Sathlokhar Synergys E&C Global IPO: Review, Date & GMP

Sathlokhar Synergys E&C Global Limited IPO - Complete Overview

Sathlokhar Synergys E&C Global Limited IPO an SME IPO is a book-built issue of Rs.92.93 crore by Sathlokhar Synergys E&C Global Limited which was established in 2013 to offer specialist engineering, procurement, and construction (EPC) services for the development of infrastructure facilities and structures.

Construction services for industrial, warehouse, commercial, institutional, and pharmaceutical projects, as well as solar projects, hospitals, hotels, resorts, and villas, are offered by Sathlokhar Synergys. In addition, the business installs plumbing, electrical, and mechanical networks for building projects.

The four Indian states of Tamil Nadu, Karnataka, Uttar Pradesh, and West Bengal are where the business has completed projects. The organization also uses competitive bidding procedures to complete EPC contracts for government entities. Additionally, Sathlokhar Synergys is a TATA Power Solar Systems Ltd. approved dealer, offering installation, sales, commissioning, and maintenance services for its equipment per agreed terms and conditions in connection with its solar power projects. There are 118 employees of the organization throughout the departments. 

The company plans to launch its SME IPO on July 30, 2024.

 

 

Sathlokhar Synergys E&C Global Limited IPO Overview

Sathlokhar Synergys E&C Global Limited IPO of Rs.92.93 crore comprises a wholly Fresh Issue of 66.38 lac Shares (amounting to Rs.92.93 crores). This SME IPO will be available to investors on July 30, 2024, and conclude on August 1, 2024. The anticipated listing date for the IPO is Tuesday, August 6, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.133 to Rs.140.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 183.77%, while profit after tax (PAT) increased by 380.51% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.24,732.09 lac.

• The net worth of the company is Rs.4,053.08 lac.

• The company's EBITDA is Rs.3,572.45 lac.

• The total assets of the company are Rs.10,482.58 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	10,482.58	4,782.28	4,627.77
Total Revenue	24,732.09	8,715.66	5,851.51
PAT	2,621.43	545.55	87.87
Net Worth	4,053.08	1,431.65	886.10
Reserve & Surplus	3,853.09	1,231.66	686.11
Borrowing	7.92	612.19	677.14

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	1216.90	300.26	-121.06
Net Cash Flow Investing Activities	-346.44	-38.16	-3.60
Net Cash Flow Financing Activities	-628.99	-150.46	231.27

 

Sector-wise Revenue Breakdown For The Last Three Fiscals

(Amount in Lac)

Products	FY 2023-24	FY 2022-23	FY 2021-22
Private Sector	24,372.82	8,710.91	5,848.68
Government Sector	324.56	-	-
Total	24,697.37	8,710.91	5,848.68

 

State-wise Revenue Breakdown For The Last Three Fiscals

(Amount in Lac)

Products	FY 2023-24	FY 2022-23	FY 2021-22
Tamil Nadu	5,766.95	8,632.38	5,486.03
Karnataka	15,704.12	-	-
Uttar Pradesh	3,192.32	-	-
Pondicherry	33.98	78.53	362.66
Total	24,697.37	8,710.91	5,848.68

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Fund its working capital requirements.

• Corporate Purposes.

Peers of Sathlokhar Synergys E&C Global Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
K2 Infragen Limited	10	18.02	9.49
Suraj Estate Developers Limited	5	10.1	38.88
Srm Contractors Limited	10	90.82	2.20

 

Evaluation

The price of this IPO is Rs.133 to Rs.140 for each Share.

Evaluation Of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.14.98 from the last year, the resulting P/E ratio is 9.34x.

Considering the weighted EPS of Rs.8.61 for the last three years, the P/E ratio is 16.26x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 12.92x.

Particulars	P/E Ratio
Highest	17.91
Lowest	8.16
Average	12.92

In simple words, the P/E ratio of Sathlokhar Synergys E&C Global Limited-IPO (9.34x), compared with the industry’s average P/E of 12.92x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Skilled marketers with in-depth industry expertise to grow the company.

• A Wide Range of Customers.

• A management team with a proven performance history.

• Proven track record of effectively completing projects.

• In-house combined model.

• Robust order books.
  
  

IPO’s Weaknesses

• Since the majority of its business is conducted in the states of Tamil Nadu and Karnataka, the company is subjected to risks resulting from changes to the changes in economies, laws, and other regulations in this region.

• The company requires a lot of working capital and has lengthy implementation times. It needs a sizable amount of funding to run its business. Its capacity to do business may be negatively impacted by its debt and the terms and limitations imposed by its financing agreements.

• A sizable amount of the income comes from a select group of customers. Any major customer loss might be detrimental to the company's operations, finances, commercial prospects, and operational outcomes.

• Its projects are subject to a range of implementation risks, uncertainties, and hazards related to schedule and cost overruns. These risks have the potential to negatively impact the company, finances, operational outcomes, and future prospects.

• The company may continue to have negative cash flows from operating, investing, and financing activities which might have an extremely harmful impact on its financial situation, business prospects, cash flows, and operational performance.

IPO GMP Today

Sathlokhar Synergys E&C Global Limited IPO’s latest GMP is Rs.170.

 

 

Sathlokhar Synergys E&C Global Limited IPO Timetable (Tentative)

The IPO is scheduled from July 30 to August 1, 2024, with allotment on August 2, 2024 refund initiation on August 5, and listing on August 6, 2024.

Events	Date
IPO Opening Date	July 30, 2024
IPO Closing Date	August 1, 2024
IPO Allotment Date	August 2, 2024
Refund Initiation	August 5, 2024
IPO Listing Date	August 6, 2024

 

Sathlokhar Synergys E&C Global Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 30, close on August 1, and offer a total issue size of 6,638,000 Shares (aggregating up to Rs.92.93 Cr) comprising a whole fresh issue size of 6,638,000 Shares (totaling up to Rs.92.93 Cr).

IPO Opening & Closing Date	July 30, 2024 to August 1, 2024
Face Value	Rs.10 per Share
Issue Size	6,638,000 Shares (aggregating up to Rs.92.93 Cr).
Offer For Sale	NA
Fresh Issue	6,638,000 Shares (aggregating up to Rs.92.93 Cr).
Listing At	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Purva Sharegistry India Pvt Ltd

 

Sathlokhar Synergys E&C Global Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.140000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.280000.

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

 

Sathlokhar Synergys E&C Global Limited IPO Reservation

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

 

Promoters And Management Of Sathlokhar Synergys E&C Global Limited IPO

• Mr. G Thiyagu

• Ms. Sangeethaa Thiyagu

• Mr. Dinesh Sankaran 

Pre-Issue Promoter Shareholding	86.49%
Post-Issue Promoter Shareholding	-

 

Sathlokhar Synergys E&C Global Limited IPO Lead Managers

• GYR Capital Advisors Private Limited

 

 

Dividend Policy

The company has no formal dividend policy.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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