Sathlokhar Synergys E&C Global IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

Sathlokhar Synergys turnkey contractors in Chennai / PAN India aim to provide top quality, individualized services according to our needs. They are dedicated to delivering the demands of their clients while upholding international/global criteria and standards.

Sathlokhar Synergys, a Book Built Issue amounting to ₹92.93 crores, consisting entirely a Fresh Issue of 66.38 Lakh Shares. The subscription period for the Sathlokhar Synergys IPO opens on July 30, 2024, and closes on August 01, 2024. The allotment is expected to be finalized on or about Friday, August 02, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about Tuesday, August 06, 2024.

The Share price band of Sathlokhar Synergys IPO is set at ₹133 to ₹140 equity per share, with a minimum lot size of 1,000 shares. Retail investors are required to invest a minimum of ₹140,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (2,000 shares), amounting to ₹280,000.

GYR Capital Advisors Private Limited is the book-running lead manager, Purva Sharegistry (India) Private Limited is the registrar for the Issue. Giriraj Stock Broking Private Limited is the Market Maker for the Sathlokhar Synergys IPO.

Sathlokhar Synergys E&C Global Limited IPO GMP Today
The Grey Market Premium of Sathlokhar Synergys E&C Global Limited IPO is expected in the range of ₹95 to ₹100 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.

Sathlokhar Synergys E&C Global Limited IPO Live Subscription Status Today
As of 09:28 PM on 01 August 2024, the Sathlokhar Synergys E&C Global Limited IPO live subscription status shows that the IPO subscribed 185 times on on the final day of subscription period. Check the Sathlokhar Synergys E&C Global Limited IPO Live Subscription Status Today at NSE.

Sathlokhar Synergys E&C Global Limited IPO Allotment Status
Sathlokhar Synergys IPO allotment date is 02 August, 2024, Friday. Sathlokhar Synergys IPO Allotment will be out on 2nd August 2024 and will be live on Registrar Website from the allotment date. Check Sathlokhar Synergys E&C Global Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Sathlokhar Synergys E&C Global Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Sathlokhar Synergys E&C Global Limited IPO
Sathlokhar Synergys Issue Proceeds from the Fresh Issue will be utilized towards the following objects :
1. ₹7,300.00 Lakhs is required for Working Capital
2. General Corporate Purposes

Refer to Sathlokhar Synergys E&C Global Limited RHP for more details about the Company.

Sathlokhar Synergys E&C Global IPO Details

IPO Date July 30, 2024 to August 01, 2024
Listing Date August 06, 2024
Face Value ₹10
Price ₹133 to ₹140 per share
Lot Size 1,000 Shares
Total Issue Size 6,638,000 Equity Shares (aggregating up to ₹92.93 Cr)
Fresh Issue 6,638,000 Equity Shares (aggregating up to ₹92.93 Cr)
Offer for Sale Nil
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 17,499,992
Share holding post issue 24,137,992

Sathlokhar Synergys E&C Global IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 1,000 ₹140,000
Retail (Max) 1 1,000 ₹140,000
HNI (Min) 2 2,000 ₹280,000

Sathlokhar Synergys E&C Global IPO Timeline (Tentative Schedule)

IPO Open Date Tuesday, July 30, 2024
IPO Close Date Thursday, August 01, 2024
Basis of Allotment Friday, August 02, 2024
Initiation of Refunds Friday, August 02, 2024
Credit of Shares to Demat Monday, August 05, 2024
Listing Date Tuesday, August 06, 2024
Cut-off time for UPI mandate confirmation 5 PM on August 01, 2024

Sathlokhar Synergys E&C Global IPO Reservation

Investor Category Shares Offered Reservation %
QIB Shares Offered 3,018,000 Not More than 50% of the Net Issue
Retail Shares Offered 2,114,000 Not Less than 35% of the Net Issue
Non-Institutional Shares Offered 906,000 Not Less than 15% of the Net Issue
Market Maker Portion 600,000 9.04% of the Issue

Sathlokhar Synergys E&C Global IPO Promoter Holding

Share Holding Pre Issue 86.49%
Share Holding Post Issue 62.71%

Sathlokhar Synergys E&C Global IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed

About Sathlokhar Synergys E&C Global Limited

The Family of SATHLOKHAR ‘SYNERGYS’, was founded in the year 2013. They are an Engineering, Procurement and Construction EPC (Design and Build) & Infra Trunkey Contractors in Chennai/Pan India.

