavily rely on the availability and cost of solar modules, solar cells, wind turbine generators, and other materials, components, and equipment for its solar, wind, and other projects. It depends on third-party suppliers to meet these requirements, with its top 10 suppliers accounting for 77.71% of its supplies in FY24. Any disruption in the timely and adequate supply or price volatility of these materials, components, and equipment could negatively affect the company’s business, operational results, and financial condition.
  • The company’s operating renewable energy projects are concentrated in Rajasthan, with 61.74% of its projects located in the state as of FY24. Any significant social, political, economic, or seasonal disruption, natural calamities, or civil unrest in Rajasthan could adversely impact the company’s business, results of operations, and financial condition. 

The NTPC Green Energy Limited IPO be credited to the account on allotment date which is 26th November 2024. Login to your account now 

The prospectus of NTPC Green Energy Limited IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateTuesday, November 19, 2024
IPO Close DateFriday, November 22, 2024
Basis of AllotmentMonday, November 25, 2024
Initiation of RefundsTuesday, November 26, 2024
Credit of Shares to DematTuesday, November 26, 2024
Listing DateWednesday, November 27, 2024
Cut-off time for UPI mandate confirmation5 PM on November 22, 2024

Zinka Logistics Solutions Ltd: SUBSCRIBE

blackbuck_logo
  • Date

    13th Nov 2024 - 18th Nov 2024

  • Price Range

    Rs. 256 to Rs. 273

  • Minimum Order Quantity

    54

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Price Lot Size Issue Date Issue Size
₹ 259 to ₹ 273 54 13th Nov, 2024 – 18th Nov, 2024 ₹ 1,114.72 Cr

About Zinka Logistics Solutions Ltd IPO

Zinka Logistics Solutions Ltd (BlackBuck) is India’s largest digital platform in terms of the number of users for truck operators, with 9,63,345 (27.5% of truck operators in India) trucks operators in the country transacting on its platform (BlackBuck App). The BlackBuck app is a platform that provides 1) payments – enabling users to manage payments of tolling and fuelling digitally. The company generates income through commission margins from FASTag Bank Partners on the toll transaction and from OMCs in fueling transaction flowthrough; 2) telematics – which helps monitor drivers and fleets. Income in this segment is earned through monthly or annual subscription fees; 3) assistance locating loads marketplace. Revenue is generated through subscription fees charged to shippers for posting loads on the BB Transporter app and 4) access to financing for purchasing new vehicles. Revenues are generated through loan service fees. The company derives a significant portion of its revenue through the commission income from its payment’s offerings and telematics services, i.e. 94%, as of the end of FY24. A detailed breakdown of its revenue is as follows: Commission income – 42.8%, Subscription fees – 39.7%, Service fees – 17.2% and other services – 0.3% as of the end of FY24. The company follows an omnichannel customer onboarding and servicing strategy for the demography. They have a digital-led marketing strategy that provides customers with awareness of their solution and brand. They boast an on-ground sales force, channel partners and telesales, through which they support client onboarding. Among the new-age digital platforms in the trucking sector, BlackBuck has India’s largest physical touchpoint network. The company have sold and serviced its products through 80% of the districts in India and 76% of the toll plazas.

Objective of the Zinka Logistics Solutions Ltd IPO

The company proposes to utilize net proceeds towards funding the following objects:

  • Funding towards sales and marketing costs;
  • Investment in Blackbuck Finserve Private Limited, NBFC subsidiary, for financing the augmentation of its capital base to meet its future capital requirements;
  • Funding of expenditure in relation to product development; and
  • General corporate purposes.

Rationale To Invest In Zinka Logistics Solutions Ltd IPO

Strategic market expansion and enhanced client service to enhance market presence

The company understands that building trust with truck operators on a digital platform requires significant handholding due to a perceived lack of trust. The company aims to close this gap through its sales and service strategy. By leveraging a mix of digital and targeted notifications through the BlackBuck app alongside its 9,374 touchpoints, the company can effectively acquire new customers and cross-sell its products to existing clients. The company has also implemented a customer servicing strategy to ensure that the needs of existing clients are met. As the platform attracts more truck operators, it can gather additional data, enabling the company to refine its solutions and identify cross-selling opportunities. It also allows the company to create tailored product offerings that simplify operations, improve efficiency, and enhance the profitability of its truck operator partners. Additionally, as the platform’s network of truck operators grows, shippers seeking efficient loading will be attracted, further reinforcing the platform’s value proposition. The company further intends to deepen its distribution base and increase the density of its distribution in key strategic pockets in India (Gujarat, Karnataka and Tamil Nadu), where it has a lower market share. This strategy will empower product reach to a wider geography and capitalization on market gains. The company’s approach to scaling its customer base and developing products to meet the client’s requirements positions it well for sustained growth and a stronger market presence.

In-house technology integration, customer-centric approach and planned innovation augurs well for sustained growth

The company follows a consumer-centric approach to address the evolving needs of its clients. This has helped the company to launch multiple offerings. The company has developed most of its technology stack and solutions in-house, aimed at providing reliable, accurate and real-time solutions to several key challenges faced by truck operators in India through its platform. Zinka has a dedicated in-house product, engineering, and data science team that develops technology layers, enabling a comprehensive suite of solutions to address challenges. It is assisted by customer input to ensure continuous feedback-driven new product development. As the scale of operation increases and with the launches of new offerings, the company plans to build its technology simultaneously to manage the upscaling. The company intends to innovate in vehicle financing through technology-enabled loan origination systems, fraud detection, prevention systems and sales enablement products. The company will invest in further product development in newer telematics offerings of fuel sensors to enable affordability and accuracy to scale ahead. Its multiple business offerings also rely on data capabilities, which help build intelligence interfaces and optimize operations for its customers. The company intends to use Rs. 750 million for product development.

Valuation of Zinka Logistics Solutions Ltd IPO

Zinka Logistics is a prominent player in the digital trucking solution provider environment. It follows an asset-light model based on offering services to truck operators and generates revenue through platform fees, subscription fees, and commissions. With the help of its platform (BlackBuck), the company can provide effective logistic solutions to truck operators. The company is poised to benefit from building trust and expanding its customer base through a robust sales and service strategy. Its strategic market expansion and continuous product development will further enhance its market presence and profitability. On the economic front, the trucking industry is highly fragmented, with approximately 12.5 million trucks and 3.5 million truck operators in Fiscal 2024 traversing Indian roads; the total freight value through trucks has witnessed a steady growth rate of 8 to 9% CAGR over the past four years. The company is well-positioned to capitalize on the market growth opportunities with its digital products, which can tackle challenges and inefficiencies and enhance value for truck operators. Financially, the company has reported a healthy revenue growth at a CAGR of 57.7% between FY22-24; however, the company has reported losses on the EBITDA / PAT front during the same period. The reason can be attributed to its high marketing and sales costs. During the quarter that ended on June 30, 2024, the company reported a positive EBITDA and PAT. The PAT growth was a one-time effect due to an exceptional item caused by the lender’s waive-off of Rs. 256.23 million. The company also exhibited a steady recovery in its operational cash flow. Given the company’s strong market presence and industry tailwinds, it provides a medium- to long-term opportunity. We, therefore, recommend a SUBSCRIBE rating for the issue. 

What is the Zinka Logistics Solutions Ltd IPO?

BlackBuck IPO is a book built issue of Rs 1,114.72 crores. The issue is a combination of fresh issue of 2.01 crore shares aggregating to Rs 550.00 crores and offer for sale of 2.07 crore shares aggregating to Rs 564.72 crores. Login to your account now.

To apply for the Zinka Logistics Solutions Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Zinka Logistics Solutions Ltd IPO is opening on 13th November 2024. Apply Now

The Lot Size of Zinka Logistics Solutions Ltd IPO is 54 equity shares. Login to your account now

The allotment Date for  Zinka Logistics Solutions Ltd IPO is 19th November  2024.  Login to your account now.

