ITI is a government-owned company under the ministry of Communications which was established in 1948. Full form of ITI is India Telephone Industries. And it provides diverse range of telecom products and services. The revenue bifurcation of company is 78% Turnkey projects, 19% service projects and 3% manufacturing projects. The Company’s order book is filled with government tenders for network distribution and connection over full area under its state. Its clientele is BSNL, Mahanagar Telephone Nigam Ltd and Indian Defence services. The 74% of company’s revenue is accounted from PSUs. It has total 1600+ employees working under its company. And it has no export revenue, and no outside Indian company is its client. Whole revenue is from PSUs or Ministry of government.
Shareholding Pattern as on September 2024
ITI Ltd Key Stats
Market Cap
₹36,459 Crore
Revenue
₹1264 Crore
Profit
-₹569 Crore
ROCE
-8.35%
P/E
–
Peer Comparison
Amt in ₹
MCap
Sales
PAT
ROE
Asset Turn.
EV/EBITDA
D/E
FCF
ITI Ltd
36459 Cr
2396 Cr
(474 Cr)
-27.30%
0.13
-201.3
1.05
937 Cr
Astra Microwave
7155 Cr
969 Cr
130 Cr
15%
0.72
30.7
0.31
(229 Cr)
Tejas Network
20133 Cr
6260 Cr
454 Cr
2.06%
0.42
20.5
0.78
(2445 Cr)
Avantel
3692 Cr
229 Cr
61.7 Cr
39.20%
1.19
38.67
0.08
39.5 Cr
ADC India Comm.
752 Cr
179 Cr
21 Cr
33.70%
1.96
17.9
0
19.4 Cr
Financial Trends
Amount in ₹ Cr
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
Revenue
2059
2362
1861
1395
1264
Expenses
1914
2313
1753
1549
1582
EBITDA
144
50
107
-154
-318
OPM
7%
2%
6%
-11%
-25%
Net Profit
146
9
119
-360
-569
NPM
0.07
0.00
0.06
-0.26
-0.45
EPS
1.58
0.1
1.27
-3.79
-5.92
ITI Ltd Analysis
The share price of ITI was in consolidation phase from 2018 to 2023, but now it broke that phase and it’s at all time high levels. And on 30th December 2024 the share price rose by 15.5% reaching at ₹379 per share. Its 52 week High/Low is ₹404/210. The volatility very high in the stock, because in about 15 months the stock has given 3 times returns to its investors, showing a sign of high risk and volatility in future. Volumes in past months and in history were less than 2 million trades per day but since past 2 months the volumes have increased to 70-90 million trades per day.
News
ITI Limited has significantly improved its operational efficiency, reducing working capital requirements from 196 days to 15.1 days.
For Q2FY25, the company reported consolidated revenue of ₹1,016.20 crore, a substantial increase from ₹246.47 crore in the same quarter last year. Losses were also reduced to ₹70.10 crore, compared to ₹125.81 crore in Q2FY24.
The company, in partnership with its consortium, secured the lowest bidder position (L1) for two packages worth ₹3,022 crore under BharatNet Phase-3. These packages cover Himachal Pradesh, West Bengal, and Andaman and Nicobar Islands, focusing on designing, supplying, constructing, and maintaining the Middle Mile Network funded by the USOF.
ITI is already executing optical fiber projects worth ₹5,400 crore across Tamil Nadu, Maharashtra, and Gujarat under earlier BharatNet phases and serves as the Project Implementation Agency for MahaNet-I and Gujarat Fiber Grid Network Ltd.
The Aditya Birla Group’s main metals company, Hindalco Industries Limited, is a major producer of copper, one of Asia’s biggest producers of raw aluminum, and a world leader in the rolling and recycling of aluminum. Bauxite mining, alumina refinery, aluminum smelting, rolling, extrusion, and foil manufacturing are all parts of Hindalco’s operations in India. Its copper section, which produces copper rods and supplies more than half of India’s copper needs, including major contributions to Indian Railways, has a state-of-the-art bespoke smelter and captive jetty. Hindalco was founded on December 15, 1958, and began operations in 1962 with an initial capacity of 20,000 metric tons of aluminum metal and 40,000 metric tons of alumina in Renukoot, Uttar Pradesh. By 1965, the business had increased its rolling and extrusion downstream capabilities. To support its operations, the Renusagar Power Plant was put into service in 1968. A significant expansion, modernization, and diversification program was launched in 1994, laying the foundation for future growth. Hindalco ventured into aluminum foil production in 1998 with the establishment of its Silvassa plant. In 1999, it began manufacturing aluminum alloy wheels at the same location. During this time, the company’s capacity to produce Renukoot metal increased to 242,000 metric tons per year. Hindalco acquired a 74.6% share in the (Indal) in 2000. Hindalco is committed to growing its supply chain capabilities and develop innovative products. Hindalco broadened its product portfolio by introducing innovative solutions tailored to various industries, including telecommunications, air conditioning, and railways. Notably, it made history by launching India’s first aluminium freight rake in Odisha, marking a significant step in sustainable and efficient transport solutions. Hindalco is on the run to leave its remarkable footprints across the globe.
