Ztech India Ltd IPO: Review, Valuation, Date & GMP

Ztech India Limited IPO - Complete Overview

Established in 1994, Z-Tech (India) Limited specializes in designing civil engineering products and services, with a state-of-the-art focus on Geo-Technical Specialized Solutions for infrastructure and civil construction projects in India. 

The company is actively involved in the waste management sector, emphasizing the creation of theme parks using recycled scrap materials. 

Z-Tech is dedicated to providing innovative, safe, and eco-friendly engineering solutions across three major categories: 

(i) Sustainable Theme Park Development

(ii) Industrial Waste Water Management

(iii) Geo-Technical Specialized Solutions. 

The company's clientele includes prominent names such as Bhartia Infra Projects Limited, Dilip Buildcon Limited, GMR Infra Limited, Punj Lloyd Limited, NCC Limited, MEP Infrastructure Developers Limited, IRCON International Limited, Hindustan Construction Co. Ltd., Madhucon Sugar and Power Industries Limited, and GVR Infra Projects Limited. 

As of March 31, 2024, Z-Tech has generated revenue of Rs. 6,737.02 lakhs.

 

Ztech India Limited IPO Overview

Ztech India Limited IPO date is slated to be open for subscription from May 29, 2024, to May 31, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Ztech India Limited IPO price is fixed in the range of at Rs.104 to Rs.110 per share. 

The total issue size of this IPO amounts to Rs.37.30 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, 2024, and March 31, 2023, Ztech India 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	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	4,192.24	2,339.62	1,925.11
Total Revenue	6,737.02	2,588.40	3,083.89
PAT	779.83	196.71	8.42
Net worth	2,191.00	998.95	802.24
Reserve & Surplus	1,250.39	888.95	692.25
Total Borrowings	130.84	71.03	71.74

 

Segment-wise Revenue Break Up

(Amount in Lakhs)

Particular	March 31, 2024	March 2023	March 2022
Civil Engineering	1,890.79	1,741.56	2,585.81
WasteWater	915.64	482.35	478.12
Specialized Park Development	3,925.39	348.59	-
Total	6,731.82	2,572.50	3,063.92

 

Geography-wise Revenue Break Up

(Amount in Lakhs)

State	March 2024	March 2023	March 2022
Domestic Sales
Assam	377.37	25.77	203.12
Bihar	40.21	52.54	223.40
Chattisgarh	-	78.00	186.90
Delhi	3,881.81	711.00	842.15
Gujarat	-	54.40	-
Goa	-	-	6.75
Haryana	171.94	136.92	10.22
Jharkhand	33.06	52.06	221.63
Karnataka	-	-	4.84
Kerala	-	13.33	269.13
Madhya Pradesh	-	30.01	30.01
Maharashtra	29.25	200.88	411.64
Odisha	-	-	43.65
Rajasthan	26.40	-	-
Sikkim	-	-	-
Tamil Nadu	397.51	413.37	256.48
Telangana	-	50.37	71.54
Uttarakhand	70.36	106.66	-
Uttar Pradesh	1,172.21	312.17	-
West Bengal	531.70	303.54	242.96
Export Sales
Sarjah, United Arab Emirates	-	31.46	39.50
Total	6,731.82	2,572.50	3,063.92

 

Region-wise Revenue Break Up

(Amount in Lakhs)

Particular	March 2024	March 2023	March 2022
East	982.34	511.91	1,121.65
North	5,322.72	1,296.77	882.39
West	29.25	286.75	457.89
South	397.51	477.07	601.99
Total	6,731.82	2,572.50	3,063.92

 

Revenue Break up Private Contracts and Goverment Contracts

(Amount in Lakhs)

Particulars	March 31, 2024	March 31, 2023	March 31, 2022
Government Tenders	999.39	79.15	91.88
Other than Government Tenders	5,732.43	2,493.35	2,972.04
Total	6,731.82	2,572.50	3,063.92

 

The Objective of the Issue

The objectives of the issue are:

1. To meet the working capital requirements of the company.

2. To fund general corporate purposes.

3. To cover the issue expenses.

Peers of Ztech India Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Z Tech India Limited	10	36.94	-
Ion Exchange (India) Limited	10	6.64	67.77
Felix Industries Limited	10	1.48	229.16
Wonderla Holidays Limited	10	26.33	28.89
H.G. Infra Engineering Limited	10	27.63	32.00
Nicco Parks & Resorts Limited	10	2.96	46.79
NCC Limited	10	3.68	58.53

 

Evaluation

The IPO is priced within the range of Rs.104 to Rs.110 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 2.25 from the last year, the resulting P/E ratio is 48.88x.

