FALCON TECHNOPROJECTS INDIA IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

FALCON TECHNOPROJECTS INDIA LIMITED is a Mumbai based that specializes in Electrical System, Fire Fighting System, Plumbing System, HVAC, CCTV & Surveillance, Civil & Interior Works and Intercom & Networking. 

FALCON TECHNOPROJECTS INDIA IPO, a Fixed Price issue amounting to ₹13.69 crores, consisting entirely of a fresh issue of 14.88 lakh shares. The subscription period for the Falcon Technoprojects IPO opens on June 19, 2024, and closes on June 21, 2024. The allotment is expected to be finalized on or about Monday June 24, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about Wednesday, June 26, 2024.

The price of Falcon Technoprojects IPO is set at ₹92 per share, with a minimum lot size of 1200 shares. Retail investors are required to invest a minimum of ₹110,400 while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (2400 shares), amounting to ₹220,800.

KUNVARJI FINSTOCK PRIVATE LIMITED is the book-running lead manager, KFIN TECHNOLOGIES LIMITED is the registrar. Nikunj Stock Brokers Limited and Asnani Stock Broker Private Limited is the market maker for the Falcon Technoprojects IPO.

Grey Market Premium (GMP) of GP Eco Solutions India Limited

The Grey Market Premium (Loss) is expected in the range of (Rs. 20) - (Rs. 24) based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Objectives of Falcon Technoprojects India Limited

Falcon Technoprojects proposes to utilize the funds which are being raised through this Issue towards the following objects:
a) Working Capital Requirements of our Company
b) General Corporate Purposes 

The Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchange for the enhancement of their Company’s brand name and creation of a public market for their Equity Shares in India.

Refer to Falcon Technoprojects India Limited RHP for more details about the Company.

FALCON TECHNOPROJECTS INDIA IPO Details

IPO Date June 19, 2024 to June 21, 2024
Listing Date June 26, 2024
Face Value ₹10
Price ₹92 per share
Lot Size 1200 Shares
Total Issue Size 14,88,000 Equity Shares (aggregating to ₹13.69 Cr)
Fresh Issue 14,88,000 Equity Shares (aggregating to ₹13.69 Cr)
Offer for Sale Nil
Issue Type Fixed Price Issue IPO
Listing At NSE SME
Share holding pre issue 38,68,793
Share holding post issue 53,56,793

FALCON TECHNOPROJECTS INDIA IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 1200 ₹110,400 
Retail (Max) 1 1200 ₹110,400
HNI (Min) 2 2400 ₹220,800

FALCON TECHNOPROJECTS INDIA IPO Timeline (Tentative Schedule)

IPO Open Date June 19, 2024
IPO Close Date June 21, 2024
Basis of Allotment June 24, 2024
Initiation of Refunds June 25, 2024
Credit of Shares to Demat June 25, 2024
Listing Date June 26, 2024
Cut-off time for UPI mandate confirmation 5 PM on June 21, 2024

FALCON TECHNOPROJECTS INDIA IPO Reservation

Investor Category Shares Offered Reservation %
Retail Shares Offered 7,06,800 50% of the Net Issue
Non-Retail Shares Offered 7,06,800 50% of the Net Issue
Market Maker Portion 74,400 -

FALCON TECHNOPROJECTS INDIA IPO Promoter Holding

Share Holding Pre Issue 84.20%
Share Holding Post Issue 60.81%

About FALCON TECHNOPROJECTS INDIA Limited

Falcon Group’s companies (FGC) is a Mumbai based that specializes in MEP ( Mechanical, Electrical, Fire fighting & Plumbing ), Fire Alarm System, Networking System, Security & Surveillance System , CCTV & Access Control System, Intercom system, Solar Rooftop PV module Installation , Solar Water Heater , Gate Automation System ,Civil & Construction Work , Building painting, Sliding Window, Grill , Railing & Fabrication Work, operating since the year of 2010. 

Falcon Group of Companies, strives to deliver the highest standards of installation, carefully paying attention to their client’s ideas, collaborating in the development of the right scope of work. Falcon Group of Companies, undertake all kinds of MEP & security services for the following premises: Commercial / Hotel / Warehouses / Factories / Hospitals / Residential / Data Center / Shopping Malls.

CONSTRUCTION INDUSTRY IN INDIA


The construction sector is a key component of the Indian economy with linkages across more than 200+ sub sectors. It is the second largest employment generator in India with nearly 71 million workforce which is expected to cross 100 million by 2030. Further, India is poised to become the third largest construction market in the next 2-3 years on the back of stable economic growth as the real estate sector has emerged to be a critical engine in the country’s growth story. As per a Knight Frank report, the construction sector, along with the output generated from real estate services and ownership of dwellings, contributes nearly 18% to the economy’s total output.