Returns Summary
YTD
1 Month
6 Month
1 Year
2 Year
3 Year
5 Year
0.50%
-6.59%
-9.85%
2.06%
31.18%
36.51%
186.91%
Result Highlights
Hindalco Industries Ltd. has demonstrated a robust performance in Q2FY25, showcasing increased profitability, business expansion. Its revenue increased to Rs. 58,203 Crores showcasing 7% growth on Y-o-Y basis.
EBITDA grew to Rs. 9100 Crores in Q2FY25, showcasing a significant 49% Y-o-Y growth which shows improved profitability despite several segment challenges.
Profit After Tax (PAT) surged to Rs. 3,909 Crores, showcasing 78% increase Y-o-Y basis which is a positive indication for the company in terms of profitability.
Hindalco is planning to expand its capex which will involve an investment of $4-5 billion to increase its upstream capacity across two metals i.e., aluminium and copper. Funding will come from Internal accruals and debts amounting to Rs. 7200 Crores to Rs. 8,000 Crores, reflecting companies balanced and strategic move.
In addition to the above plans, Hindalco has already committed a massive investment of Rs. 6,000 Crores for increasing downstream capabilities and has also proceeding with $4.1 billion Bay Minette Project in the U.S. Hindalco is standing with a great vision and continuously focusing on several strategies to boost its revenue growth.
Hindalco Industries Ltd announced on Thursday that it has received a demand order worth around Rs 53 crore from the Odisha tax authority in a regulatory filing. The company revealed that the Central Goods and Services Tax (CGST) Commissioner in Rourkela has filed a claim under the Goods and Services Tax (GST) rules, which includes Rs 52.67 crore in fines and penalties.
The aluminum and copper manufacturing giant said The order was initially sent via after-hours email on Dec. 24, 2024. However, the company learned of the order on Thursday. After one employee quickly lost access to their official email account “As soon as we know the order. We will let you know,” Hindalko explained.
This demand relates to the GST payable by reverse surcharge on water bills paid to the state government. Hindalko plans to appeal the order. It asserts that there is a strong case on morality and law. The company emphasizes that it does not foresee any material impact to its financial, operating or other operations as a result of the order.
Hindalco announced strong financial performance for the quarter ended September 30, 2024, with net profit increasing 78% year-on-year to Rs 3,909 million. Revenue growth was driven by Strong performance in key business segments This includes Novelis, copper and aluminum operations. Notably, the aluminum upstream and downstream segments recorded revenue growth of 15% and 20%, respectively.
In the stock market, Hindalco shares closed marginally higher at ₹628.90 on BSE, underperforming the benchmark Sensex, which remained flat.
Stock Performance
Hindalco Industries Ltd.’s stock is currently trading at Rs. 617.40, it’s 52 weeks high has been 772.65- and 52-week low was 496.35 with market cap of 138,743 Crores. The fundamentals of the company look very strong there are no major reasons for the recent downfall. It’s the overall sentiment of the market trying the make a bearish trend. Stock is currently in the neutral range and a major accumulation is happening. The PE ratio is 10.64 and Price to Book Value 1.31, it denotes that company’s stock is not overvalued and trading in the fair range. It falls is good quality company basis long term financial performance.
The Indian cement industry is poised for growth in 2025, expecting improved sales realizations, higher margins, and accelerated demand. This optimism is largely fuelled by government infrastructure spending and the ongoing consolidation within the industry, driven by two major players: UltraTech Cement (part of the Aditya Birla Group) and Ambuja Cements (led by billionaire Gautam Adani).