The listing Date for Zinka Logistics Solutions Ltd IPO is 21st November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,742. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 191,646. Login to your account now

  • The company can face competitive pressure in its business from the development of a railway network as an alternative to road freight. Its vehicle financing arm also faces tough competition from other well-established financing institutions that continue to push for higher market share as the digital landscape evolves.
  • The company has witnessed high employee attrition (37.3% and 41.1% in the three months ending June 30, 2024, and FY24, respectively), which can adversely its operations.
  • The company’s vehicle financing exposes it to risks, such as high-risk borrowers and collateral recovery, which could affect its business..

The Zinka Logistics Solutions Ltd IPO be credited to the account on allotment date which is 19th November 2024. Login to your account now 

The prospectus of Zinka Logistics Solutions Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateWednesday, November 20, 2024
IPO Close DateMonday, November 18, 2024
Basis of AllotmentTuesday, November 19, 2024
Initiation of RefundsWednesday, November 20, 2024
Credit of Shares to DematWednesday, November 20, 2024
Listing DateThursday, November 21, 2024
Cut-off time for UPI mandate confirmation5 PM on November 18, 2024

Niva Bupa Health Insurance Company Ltd: SUBSCRIBE

Niva_Bupa_logo
  • Date

    07th Nov 2024 - 11th Nov 2024

  • Price Range

    Rs. 70 to Rs. 74

  • Minimum Order Quantity

    200

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Price Lot Size Issue Date Issue Size
₹ 70 to ₹ 74 200 07th Nov, 2024 – 11h Nov, 2024 ₹ 2,200.00 Cr

About Niva Bupa Health Insurance Company Ltd IPO

Niva Bupa Health Insurance Co. Ltd. (NBHICL) is a leading health insurance company in India dedicated to giving every Indian the confidence to access the best healthcare. The company aims to achieve this through various health insurance products and services that help customers navigate their healthcare journey, providing access to a comprehensive health ecosystem. According to the RedSeer Report, NBHICL is one of India’s largest and fastest-growing standalone health insurers (SAHIs) based on an overall health gross direct premium income (GDPI) of Rs. 5494 crores in FY24.  From FY22 to FY24, the company’s overall gross written premium (GWP) grew at a CAGR of 41.3%, while its GWP from retail health grew at 33.4%. The company’s overall health GDPI growth from FY22 to FY24, at 41.4%, is among the highest in the SAHI sector, nearly doubling the industry’s average growth rate of 21.4% over the same period. Responding to customers’ evolving needs over 16 years of operations, it has built a track record of product innovation catering to a range of customer groups. The company aims to create a health insurance platform of choice for customers in India. It offers customers the ability to access a comprehensive health ecosystem and service capabilities via its ‘Niva Bupa Health’ mobile application and website, offering them a holistic proposition. This application provides customers access to various healthcare solutions, including diagnostics, digital consultation, annual health check-ups and health education content. Customers can also undertake claims submission, policy servicing and track health parameters through this application. The company aims to provide customers access to various healthcare and disease management solutions through its diverse and evolving product suite and ‘Niva Bupa Health’ mobile application and website.

Objective of the Niva Bupa Health Insurance Company Ltd IPO

The net proceeds from the fresh issue will be used towards the following purposes:

  • Augmentation of its capital base to strengthen solvency levels;
  • General corporate purposes.  

Rationale To Invest In Niva Bupa Health Insurance Company Ltd IPO

Diverse product suite for customers, bolstered by a track record for product innovation

Niva Bupa Health Insurance stands out with a comprehensive suite of innovative health insurance products designed to meet the diverse needs of customers at every stage of their lives. The company identifies customer groups based on various parameters such as age, income and health status. The company strive to achieve the best customer-product fit based on these customer groups and the sales process. Recently, the company launched the Aspire product to target Millennials (26 to 40 years old) and Generation Z (18 to 25 years old), which offers features tailored to target the distinctive needs of these demographics, such as Lock the Clock where the age of a person for premium calculation purposes is locked/fixed at the entry age until the time a claim is paid. The company has demonstrated a track record of innovation, launching products with industry-first features. Through the company’s product innovation capabilities, they have developed products with selling propositions that have assisted in scaling the business. The company has developed a customer LTV-based approach towards new product creation, which leverages data analytics to determine LTV based on customer profile, claims experience, loss ratio assumptions, inflation, acquisition cost and risk perception. This has enabled us to innovate with new products targeted at specific customer groups, map customer groups via distribution channels, and achieve favourable underwriting outcomes.

Multi-channel diversified Pan-India distribution, with technology-led empowerment of distribution partners to aid financial performance

Niva Bupa Health Insurance has adopted a comprehensive distribution strategy that leverages multiple channels across India, supported by technology, to empower its distribution partners and enhance financial performance. The company’s distribution channels comprise (a) direct sales through employees, online sales through the website and ‘Niva Bupa’ mobile application, and (b) intermediated sales through distributors. The company’s LTV-led approach towards business selection and underwriting seeks to build a sustainable portfolio via the preferred product-channel-customer strategy by enabling them to strategically focus on products tailored to a particular customer and the appropriate channel to distribute such products. The company’s decision-making on sales incentives, rewards, recognitions and commissions is also driven by this approach, where target efforts towards higher-LTV customers focus sales strategy at the policy and channel levels more efficiently. According to the Redseer Report, they are the largest selling non-life insurer on India’s largest online insurance broker/web aggregator, based on insurance commission paid by insurers to the insurance broker/web aggregator. The company’s online direct sales channel and digital distributors, namely web aggregators and certain online brokers, are beneficial on account of better quality of disclosures driving optimal pricing and no third-party acquisition costs for the direct sales channel. Niva Bupa’s agency distribution channel is supported by a physical branch network of 210 physical branches, and the e-agency model is used for locations where agents undertake business without a physical branch presence. The company e-agency model enables remote onboarding and training of individual agents in a cost-efficient and agile manner, which may increase operating leverage and lower Expense Ratio and allow them to reach a wider footprint to target a broader group of customers. 

Valuation of Niva Bupa Health Insurance Company Ltd IPO

Niva Bupa Health Insurance Co. Ltd. (NBHICL) is India’s leading health insurance company. It aims to achieve various health insurance products and services that help customers navigate their healthcare journey, providing access to a comprehensive health ecosystem. The combination of health insurance products, access to the health ecosystem, and extensive customer service, coupled with multi-channel distribution capabilities, all underpinned by the LTV-based approach, drives customer retention and attracts new business customers.  The company also focuses on creating a holistic, customer-centric health insurance platform and a healthcare ecosystem that provides customers access to various facilities across wellness, doctor consultations, diagnostics, and medicine delivery. According to the RedSeer Report, NBHICL is one of India’s largest and fastest-growing standalone health insurers (SAHIs) based on an overall health gross direct premium income (GDPI) of Rs. 5494 crores in FY24.  From FY22 to FY24, the company’s overall gross written premium (GWP) grew at a CAGR of 41.3%, while its GWP from retail health grew at 33.4%. The company’s overall health GDPI growth from FY22 to FY24, at 41.4%, is among the highest in the SAHI sector, nearly doubling the industry’s average growth rate of 21.4% over the same period. As we advance, Niva Bupa Health Insurance’s financial performance is likely to be driven by product innovation, investment in technology and analytics to facilitate the sales and servicing of products and further expand presence in existing geographies within India, investment in deepening distribution channels and increase market share in retail health insurance. Given its leading health insurance company, innovative expansion plans, technology-led automated approach and potential for profitability, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.

What is the Niva Bupa Health Insurance Company Ltd IPO?

Niva Bupa Health Insurance IPO is a book built issue of Rs 2,200.00 crores. The issue is a combination of fresh issue of 10.81 crore shares aggregating to Rs 800.00 crores and offer for sale of 18.92 crore shares aggregating to Rs 1,400.00 crores. Login to your account now.

To apply for the Niva Bupa Health Insurance Company Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Niva Bupa Health Insurance Company Ltd IPO is opening on 07th November 2024. Apply Now

The Lot Size of Niva Bupa Health Insurance Company Ltd IPO is 200 equity shares. Login to your account now

The allotment Date for  Niva Bupa Health Insurance Company Ltd IPO is 12th November  2024.  Login to your account now.

