Qualitek Labs Limited IPO :Review, Valuation, Date & Today GMP

Qualitek Labs Limited - Complete Overview

Established in 2018, Qualitek Labs Limited is actively involved in delivering testing, inspection, homologation, certification, and consultancy services across various industries, including automotive, defence, metals and metallurgy, environment and water, minerals, food and agriculture, pharma, and healthcare.

The company initiated its business operations by providing services from its testing laboratory established in Pune in 2018. 

Subsequently, in 2022, Qualitek Labs expanded its operations by inaugurating a second laboratory in Bhubaneshwar. 

Moreover, the company is currently in the process of establishing two additional testing laboratories in Pune and Noida.

With a workforce totalling 144 employees, Qualitek Labs achieved a revenue of Rs. 1913.66 lakhs in the fiscal year 2022-2023.

 

IPO Overview 

The Qualitek Labs Limited IPO date is scheduled to open for subscription from January 18, 2024, to January 23, 2024. This BSE SME IPO has a lot size of 1200 shares.

The Qualitek Labs Limited IPO price is set at Rs 100 per share. The listing of this upcoming BSE SME IPO is anticipated on January 25, 2024.

The total issue size for this IPO is Rs. 19.64 Crores. The company has allocated 50% shares to retail investors and 50% to other investors.

 

 

Qualitek Labs Limited IPO Timetable (Tentative)

Events	Date
IPO Opening Date	18 January 2024
IPO Closing Date	23 January 2024
IPO Allotment Date	24 January 2024
Refund initiation	25 January 2024
IPO Listing Date	29 January 2024

 

Qualitek Labs Limited IPO Details

IPO Opening & Closing Date	18 January to 23 January 2024
Face value	Rs.10 per share
Issue Price	Rs.100 per share
Lot Size	1200 Shares
Price of 1 lot	Rs.120,000
Issue Size	1,964,400 Shares (aggregating up to Rs.19.64 Cr)
Offer for sale	NA
Fresh issue	1,964,400 Shares (aggregating up to Rs.19.64 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Pvt. Ltd.

 

 

Qualitek Labs Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Qualitek Labs Limited IPO Reservation

Other Investor Share Portion	50%
Retail Investor Share Portion	50%

 

Company Financial

(Amount in Lakhs) 

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	4,409.68	3,955.61	2,219.86
Total Revenue	1,250.74	1,935.13	1,201.73
PAT	200.93	296.91	113.57
Net worth	1,187.46	986.52	189.61
Reserve & Surplus	646.71	445.77	143.61
Total Borrowings	2,499.59	2,344.67	1,728.68

 

Financial Statements of the Company

(Amount in Lakhs)

Particulars	September 30, 2023	March 31, 2023	March 31, 2022
Lab-Wise
Bhubaneshwar	189.71	260.21	73.07
Pune	1059.21	1653.47	1123.50
Total	1248.92	1913.68	1196.57
Segment-Wise
Bhubaneshwar
Environment & Water	82.58	143.26	20.00
Food & Agricultural	18.08	31.40	12.96
Minerals	76.00	66.10	31.07
Pharma & Healthcare	13.05	19.45	9.04
Total	189.71	260.21	73.07
Pune
Automotive	1009.91	1412.15	1020.02
Defence Product Testing	45.50	224.15	63.53
Metal & Metallurgy testing	3.80	17.17	39.95
Total	1059.21	1653.47	1123.50
Grand Total	1248.92	1913.68	1196.57

 

 

The Objective of the Issue 

The company intend to utilize the net proceeds of the Issue to fulfil the following objectives

• Funding capital expenditure towards the installation of plant and machinery for new & existing laboratories and for expansion of laboratories.

• Repayment of unsecured loans to Promoter.

• Funding of working capital requirements.

• General corporate purposes.

 

Promoters and Management of Qualitek Labs Limited

The promoters of the company included Alok Kumar Agarwal, Antaryami Nayak, Kamal Grover, and TIC Services Private Limited.

Pre-issue Promoter shareholding	99.99%
Post-issue Promoter shareholding	73.35%

 

Qualitek Labs Limited IPO Lead Managers

• Oneview Corporate Advisory Private Ltd

 

Peer Comparison

Following are the listed peers of the Qualitek Labs Limited

Name of Company	EPS	P/E	Total Income(Rs. In Lakhs)
Qualitek Labs Limited	7.45	13.43	1935.13
Choksi Laboratories Ltd.	4.69	11.74	3,465.76

 

 

IPO's Valuations

The Qualitek Labs Limited IPO price is set at Rs.100 per share.

Evaluation of P/E Ratio:     

• Considering the EPS of Rs 7.45, the resulting P/E ratio is 13.43.

 

Dividend Policy 

The Company has not declared any dividend on the Equity Shares in the past three financial years. The future dividend payments depend upon the company's earnings and financial performance.

 

IPO's Strengths 

• Experienced Leadership and Management Team: The company is guided by a qualified and seasoned management team, possessing the expertise and vision necessary to effectively lead and expand the business while promoting sustainability goals.

• Well-Established Brand: Qualitek Labs, an NABL ISO/IEC 17025:2017 accredited laboratory company, is founded by industry professionals with over a decade of experience in their respective fields, solidifying its position as a trusted brand.

• Robust Technical Capability and IT Infrastructure: The infrastructure facilities in Pune and Bhubaneswar provide cutting-edge solutions to industries such as automotive, electrical, aerospace, and others. These solutions encompass testing, homologation, certification, and consultancy, showcasing strong technical capabilities supported by a robust IT infrastructure.

• Customer-Centric Approach: Operating with a well-defined quality assurance process, the laboratory is committed to a customer-centric approach. This ensures a comprehensive solution that goes beyond testing, inspection, and certification, offering clients a holistic approach to products and services.

 

IPO's Weaknesses 

• The company heavily relies on a few customers for a significant portion of its revenues.

• The company, some of our Promoters and our Group Company are involved in certain legal proceedings.

• The Company owes dues to micro, small and medium enterprises.

• The company is obligated to maintain specific licenses, approvals, registrations, consents, and permits as part of its regular business operations.

• Negative cash flow was experienced by the company in recent fiscal periods.

• Borrowings from commercial banks have been incurred by the company, raising concerns about repayment compliance.

• The group companies have faced losses in previous periods.

 

IPO GMP Today 

The Latest GMP of Qualitek Labs SME IPO GMP is Rs. 60.

 

Conclusion 

The company operates within a highly competitive market segment and has experienced negative cash flow in the past. Despite posting substantial profits in recent years, the sustainability of these profits is uncertain. Investors might consider applying for the issue after thoroughly analyzing all relevant factors.

 

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.

 

 

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