Key Developments in the Cement Sector:
Acquisitions and Capacity Expansion: Both UltraTech Cement and Adani’s Ambuja Cements are making substantial investments to expand their market share. Together, they are acquiring over 50 million metric tons per annum (MTPA) capacity for approximately USD 4.5 billion. Adani Cement, which entered the sector relatively recently, has significantly expanded its footprint by acquiring several cement companies, including Saurashtra-based Sanghi Industries and Penna Industries, and a recent agreement to acquire CK Birla Group’s Orient Cement. With these acquisitions, Adani Cement crossed a 100 MTPA capacity, and plans are in place to reach 140 MTPA by FY28, nearly matching UltraTech Cement’s 156.66 MTPA capacity.
Consolidation and Industry Leadership: The cement sector is seeing increased consolidation, with UltraTech Cement and Ambuja Cements collectively controlling a significant portion of India’s cement production capacity. In fact, the top five cement producers now account for approximately 60–65% of the industry’s total capacity. UltraTech Cement, aiming to maintain its lead, plans to reach 200 MTPA capacity by FY27, underscoring its aggressive growth strategy.
Industry Challenges and Trends in 2024:
Declining Cement Prices: The first half of FY25 saw a 10% year-on-year decline in cement prices, with the average price dropping from Rs 365 per bag in FY24 to Rs 330 per bag. This price drop reflects challenges within the industry, including moderate capacity utilization and lower sales realizations. Despite this, cement prices recovered on a month-to-month basis, rising by 2% in September 2024 compared to the previous month.
Lower Growth in 2024: Cement industry growth in 2024 slowed to around 4.5–5.5%, compared to a more robust 10% growth in previous years. This slowdown was attributed to several factors: A prolonged heatwave and labour shortages during general elections. Seasonal monsoon disruptions that affected construction activity.
Capacity Utilization and Volumes: Capacity utilization levels remained moderate at 70%, as several players struggled with underutilized capacity due to slow growth in demand and the impact of low cement prices. However, the industry’s outlook for the second half of FY25 is more optimistic, with expectations of a 4-5% increase in cement volumes driven by higher rural consumption, increased urban housing demand, and a boost in government infrastructure spending.
Outlook for 2025 and Beyond:
Government Infrastructure Push: A significant boost to the sector is expected from the government’s increased expenditure on infrastructure projects. This is anticipated to drive a rise in cement demand, especially in the housing and rural sectors. The industry’s growth is also being supported by higher capital expenditure from both the government and private sector players, which is likely to result in greater cement consumption.
Capacity Additions and Expected Growth: The Indian cement industry is adding 35 MTPA of capacity in FY25, with an additional 70-75 MTPA capacity expected to come online in FY25-26. Despite this, overall capacity utilization is expected to remain moderate at 70% due to a lag in demand catching up with supply. The Cement Manufacturers’ Association (CMA) forecasts that cement volumes will grow by 4-5% year-on-year, reaching 445-450 million MT in FY25.
Industry Transformation: The cement industry is undergoing a transformation, driven by a growing emphasis on sustainability, innovations, and increased demand for both housing and infrastructure. The Indian cement market, which now has a total capacity of 690 million tonnes, is expected to see improved price realizations and better capacity utilization in the coming years.
Established in 2015, Adani Green Energy Limited (AGEL) is one of India’s leading renewable energy companies, dedicated to harnessing solar and wind power for a sustainable future. Headquartered in Ahmedabad, Gujarat, AGEL is a key subsidiary of the Adani Group, a diversified conglomerate renowned for its contributions across various industries. AGEL operates a robust portfolio of renewable energy assets, with projects strategically located across India. As of 2024, the company boasts an operational capacity of over 8 GW and a total portfolio of nearly 20 GW, including assets under construction. AGEL is committed to achieving its ambitious target of 45 GW renewable capacity by 2030, reinforcing its role as a global leader in clean energy.
The company has established itself as a pioneer in adopting cutting-edge technology and innovative practices. AGEL integrates artificial intelligence and machine learning to optimize energy production and enhance operational efficiency. Its extensive use of predictive maintenance ensures reliability and cost-effectiveness, making it a preferred partner for power utilities and governments. A cornerstone of AGEL’s strategy is its long-term Power Purchase Agreements (PPAs) with reputed off-takers, which ensure stable cash flows and reduced market volatility. These agreements, often spanning 25 years, reflect the trust and confidence of stakeholders in AGEL’s capabilities.