They undertake Construction of Buildings (Design& Build) & Infrastructure Facilities Industrial/ Warehouse/ Commercial/ Institutional/ Hotels/ Pharma Projects/ Hospital/ Marriage halls/ Resorts & Solar Projects, which also offers Project Management Consultancy Services under a single point responsibility. They are authorised “Government approved A Grade” (EA 3018) Electrical (HT<) Engineers & MEP Turnkey Contractors.

They are the premier industrial builders in Chennai, India, passionately committed to delivering excellence in infrastructure and project management consultation. By adopting the latest global trends, they effectively meet the needs of their clientele, ensuring superior results and innovative solutions. They at SATHLOKHAR dedicate their full expertise, knowledge and sound judgment in every project that they undertake to deliver the desired quality of service expected by their clients. They have advanced in their approach towards every project in terms of Design and Construction Technology to build a better future we deserve.

They as a responsible Corporate Entity, have been actively contributing to the Socio Economic development of several communities across India, aiming to set their milestone as a Successful Synergy of Corporate Experts & Professionals. They are currently operating across Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, West Bengal, Gujarat, Uttar Pradesh; Planning to expand & continue their uncompromised passionate service.

INFRASTRUCTURE INDUSTRY IN INDIA
India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress.

Infrastructure is a key enabler in helping India become a US $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. Prime Minister Mr. Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors. 

The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. 

Infrastructure support to the nation’s manufacturers also remains one of the top agendas as it will significantly transform goods and exports movement making freight delivery effective and economical. 

The "Smart Cities Mission" and "Housing for All" programmes have benefited from these initiatives. Saudi Arabia seeks to spend up to US$ 100 billion in India in energy, petrochemicals, refinery, infrastructure, agriculture, minerals, and mining.

The infrastructure sector is a key driver of the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. The infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. In other words, the infrastructure sector acts as a catalyst for India’s economic growth as it drives the growth of the allied sectors like townships, housing, built-up infrastructure, and construction development projects. 

To meet India’s aim of reaching a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India’ and the production-linked incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80% of the country's infrastructure spending has gone toward funding for transportation, electricity, and water, and irrigation. 

While these sectors still remain the key focus, the government has also started to focus on other sectors as India's environment and demographics are evolving. There is a compelling need for enhanced and improved delivery across the whole infrastructure spectrum, from housing provision to water and sanitation services to digital and transportation demands, which will assure economic growth, increase quality of life, and boost sectoral competitiveness.

In Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion), which would be 3.3 per cent of GDP. As per the Union Budget 2023-24, a capital outlay of Rs. 2.40 lakh crore (US$ 29 billion) has been provided for the Railways, which is the highest ever outlay and about 9 times the outlay made in 2013-14. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of US$ 1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector. 

The Indian Railways expects to complete total revenue of Rs. 2,64,500 crore (US$ 31.81 billion) by the end of 2023-24. India's Logistics Market is estimated to be US$ 435.43 billion in 2023 and is expected to reach US$ 50.52 billion by 2028, growing at a CAGR of 8.36%.India intends to raise its ranking in the Logistics Performance Index to 25 and bring down the logistics cost from 14% to 8% of GDP, leading to a reduction of approximately 40%, within the next five years. 

In December 2022, AAI and other Airport Developers have targeted capital outlay of approximately Rs. 98,000 crore (US$ 11.8 billion) in airport sector in the next five years for expansion and modification of existing terminals, new terminals and strengthening of runways, among other activities. India currently has the fifth-largest metro network in the world and will soon overtake advanced economies such as Japan and South Korea to become the third-largest network. Metro rail network reached 810 kms and is operational in 20 cities as of September 2022. 

