Rulka Electricals IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

Rulka Electricals is launching an IPO with a book-built issue worth Rs 26.40 crores. This includes a fresh issue of 8.42 lakh shares totaling Rs 19.80 crores and an offer for sale of 2.81 lakh shares totaling Rs 6.60 crores. The IPO bidding period opened on May 16, 2024, and will close on May 21, 2024.

The allotment is expected to be finalized on May 22, 2024, with the shares set to list on the NSE SME on May 24, 2024. The IPO price band is set between ₹223 and ₹235 per share. Retail investors need a minimum investment of ₹141,000 for 600 shares, while high net-worth individuals (HNI) must invest at least ₹282,000 for two lots of 1,200 shares.

Beeline Capital Advisors Pvt Ltd is serving as the book-running lead manager, Bigshare Services Pvt Ltd is the registrar, and Sunflower Broking is the market maker for this IPO.

The company intend to utilize the proceeds of the Offer:

  1. To Meet Working Capital Requirement.
  2. General Corporate Purpose.
  3. To Meet the Offer Expenses.

Listing will enhance corporate image and visibility of brand name of the Company believing that Company will receive the benefits from listing of Equity Shares on the SME Platform of NSE. It will also provide liquidity for the existing shareholders creating a public trading market for the Equity Shares of the Company.

Rulka Electricals IPO Details

IPO Date May 16, 2024 to May 21, 2024
Listing Date May 24, 2024
Face Value ₹10 per share
Price ₹223 to ₹235 per share
Lot Size 600 Shares
Total Issue Size ₹26.40 Cr
Fresh Issue 842,400 shares (aggregating up to ₹19.80 Cr)
Offer for Sale 280,800 shares of ₹10 (aggregating up to ₹6.60 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 3,416,000
Share holding post issue 4,258,400

Rulka Electricals IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 600 ₹141,000
Retail (Max) 1 600 ₹141,000
HNI (Min) 2 1,200 ₹282,000

Rulka Electricals IPO Timeline (Tentative Schedule)

IPO Open Date Thursday, May 16, 2024
IPO Close Date Tuesday, May 21, 2024
Basis of Allotment Wednesday, May 22, 2024
Initiation of Refunds Thursday, May 23, 2024
Credit of Shares to Demat Thursday, May 23, 2024
Listing Date Friday, May 24, 2024
Cut-off time for UPI mandate confirmation 5 PM on May 21, 2024

Rulka Electricals IPO Reservation

Investor Category Shares Offered Reservation %
Anchor Investor Shares Offered 319,200 (28.42%)
Market Maker Shares Offered 56,400 (5.02%) N/A
QIB Shares Offered 213,600 (19.02%) N/A
NII (HNI) Shares Offered 160,200 (14.26%) N/A
Retail Shares Offered 373,800 (33.28%) N/A
Total Shares Offered 1,123,200 (100%) N/A

Rulka Electricals IPO Promoter Holding

Share Holding Pre Issue 86.28%
Share Holding Post Issue 69.22%

About Rulka Electricals Limited

Rulka Electricals Limited is in business of turnkey projects contractor engaged in offering solution for all types of Electrical & Fire Fighting Turnkey Projects. Company offers wide range of services like 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 the Industrial Sector, Commercial, Retail and Theatre sector.

The company offers electrical contracting services for all types of industrial plants. Apart from this they also provide Annual Maintenance which are customized to meet the specific requirements of systems and operations. Which consists of technicians and engineers, ensuring that systems are consistently maintained to the highest standards.

The company offer professional solutions, encompassing design and electrical services, to cater to the needs of customers. The team comprises highly skilled and dedicated professionals. Company derives its 100% revenue from Turnkey Projects – Turnkey Project includes material and Labor both together with Engineering, Designing and Consultancy Services.

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 416.59 GW as of April 30, 2023. As of April 30, 2023, India’s installed renewable energy capacity (including hydro) stood at 172.54 GW, representing 41.4% of the overall installed power capacity. Solar energy contributed 67.07 GW, followed by 42.86 GW from wind power, 10.24 GW from biomass, 4.94 GW from small hydropower, 0.55 from waste to energy, and 46.85 GW from hydropower.