Adani Green has also made significant strides in sustainability and environmental stewardship. By offsetting millions of tons of carbon dioxide emissions annually, the company actively contributes to India’s climate action goals and aligns with global ESG (Environmental, Social, Governance) standards. AGEL’s efforts have been recognized globally, including awards for excellence in renewable energy development and corporate responsibility. With its strong domestic foundation, forward-looking strategies, and unwavering commitment to sustainability, Adani Green Energy Limited continues to lead India’s transition to a green energy future. By leveraging its innovative approach and operational expertise, AGEL aims to play a pivotal role in shaping a sustainable and energy-secure world.
Returns Summary
YTD
1 Month
6 Month
1 Year
2 Year
3 Year
5 Year
-35.44%
-2.02%
-43.10%
-32.78%
-42.93%
-25.60%
592.94%
Result Highlights
Adani Green Energy Limited (AGEL) has reported robust financial and operational performance for the second quarter of fiscal year 2025 (Q2 FY25), reflecting significant growth across key metrics.
Revenue Growth: AGEL’s revenue from operations increased by 30% year-over-year (YoY) to ₹3,376 crore in Q2 FY25, up from ₹2,589 crore in the same quarter of the previous year.
Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.
Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.
Capacity Expansion: The operational capacity grew by 34% YoY to 11,184 megawatts (MW), driven by substantial greenfield additions, including 2,000 MW of solar capacity and 250 MW of wind capacity in Khavda, 418 MW of solar capacity in Rajasthan, and 200 MW of wind capacity in Gujarat.
Energy Sales: Energy sales increased by 20% YoY, totalling 14,128 million units in H1 FY25, attributed to the robust capacity additions and strong operational performance.
Cash Profit: The company’s cash profit surged by 27% YoY to ₹2,640 crore, reflecting enhanced financial strength.
Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.
Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.
Debt Management: AGEL fully redeemed a USD 750 million Holdco bond, aligning with its commitment to systematic deleveraging and robust capital management.
Recent Developments
In November 2024, AGEL faced legal challenges when U.S. authorities indicted founder Gautam Adani and key executives on charges of bribery, alleging a $265 million scheme to secure power supply contracts in India. These allegations led to a substantial decline in AGEL’s stock value, erasing approximately $9.6 billion in market capitalization. Following these developments, S&P Global Ratings revised its outlook on AGEL from ‘stable’ to ‘negative,’ citing concerns over the company’s ability to access funding and maintain investor confidence. As of December 24, 2024, AGEL’s stock closed at ₹1,031.05, reflecting a year-to-date decline of approximately 32.75%. The company’s market capitalization stands at ₹1.63 trillion. Key financial ratios include a Price-to-Earnings (P/E) ratio of 144.79 and a Price-to-Book (P/B) ratio of 9.39.
AEGL Outlook and contribution to Industry
AGEL remains on track to achieve its 2030 renewable energy capacity target of 50 GW, including at least 5 GW of energy storage. The company’s focus on sustainability, operational excellence, and governance practices positions it favourably for continued industry-leading growth.
AGEL has set ambitious goals to significantly expand its renewable energy capacity. The company plans to invest approximately ₹1,500 billion (US$18 billion) to increase its wind and solar capacity at Khavda in Gujarat’s Kutch region from 2 GW to 30 GW by 2030. This expansion is part of AGEL’s broader target to achieve 45 GW of renewable energy capacity by 2030, contributing to India’s sustainable energy transition. In line with its growth strategy, AGEL is embracing advanced technologies to enhance operational efficiency. The company is integrating Industry 4.0 solutions, such as N3uron’s technology, to optimize its renewable energy operations.
AGEL plays a vital role in India’s renewable energy landscape. As of March 2019, the company managed approximately 5,290 MW of wind and solar power plants across 11 states in India, with an operational capacity of around 2,360 MW. AGEL’s projects contribute significantly to India’s renewable energy targets, supporting the nation’s commitment to increasing the share of renewables in its energy mix. One of AGEL’s notable projects is the Khavda Renewable Energy Plant, which, upon completion, is expected to be the world’s largest renewable energy plant, covering an area five times the size of Paris. This project exemplifies AGEL’s commitment to large-scale renewable energy development and its contribution to global clean energy initiatives.
In summary, AGEL’s strategic investments and large-scale projects position it as a key contributor to India’s renewable energy sector, aligning with global sustainability goals and supporting the country’s energy transition efforts.