At almost 20 kms, Mumbai monorail is the third largest route in the world after China with 98 kms and Japan with 28 kms.India plans to spend US$ 1.4 trillion on infrastructure through ‘National Infrastructure Pipeline’ in the next five years. In FY21, infrastructure activities accounted for 13% share of the total FDI inflows of US$ 81.72 billion.

Hundreds of new cities need to be developed over the next decade. Over the next 10 years, demand for urban freight is predicted to increase by 140%. Final-mile freight transit in Indian cities accounts for 50% of the total logistics expenditures in the country's increasing e-commerce supply chains. Indian logistics market is estimated to touch US$ 320 billion by 2025. The overall infrastructure capex is estimated to grow at a CAGR of 11.4% over 2021-26 driven by spending on water supply, transport, and urban infrastructure. Investment in infrastructure contributed around 5% of the GDP in the tenth five-year plan as against 9% in the eleventh five-year plan. Further, US$ 1 trillion investment in infrastructure was proposed by the India’s planning commission during the 12th fiveyear plan, with 40% of the funds coming from the private sector.

Road Ahead for the Indian Infrastructure Sector The government has also suggested an investment of $750 billion to strengthen railway infrastructure and envisioned the Maritime India Vision 2030 which estimates massive investments in world-class infrastructure development at Indian ports. 
Global investment and partnerships in infrastructure, such as the India-Japan forum for development in the Northeast are also indicative of more investments. These initiatives come at a momentous juncture as the country aims for self-reliance in future-ready and sustainable critical infrastructure. 
India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast-growing population. This investment will only be rational as well as sustainable, if we additionally focus on long-term maintenance and strength of our buildings, bridges, ports and airports. 
The market size of the Indian Infrastructure Sector is expected to grow from US$ 186.24 billion in 2023 to US$ 294.12 billion by 2028, representing a compound annual growth rate (CAGR) of 9.57%.

SATHLOKHAR SYNERGYS E&C GLOBAL LIMITED STRENGTHS
1. Experienced Promoters backed by strong management team
2. Focused Fast track EPC Turnkey construction player.
3. Strong order book
4. Established track record of timely execution
5. In house integrated model

SATHLOKHAR SYNERGYS E&C GLOBAL LIMITED STRATEGIES
1. Geographical diversification
2. Enhance attractiveness through quality execution, cost reduction and continuous training of manpower
3. Design, Construct Warehouse & Industrial buildings as EPC contractors apart from Solar & MEP projects
4. Further enhance our project execution capabilities
5. Develop and maintain strong relationships with our clients
6. Leverage core competencies with enhanced in-house integration

SATHLOKHAR SYNERGYS E&C GLOBAL LIMITED RISK FACTORS & CONCERNS
1. The business is majorly concentrated in the state of Tamil Nadu and Karnataka.
2. Infrastructure projects are typically awarded to them on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process.
3. They own office equipment, plant and machinery, computer and accessories and vehicles, resulting in fixed costs to their Company.
4. They derive a significant portion of their revenues from a limited number of clients.
5. They cannot assure that the construction of their projects will be free from any or all defects.
6. They rely on effective and efficient project management.
7. Their in-house integrated model may fail which may affect their operations, reputation and profitability.

Sathlokhar Synergys E&C Global Limited Financial Information (Restated Consolidated)

Amount in (₹ in Lakhs)

Period Ended Mar 31, 2024 Mar 31, 2023 Mar 31, 2022
Reserve of Surplus 3,853.09 1,231.66 686.11
Total Assets 10,482.58 4,782.28 4,627.77
Total Borrowings 7.92 612.19 677.14
Fixed Assets 394.30 85.69 66.12
Cash 896.81 256.76 113.03
Net Borrowing -888.89 355.43 564.11
Revenue 24,732.09 8,715.66 5,851.51
EBITDA 3,572.45 837.32 176.49
PAT 2,621.43 545.55 87.87
EPS 14.98 3.12 0.50

Note 1:- ROCE & ROAE calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 2:- Pre EPS and Post EPS calculation in KPI is based (PAT) on 31st Mar, 2024 Data, given in RHP.
Note 3:- RoNW calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 4:- Price to Book Value calculation in KPI is based on Cap Price after completion of an Offer, given in Financial Express.