India's power generation witnessed its highest growth rate in over 30 years in FY23. Power generation in India increased by 8.87% to 1,624.15 billion kilowatt-hours (kWh) in FY23. According to data from the Ministry of Power, India's power consumption stood at 130.57 BU in April, 2023. The peak power demand in the country stood at 226.87 GW in April, 2023.

The coal plants registered a PLF of 73.7% for the first nine-months period in FY23 compared to 68.5% in FY22 for the same period. Thermal power plant load is estimated to improve by 63% in FY24, fuelled by strong demand growth along with subdued capacity addition in the sector.

Risk:

  • Business is dependent on a few customers and the loss of, or a significant reduction in award of contracts by such customers could adversely affect the company. The top 10 customers contribute 70% of the business. Major operations in geographical region of State of Maharashtra.
  • Under-construction projects may be subject to cost overruns or delays.
  • India provides most of the business. (Approx. 99.9%).
  • Due to the long construction periods of the projects, the operation and maintenance costs of projects may change significantly after commissioning of the assets. As the terms and conditions, including the fee structure, are generally fixed, the company may not be able to offset increases in costs, including operation and maintenance costs.
  • This industry is manpower intensive and any unavailability of employees or shortage of contract labor or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labor may have an adverse impact on cash flows and results of operations.
  • The top 10 suppliers contribute approx. 47% of purchases.

Rulka Electricals Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 29th Feb 24 31st Mar 23 31st Mar 22 31st Mar 21 `
Reserve of Surplus 9.49 5.46 2.66 1.54
Total Assets 40.82 28.27 19.19 9.82
Total Borrowings 11.05 5.27 2.81 2.31
Fixed Assets 2.59 2.66 2.63 1.85
Cash 1.61 0.10 0.39 0.09
Net Borrowing 9.44 5.17 2.42 2.22
Revenue 65.19 46.84 36.27 19.59
EBITDA 8.11 4.01 2.20 1.05
PAT 5.66 2.81 1.12 0.54
EPS 16.67 8.50 3.40 1.63

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) 8.21
EPS Post IPO (Rs.) 14.49
P/E Pre IPO 28.62
P/E Post IPO 16.21
ROE 67.26%
ROCE 36.51%
P/BV 6.22
Debt/Equity 0.86
RoNW 50.33%

Rulka Electricals Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Rulka Electricals Limited 8.21 36.51% 67.26% 28.62 6.22 0.86 50.33%
HEC Infra Projects Ltd 5.01 7.04% 2.66% 19 3.13 1.18 7.04%
Rulka Electricals Limited Contact Details

RULKA ELECTRICALS LIMITED

A - 20, Shiva Industrial Estate Co. Ltd., Lake Road, Near Tata Power, Bhandup West, Mumbai City, Mumbai- 400078, Maharashtra, India

E-Mail: info@replservices.com

Tel. No.: +022 41276806, 022 49742572, 91- 9029086744

Website: www.replservices.com

Rulka Electricals IPO Registrar and Lead Manager(s)

BIGSHARE SERVICES PRIVATE LIMITED

Office No S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400 093, Maharashtra, India

Tel No: 022 – 6263 8200

Email: ipo@bigshareonline.com

Website: www.bigshareonline.com

Rulka Electricals IPO Review

Rulka Electricals Ltd. (REL) specializes in turnkey electrical and firefighting projects. They offer services like electrical solutions, solar EPC contracts, and data & voice cabling for industrial, commercial, retail, and theater sectors. REL's FY24 post-IPO price translates to a P/E ratio of 16.22, making the issue fully priced. The company has shown steady profit growth with PAT margins improving from 2.74% in FY21 to 8.68% in 11M-FY24, and RoCE margins ranging between 24.66% and 37.82%. Despite no dividends in the past five years, REL has strong growth, blue-chip clients, and higher margins from bundled services. Based on FY24 earnings, long-term investors might find this IPO attractive.

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