Balance Sheet & Cash Flow Analysis
Adani Green Energy Ltd (AGEL) is demonstrating significant growth, driven by substantial investments in renewable energy infrastructure. Over the years, the company has increased its equity capital modestly from ₹1,564 crores in 2022 to ₹1,584 crores in 2024, while reserves have grown impressively from ₹-71 crores in 2017 to ₹8,992 crores in 2024, reflecting improved profitability and financial health. The company’s borrowings have surged from ₹4,347 crores in 2017 to ₹67,430 crores in 2024, showcasing its reliance on debt to finance its aggressive expansion strategy. This increased leverage, while supporting growth, also presents potential risks if the returns on these investments fall short.
AGEL’s fixed assets have grown substantially, from ₹4,341 crores in 2017 to ₹64,632 crores in 2024, indicating heavy investments in renewable energy projects. The company’s investments in Capital Work in Progress (CWIP) and other long-term assets signal its continued expansion. Despite negative cash flows from investing activities, which reflect heavy capital expenditures, AGEL has shown strong operational cash flow, growing from ₹28 crores in 2017 to ₹7,713 crores in 2024. This reflects the company’s increasing profitability and its ability to generate internal funding for growth.
However, AGEL’s heavy reliance on debt financing and its large-scale investments could pose risks, especially if the returns on its projects do not materialize as expected. Effective debt management and successful project execution will be essential for maintaining financial stability. Overall, while AGEL’s growth prospects remain strong, careful monitoring of leverage and cash flow management will be crucial to sustaining its expansion and ensuring continued financial health.
The Ventive Hospitality IPO is a book-built issue worth ₹1,600 crores, consisting entirely of a fresh issue of 2.49 crore shares. The IPO subscription window opens on December 20, 2024, and closes on December 24, 2024. The allotment of shares is expected to be finalized on December 26, 2024, with a tentative listing date set for December 30, 2024, on the BSE and NSE. The price band for the issue has been set at ₹610 to ₹643 per share, with a minimum lot size of 23 shares. Retail investors can participate with a minimum investment of ₹14,789, while sNII investors require a minimum of 14 lots (322 shares) amounting to ₹2,07,046. For bNII investors, the minimum investment is ₹10,05,652 for 68 lots (1,564 shares). The IPO also includes a reservation of up to 16,313 shares for employees at a ₹30 per share discount to the issue price. This IPO offers diverse investment opportunities for retail and institutional investors, supported by a robust team of lead managers and competitive pricing.
Period
The Ventive Hospitality IPO is scheduled to open for subscription on December 20, 2024, and will close on December 24, 2024. The share allotment is expected to be finalized by December 26, 2024, with the tentative listing date set for December 30, 2024, on both the BSE and NSE
Pricing and Lot Details
Ventive Hospitality Limited, a prominent hospitality asset owner focusing on luxury offerings across business and leisure segments, is launching its Initial Public Offering (IPO) with the following key details:
Price Band: ₹610 to ₹643 per share. The lower limit is ₹610, while the upper cap is ₹643.
Lot Size: A minimum investment requires 23 shares, amounting to approximately ₹14,789 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹1,600 crore, entirely through a fresh issue of 2.49 crore shares.
Face Value: ₹10 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Ventive Hospitality IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
23
14,789
Retail (Max)
Maximum: 13
299
1,92,257
Small HNIs (Min)
Minimum: 14
322
2,07,046
Small HNIs (Max)
Maximum: 67
1,541
9,90,863
Large HNIs (Min)
Minimum: 68
1,564
10,05,652
Reservation Structure
The Ventive Hospitality Limited IPO employs a structured reservation system to ensure diverse investor participation:
Qualified Institutional Buyers (QIBs): 75% of the net issue is reserved for QIBs, encompassing mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the net issue is allocated to NIIs, which includes high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum of 14 lots (322 shares), amounting to approximately ₹2,07,046 at the upper price band.
Large HNIs (lNIIs): Minimum of 68 lots (1,564 shares), totaling approximately ₹10,05,652 at the upper price band.
Retail Investors: 10% of the net issue is reserved for retail investors.
Minimum lot size: 10% of the net issue is reserved for retail investors.
This reservation framework ensures balanced participation across institutional and individual investors, accommodating varying investment capacities.
