The Initial Public Offering (IPO) of the Kay Cee Energy & Infra Limited will open for public subscription on December 28, 2023. The company plans to raise ₹15.93 crore through a fresh issue of 29.5 lakh equity shares. The price band is set at ₹51 to ₹54 per share at a face value of ₹10. The SME IPO is tentatively scheduled for listing on NSE’s SME segment on January 05, 2024.
About Company
Kay Cee Energy & Infra Limited (KCEIL) was founded in 2015 to provide engineering, procurement, and construction (EPC) services for power transmission and distribution systems. It is an ISO 9001:2015 certified company.
The company offers a plethora of services including operation and maintenance, emergency restoration system (ERS), testing and commissioning of equipment and materials for power transmission and distribution systems, substations construction, automation, modification and expansion of existing power systems. Furthermore, the company manufactures materials required to complete EPC contracts for extra-high voltage transmission lines, electrical panels, substations, and solar plants.
Kay Cee has undertaken a variety of projects for public entities such as Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL), Jost Engineering Limited and Sterlite Power Transmission Limited. As well as reputed companies like DRAIPL-GCC (JV), DMIA Nyati LLP, H G Infra Engineering Limited, Gawar Construction Limited, L & T Limited, Raj Shyama Constructions Private Limited, Sadbhav Engineering Limited, Wonder Cement Limited, and others are in client portfolio of KCEIL.
There are 15 projects in progress at the company with a total contract value of approximately 54,990.27 lakhs as of September 30, 2023. A total of 174 employees were employed by the company as of August 31, 2023, including 18 project managers, 30 supervisors and engineers, and 126 skilled workers.
Mr. Lokendra Jain and Mrs. Shalini Jain are the promoters of the company with a pre-issue shareholding of 96.12%.
IPO details at a glance
GYR Capital Advisors Private Limited is the book running lead manager whereas Bigshare Services Pvt Ltd is the registrar for the Kay Cee Energy & Infra Limited IPO. Giriraj Stock Broking is the market maker.
| IPO Application Date | December 28 2023 to January 02, 2024 |
| Listing Date | January 03, 2024 |
| Listing On | NSE SME |
| Issue Type | Book Built Issue |
| Face Value | ₹10 per share |
| Price Range | ₹51 to ₹54 per share |
| Lot Size | 2000 Shares |
| Total number of issues | 29,50,000 shares aggregating up to ₹15.93 Crore |
| Fresh Issue | 29,50,000 shares aggregating up to ₹15.93 Crore |
| Holdings before issue | 80,10,000 Shares |
| Holdings after issue | 1,09,60,000 Shares |
| Market Maker Reservation | 1,90,000 Shares |
| Net Public Issues | 27,60,000 Shares (excluding market maker reservation) |
| Retail Investor Quota | Maximum 50% of net offering |
| QIB Investor Quota | Minimum 35% of net offering |
| NII Investor Quota | Minimum 15% of net offering |
The retail investors can bid only for 1 lot i.e., 2,000 shares whereas HNIs can bid for up to 2 lots. The investment per lot amounts to ₹1,08,000.
Important dates
The dates are mentioned as per the tentative schedule given in the Kay Cee Energy & Infra IPO RHP document.
| IPO opening date | December 28, 2023 (Thursday) |
| IPO closing date | January 02, 2024 (Tuesday) |
| UPI mandate confirmation cut-off time | 5 PM, January 02, 2023 (Tuesday) |
| Finalization of allotment basis | January 03, 2024 (Wednesday) |
| Allotment initiation / Refunds / Unblocking of Funds | January 03, 2024 (Wednesday) |
| Credit of Shares to Demat | January 04, 2024 (Thursday) |
| IPO Listing Date / Trading of Share | January 05, 2024 (Friday) |
Company’s financials
KCEIL recorded a 22.33% growth in revenue and 77.62% rise in profit after tax (PAT) in the financial year ending in 2023 as compared to FY2022.
| Financial Period Ending in | 30 June’23 | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 2,312.08 | 2,191.34 | 1,640.63 | 1,330.58 |
| Total Assets | 8,332.09 | 8,017.57 | 6,370.15 | 3,807.83 |
| Revenue from operations | 955.18 | 6,109.18 | 4,959.36 | 3,477.33 |
| EBITDA | 247.89 | 1,008.50 | 463.08 | 270.65 |
| EBITDA Margin | 25.71% | 16.45% | 9.24% | 7.60% |
| Profit After Tax (PAT) | 120.74 | 550.71 | 310.05 | 187.47 |
| PAT Margin | 12.64% | 9.01% | 6.25% | 5.39% |
| Cash flow from operations | 138.86 | -1,370.23 | 1,132.31 | -1,294.06 |
| Debt-Equity (D/E) Ratio | 1.04 | 1.04 | 0.39 | 0.20 |
| Reserves & Surplus | 2,287.08 | 2,166.34 | 1,615.63 | 1,305.58 |
| Total Borrowing | 2,405.41 | 2,289.42 | 646.90 | 272.27 |
| Amount in ₹ Lakhs | ||||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Market Cap | 59.18 Cr |
| P/E | 7.59 |
| ROE | 25.13% |
| ROCE | 22.32% |
| Debt/Equity | 1.04 |
| EPS | ₹7.11 |
| RoNW | 25.13% |
Objects of the Issue
According to the red-herring prospectus, the net proceeds of the issue will go towards funding the working capital requirements of the company and general corporate expenses.
Note: The details given are as per the official RHP filed with SEBI.
Read: Upcoming IPO Details