The listing Date for Niva Bupa Health Insurance Company Ltd IPO is 14th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,800. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 192,400. Login to your account now

  • The company’s profitability depends on managing underwriting risks and appropriately priced products. Any failure to estimate medical expenses accurately or the frequency of claims could harm the business, financial condition, results of operations, cash flows, and prospects.
  • As a significant portion of business is generated from the health insurance line, any adverse changes to the demand for health insurance products and the retail health insurance sector may affect the sale of health insurance products and, in turn, business and profitability.
  • If company fail to align products, including in particular, retail health insurance products, with the needs of targeted customer demographics or if they are unsuccessful in product development strategy, the business could adversely affect. 

The Niva Bupa Health Insurance Company Ltd IPO be credited to the account on allotment date which is 13th November 2024. Login to your account now 

The prospectus of Niva Bupa Health Insurance Company Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateThursday, November 7, 2024
IPO Close DateMonday, November 11, 2024
Basis of AllotmentTuesday, November 12, 2024
Initiation of RefundsWednesday, November 13, 2024
Credit of Shares to DematWednesday, November 13, 2024
Listing DateThursday, November 14, 2024
Cut-off time for UPI mandate confirmation5 PM on November 11, 2024

Swiggy Ltd: SUBSCRIBE

  • Date

    06th Nov 2024 - 08th Nov 2024

  • Price Range

    Rs. 371 to Rs. 390

  • Minimum Order Quantity

    38

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Price Lot Size Issue Date Issue Size
₹ 371 to ₹ 390 38 06h Nov, 2024 – 08h Nov, 2024 ₹ 11,327.43 Cr

About Swiggy Ltd  IPO

A prominent consumer-first technology firm, Swiggy Ltd. was established in 2013 as Bundl Technologies Private Limited. It provides a centralized convenience platform that connects customers to a wide range of service providers. Customers can explore, choose, order, and pay for groceries, meals, and household goods on the platform, meeting their needs for ordering in, dining out, and cooking at home. Since introducing its meal delivery service in 2014 and its grocery delivery service, Instamart, in 2020, Swiggy has become a significant player in both rapid commerce and food delivery. Easily accessible via a single app, Swiggy also offers product pick-up/drop-off services (Genie), event bookings (SteppinOut), and restaurant reservations (Dineout), establishing itself as a leader in India’s hyperlocal commerce market. Swiggy provides additional value with its discount-based membership program, “Swiggy One,” and payment options, Swiggy Money and Swiggy UPI. Food Delivery, Out-of-Home Consumption, Quick Commerce, Supply Chain and Distribution, and Platform Innovations are the five business segments that make up the company’s business model. Swiggy’s revenue is earned through transaction fees, shipping charges, and other service-related fees that it passes on to its partners. Its scalable and adaptable technological stack makes it possible to quickly integrate new services, increasing user engagement and opening doors for its partners to expand. With an increasing user base, a wide network of partners, and an innovation-led strategy, Swiggy is well-positioned to take advantage of India’s growing online commerce market, making it one of the most valuable brands in the nation.

Objective of the Swiggy Ltd IPO

The company proposes to utilize the net proceeds towards funding the following objects:

  • Investment in the Material Subsidiary, Scootsy, for repayment or pre-payment, in full or in part, of certain or all of its borrowings;
  • Investment in the Material Subsidiary, Scootsy, for (a) expansion of Dark Store network for Quick Commerce segment through setting up of Dark Stores; and (b) making lease/license payments for Dark Stores;
  • Investment in technology and cloud infrastructure;
  • Brand marketing and business promotion expenses for enhancing the brand awareness and visibility of its platform, across segments; and
  • Funding inorganic growth through unidentified acquisitions and general corporate purposes.  

Rationale To Invest In Swiggy Ltd IPO

Pioneers of high-frequency hyperlocal commerce categories driven by an innovation-led culture

Swiggy, a pioneer in India’s hyperlocal commerce market, has established itself as a leader in innovation with a broad service portfolio. Since launching Food Delivery in 2014 and Quick Commerce in 2020, Swiggy has rapidly expanded its offerings to include dining, event bookings, and product pick-up/drop-off services. The company’s ability to scale these services is driven by a technology platform designed for scalability, reliability, and quick integration, enabling Swiggy to rapidly launch and expand services like “Swiggy Mall” and Instamart. Leveraging data analytics, Swiggy provides personalized recommendations to users and helps partners engage effectively through targeted advertising tools. Swiggy’s strategic acquisitions, such as Dineout, strengthen its ecosystem by adding complementary offerings and expanding user touchpoints. Despite its growth, the company has maintained minimal equity dilution (1.36% since inception), focusing on organic growth through innovation. This approach, supported by a data-driven model, creates a self-reinforcing cycle that drives user engagement and enhances user and partners’ value. With its robust platform and sustained growth, Swiggy represents a compelling investment opportunity in hyperlocal commerce.

Swiggy’s unified app and its extensive network of business partners create a rich and seamless user experience that drives increasing user engagement

Swiggy has emerged as a leader in India’s hyperlocal commerce market, becoming one of the most valuable brands in the Consumer Technology & Services Platforms sector. Its unified app integrates various services like food delivery, grocery shopping, and restaurant reservations, which boosts user engagement and loyalty. As of June 2024, over 26% of Swiggy’s Monthly Transacting Users (MTUs) accessed more than one service, highlighting its success in offering a comprehensive user experience. The platform’s wide range of services, combined with its network effects, creates a cycle where more users attract more partners, and more partners attract more users, increasing the overall value of the platform. Swiggy also offers partners cost-effective ways to reach users through targeted ads, personalized recommendations, and an efficient delivery network. With 112.73 million ever-transacted users, Swiggy’s growth is evident in its rising engagement and transaction frequency. Monthly GOV per MTU increases, driven by higher average order values and frequent transactions. Quick Commerce accounts for 40% of Food Delivery’s Gross Order Value. Swiggy’s expanding services, strong user retention, and growing market presence make it a solid investment with significant growth potential.

Valuation of Swiggy Ltd IPO

India’s online food delivery market has expanded from Rs. 112 billion in 2018 to Rs. 640 billion in 2023, with projections to reach Rs. 1,400-1,700 billion by 2028, driven by rising incomes, urbanisation, and shifting lifestyle preferences. Significant growth potential exists with the growing gig economy and increasing demand for convenience, especially in smaller cities. Swiggy Ltd, a leader in hyperlocal commerce, has pioneered online food delivery (2014) and quick commerce (2020), offering food, groceries, and household items through its unified app. The company is well-positioned to capitalise on these emerging opportunities. The company has seen steady growth, reaching 112.7 million Monthly transactional users (MTU) by June 2024, supported by its customer-centric approach and strong brand recognition. While Swiggy has reported losses consistently, it has shown steady growth in its revenue. The management remains confident that its strategy, including expanding its dark store network, optimising logistics, and broadening its product range, will turn operations profitable in the coming years. The company aims to narrow its market share gap with rivals Zomato and Blinkit, accelerating its Instamart service and enhancing customer engagement. Swiggy’s innovation-driven approach positions it for long-term growth in the food delivery and quick commerce segments. Given its strong market presence, strategic expansion plans, and potential for profitability, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.  

What is the Swiggy Ltd IPO?

Swiggy IPO is a book built issue of Rs 11,327.43 crores. The issue is a combination of fresh issue of 11.54 crore shares aggregating to Rs 4,499.00 crores and offer for sale of 17.51 crore shares aggregating to Rs 6,828.43 crores. Login to your account now.

To apply for the Swiggy Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Swiggy Ltd IPO is opening on 06th November 2024. Apply Now

The Lot Size of Swiggy Ltd IPO is 38 equity shares. Login to your account now

The allotment Date for  Swiggy Ltd IPO is 11th November  2024.  Login to your account now.

The listing Date for Swiggy Ltd IPO is 13th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,820. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 192,660. Login to your account now

  • Swiggy faces intense competition across its key segments—Food Delivery, Quick Commerce, and Dining Out—against players like Zomato, Blinkit, and others. Competitors may offer lower prices, broader services, or leverage better technology, reducing Swiggy’s market share, impacting margins, and adversely affecting its business growth and profitability.
  • Swiggy has faced net losses and negative cash flows since its inception due to significant expenses supporting its growth, such as advertising, delivery, and employee costs. Despite expanding its services (Food Delivery, Quick Commerce, Dineout, Genie), Swiggy has struggled to achieve consistent profitability. The company continues to invest in scaling its operations, adding new offerings, and expanding its user base. Still, risks remain, including slowing demand, increased competition, and higher operational costs, which could hinder future profitability and cash flow growth.
  • Swiggy’s Quick Commerce business relies heavily on managing its Dark Stores, which are crucial for product assortment, order fulfilment, and reducing delivery costs. Any issues with location suitability, increasing lease payments, or operational disruptions could negatively impact its financial performance, sales, and fulfilment efficiency. 