Key Dates & Timelines
The Ventive Hospitality Limited IPO is scheduled with the following timeline (December 2024)
IPO Open Date: Friday, December 20, 2024
IPO Close Date: Tuesday, December 24, 2024
Basis of Allotment: Thursday, December 26, 2024
Initiation of Refunds: Friday, December 27, 2024
Credit of Shares to Demat Accounts: Friday, December 27, 2024
Listing Date on BSE and NSE: Monday, December 30, 2024
Book Running Lead Managers
The Ventive Hospitality Limited IPO is being managed by the following Book Running Lead Managers (BRLMs):
JM Financial
Axis Capital
HSBC Securities
ICICI Securities
IIFL Securities
Kotak Mahindra Capital Company Limited
SBI Capital Markets
The registrar for the IPO is KFin Technologies Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Ventive Hospitality Limited is promoted by a group of individuals and entities with substantial experience in the real estate and hospitality sectors. The key promoters are:
Atul I. Chordia: Serving as the Chairman and Executive Director, Atul Chordia brings over 31 years of experience in the real estate sector. He oversees the company’s overall operations and management. Atul has received several accolades, including the Hoteliers Award 2019 – Developer of the Year and the Times of India Real-Estate Icons of Pune Award 2022.
Tuhin Parikh: A Non-Executive Nominee Director, Tuhin holds a bachelor’s degree in commerce from the University of Bombay and a PGDM from IIM Ahmedabad. With 22 years of experience in the construction and real estate sector, he currently serves as Senior Managing Director and Head of the Real Estate Group in India at Blackstone Advisors India Private Limited.
Atul I. Chordia HUF: This entity is part of the promoter group associated with Atul Chordia, reflecting his personal and family stake in the business.
Premsagar Infra Realty Private Limited: A private entity engaged in real estate development and investments; this company is an important promoter of Ventive Hospitality Limited.
BRE Asia ICC Holdings Ltd and BREP Asia III India Holding Co VI Pte. Ltd.: These are foreign investment entities aligned with Ventive Hospitality, bringing international capital and expertise to the company.
About Ventive Hospitality Ltd.
Ventive Hospitality Limited is a prominent hospitality asset owner with a strong focus on luxury offerings across both the business and leisure segments. The company’s portfolio consists of 11 operational hospitality assets in India and the Maldives, totaling 2,036 keys as of September 30, 2024. These assets span across the luxury, upper-upscale, and upscale segments, catering to a wide range of travelers. The company partners with globally recognized operators, including Marriott, Hilton, Minor, and Atmosphere, ensuring world-class service and premium experiences. Notable properties in their portfolio include JW Marriott Pune, The Ritz-Carlton Pune, and Conrad Maldives, which are iconic luxury hotels in their respective locations. The Ritz-Carlton Pune is one of only two such hotels in India, while JW Marriott Pune is the largest luxury hotel in Pune. In the Maldives, Ventive Hospitality owns three luxury assets, which are renowned for their unique offerings, including undersea accommodations and dining experiences, further enhancing the luxury experience.
A key strength of Ventive Hospitality is its luxury focus, with over 80% of hotel operation revenues coming from its luxury assets. This aligns with global demand trends for high-end accommodations. Their properties consistently command an ARR (Average Room Rate) premium, reflecting superior asset quality and an exceptional customer experience. For example, from January to September 2024, luxury hotels in Pune achieved an ARR index of 1.44, while the Maldives properties reported an ARR index of 1.04.
In addition to its premium hospitality offerings, Ventive Hospitality also has a strong MICE (Meetings, Incentives, Conferences, and Exhibitions) offering. The JW Marriott Pune features the largest ballroom in Western India, enhancing its ability to host large-scale events, weddings, and conferences. Ventive Hospitality’s assets also benefit from its food and beverage offerings, which contribute up to 39.62% of the hotel operation revenues, further driving profitability.
The company has a proven track record of development and acquisition-led growth in India and the Maldives, with a strategic focus on acquiring and developing marquee hotels across these key geographies. The company’s experienced promoters and management team bring a mix of global and local expertise, positioning Ventive Hospitality well to capitalize on strong industry tailwinds. With a strategic portfolio of high-value luxury assets, strong brand partnerships, and a track record of successful asset management, Ventive Hospitality is well-positioned for continued growth and success in the luxury hospitality sector.
Financial Highlights
Metric
30-Sep-24
31-Mar-24
31-Mar-23
31-Mar-22
Explanation
Assets
–
₹8,794.1 Crore
₹8,606.17 Crore
₹8,010.41 Crore
Total assets owned by the company, including both current and non-current assets. This represents the overall value of the company’s holdings at the specified dates.
Revenue
₹875.9 Crore
₹1,907.38 Crore
₹1,762.19 Crore
₹1,197.61 Crore
Total income generated by the company from its business activities. The decline in revenue from 31 March 2024 to 30 Sep 2024 is notable.
