Rudra Gas Enterprise LTD IPO- Review, Valuation, Date & GMP

Rudra Gas Enterprise Limited IPO - Complete Overview

Established in 2015, Rudra Gas Enterprise Limited engages in gas distribution, fiber cable networks, and construction equipment rental. Rudra Gas actively participates in multiple dimensions of the infrastructure sector, serving clients in city gas distribution and telecommunications. With over 50 completed projects and a total value of approximately INR 127.08 crore, the company stands as a reliable partner in ensuring safe and efficient resource transportation and telecommunications connectivity. As of October 31, 2023, Rudra Gas employs 512 permanent staff members.

The company excels in three core business verticals

Gas Pipeline Projects

•   Expertise in laying city gas distribution pipelines and constructing CNG stations.

•   Provides operation and maintenance services for City Gas Distribution companies (CGD).

Fiber Optic Cable Projects

•   Leads in the telecommunications sector by installing high-speed optical fiber cables for data transmission.

Rental of Construction Machinery and Vehicles

•   Enhances operational capabilities by leasing essential machinery and vehicles to subcontractors.

 

Rudra Gas Enterprise Limited Overview

Rudra Gas Enterprise IPO date is slated to be open for subscription from February 8, 2024, to February 12, 2024. 

This BSE SME IPO follows a Fixed Price Issue IPO. Rudra Gas Enterprise IPO price is fixed at Rs.63 per share. 

The total issue size of this IPO amounts to Rs.14.16 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

Rudra Gas Enterprise IPO timetable (Tentative)

Events	Date
IPO Opening Date	8 February 2024
IPO Closing Date	12 February 2024
IPO Allotment Date	13 February 2024
Refund initiation	14 February 2024
IPO Listing Date	15 February 2024

Rudra Gas Enterprise IPO Details

IPO opening & closing date	8 February to 12 February2024
Face value	Rs.10 per share
Issue Price	Rs.63 per share
Lot Size	2000 Shares
Price of 1 lot	Rs. 1,26,000
Total Issue Size	2,248,000 shares (aggregating up to Rs.14.16 Cr)
Fresh issue	2,248,000 shares (aggregating up to Rs.14.16 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Link Intime India Private Ltd

 

Rudra Gas Enterprise IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	2,000	Rs.1,26,000
Maximum Lot Investment (Retail)	1 lot	2,000	Rs.1,26,000
Minimum Lot Investment (HNI)	2 lot	4,000	Rs. 2,52,000

 

Rudra Gas Enterprise IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

Company Financial

The company's financial performance has shown significant growth in FY23, compared to FY22.

(Amount in Lakhs)

Period	Oct 31 FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	4,345.39	3,380.56	2,804.92
Total Revenue	3,446.81	4,957.02	4,395.95
PAT	247.41	352.02	179.41
Net worth	1,149.10	798.50	446.48
Reserve & Surplus	540.10	773.50	421.48
Total Borrowings	1,990.15	1,738.34	1,379.98

State  Wise Revenue Bifurcation 

FY 23 state-wise revenue distribution highlights significant contributions from Gujarat, Uttar Pradesh, Telangana, and Punjab compared to FY 22 and FY 23 as of March 31.

( in % age)

Particulars	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Bihar	0.57%	1.46%	0.00%
Chandigarh	0.18%	21.36%	3.45%
Gujarat	15.64%	4.81%	17.88%
Haryana	5.38%	0.42%	16.59%
Himachal Pradesh	0.22	0.95%	0.00%
Karnataka	4.33%	8.14%	0.00%
Madhya Pradesh	11.07%	6.50%	0.00%
Maharashtra	2.32%	16.18%	5.63%
Punjab	14.00%	11.57%	19.01%
Rajasthan	12.98%	0.00%	24.81%
Tamil Nadu	2.30%	0.00%	0.00%
Telangana	15.16%	0.00%	0.00%
Uttar Pradesh	15.87%	28.59%	12.62%
Total	100.00%	100.00%	100.00%

Catagory Wise Revenue  Bifurcation

In FY 23, Gas Distribution Network projects dominated the revenue, followed by other segments.

( in % age)

Particulars	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Gas Distribution Network Projects.	90.05%	89.72%	87.15%
Fiber-cable network project	7.53%	8.60%	9.20%
Renting of Construction Machineries and Vehicle	2.42%	1.68%	3.65%
Total	100.00%	100.00%	100.00%

 

Revenue By operations:

Revenue from operations in FY 23 (as of Sep 30) is lower than FY 22, with a slight decrease in total operations and other income.  

(Amount in Lakhs)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	3,436.34	4,942.39	4,383.66
Other Income	10.46	14.64	12.30
Total operations	3,446.81	4,957.02	4,395.95

 

 

The Objective of the Issue

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

1. To Meet Working Capital Requirements

2. General Corporate Purposes

 

Promoters and Management of Rudra Gas Enterprise IPO:

1. Mrs. Manjulaben Sureshbhai Patel.

2. Mr. Kush Sureshbhai Patel.

3. Mr. Kashyap Sureshbhai Patel.

Pre-issue Promoter Shareholding	99.99%
Post-issue Promoter Shareholding	73.03%

Rudra Gas Enterprise IPO Lead Managers:

•  Beeline Capital Advisors Pvt Ltd
  
  

Peers of Rudra Gas Enterprise IPO:

Alpex Solar Limited shows lower valuation metrics compared to Insolation Energy Ltd among Rudra Gas Enterprise IPO peers.

Name of the Company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Alpex Solar Limited	10.00	9.39	2.10
Insolation Energy Ltd	5.00	20.95	6.01

Evaluation

The IPO is priced within the range of Rs.63 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 6.71 from the last year, the resulting P/E ratio is 9.39x.

- Taking into account the weighted EPS of Rs 4.89 for the last three years, the P/E ratio amounts to 12.89x.

    

Comparative Analysis with Industry Average:

- The industry's average P/E is 15.43x.

As a result, the IPO price range, with a P/E ratio ranging from 9.39x to 12.89x, seems undervalued in comparison to the industry average of 15.43x.

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

• With 24 years of combined industry experience, their leadership ensures efficient project delivery and innovative problem-solving.

• Repeat orders from major gas companies reflect our commitment to addressing client needs, fostering long-term partnerships.

• Focus on compliance and safety protocols ensures legal and environmentally sustainable projects.

• Tailored solutions, open communication, and on-time project delivery foster long-term relationships with clients.

• Continuous improvement and skill enhancement efforts maximise machinery and vehicle usage, reducing downtime and increasing ROI.

 

IPO's Weaknesses

• The company faces legal proceedings, and an unfavourable outcome could have a significant adverse impact on business, operations, and financial condition.

• Operating from non-owned premises may pose risks, affecting the stability and continuity of business operations.

• Dependency on a limited number of suppliers poses a risk, and the loss of any major supplier may negatively impact business operations.

• Relying on a small customer base poses a risk, and the loss of any significant customer may adversely affect revenues and profitability.

• Past net losses indicate financial challenges, and there is uncertainty about achieving or maintaining profitability in the future.

 

IPO GMP Today

The latest GMP of Rudra Gas Enterprise IPO is Rs.57.

Conclusion

Conclusion: Rudra Gas Enterprise Limited, with expertise in gas distribution, fiber cable networks, and construction equipment rental, exhibits a promising trajectory in its IPO. The company's financial growth in FY23, strong project portfolio, and diversified business segments position it as a compelling investment opportunity. The IPO's valuation, considering a P/E ratio range of 9.39x to 12.89x, appears attractive compared to the industry average of 15.43x.

 

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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