The Swiggy Ltd IPO be credited to the account on allotment date which is 12th November 2024. Login to your account now 

The prospectus of Swiggy Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateWednesday, November 6, 2024
IPO Close DateFriday, November 8, 2024
Basis of AllotmentMonday, November 11, 2024
Initiation of RefundsTuesday, November 12, 2024
Credit of Shares to DematTuesday, November 12, 2024
Listing DateWednesday, November 13, 2024
Cut-off time for UPI mandate confirmation5 PM on November 8, 2024

ACME Solar Holdings Limited: SUBSCRIBE

  • Date

    06th Nov 2024 - 08th Nov 2024

  • Price Range

    Rs. 275 to Rs. 289

  • Minimum Order Quantity

    51

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Price Lot Size Issue Date Issue Size
₹ 275 to ₹ 289 51 06h Nov, 2024 – 08h Nov, 2024 ₹ 2,900.00 Cr

About ACME Solar Holdings Limited  IPO

ACME Solar Holdings, founded in 2015 under the ACME Group, was established to consolidate and expand the Group’s renewable energy business in India. ACME Solar is a prominent renewable energy company in India, managing a diversified portfolio that includes solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects. Recognized as one of India’s largest independent power producers (IPPs), it ranks among the top ten regarding operational capacity. The company is involved in the development, construction, ownership, operation, and maintenance of large-scale renewable energy projects. It generates revenue by selling electricity to various buyers, including entities backed by central and state governments. Since its inception, the ACME Group has developed and commissioned 2,719 MW (3,668 MWp) of solar power projects. Its current operational capacity includes 1,340 MW (1,826 MWp) of solar projects, with additional contracted projects under construction totaling 3,250 MW—comprising 1,500 MW (2,192 MWp) of solar, 150 MW of wind, 1,030 MW of hybrid, and 570 MW of FDRE projects. Additionally, the company has an awarded project capacity of 1,730 MW under construction, consisting of 600 MW (870 MWp) of solar, 450 MW of hybrid, and 680 MW of FDRE projects. Over 80% of ACME’s operational and in-progress projects are located in high-irradiance states such as Gujarat, Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka, and Tamil Nadu, which are ideal for solar installations.

Objective of the ACME Solar Holdings Limited IPO

The company proposes to utilize the net proceeds towards funding the following objects:

  • Investment in its Subsidiaries for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Subsidiaries; and
  • General corporate purposes.

Rationale To Invest In ACME Solar Holdings Limited IPO

Strong industry positioning and diversified portfolio drive growth and control

ACME Solar Holdings is India’s largest renewable energy independent power producer (IPP), ranking among the top 10 players within the segment for its operational capacity. The company has an aggregate operational project capacity of 1,340 MW (1,826 MWp), a contracted project capacity of 3,250 MW under construction and an additional 1,730 MW awarded project capacity in the construction phase. It has an expansive portfolio of projects diversified across different renewable energy technologies spread across 11 states of India that offer more solar irradiance than other parts of India, which makes it ideal for installing solar projects. Additionally, states like Gujarat, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh have excellent wind and solar potential, providing strong prospects for hybrid power supply projects where ACME already has operational setups. The company is majorly invested in solar projects, which comprise more than 54% of its portfolio, and the second highest is the hybrid project, followed by the FDRE and wind projects. In line with the country’s push for round-the-clock clean power generation through hybrid tenders, which integrate solar, wind, and storage technologies, ACME has recently acquired additional projects from ACME Cleantech. These projects have a contracted capacity of 2,080 MW, comprising 830 MW of hybrid and 1,250 MW of FDRE projects. As part of this acquisition, ACME Solar entered into a share purchase and shareholder agreement for 450 MW of capacity with ACME Cleantech and associated SPVs, where it acquired 49% of the equity share capital of such SPVs. The company exercises control over SPVs in this agreement and is responsible for the relevant project’s overall development, commissioning, and funding.  

End-to-end value chain and in-house teams improve efficiency

ACME Solar Holdings has a fully integrated in-house approach for executing its renewable projects, managing each phase from signing the PPA to commercial operations and ongoing maintenance. The company’s project development team is well-experienced in the renewable energy industry and ensures projects are completed in a timely and cost-efficiently. ACME’s comprehensive value chain capabilities cover all aspects, including tendering and bidding, land acquisition, obtaining necessary approvals, financial closure, design engineering, procurement and construction and operations and maintenance. The company carefully selects renewable energy auctions, bidding only where it aligns with favorable policies, incentives, and credit history of the off-takers and where there is access to evacuation infrastructure, transmission systems, water, roads and communications networks and other ancillary infrastructure, competitive intensity, capacity on offer and restrictions on maximum/minimum bid quantity. Additionally, ACME’s land acquisition team is well-versed in local practices, facilitating their land acquisition without disruptions. Due to its scale, size, and experience, the company successfully maintains a full-fledged EPC team that handles project-specific EPC-related activities. The in-house O&M team monitors all plants using a supervisory control and data acquisition (SCADA) system, which enables real-time performance tracking through networked data communications, computers, and a graphical interface to supervise its machines and processes. The company’s dedicated technology team evaluates new technologies and utilizes specialized software to help manage in-house engineering from bidding to final project execution. This integrated approach allows ACME to maintain control over its processes and keep track of its costs, ensuring it completes its projects on time. 

Valuation of ACME Solar Holdings Limited IPO

ACME Solar Holding is a renewable energy company in India with a diverse portfolio spanning solar, wind, hybrid and firm and dispatchable renewable energy (“FDRE”) projects. ACME builds, owns, operates, and maintains utility-scale renewable energy projects through its dedicated in-house engineering, procurement and construction (EPC) division and operation and maintenance team. The company generates revenue by selling electricity to various off-takers, including central and state government-backed entities. Renewable energy installations in India have increased to approximately 200 GW, with renewable energy generation, including large hydro, now comprising about 44% of the country’s total installed capacity. ACME has an extensive portfolio across various renewable energy technologies and is constantly growing its portfolio by adding to its capacity. It has an in-house approach to end-to-end execution, completion and maintenance of its projects. This helps the company improve its efficiency and manage costs, boosting revenue and strengthening reliability. On the financial front, ACME has demonstrated remarkable growth, with its PAT increasing from Rs. 620 million in FY22 to Rs. 6,978 million in FY24. Additionally, the company achieved an ROE of 38.83% in FY24. The current issue is priced at a P/E ratio of 23.03x on the upper price band based on FY24 earnings, which is relatively lower than its peers. Therefore, we recommend a SUBSCRIBE rating with a medium to long-term investment perspective for this issue.

What is the ACME Solar Holdings Limited IPO?

ACME Solar Holdings IPO is a book built issue of Rs 2,900.00 crores. The issue is a combination of fresh issue of 8.29 crore shares aggregating to Rs 2,395.00 crores and offer for sale of 1.75 crore shares aggregating to Rs 505.00 crores. Login to your account now.

To apply for the ACME Solar Holdings Limited IPO through StoxBox one can apply from the website and also from the app. Click here

ACME Solar Holdings Limited IPO is opening on 06th November 2024. Apply Now

The Lot Size of ACME Solar Holdings Limited IPO is 51 equity shares. Login to your account now

The allotment Date for  ACME Solar Holdings Limited IPO is 11th November  2024.  Login to your account now.