India's construction industry is on a phenomenal growth trajectory, projected to reach a staggering USD 1.4 trillion by 2025, accounting for 8%-10% of India's GDP. This represents a significant leap from its current size of approximately USD 820 billion, showcasing the dynamism and potential of this sector. The Bharatmala Pariyojana initiative complements Gati Shakti by focusing specifically on developing a world-class highway network spanning over 83,000 kilometers.

According to a report ‘India Real Estate: Vision 2047’ released by National Real Estate Development Council and Knight Frank India, the Indian real estate sector is estimated to increase by more than 12-fold to USD 5.8 trillion (USD 5,800 billion) by 2047 from USD 477 billion last year. The sector is expected to contribute over 15% to the total economic output of the country in 2047 from an existing share of 7.3%. The size of the residential real estate market is estimated to grow to USD 3.5 trillion in 2047 from USD 299 billion last year. The size of the office real estate market is likely to grow to USD 473 billion from USD 40 billion, while the warehousing market is expected to reach USD 34 billion from USD 2.9 billion. The share of lower income households will reduce from existing 43% currently to 9% in 2047. 

GOVERNMENT INITIATIVES & REGULATIONS :

The Union Budget 2023 – 24 announcements include –
▪ An augmentation of 33% in the capital investment outlay taking it to Rs 10 trillion.
▪ The enhancement of the PM Awas Yojana with a 66% increase in allocation to Rs 790 bn is a major step towards increasing the availability of affordable housing, thereby providing a boost to the real estate sector.
▪ The newly established Infrastructure Finance Secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure, and power.
▪ An annual allotment of Rs 100 billion for the Urban Infrastructure Development Fund to foster urban infrastructure in tier 2 and 3 cities.

Mechanical Electrical and Plumbing (MEP) Services

Mechanical, electrical & plumbing (MEP) services is the umbrella term for the range of technical / engineering services in the construction domain that are used to transform a building to be fit for human occupancy. The MEP service provider offers turnkey solution majorly to the residential, commercial, and industrial buildings, airports, hospitals, educational units, hotels, laboratories, research centers amongst others. 

MEP systems are developed by specialists as it involves complex designs, coordination, and detailing issues. Additionally, to operate at maximum capacity and minimal errors, they must meet several designs, installation, commissioning, operating and maintenance thresholds and standards.

The key components of MEP include:
▪ Mechanical Engineering: Mechanical systems are generally those systems associated with HVAC (heating, ventilation, air conditioning systems) but can also comprise elevators, escalators, fire protection systems etc.
▪ Electrical Engineering: The deals with distribution and supply of electricity, communication systems, control and security systems, alarm detection, interior and exterior lighting etc. In high-rise construction finding the optimal routes for conduit and wiring is one of the major challenges which can be overcome by using MEP which allows conduit and wiring to be laid out with minimal circuit lengths and avoid location conflicts with mechanical and plumbing installations.
▪ Plumbing Engineering: PFalcon Technoprojectslumbing systems comprise pipes, tubes, tanks, valves etc. that facilitate the movement and storage of fluids used for water supply, treatment and recovery, waste removal, heating and cooling etc.

FALCON TECHNOPROJECTS INDIA LIMITED STRENGTHS & STRATEGIES

1. 
Project management and execution capability
2. Adding renowned customers and procuring repetitive work orders from existing customers provides visibility of future revenues
3. Managing diverse business operations amidst growing demand
4. Technology at the forefront of our current and future business
5. Experienced and committed professional management team
6. Retain, strengthen and grow customer base with a focus on maintaining relationships with existing customers
7. Growing market share in key segments

FALCON TECHNOPROJECTS INDIA LIMITED RISK FACTORS & CONCERNS

1. The Company has higher debt-equity ratio.
2. Hypothecation of Company property as security toward borrowings from the lenders.
3. Certain agreements with respect to borrowings are inadequately stamped or may not have been registered.
4. The Company require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of their business
5. The Company does not have any listed peer companies for comparison of performance.