• Taking into account the weighted EPS of Rs 8.64 for the last three years, the P/E ratio amounts to 12.73x.

Comparative Analysis with Listed Peers

• The industry's average P/E is x.77.19

As a result, the IPO price range, with a P/E ratio ranging from 48.88x to 12.73x, seems fully priced to the industry average of 77.19x.

 

IPO's Strengths

• Experienced and qualified management team

• Well-organized organizational structure

• Efficient business model

• Strong execution capabilities with extensive industry experience

• Commitment to quality assurance and high standards

 

IPO's Weaknesses

• Operating in three distinct segments without connections poses a significant risk to the company's business.

• A substantial portion of revenue is derived from the newly introduced Sustainable Theme Park business, compared to Geo-Technical Specialized Solutions and Waste Water Management.

• The current promoters are first-generation entrepreneurs.

• The promoter or holding company has incurred losses in the past and may continue to do so in the future.

• The company has experienced negative cash flows in the past and may continue to experience them in the future.

• The company's business is subject to seasonal fluctuations that could cause delays or disruptions in operations.

• A mismatch between water samples and actual water quality may lead to significant financial losses and harm the integrity and viability of the company's industrial setups.

• For the past three years, the majority of the company's state-wise revenue from operations has been derived from Delhi. Any adverse developments affecting operations in this state could negatively impact revenue.

• The company relies on government tenders for a portion of its operational revenue.

• Non-compliance with environmental laws and other regulatory requirements related to Waste Water Management may adversely affect the business.

• The company depends on a limited number of customers for a significant portion of its revenues.

 

IPO GMP Today

The Latest GMP of Ztech India Limited is Rs.27 

Ztech India Limited IPO timetable (Tentative)

Ztech India Limited IPO is scheduled from May 29 to May 31, 2024, with allotment on June 3, refund initiation on June 4, and listing on June 4, 2024.

Events	Date
IPO Opening Date	May 29, 2024
IPO Closing Date	May 31, 2024
IPO Allotment Date	June 3, 2024
Refund initiation	June 4, 2024
IPO Listing Date	June 4, 2024

 

Ztech India Limited IPO Details 

Ztech India Limited IPO, with a face value of Rs.10 per share, opens on May 29 and closes on May 31, 2024, offering 3,391,200 shares at Rs.104 to Rs.110 per share, with a lot size of 1200 shares, aiming to raise Rs.37.30 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	May 29, 2024 to May 31, 2024
Face Value	Rs.10 per share
Issue Price	Rs.104 to Rs.110 per share
Lot Size	1200 shares
Price of 1 lot	Rs. 132,000
Issue Size	3,391,200 shares (aggregating up to ₹37.30 Cr)
Offer for Sale	NA
Fresh Issue	3,391,200 shares (aggregating up to ₹37.30 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Maashitla Securities Private Limited

 

Ztech India Limited IPO Lot Details 

For Ztech India Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.132,000 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.264,000.

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

 

Ztech India Limited IPO Reservation

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

 

Promoters and Management of Ztech India Limited

• Ms Sanghamitra Borgohain 

• M/s Terramaya Enterprises Private Limited.

Pre-issue Promoter shareholding	82.65%
Post-issue Promoter shareholding	60.75%

 

Ztech India Limited IPO Lead Managers

• Narnolia Financial Services Ltd

 

Dividend Policy

The company has not paid any dividends on equity shares in the past financial years.

 

Conclusion

The company operates in three different sectors, with the majority of its revenue generated from the business of sustainable theme parks. It demonstrated strong performance in FY24 and has numerous projects in the pipeline. Investors can consider applying for the upcoming IPO to achieve optimal gains.

 

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.

 

 

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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