The listing Date for ACME Solar Holdings Limited IPO is 13th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,739. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 191,607. Login to your account now

  • The company may not be able to grow its portfolio of renewable energy power projects as it relies on highly competitive renewable energy power project auctions. Therefore, the company significantly depends on successfully executing our Under Construction Awarded Projects and Under Construction Contracted Projects. If it is unsuccessful in implementing its future projects, the business and results of operations may be adversely impacted.
  • The company has prior experience commissioning solar power projects but does not have any experience commissioning wind, hybrid, FDRE power projects, or closed-loop pump storage projects. Without previous experience in such projects, delays and unexpected costs could occur, affecting the project’s viability and profitability.
  • The company’s major operational projects are located in Andhra Pradesh, Rajasthan and Telangana, contributing to a significant portion of its revenue. Any change in governmental policies or occurrence of natural disasters within any of these states may impact its business, results of operations and cash flows.  

The ACME Solar Holdings Limited IPO be credited to the account on allotment date which is 12th November 2024. Login to your account now 

The prospectus of ACME Solar Holdings Limited IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateWednesday, November 6, 2024
IPO Close DateFriday, November 8, 2024
Basis of AllotmentMonday, November 11, 2024
Initiation of RefundsTuesday, November 12, 2024
Credit of Shares to DematTuesday, November 12, 2024
Listing DateWednesday, November 13, 2024
Cut-off time for UPI mandate confirmation5 PM on November 8, 2024

Sagility India Ltd: SUBSCRIBE

  • Date

    05th Nov 2024 - 07th Nov 2024

  • Price Range

    Rs. 28 to Rs. 30

  • Minimum Order Quantity

    500

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Price Lot Size Issue Date Issue Size
₹ 28 to ₹ 30 500 05th Nov, 2024 – 07th Nov, 2024 ₹ 2,106.60 Cr

About Sagility India Ltd IPO

Sagility India is a technology-enabled pure-play healthcare-focused solutions and services provider to Payers (US health insurance companies that finance and reimburse the cost of health services) and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies). The company was incorporated in July 2021, and it acquired the healthcare services business of the predecessor company – Hinduja Global Solutions, in January 2022 for a consideration of $ 449 million. The company’s services to Payers cater to various aspects of their operations, including (i) core benefits administration functions such as claims management, enrolment, benefits plan building, premium billing, credentialing, and provider data management and (ii) clinical functions such as utilization management, care management, and population health management. The company’s services to Providers include, revenue cycle management functions such as financial clearance, medical coding, billing, and accounts receivable follow-up services. Further, the company also provides some of the services offered to Payers to pharmacy benefit managers (PBMs) that manage prescription drugs for Members (i.e., insured persons) under health insurance plans.

Objective of the Sagility India Ltd IPO

The company proposes to utilize net proceeds towards funding the following objects:

  • Achieve the benefits of listing the Equity Shares on the Stock Exchanges ;
  • Carry out the Offer for Sale of up to 70,21,99,262 Equity Shares of the face value of Rs. 10 each by the Promoter selling shareholder.

Rationale To Invest In Sagility India Ltd IPO

Leader in the large and resilient US Payer and Provider solutions market

The HealthCare operations expenditure (i.e. front & back-office functions to support Payers & Providers) was valued at US$201.1 bn in 2023 and is expected to reach ~ US$258.9 billion in 2028. Growth in the US healthcare market is expected to be driven by several factors, including a rise in the ageing population and increasing prevalence of chronic diseases. While the healthcare market is expected to benefit from these tailwinds, challenges are expected to drive outsourcing growth. In 2023, the aggregate outsourcing penetration rate in the US healthcare operations market stood at 21.5-23.5%, resulting in a total outsourced operations spend of US$45.0 billion. While the overall healthcare outsourced operations market is expected to grow at a CAGR of 8.7%, the Payer outsourced market is forecasted to grow at a CAGR of 7.0% from 2023 to 2028. On the other hand, the Provider operations outsourced market is expected to grow at a CAGR of 12.5%. The company have become one of the largest tech-enabled healthcare specialists (by revenue) with coverage across payer and provider marks by building out an end-to-end portfolio of services in the outsourced operations market for both Payers and Providers. The company has been recognised for the quality and scale of our services by industry experts. The company were ranked as a Leader by Avasant in their Clinical Services Business Process Transformation RadarView report 2023 and as a Leader in Everest’s Healthcare Payer Operations PEAK Matrix Assessment 2023.

Domain expertise in healthcare operations, with end-to-end service offerings to Payers and Providers

 The company provides Technology-enabled services to Payer and Provider clients. This pure-play nature of the company’s business, with 24+ years of Business experience and the effective use of technology, has helped the company build domain expertise in its operations. Sagility provides end-to-end, comprehensive service offerings to Payer clients. The company’s teams have extensive healthcare expertise and experience, with 1,920 employees having nursing, medical coding, physical therapy, dentistry, pharmacy, occupational therapy, microbiology or laboratory science degrees as of June 30, 2024. Further, the company’s domain expertise also helps it to contextualize the use of technology, from RPAs to Gen AI, among other things, to optimize the pre-authorization process, assess and manage claims, respond to questions from Members, and handle grievances for Payers. The non-discretionary nature and the domain specificity of services (as opposed to shared service services such as finance, accounting, and procurement) lead to higher client stickiness.

Valuation of Sagility India Ltd IPO

The company was incorporated in July 2021, and it acquired the healthcare services business of the predecessor company -Hinduja Global Solutions, in January 2022. The predecessor company commenced providing services to Payer clients in 2000 and gradually increased the scope of services offered to Payers and Providers. Sagility India is a technology-enabled, pure-play healthcare-focused solutions and services provider to Payers – US health insurance companies, which finance and reimburse the cost of health services; and Providers -primarily hospitals, physicians, and diagnostic and medical devices companies. The company has become one of the largest tech-enabled healthcare specialists (by revenue) with coverage across payer and provider markets. Within the healthcare operations outsourced market, the company had a 1.2% and 1.2% share in 2022 and 2023, respectively. As of June 30, 2024, its five largest client groups had an average tenure of 17 years with the Business. As of January 2024, the company served 5 of the top 10 Payers by enrolment in the US Financially, the company’s revenue from operations grew by 9.6% to Rs.1,223 crores for the quarter ended June 30, 2024, from Rs. 1,116 crores for the quarter that ended June 30, 2023, and by 12.69% to Rs. 4,753 crores in FY24 from Rs. 4,218.4 crores in FY23. The company reported 23.5% and 17.8% EBITDA margins for FY24 and the quarter ending June 30, 2024, respectively. The issue is valued at a P/E of 56.6x on the upper price band based on FY24 earnings, which is deemed fair. Therefore, we recommend a “SUBSCRIBE” rating for the issue.

What is the Sagility India Ltd IPO?

Sagility India IPO is a book built issue of Rs 2,106.60 crores. The issue is entirely an offer for sale of 70.22 crore shares. Sagility India IPO opens for subscription on November 5, 2024 and closes on November 7, 2024. The allotment for the Sagility India IPO is expected to be finalized on Friday, November 8, 2024. Sagility India IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, November 12, 2024. Login to your account now.

To apply for the Sagility India Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Sagility India Ltd IPO is opening on 05th November 2024. Apply Now

The Lot Size of Sagility India Ltd IPO is 500 equity shares. Login to your account now

The allotment Date for  Sagility India Ltd IPO is 08th November  2024.  Login to your account now.

The listing Date for Sagility India Ltd IPO is 12th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 15,000. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 195,000. Login to your account now

  • The healthcare services industry is intensely competitive, and failure to compete effectively may negatively impact the company’s business, financial condition, and operational results. Increased competition could result in pricing pressures and potentially unfavourable contract terms, affecting overall operating outcomes. Additionally, competitors may secure exclusive agreements with current or prospective clients, hindering the company’s growth opportunities and revenue generation.
  • The business could be adversely affected if the company cannot keep pace with technological changes, sufficiently invest and successfully yield the intended results from investments in technology. There is a risk that the company may not adequately invest in technology at sufficient speed and scale or evolve our business with suitable technological investments to adapt to changes in our market.
  • High voluntary attrition rates, recorded at 27.34% in Q1 FY24, also present challenges, resulting in greater recruitment and training expenses. Recruitment costs alone were Rs. 63.86 million in Q1FY24, a notable increase from Rs. 43.03 million in Q1FY23. 

