Akanksha Power & Infrastructure IPO: Review, Valuation & GMP

Akanksha Power and Infrastructure IPO  - Complete Overview

Established in 2008, Akanksha Power and Infrastructure is a company that focuses on providing sustainable and reliable power solutions. They manufacture various electrical equipment like panels, transformers, and vacuum contactors, catering to institutions, industries, and utilities.

Operating from two manufacturing units in Nashik, Maharashtra, the company has evolved from trading capacitors in its early years to venturing into rural power distribution in Odisha. In 2013, they strategically established manufacturing facilities, starting with APFC Panels for Power Quality Solutions.

Over time, Akanksha Power and Infrastructure expanded into the turnkey construction sector for High Tension (HT) and Low Tension (LT) electrical infrastructure, including substations. They also undertook greenfield LED street light projects in Odisha and introduced Vacuum Contactors in 2019, designed for heavy-duty applications.

With a customer base including notable names like Hitachi Energy India Limited, Indian Oil Corporation Limited, and Larsen & Toubro Limited, the company is committed to reducing losses in transmission and distribution. Certified as an ISO 9001:2015 compliant organisation, 

Types of products:

1. Bulk Ultrasonic- Water Meter

2. Retrofit-Water Meter

3. Woltman- Water Meter

4. Prepaid Water Meter

5. Piston Water Meter

 

 

Akanksha Power and Infrastructure IPO Overview

Akanksha Power and Infrastructure IPO date is slated to be open for subscription from December 27, 2023, to December 29, 2023. This NSE SME IPO follows a Book Built Issue IPO.

Akanksha Power and Infrastructure IPO price is fixed at Rs. 52 to Rs. 55 per share. The upcoming NSE SME IPO will be listed on January 3, 2023.

The total issue size of this IPO amounts to Rs. 27.49 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

Akanksha Power and Infrastructure IPO timetable (Tentative) 

Events	Date
IPO Opening Date	27 December 2023
IPO Closing Date	29 December 2023
IPO Allotment Date	1 January 2023
Refund initiation	2 January 2024
IPO Listing Date	3 January 2024

Akanksha Power and Infrastructure IPO Details

IPO opening & closing date	27 December to 29 December 2023
Face value	Rs. 10  per share
Issue Price	Rs.52 to Rs. 55 per share
Lot Size	2000  Shares
Price of 1 lot	Rs. 1,10,000
Total Issue Size	4,998,000 shares (aggregating up to Rs.27.49 Cr)
Offer for sale	shares (aggregating up to Rs. Cr)
Fresh issue	4,998,000 shares (aggregating up to Rs.27.49 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

Akanksha Power and Infrastructure IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2,000
Maximum Lot Investment (Retail)	1 lot	2,000
Minimum Lot Investment (HNI)	2 lot	4,000

Akanksha Power and Infrastructure IPO Reservation

QIB Shares Offered	50%
Retail Shares Offered	35%
Other Shares Offered	15%

 

Company Financial

As of June 30, FY 23, the company's total assets, revenue, and PAT have increased compared to the previous fiscal years. 

(Amount in Lakhs)

Period	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	5,530.82	4,762.65	3,838.92
Total Revenue	1,027.27	4,644.03	5,206.50
PAT	71.06	290.50	240.92
Net worth	2,074.75	1,595.94	1,305.42
Reserve & Surplus	722.70	1,414.44	1,123.92
Total Borrowings	1,722.62	1,527.68	1,055.03

Product  Wise Revenue Breakup

Revenue sources include sales of Electrical Panels, Transformers, and Vacuum Contactors, along with services. 

