Rulka Electricals Limited IPO: Review, Valuation, Date & GMP

Rulka Electricals Limited IPO - Complete Overview

Established in 2013, Rulka Electricals Limited specializes in turnkey projects contracting, providing comprehensive solutions for Electrical & Fire Fighting projects. 

The company offers a diverse range of services, including Electrical Solutions, Electrical Panels, Solar EPC Contracts, Turnkey Electrical Warehousing Projects, Electric Commercial Industrial Services, Maintenance Services, Electrical Contracting, and Data & Voice Cabling Installation across various sectors such as Industrial, Commercial, Retail, and Theatre. 

With its registered office located in Bhandup West, Mumbai, the company conducts integrated operations, encompassing Designing, Supplying, Installation, Testing & Commissioning of projects. 

Additionally, Rulka Electricals Limited offers Operations and Maintenance services, including Annual Maintenance, tailored to meet specific system and operational requirements. 

The company derives all of its revenue from Turnkey Projects. The company provides various services, such as- 

• Electrical Services

• Fire Fighting Systems

• Security Systems

• Public Address Systems

• Access Control Systems

• Audio-Video Systems Services

• CCTV Systems Service

• IT & Networking Services

• Solar Systems.

As of 29 feb. 2024, the company has generated the revenue of Rs. 6,527.77 Lakhs

 

Rulka Electricals Limited IPO Overview

Rulka Electricals Limited IPO date is slated to be open for subscription from May 16, 2024, to May 21, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Rulka Electricals Limited IPO price is fixed in the range of at Rs.223 to Rs.235 per share. 

The total issue size of this IPO amounts to Rs.26.40 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Rulka Electricals Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing has also increased.

Amount in Lakhs

Period	29 Feb 2024	31 Mar 2023	31 Mar 2022
Total Assets	4,082.09	2,826.95	1,919.04
Total Revenue	6,527.77	4,689.78	3,627.41
PAT	565.77	280.52	112.08
Net worth	1,290.15	557.33	276.82
Reserve & Surplus	948.55	546.33	265.82
Total Borrowings	1,104.89	527.07	281.46

 

The Objective of the Issue

The company intend to utilize the proceeds of the Offer to meet the following objects: - 

1. To Meet Working Capital Requirement 

2. General Corporate Purpose 

3. To Meet the Offer Expenses 

 

Peers of Rulka Electricals Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Rulka Electricals Limited	10	8.50	-
HEC Infra Projects Limited	10	0.78	37.24

 

Evaluation

The IPO is priced within the range of Rs.223 to Rs.235 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 8.50 from the last year, the resulting P/E ratio is 27.64x.

• Taking into account the weighted EPS of Rs 5.65 for the last three years, the P/E ratio amounts to 41.59x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 37.24x.

As a result, the IPO price range, with a P/E ratio ranging from 27.64x to 41.59x, seems fully priced to the industry average of 37.24x.

 

 

 

IPO's Strengths

• Quality Assurance and Standards.

• The company maintains strong relationships with its existing clients.

• The company boasts a diversified client base.

• Its business model is designed to scale efficiently.

• The company is managed by an experienced management team.

 

IPO's Weaknesses

• Under-construction projects may encounter cost overruns or delays.

• The company needs to obtain several approvals and licenses as a routine part of its business operations.

• Operation and maintenance of electrical services pose significant risks, including potential injury to people or damage to property, which could disrupt business operations significantly.

• Opposition from local communities and other stakeholders may negatively impact the company's financial condition, operational results, and cash flows.

• The company's revenue heavily relies on its operations in the geographical region of the State of Maharashtra. Any adverse developments in this region could affect the business.

• The current order book of the company does not guarantee the full realization of future income.

 

IPO GMP Today

The Latest GMP of Rulka Electricals Limited is Rs.410. 

 

Rulka Electricals Limited IPO timetable (Tentative)

Rulka Electricals Limited IPO is scheduled from May 16 to May 21, 2024, with allotment on May 22, refund initiation on May 23, and listing on May 24, 2024.

Events	Date
IPO Opening Date	May 16, 2024
IPO Closing Date	May 21, 2024
IPO Allotment Date	May 22, 2024
Refund initiation	May 23, 2024
IPO Listing Date	May 24, 2024

 

Rulka Electricals Limited IPO Details 

Rulka Electricals Limited IPO, with a face value of Rs.10 per share, opens on May 16 and closes on May 21, 2024, offering 1,123,200 shares at Rs.223 to Rs. 235 per share, with a lot size of 600 shares, aiming to raise Rs.26.40 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	May 16, 2024 to May 21, 2024
Face Value	Rs.10 per share
Issue Price	Rs.223 to Rs. 235 per share
Lot Size	600 shares
Price of 1 lot	Rs. 141,000
Issue Size	1,123,200 Shares (aggregating up to Rs.26.40 Cr)
Offer for sale	280,800 Shares of Rs.10 (aggregating up to Rs.6.60 Cr)
Fresh Issue	842,400 Shares (aggregating up to Rs.19.80 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Rulka Electricals Limited IPO Lot Details 

For Rulka Electricals Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (600 shares) at Rs.141,000 while for HNI investors, the minimum investment is 2 lots (1200 shares) at Rs.282,000.

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

 

 

Rulka Electricals Limited IPO Reservation 

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Rulka Electricals Limited 

• Mr. Rupesh Laxman Kasavkar

• Mr Nitin Indrakumar Aher

Pre-issue Promoter Shareholding	86.28%
Post-issue Promoter Shareholding	69.22%

 

Rulka Electricals Limited IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd

 

Dividend Policy

The Company has not declared any dividend on the Equity Shares.

 

 

 

Conclusion

The company operates within the Electrical & Fire Fighting Turnkey Projects sector, boasting a robust order book and a loyal client base. With a track record of consistent financial growth, the company presents an attractive opportunity for investors seeking long-term gains to consider participating in the upcoming IPO.

 

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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