The Sagility India Ltd IPO be credited to the account on allotment date which is 11th November 2024. Login to your account now 

The prospectus of Sagility India Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateTuesday, November 5, 2024
IPO Close DateThursday, November 7, 2024
Basis of AllotmentFriday, November 8, 2024
Initiation of RefundsFriday, November 8, 2024
Credit of Shares to DematMonday, November 11, 2024
Listing DateTuesday, November 12, 2024
Cut-off time for UPI mandate confirmation5 PM on November 7, 2024

Afcons Infrastructure Ltd : SUBSCRIBE

  • Date

    25th Oct 2024 - 29th Oct 2024

  • Price Range

    Rs. 440 to Rs.

  • Minimum Order Quantity

    32

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Price Lot Size Issue Date Issue Size
₹ 440 to ₹ 463 32 25th Oct, 2024 – 29th Oct, 2024 ₹ 5,430.00 Cr

About Afcons Infrastructure Ltd IPO

Afcons Infrastructure Ltd. (AIL) is an infrastructure, engineering and construction company, part of the Shapoorji Pallonji group. It is one of India’s largest international infrastructure company with a track record of executing numerous EPC projects in the domestic and international markets. In the last eleven financial years and Q1FY5, the company has completed 79 projects across 17 countries with a historic executed contract value of Rs. 56,305 crores. Currently, the company has 65 active projects across 12 countries with an aggregated order book of Rs. 31,747 crores. The company has a comprehensive global presence, with Asia, Africa, and the Middle East as the key markets. The overseas market contributes 24.4% of the order book, while the domestic market contributes the rest. The company engages across five major business verticals, namely: (i) Marine & Industrial, (ii) Surface Transport, (iii) Urban Infrastructure, (iv) Hydro & Underground and (v) Oil & Gas. Amongst the verticals, urban infra is the largest contributor, followed by hydro & underground, surface transport, marine & industrial and oil & gas. The company’s client base consists of three types of entities: (i) Government entity, (ii) Multilateral entity, and (iii) Private entity, with the government being the largest client (69.8%) followed by multilateral (20.1%) and private at 10.1%. As of June 30, 2024, the cost of materials consumed was 25.9% of the total expense. The company has the following types of contracts through which it caters to clients: (i) EPC contracts, (ii) Item rate contracts and (iii) Cost-plus contracts. The revenue contribution of contracts as of June 30, 2024 is: EPC contracts (72.3%), Item rate contracts (27.6%) and Cost-plus contracts (0.1%). A similar pattern is reflected on the order book front, with EPC contracts contributing 59.5% of the book while Interest rate contracts contribute about 40.5%.

Objective of the Afcons Infrastructure Ltd IPO

The company proposes to utilize net proceeds towards funding the following objects:

  • Capital expenditure towards the purchase of construction equipments;
  • Funding long-term working capital requirements;
  • Prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company; and
  • General corporate purposes.

Rationale To Invest In Afcons Infrastructure Ltd IPO

Reliable execution and diverse capabilities ensure stickiness amongst clientele

The company boasts a healthy track record of timely execution across demographics. A healthy record highlights the company’s ability to capitalize on its design, engineering capabilities, management expertise and internal management system. Moreover, the company’s ability to efficiently leverage its experience to execute projects across geographies ensures an added advantage in project execution and delivery. In addition, the company executes certain projects through JVs, further improving its competitive position. Collaborating with other companies enables AIL to leverage its expertise, networks, and capabilities. Its diversified offerings further enhance its ability to cater to the varying needs of customers across demographics. The company further benefits from its group’s brand image and market presence, supporting its growth. The company also has access to the Group’s network, enabling strategic collaboration, business development opportunities and knowledge sharing. Further, the company maintains a strategic equipment base comprising a wide range of heavy machinery and specialized equipment, which, along with its in-house capabilities, has been instrumental in winning several key deals. All the given elements set the company with a solid foundation for future growth.

Strategic operational framework to drive sustainable growth

The company’s systematic risk management system helps it identify various operational risks. Its assessment includes a review of credit risk, market risk, and operational risk associated with the project. This evaluation ensures sound decision-making processes. Moreover, through its project selection process, the company aims to maintain a diverse and high-quality order book, which is in tandem with its aim to maximize its opportunities in the existing market and concurrently expand its footing in new geographies, capitalizing on diverse growth trends in India and overseas.  Additionally, its constant focus on procuring and harnessing knowledge from its projects has enabled the company to execute projects efficiently. The company also follows an asset-right model, ensuring efficient working capital management and cost optimization. The prudent efforts taken by the company are underscored by the financial performance it has delivered in the past, with improving margins and steady top-line growth. Overall, these frameworks will likely contribute to steady growth and improved financial performance in the future and have a comprehensive edge over competitors.

Valuation of Afcons Infrastructure Ltd IPO

Afcons Infrastructure Ltd. (AIL) is a global company engaged in infrastructure and EPC business. The company has a significant presence in the Indian and overseas markets. By capitalising on its strength in design, engineering and management and leveraging its robust network and strategic collaboration, the company is set to achieve sustainable growth. Its prudent framework, diverse offerings and asset-right model further position the company to navigate the varying market trends and maintain a competitive edge. On the economic front, India is projected to be the fastest-growing construction market in the world, growing at a CAGR of 9.5% to 10.0% during FY2023-28. The growth in the Indian construction industry will be supported by high levels of urbanization, rising infrastructure investments, surging power demand and robust industrial growth. Owing to the company’s strong presence in the market, strong parentage, a wide array of solutions and a higher concentration of government projects, the company is well-positioned to benefit from the economic tailwinds. The company reported strong financial growth between FY22 and FY24, with a CAGR of 9.7% in revenue, 20.8% in EBITDA, and 12.1% in PAT. For FY24, the EBITDA and PAT margins were 10.3% and 3.4%, respectively, while Q1FY25 saw margins of 11.2% and 2.9%, respectively. The company maintained a robust ROE of 12.5% and an ROCE of 13.7% in FY24. The company is valued at a P/E ratio of 35.1x on the upper price band based on FY24 earnings, which is lower than the average P/E of the industry. Given its strong position in the market, the company is poised to capitalize on emerging market opportunities. Therefore, we recommend a “SUBSCRIBE” rating for the issue from a medium to long-term perspective.

What is the Afcons Infrastructure Ltd IPO?

Afcons Infrastructure IPO is a book built issue of Rs 5,430.00 crores. The issue is a combination of fresh issue of 2.7 crore shares aggregating to Rs 1,250.00 crores and offer for sale of 9.03 crore shares aggregating to Rs 4,180.00 crores. Login to your account now.

To apply for the Afcons Infrastructure Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Afcons Infrastructure LtdIPO is opening on 25th October 2024. Apply Now

The Lot Size of Afcons Infrastructure Ltd IPO is 32 equity shares. Login to your account now

The allotment Date for  Afcons Infrastructure Ltd IPO is 30th  October  2024.  Login to your account now.

The listing Date for Afcons Infrastructure Ltd IPO is 04th November 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,816. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 192,608. Login to your account now

  • If any of the company’s projects are terminated prematurely, the company may not receive payment.
  • Certain corporate records and filings contain factual inaccuracies, and certain historical corporate and secretarial records are not traceable. This uncertainty raises the risk of future regulatory actions or penalties, potentially impacting their financial condition and reputation.
  • The company requires various statutory and regulatory permits and approvals to operate. Failure to obtain, renew or maintain these permits may lead to operational risks.