Profit After Tax
₹-137.83 Crore
₹-66.75 Crore
₹15.68 Crore
₹-146.2 Crore
The net profit or loss after taxes. A negative value indicates a loss for the period. The company incurred losses in FY 2024 and Q2 FY2025.
Net Worth
–
₹3,665.83 Crore
₹3,657.15 Crore
₹3,441.39 Crore
Represents the shareholders’ equity or the total value of the company owned by its shareholders. This includes retained earnings and capital investments.
Total Borrowing
–
₹3,682.13 Crore
₹3,599.66 Crore
₹3,291.07 Crore
The total outstanding borrowings or debts of the company, both short-term and long-term, which need to be repaid. The borrowings increased slightly from March 2023 to September 2024.
IPO Objectives
The Ventive Hospitality IPO aims to utilize the net proceeds from the fresh issue for the following objectives:
Repayment and Prepayment of Borrowings: The company intends to use part of the proceeds to repay or prepay certain borrowings availed by the company, including the payment of any accrued interest on these borrowings.
Investment in Step-down Subsidiaries: A portion of the proceeds will be used to support the step-down subsidiaries of the company, namely SS & L Beach Private Limited and Maldives Property Holdings Private Limited, including the payment of interest through investments in these subsidiaries.
General Corporate Purposes: The remaining proceeds will be used for general corporate purposes, which may include funding future business expansion, operational needs, and other corporate activities.
Subscription Status as of December 23, 2024
Category
Subscription (times)
Shares Offered
Shares Bid For
Explanation
QIB (Qualified Institutional Buyers)
1.28
74,60,342
95,74,233
QIBs subscribed 1.28 times, bidding for more shares than offered, indicating strong institutional interest.
NII (Non-Institutional Investors)
0.89
37,30,171
33,15,358
NIIs subscribed 0.89 times, with demand lower than shares offered, suggesting moderate interest.
bNII (Bids above ₹10L)
0.96
24,86,929
23,82,800
bNII (large investors) subscribed 0.96 times, with good demand, but still lower than the shares offered.
sNII (Bids below ₹10L)
0.75
12,43,242
9,32,558
sNII (smaller investors) subscribed 0.75 times, with less demand compared to shares offered.
Retail
1.54
24,86,781
38,34,859
Retail investors subscribed 1.54 times, with a strong demand surpassing the shares offered.
Employee
4.24
16,313
69,207
Employees subscribed 4.24 times, showing very high demand relative to shares offered.
Total
1.23
1,36,93,606
1,67,93,657
Overall, the subscription rate is 1.23 times, with total shares bid exceeding shares offered, indicating a healthy overall demand.
Recommendation:
Ventive Hospitality Limited is a prominent hospitality asset owner with a portfolio focused on luxury hotels in India and the Maldives. It operates 11 properties, including high-end assets like JW Marriott Pune and The Ritz-Carlton Pune, which cater to both business and leisure travellers. The company’s properties are managed by global operators such as Marriott, Hilton, and Minor.
The IPO aims to raise ₹1,600 crore through the Offer for Sale (OFS) of 2.49 crore shares, with a price band of ₹610 to ₹643 per share. The company’s revenue mainly comes from luxury assets, contributing over 80% of hotel operation revenues.
However, the company’s financials show losses in recent years, with a negative profit after tax for 2024. It has a high level of debt, which raises concerns about its financial stability.
Analysts are divided on the IPO. Some recommend subscribing for long-term gains due to the company’s strong market position and growth prospects in the luxury segment, while others advise caution because of financial instability and debt concerns.
In conclusion, Ventive Hospitality’s IPO presents potential for growth in the luxury hospitality market, but investors should weigh the risks related to its debt and recent financial performance before making a decision.
The Carraro India IPO is a book-built issue worth ₹1,250 crores, entirely comprising an Offer for Sale (OFS) of 1.78 crore shares. The IPO opens for subscription on December 20, 2024, and closes on December 24, 2024, with the allotment expected to be finalized on December 26, 2024. The tentative listing date is set for December 30, 2024, on the BSE and NSE. The price band is fixed at ₹668 to ₹704 per share. Retail investors can apply for a minimum lot size of 21 shares, requiring an investment of ₹14,784. For small non-institutional investors (sNII), the minimum investment is ₹2,06,976 for 294 shares (14 lots), while large non-institutional investors (bNII) need to invest ₹10,05,312 for 1,428 shares (68 lots). The IPO provides an opportunity to invest in a well-established entity while catering to a diverse range of investors.
