Kay Cee Energy & Infra LTD IPO -Review, Valuation, Date & GMP

Kay Cee Energy & Infra IPO  - Complete Overview

Established in 2015, Kay Cee Energy & Infra Limited is a company specialising in the construction and commissioning of electricity transmission and distribution systems. In simple terms the company excels in the manufacturing of electric equipment. Their core expertise lies in undertaking engineering, procurement, and construction (EPC) projects, with a notable focus on serving government entities such as Rajasthan Rajya Vidyut Prasaran Nigam Limited ("RRVPNL").

The company's comprehensive service portfolio encompasses the entire range of power transmission and distribution systems. This includes the handling, erection, testing, and commissioning of equipment and materials, covering various aspects like transmission lines, substation construction, automation, and the augmentation, modification, and extension of existing power systems.

As of September 30, 2023, Kay Cee Energy & Infra has a robust project portfolio, with 15 projects currently in progress and a cumulative order value of approximately Rs. 54,990.27 lakhs. The company's commitment to excellence is reflected in its workforce, boasting over 174 skilled professionals. This dedicated team includes 18 project managers, 30 supervisors/engineers, and 126 skilled workers, contributing to the company's continued success in the industry.

Kay Cee Energy & Infra IPO date is slated to be open for subscription from December 28, 2023, to January 2, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Kay Cee Energy & Infra IPO price is fixed at Rs. 51 to Rs. 54 per share. The upcoming NSE SME IPO will be listed on January 5, 2024.

The total issue size of this IPO amounts to Rs.15.93 CR. Within this total issue, 35% is issued to retail investors, and 15% is issued to other investors.

Kay Cee Energy & Infra IPO timetable (Tentative)

Events	Date
IPO Opening Date	28 December 2023
IPO Closing Date	2 January 2024
IPO Allotment Date	3 January 2024
Refund initiation	4 January 2024
IPO Listing Date	5 January 2024

 

 

Kay Cee Energy & Infra IPO Details

IPO opening & closing date	28 December to 2 January 2024
Face value	Rs. 10 per share
Issue Price	Rs. 51 to Rs. 54 per share
Lot Size	2000 Shares
Price of 1 lot	Rs. 1,08,000
Total Issue Size	2,950,000 shares (aggregating up to Rs. 15.93 CR)
Fresh issue	2,950,000 shares (aggregating up to Rs. 15.93 CR)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Kay Cee Energy & Infra IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2000
Maximum Lot Investment (Retail)	1 lot	2000
Minimum Lot Investment (HNI)	2 lot	4000

Kay Cee Energy & Infra IPO Reservation

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

 

Company Financial

Financials show growth in total assets, revenue, PAT, net worth, and total borrowings from March FY22 to June FY23.

(Amount in Lakhs)

Period	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	8,332.09	8,017.57	6,370.15
Total Revenue	964.29	6,132.07	5,012.55
PAT	120.74	550.71	310.05
Net worth	2,312.08	2,191.34	1,640.63
Reserve & Surplus	2,287.08	2,166.34	1,615.63
Total Borrowings	2,405.41	2,289.42	646.90

Revenue by Operations

Their revenue increased to 6,132.07 Lakhs in September FY23 from 5,012.55 Lakhs in March FY22.

(amount in Lakhs)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	955.18	6,109.18	4,959.36
Other Operating Income	9.11	22.89	53.19
Total Revenue from operations	964.29	6,132.07	5,012.55

 

 

The Objective of the Issue

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

• Funding the working capital requirements of the company.

• General corporate purposes.

 

Promoters and Management of Kay Cee Energy & Infra IPO

1. Mr. Lokendra Jain 

2. Mrs. Shalini Jain

Pre-issue Promoter Shareholding	96.12%
Post-issue Promoter Shareholding

 

Kay Cee Energy & Infra IPO Lead Managers

•  GYR Capital Advisors Private Limited.

 

Peers of Kay Cee Energy & Infra IPO

Kay Cee Energy & Infra has a relatively very lower P/E ratio and similar EPS compared to its peers Viviana Power Tech and Kec International.

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Kay Cee Energy & Infra Limited	10	7.59	7.11
Viviana Power Tech Limited	2	24.17	5.75
Kec International Limited	10	96.93	6.85

 

Evaluation

The IPO is priced within the range of Rs.51 to Rs.54 per share.

Evaluation of P/E Ratio:

• Considering the FY23 EPS of Rs 7.11 from the last year, the resulting P/E ratio is 7.59x.

Comparative Analysis with Listed Peers

- Kec International Limited has a P/E ratio of 96.93x (the highest).

- Viviana Power Tech Limited has a P/E ratio of 24.17x (the lowest).

- The industry's average P/E is 60.55x.

 

Consequently, the IPO Price range at a P/E of 7.59x to industry average of  60.55x is considered highly undervalued.

 

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

Order Book Strength: The company excels in EHV transmission and substation projects from public sector units, showcasing expertise in Engineering, Procurement, and Construction (EPC) services for power systems.

Project Capability: Managing 15 projects worth ₹54,990.27 lakhs as of September 30, 2023, the company emphasises strong project execution. With an in-house team of 174 professionals, it ensures timely completion and quality services.

Client Relationships: Maintaining strong ties with major clients fuels business growth and repeat projects. The company's focus on enduring relationships enhances customer retention and paves the way for sustained expansion.

Quality Assurance: Committed to quality and safety standards, the company holds ISO 9001:2015 certification. It actively collaborates with public sector units to ensure adherence to the highest standards in project execution.

Experienced Leadership: Led by a seasoned management team, including a promoter with a track record dating back to 1996, the company navigates large-scale power projects with industry experience, strategic vision, and a focus on client satisfaction.

 

 

 

IPO's Weaknesses

Bidding Challenges: The company relies on winning bids for government projects. If most bids aren't accepted, it could affect the business, highlighting the importance of competitive bidding.

Customer Dependence Risk: The majority of the company's income comes from its top five clients. Losing business from them could hurt finances, so it's crucial to attract new customers.

Dependence on Rajasthan: A big part of the company's income comes from projects in Rajasthan. Any problems there, like changes in government policies, could seriously affect the business.

 

Credit Facility and IPO Issues: The company's borrowing has conditions, and delays in getting approval for its IPO could affect its financial plans.

 Operational Challenges: Normal challenges in projects, like equipment breakdowns or legal issues, might hurt the company's success. These problems could impact its money and day-to-day operations.

 

IPO GMP Today

The Last GMP of Kay Cee Energy & Infra IPO is Rs. 90.

 

Conclusion

Kay Cee Energy & Infra Limited, established in 2015, stands out in the construction and commissioning of electricity transmission and distribution systems, coupled with its expertise in manufacturing electric equipment.The upcoming IPO, scheduled to be open for subscription from December 28, 2023, to January 2, 2024, offers an opportunity for investors to be part of a company with a dedicated workforce of over 174 skilled professionals. The IPO price range of Rs. 51 to Rs. 54 per share, with a total issue size of Rs. 15.93 CR, positions the offering as highly undervalued with a P/E ratio of 7.59x, compared to an industry average of 60.55x.

 

 

 

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 DRHP.