The Afcons Infrastructure Ltd IPO be credited to the account on allotment date which is 31st October 2024. Login to your account now 

The prospectus of Afcons Infrastructure Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateFriday, October 25, 2024
IPO Close DateTuesday, October 29, 2024
Basis of AllotmentWednesday, October 30, 2024
Initiation of RefundsThursday, October 31, 2024
Credit of Shares to DematThursday, October 31, 2024
Listing DateMonday, November 4, 2024
Cut-off time for UPI mandate confirmation5 PM on October 29, 2024

Godavari Biorefineries Ltd IPO : SUBSCRIBE

  • Date

    23rd Oct 2024 - 25th Oct 2024

  • Price Range

    Rs. 334 to Rs. 352

  • Minimum Order Quantity

    42

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Price Lot Size Issue Date Issue Size
₹ 334 to ₹ 352 42 23rd Oct, 2024 – 25th Oct, 2024 ₹ 554.75 Cr

About Godavari Biorefineries Ltd IPO

Godavari Biorefineries is one of the prominent manufacturers of ethanol-based chemicals in India. As of March 31, 2024, the company has the largest integrated bio-refinery in the country in terms of installed capacity. It is one of India’s largest producers of ethanol by volume as of March 31, 2024 (source: Frost & Sullivan Report). The company is also the largest manufacturer of MPO worldwide in terms of installed capacity, one of only two manufacturers of natural 1,3 butylene glycol, and the only company in India to manufacture bio ethyl acetate. Additionally, it has established India’s first bio-based EVE manufacturing facility as of March 31, 2024. The company’s diversified product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are utilized in a range of industries such as food, beverages, pharmaceuticals, flavors & fragrances, power, fuel, personal care, and cosmetics. According to the Frost & Sullivan Report, the company has the widest portfolio of bio-based products in India. Utilizing sugarcane as a feedstock, the company manufactures a wide range of products, including sugar, ethanol, bio-based chemicals, and power. It was among the first companies in India to use sugarcane juice and syrup for ethanol production (source: Frost & Sullivan Report). The company continuously strives to improve the valorization of sugarcane through the development of downstream products and increasing the diversion of sugarcane towards value-added products. For instance, it has successfully manufactured a wide range of bio-based chemicals such as ethyl acetate, bio-ethyl acetate, MPO, 1,3 butylene glycol, crotonaldehyde, acetaldehyde, bio-acetic acid, butanol, EVE, and paraldehyde. The company is also exploring the utilization of grains to manufacture grain-based ethanol.

Objective of the Godavari Biorefineries Ltd IPO

The net proceeds from the fresh issue will be used towards the following purposes:

  • Repayment/Prepayment of certain outstanding borrowings;
  • General corporate purposes. 

Rationale To Invest In Godavari Biorefineries Ltd IPO

Diversified product portfolio along with wide geographical reach to drive growth

Godavari Biorefineries has expanded and diversified its manufacturing capabilities and product portfolio, primarily bio-based chemicals, sugar, and ethanol. This diversification has reduced the company’s dependence on any specific product category. The company’s bio-based chemicals find applications in various industries, including personal care and cosmetics, flavour and fragrance, food, fuel, paints and coatings, and pharmaceuticals. The ethanol produced is sold to oil marketing companies and used in the beverages, pharma, and chemical industries. Additionally, the company sells sugar and other food products under its retail brand Jivana, offering a diverse array of products for the Indian kitchen, from refined sugar to brown sugar, salt, turmeric, jaggery, and sugarcane juice concentrate. The ‘Jivana’ products are sold across retail stores and online channels. The company has increased its focus on sales and distribution by expanding its social media presence and participating in exhibitions, store activities, and promotions. Further, the company has an international presence with customers spread across the world, including Australia, China, Germany, France, Italy, Japan, Kenya, Netherlands, Singapore, United Kingdom, United Arab Emirates, Indonesia and the USA. The company has offices in Hoofddorp (Netherlands) and Philadelphia (USA), which enables it to assess international demand and increase customer outreach, thereby bolstering product development initiatives. We, thus, believe that a diversified product portfolio, together with long-standing relationships with a diversified customer base across industries and geographies, helps to broad base growth and de-risk business across customers, sectors and geographies.

A leading ethanol-based chemicals manufacturer, benefits from economies of scale and industry tailwinds enhance growth prospects

The company is a prominent manufacturer of ethanol-based chemicals in India and has the largest integrated bio-refinery in the country in terms of installed capacity. The company was also the largest manufacturer of MPO worldwide in terms of installed capacity, one of only two manufacturers of natural 1,3 butylene glycol, and the only company in India to manufacture bio ethyl acetate. Additionally, it has set up India’s first bio-based EVE manufacturing facility. Leveraging its experience in ethanol-based chemicals, the company manufactures a wide range of bio-based chemicals, including ethyl acetate, bio-ethyl acetate, MPO, 1,3 butylene glycol, crotonaldehyde, acetaldehyde, bio-acetic acid, butanol, EVE, and paraldehyde. The company believes its bio-based chemicals help customers substitute conventional materials without losing functionality. Further, the European regulation concerning the ‘Registration, Evaluation, Authorization and Restriction of Chemicals’ (REACH) has, in 2015, banned products, including glues containing toluene, chloroform, or benzene. This ban might be adopted by other regions as well, which will enhance the need to move to a green solvent like bio ethyl acetate and bio-butyl acetate which will benefit the company to deliver long-term growth going ahead.

Valuation of Godavari Biorefineries Ltd IPO

Godavari Biorefineries manufactures ethanol-based chemicals and operates an integrated biorefinery for ethanol production in India.  The company’s product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics. Godavari’s long-standing relations with customers, especially in sugar and bio-based chemicals segments, help the company understand customer requirements and enable the cross-selling of new products to such customers. The company constantly evaluates opportunities to diversify its product portfolio by adding new products (including downstream and value-added products) that are synergistic with the existing products. The company believes it is well-poised and technologically equipped to add additional products to the value chain. According to the F&S Report, the Indian ethanol market is projected to grow from USD 7.0 bn in 2023 to USD 17.5 bn by 2028, exhibiting a CAGR of 20.0% during 2023-2028 on the back of increasing ethanol use in applications such as fuel additives, disinfectants, and beverages. On the financial front, the company intends to reduce its borrowings and debt-to-equity ratio. The improvement in the debt-to-equity ratio is intended to enable the company to raise further resources to fund potential business development opportunities. As we advance, Godavari Biorefineries’ financial performance is likely to be driven by diversifying product offerings and improving operational efficiency, long-term relationships with marquee customers, and research and development of new products to meet customers’ requirements. The issue is valued at a P/E of 120.1x on the upper price band based on FY24 earnings. Though the issue looks rich in terms of valuation, we believe that the company’s strong business performance along with industry tailwinds provide an opportunity from a medium to long term perspective. Therefore, we recommend a SUBSCRIBE rating for the issue.

What is the Godavari Biorefineries Ltd IPO?

Godavari Biorefineries IPO is a book built issue of Rs 554.75 crores. The issue is a combination of fresh issue of 0.92 crore shares aggregating to Rs 325.00 crores and offer for sale of 0.65 crore shares aggregating to Rs 229.75 crores. Login to your account now.

To apply for the Godavari Biorefineries Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Godavari Biorefineries Ltd IPO is opening on 23rd October 2024. Apply Now

The Lot Size of Godavari Biorefineries Ltd IPO is 42 equity shares. Login to your account now

The allotment Date for  Godavari Biorefineries Ltd IPO is 28th October  2024.  Login to your account now.

The listing Date for Godavari Biorefineries Ltd IPO is 30th October 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,784. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 192,192. Login to your account now

  • The company depends on a few suppliers to supply a significant portion of raw materials (excluding sugarcane). Any failure to procure such raw materials from these suppliers may hurt manufacturing operations and results of operations.
  • The company derives a portion of revenue from a few customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for products may adversely affect the business, results of operations, and financial condition.
  • The company is dependent on third-party manufacturers for the manufacture and sale of products under the retail brand Jivana. Any disruption in such third-party manufacturers’ ability to supply these products or their failure to meet the quality standards or delivery timelines could adversely affect the business, financial condition, and results of operations.