FALCON TECHNOPROJECTS INDIA Limited Financial Information (Restated Consolidated)

Amount in (₹ in Lakhs)

Period Ended Jan 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Reserve of Surplus 511.87 284.47 180.56 77.79
Total Assets 2,143.72 2,183.61 2,179.53 1,720.12
Total Borrowings 781.05 1232.02 962.81 729.75
Fixed Assets 202.00 385.10 388.14 393.10
Cash 6.66 15.98 15.23 2.87
Net Borrowing 774.39 1216.04 947.58 726.88
Revenue 1,033.81 1,653.50 2,286.19 943.14
EBITDA 195.31 241.79 220.14 105.12
PAT 86.98 103.92 102.76 29.60
EPS 2.44 3.10 3.07 0.88

Note 1: EPS calculation is based on 31st March, 2023 Data, given in RHP.
Note 2: ROCE, ROE calculation is based on 31st Jan, 2024 Data, given in RHP.
Note 3: RONW calculation is based on 31st Jan, 2024 Data, given in RHP.

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) ₹3.10
EPS Post IPO (Rs.) ₹1.94
P/E Pre IPO 29.66
P/E Post IPO 47.22
ROE 9.68%
ROCE 11.54%
P/BV 2.17
Debt/Equity 0.87
RoNW 9.68%

FALCON TECHNOPROJECTS INDIA Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Falcon Technoprojects India Limited ₹1.62 11.54% 9.68% 56.79 2.17 0.87 9.68%
FALCON TECHNOPROJECTS INDIA Limited Contact Details

FALCON TECHNOPROJECTS INDIA LIMITED

Unit No. 17/18, 1st Floor, Keshav Building, Vasudev Sky High Complex, Beverly Park, Mira Road East, Maharashtra- 401107
Contact Person : Ms. Dipti Sharma
Email-id : cs@falcontechnoprojects.com
Telephone : +91 22 3512 9249
Websitehttps://www.falcongroupindia.com/

FALCON TECHNOPROJECTS INDIA IPO Registrar and Lead Manager(s)

Lead Manager : KUNVARJI FINSTOCK PRIVATE LIMITED
Contact Person : Mr. Jiten Patel / Mr. Parth Pankhaniya
Email : mb.compliances@kunvarji.com
Telephone : 022 – 69850000 / 079- 66669000
Websitehttps://kunvarji.com/

Registrar : KFIN TECHNOLOGIES LIMITED
Contact Person : Mr. M Murali Krishna
Email : ftil.ipo@kfintech.com
Telephone : +91 40 6716 2222
Websitehttps://www.kfintech.com/

FALCON TECHNOPROJECTS INDIA IPO Review

Falcon Technoprojects India Limited is engaged in the business of providing Mechanical, Electrical and Plumbing (“MEP”) services to our PAN India customers which are operating in various sectors including Petroleum Refineries, Residential Townships, Atomic Energy, Civil Construction, and many more.

Falcon Technoprojects is promoted by Mr. Bharat Shreekishan Parihar and Mrs. Sheetal Bharat Parihar and has an experience of more than 16 years in the MEP sector having worked across many industries including projects in Petroleum Refinery Industry, Real Estate, Renewable Energy with respect to Mechanical, Electrical and Plumbing for domestic market.

Financially, Falcon Technoprojects revenue increased from ₹ 943.14 Lakhs in FY21 to ₹ 2,286.19 in FY22 but fallen in FY23 to ₹ 1,653.50 Lakhs and currently landing at ₹ 1,033.81 Lakhs for the 10MFY24. Similarly, EBITDA rose from ₹ 105.12 Lakhs in FY21 to ₹ 220.14 Lakhs in FY22 and further to ₹ 241.79 Lakhs in FY23 and then currently at ₹ 195.31 Lakhs for the 10MFY24. This indicates steady growth in financial performance. 

For the Falcon Technoprojects IPO, the company is issuing shares at a pre-issue EPS of ₹ 3.10 and a post-issue EPS of ₹ 1.94. The pre-issue P/E ratio is 29.66x, while the post-issue P/E ratio is 47.22x against the construction industry P/E ratio of 35x. The company's ROCE for 10MFY24 is 11.54%, and ROE for 10MFY24 is 9.68%. These metrics suggest that the IPO is over priced and nothing much left for the investors on the table. The company doesn't have directly listed players but some small unlisted companies like BR MEP Engineers Private Limited & PillarPlus Private Limited in MEP segment have performed very well over the period of FY20-22 and shown huge profit growth on small base.

The Grey Market Premium (GMP) indicates potential listing loss of 20% - 25%. Given the company's financial performance and the valuation of the IPO, we recommend Investors NOT APPLY in the IPO for listing gains or long term Investment purposes.

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