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) ₹14.98
EPS Post IPO (Rs.) ₹10.86
P/E Pre IPO 9.34
P/E Post IPO 12.89
ROE 95.59%
ROCE 87.33%
P/BV 2.53
Debt/Equity 0.00
RoNW 64.68%

Sathlokhar Synergys E&C Global Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Sathlokhar Synergys E&C Global Limited ₹10.86 87.33% 95.59% 12.89 2.53 0.00 64.68%
K2 Infragen Limited ₹13.5 50.9% 89.4% 27.5 - 0.56 50.9%
Suraj Estate Developers Limited ₹15.2 28.9% 23.0% 43.4 5.68 0.83 28.9%
SRM Contractors Limited ₹16.1 28.0% 28.0% 21.1 - 0.37 28.0%
Sathlokhar Synergys E&C Global Limited Contact Details

SATHLOKHAR SYNERGYS E&C GLOBAL LIMITED

Plot No. 5171, 9th Street, Ram Nagar North Extension, Madipakkam, Kanchipuram, Saidapet, Tamil Nadu, India- 600091
Contact Person : Mr. Anil Prasad Sahoo
Telephone +91 7299541122
Email Id : cs@sathlokhar.com
Website : https://www.sathlokhar.com/

Sathlokhar Synergys E&C Global IPO Registrar and Lead Manager(s)

Registrar : Purva Sharegistry (India) Private Limited
Telephone : 022 4961 4132 / 3522 0056
Email Id : newissue@purvashare.com
Website : https://www.purvashare.com/

Lead Manager : GYR Capital Advisors Private Limited
Telephone : +91 87775 64648
Email Id : info@gyrcapitaladvisors.com
Website : https://gyrcapitaladvisors.com/

Sathlokhar Synergys E&C Global IPO Review

Sathlokhar Synergys turnkey contractors in Chennai / PAN India aim to provide top quality, individualized services according to our needs. They are dedicated to delivering the demands of their clients while upholding international/global criteria and standards

The Company is led by experienced and professional Promoters, named, MR. G THIYAGU has over 25 years of experience in various aspect of Real Estate industry, MS. SANGEETHAA THIYAGU has over 21 years of experience in Project Management and in construction industry and MR. DINESH SANKARAN has more than 24 years of experience in the IT industry, he specializes in Robotics Process Automation, Conversational Chatbots, Cloud Platforms, Computer Vision/OCR, and other areas.

Financially, Sathlokhar Synergys revenue increased from ₹5,851.51 Lakhs in FY22 to ₹8,715.66 Lakhs in FY23 and currently jumped to24,732.09 Lakhs in FY24. Similarly, EBITDA also increased from ₹176.49 Lakhs in FY22 to ₹837.32 Lakhs in FY23 and currently increased at ₹3,572.45 Lakhs in FY24. The PAT also increased from ₹87.87 Lakhs in FY22 to ₹545.55 Lakhs in FY23 and currently at ₹2,621.43 Lakhs in FY24. This indicates a steady financial performance.

For the Sathlokhar Synergys IPO, the company is issuing shares at a pre-issue EPS of ₹14.98 and a post-issue EPS of ₹10.86. The pre-issue P/E ratio is 9.34x, while the post-issue P/E ratio is 12.89x against the industry P/E ratio of 12.92x. The company's ROCE for FY24 is 87.33% and ROE for FY24 is 95.59%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Sathlokhar Synergys indicates potential listing gains of 65% to 70%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Sathlokhar Synergys IPO for Listing gain or long term investment purposes.

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