The Godavari Biorefineries Ltd IPO be credited to the account on allotment date which is 29th October 2024. Login to your account now 

 The prospectus ofGodavari Biorefineries Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateWednesday, October 23, 2024
IPO Close DateFriday, October 25, 2024
Basis of AllotmentMonday, October 28, 2024
Initiation of RefundsTuesday, October 29, 2024
Credit of Shares to DematTuesday, October 29, 2024
Listing DateWednesday, October 30, 2024
Cut-off time for UPI mandate confirmation5 PM on October 25, 2024

Deepak Builders & Engineers India Ltd IPO : SUBSCRIBE

  • Date

    21st Oct 2024 - 23rd Oct 2024

  • Price Range

    Rs. 192 to Rs. 203

  • Minimum Order Quantity

    73

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Price Lot Size Issue Date Issue Size
₹ 192 to ₹ 203 73 21st Oct, 2024 – 23rd Oct, 2024 ₹ 260.04Cr

About Deepak Builders & Engineers India Ltd IPO

Deepak Builders & Engineers India Limited is a construction company established in 2017, classified into three verticals: construction project business, infrastructure project business and the sale of products. The construction project business specializes in executing and constructing diverse infrastructure and building projects, including hospitals, medical colleges, administrative and institutional buildings, industrial complexes, historical memorials, sports facilities, and residential projects. The infrastructure project business undertakes specialized work such as flyovers, rail under and over-bridges, and railway station redevelopment. The company operates across northern India, including Punjab, Haryana, Rajasthan, Uttarakhand, and Union Territories like Delhi and Chandigarh. The company offers a comprehensive suite of services, including EPC (Engineering, Procurement, and Construction) and item-rate/percentage-rate contracts. Its projects encompass architectural, civil, structural, mechanical, electrical, and plumbing (MEP) works, along with specialized systems like modular operation theatres and medical gas pipelines. With a robust portfolio, the company has completed major projects such as the Jang-E-Azadi Memorial in Kartarpur and the AIIMS Geriatrics Block in New Delhi. In addition to its construction activities, the company has established Ready-Mix Concrete (RMC) plants and stocks materials such as steel, cement, and aggregates to execute projects efficiently. Surplus materials, primarily steel, are sold to third-party contractors and traders at competitive prices. Since its incorporation, the company has shown steady growth, achieving a revenue from operations of Rs. 5,114 million in FY24, up from Rs. 3,630.5 million in FY22. As of June 2024, the company’s order book stood at Rs. 13,803.9 million, indicating a strong pipeline of future work. It is pre-qualified to bid for projects up to Rs. 6,500 million and holds a Class I (Super) Contractor accreditation from the Central Public Works Department. The company’s diverse portfolio, operational expertise, and growing market presence position it as a significant player in India’s construction and infrastructure sector.

Objective of the Deepak Builders & Engineers India Ltd IPO

The company proposes to utilize the net proceeds from the fresh issue towards funding the following objects:

  • Repayment/prepayment, in full or part, of certain borrowings availed by the company;
  • Funding of working capital requirements of the company and
  • General corporate purposes.

Rationale To Invest In Deepak Builders & Engineers India Ltd IPO

Decent order book with a government client base drives growth potential

Deepak Builders & Engineers India Limited has established itself as a reliable partner for large-scale infrastructure and building projects thanks to its focus on high-quality construction, advanced technology, and a skilled workforce. The company’s strong client base, consisting of government, semi-government, and government-controlled entities, provides stability and visibility for future revenues, enabling repeat contracts and long-term growth. As of June 2024, its order book stood at Rs. 13,803.9 million, underscoring a robust pipeline of future projects. The company has proven its capabilities with 76 completed construction and infrastructure projects, including major hospitals, industrial complexes, and public infrastructure. Its Class I (Super) Contractor status further highlights its ability to independently bid for projects up to Rs. 6,500 million, positioning it well for large-scale government projects. Deepak Builders’ competitive advantage lies in its selective project bidding, financial strength, timely execution, and price competitiveness. These factors allow the company to secure contracts from governmental and public sector bodies while optimizing working capital and resource utilization. With India’s economic growth, rapid urbanization, and increasing infrastructure demands, Deepak Builders is well-positioned for sustained success. Strong relationships with key stakeholders and its ability to adapt to market demands further bolster its growth prospects, making it an attractive investment opportunity.

Continuous focus on equipment ownership

Deepak Builders & Engineers India Limited’s strategic ownership of 398 major construction machines as of June 2024 provides a distinct competitive edge in project execution, reducing dependency on external providers and minimizing equipment downtime and maintenance costs. This extensive fleet, including concrete mixers, JCBs, transit mixers, and mobile tower cranes, is critical for timely delivery and the ability to bid for new projects. The company’s continuous investment in modern equipment ensures operational efficiency and enhances its capacity to undertake complex, large-scale projects. With a gross block value of Rs. 742.6 million in property, plant, and equipment, of which Rs. 474.2 million is dedicated to plant and machinery, Deepak Builders has demonstrated consistent investment in its asset base, underscoring its commitment to maintaining a competitive and scalable operation. These factors, combined with its strong order book and market positioning, make Deepak Builders a compelling investment opportunity poised for continued growth in India’s expanding infrastructure sector.

Valuation of Deepak Builders & Engineers India Ltd IPO

India’s construction industry is set to grow significantly, projected to reach USD 1.4 trillion by 2025, fueled by initiatives like the Gati Shakti National Master Plan and the Bharatmala Pariyojana, which enhance connectivity and infrastructure. Key sectors, including residential, commercial, industrial, and infrastructure construction, are expected to drive job creation and economic activity. Rapid population growth, urbanization, and economic expansion increase the demand for efficient transport networks, further emphasized by a rise in trade and government investments. Deepak Builders & Engineers India Limited is strategically positioned for this growth, boasting a robust order book of Rs. 13,803.9 million and generating 92% of its FY24 revenue from government and semi-government projects. The company aims to enhance project execution through in-house integration and improved bid capacities, supported by a fleet of 398 major construction machines. Financially, the company has shown strong growth, with a CAGR of 18% during the FY22-24 period, reaching Rs. 5,114 million in revenue and Rs. 1,122 million in EBITDA in FY24. However, the company faces risks, particularly its dependence on government contracts and an ongoing tax dispute. To mitigate these risks, Deepak Builders plans to solidify its presence in Northern India while expanding into new geographies, focusing on government projects and enhancing its bidding and execution capabilities. By leveraging its in-house integration for design, engineering, and project management, the company aims to increase efficiency and reduce reliance on third-party contractors, targeting larger contracts, including major NHAI road and airport construction projects. The current issue is priced at a P/E of 12.1x on the upper band based on FY24 earnings and is relatively lower than peers. With a proven track record of 76 completed projects and Class I (Super) Contractor accreditation, Deepak Builders is well-positioned for future expansion. Therefore, we recommend a “SUBSCRIBE” rating for the issue, with a medium to long-term investment perspective.

What is the Deepak Builders & Engineers India Ltd IPO?

Deepak Builders & Engineers IPO is a book built issue of Rs 260.04 crores. The issue is a combination of fresh issue of 1.07 crore shares aggregating to Rs 217.21 crores and offer for sale of 0.21 crore shares aggregating to Rs 42.83 crores. Login to your account now.

To apply for the Deepak Builders & Engineers India Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Deepak Builders & Engineers India Ltd IPO is opening on 21st October 2024. Apply Now

The Lot Size of Deepak Builders & Engineers India Ltd IPO is 73 equity shares.  Login to your account now

 The allotment Date for  Deepak Builders & Engineers India Ltd IPO is 24th October  2024.  Login to your account now.

The listing Date for Deepak Builders & Engineers India Ltd IPO is 28th October 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,819. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 192,647. Login to your account now

  • The company heavily relies on government projects, making it vulnerable to changes in government policies. Revenue from government, semi-government, and government-related entities accounted for 92% in FY24, highlighting this dependence. Any changes in government policies or contract terms could impact the company’s financial stability.
  • The company relies heavily on a few large projects that contribute Rs. 13,803.9 million to its overall revenue, making it vulnerable to delays and cost overruns; any issues with these projects could negatively impact the company’s finances.
  • The Income Tax Department conducted a search operation under section 132(1) of the Income Tax Act at the company’s premises, resulting in the declaration of Rs.156.7 million as undisclosed income. This raised a penalty, which the company is currently challenging through appeals before the High Court. There is no assurance of a favourable outcome, and any future actions by tax authorities could materially impact the company’s financial condition and cash flows.

The Deepak Builders & Engineers India Ltd IPO be credited to the account on allotment date which is 25th October 2024. Login to your account now 

The prospectus of Deepak Builders & Engineers India Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, October 21, 2024
IPO Close DateWednesday, October 23, 2024
Basis of AllotmentThursday, October 24, 2024
Initiation of RefundsFriday, October 25, 2024
Credit of Shares to DematFriday, October 25, 2024
Listing DateMonday, October 28, 2024
Cut-off time for UPI mandate confirmation5 PM on October 23, 2024