(Amount in Lakhs)

Particulars	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Sale of Products
Electrical Panel	564.62	1758.90	707.02
Current / Potential Transformer	42.44	308.76	119.19
Vacuum Contactor	156.59	415.55	450.43
Sales of Service
Commissioning	11.75	11.58	-
Sales of Service	209.10	2114.65	2617.49
Installation Charges	3.32	-	-
Sale of Power
Electricity Distribution Franchise	-	-	1289.57
Total	987.82	4,609.44	5,183.70

 

Geographical-Wise Revenue Breakup       

The primary source of revenue is from Odisha, followed by Maharashtra, in both the current and previous fiscal years.

( in % age)

Particulars	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Odisha	34.61%	51.15%	80.20%
Maharashtra	8.77%	37.85%	6.58%
Chhattisgarh	0.10%	2.50%	0.05%
Karnataka	3.19%	2.30%	6.26%
Gujarat	1.30%	1.60%	1.59%
Total	47.97	95.41%	94.68%

 

Revenue By operations

In FY 23, most of the money came from regular operations, with a bit from other sources. It was similar in FY 22, and as of Sep 30, FY 23, money from regular operations slightly went down.

(Amount in lakhs)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	96.16%	99.26%	99.56%
Other Operating Income	3.84%	0.74%	0.44%
Total Revenue from operations	100.00%	100.00%	100.00%

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• To fulfil the Company's Capital Expenditure needs.

• To meet the Working Capital requirements of the Company.

• To meet the General Corporate Purposes.

• To meet the Issue Expenses.

Promoters and Management of Akanksha Power and Infrastructure IPO

1. Mr Bipin Bihari Das Mohapatra.

2. Ms Chaitali Bipin Dasmohapatra.

Pre-issue Promoter Shareholding	83.28%
Post-issue Promoter Shareholding	60.81%

 

Akanksha Power and Infrastructure IPO Lead Managers

• Narnolia Financial Services Ltd.

 

Peers of Akanksha Power and Infrastructure IPO

Compared to its peers, Akanksha Power and Infrastructure IPO has distinctive valuation and earnings metrics, setting it apart in the market.

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Akanksha Power and Infrastructure Limited	10.00	24.02	2.29
HPL Electric & Power Limited	10.00	18.70	4.69
Genus Power Infrastructure Limited	1.00	67.22	1.26
Cospower Engineering Limited	10.00	216.65	1.39

 

Evaluation

The IPO is priced within the range of Rs. 52 to Rs. 55 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 2.29 from the last year, the resulting P/E ratio is 24.02x.

- Taking into account the weighted EPS of Rs 2.43 for the last three years, the P/E ratio amounts to 22.63x.

    

Comparative Analysis with Listed Peers

- Cospower Engineering Limited has a P/E ratio of 216.65x (the highest).

- HPL Electric & Power Limited has a P/E ratio of 18.70x (the lowest).

- The industry's average P/E is 54.34x.

Consequently, the IPO Price range at a P/E of 24.02x. to 22.63x is considered highly undervalued. When we compare it from the industry average of 54.34x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

•  Established operations and proven track record.

•  Experienced Management Team.

• Increased adoption of better and energy efficient technology.

• Technical Partnership with the large players in the industry.

 

IPO's Weaknesses

• High working capital requirements.

• Heavy dependence on suppliers.

• Government Control in Pricing and other factors.

• High level competition.

• Compliance and regulatory risk.

• Change in Government Policies.

• No entry barriers for new entrants (Competitors).

 

IPO GMP Today

The Last GMP of Akanksha Power and Infrastructure IPO was Rs.10.

 

Conclusion

Akanksha Power and Infrastructure Limited, with its established operations, diverse product portfolio presents an interesting investment opportunity. The company's commitment to sustainable power solutions and its clientele, including prominent names in the industry, contribute to its positive outlook.

The IPO, scheduled to open for subscription from December 27 to December 29, 2023, at a price range of Rs. 52 to Rs. 55 per share, seems attractively priced, considering its valuation metrics and comparative analysis with industry peers. The funds raised from the IPO will be utilized for capital expenditure, working capital requirements, general corporate purposes, and issue expenses.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the RHP.

 

 

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