Period
The Carraro India IPO is scheduled to open for subscription on December 20, 2024, and will close on December 24, 2024. The share allotment is expected to be finalized by December 26, 2024, with the tentative listing date set for December 30, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Carraro India IPO offers investors an opportunity to invest in a leading manufacturer of transmission systems and axles for off-highway vehicles. Below are the key details:
Price Band: ₹668 to ₹704 per share. The lower limit is ₹668, while the upper cap is ₹704.
Lot Size: A minimum investment requires 21 shares, amounting to approximately ₹14,784 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹1,250 crore, entirely through an Offer for Sale (OFS) of 1.78 crore shares.
Face Value: ₹10 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Carraro India IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
34
14,784
Retail (Max)
Maximum: 13
273
1,92,192
Small HNIs (Min)
Minimum: 14
294
2,06,976
Small HNIs (Max)
Maximum: 67
1,407
9,90,528
Large HNIs (Min)
Minimum: 68
1,428
10,05,312
Reservation Structure
The Carraro India IPO follows a structured reservation system to ensure participation from diverse investor categories:
Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (294 shares), amounting to ₹2,06,976 at the upper price band.
Large HNIs (lNIIs): Minimum 68 lots (1,428 shares), totaling ₹10,05,312 at the upper price band.
Retail Investors: 35% of the total issue is reserved for retail investors.
Minimum lot size: 1 lot (21 shares), requiring an investment of ₹14,784 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Key Dates & Timelines
Carraro India Limited IPO Timeline (December 2024)
IPO Open Date: Friday, December 20, 2024
IPO Close Date: Tuesday, December 24, 2024
Basis of Allotment: Thursday, December 26, 2024
Initiation of Refunds: Friday, December 27, 2024
Credit of Shares to Demat Accounts: Friday, December 27, 2024
Listing Date on BSE and NSE: Monday, December 30, 2024
Book Running Lead Managers
The Carraro India Limited is being managed by the following Book Running Lead Managers (BRLMs):
ICICI Securities Limited
HDFC Bank Limited
Kotak Mahindra Capital Company Limited
The registrar for the IPO is Link Intime India Private Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Carraro India is led by a seasoned management team with extensive experience in the automotive components industry.
Balaji Gopalan, the Managing Director, has been with the company since September 1, 1998. He holds a Doctor of Philosophy in Human Resource Management from the University of Pune and is responsible for achieving revenue, EBITDA, and CSR targets.
Andrea Conchetto, a Non-Executive Director, holds a diploma in Electrotechnical Engineering from the University of Padua. He is associated with the Carraro Group, including Carraro S.p.A., Carraro Drive Tech Italia S.p.A., Carraro China Drive Systems Co. Ltd, and Siap S.p.A.
Enrico Gomiero, also a Non-Executive Director, holds a diploma as an accountant and commercial expert from the Technical Institute for Commercials and Surveyors of Padua. He is associated with various entities in the Carraro Group, including Carraro S.p.A., Carraro Drive Tech Italia S.p.A., Carraro Finance S.p.A., Carraro International S.E., and Siap S.p.A.
Davide Grossi, the Whole-time Director and Chief Financial Officer, holds an undergraduate degree in Business Administration and a Master’s in Accounting, Corporate Finance, and Control from Bocconi University. He has previously been associated with Alten Sverige AB, Isagro (Asia) Agrochemicals Pvt. Ltd., and Deloitte & Touche S.p.A.
Sudhendra Mannikar, the Whole-time Director and Chief Operating Officer, has been with the company since August 2, 1999. He holds a Bachelor’s degree in Engineering (Production) and an MBA from the University of Pune. He was previously associated with Essar Projects Limited.
The promoters of Carraro India include Tomaso Carraro, Enrico Carraro, Carraro S.p.A., and Carraro International S.E.
This leadership team brings a wealth of expertise and strategic vision to Carraro India, positioning the company for sustained growth and success in the automotive components sector.
About Carraro India Ltd.
Carraro India Limited, established in 1997, is a technology-driven and integrated supplier specializing in the development of complex engineering products and solutions for original equipment manufacturers (OEMs). The company focuses on axles, transmission systems, and gears tailored for the agricultural tractor and construction vehicle industries in India. As an independent Tier-1 solution provider, Carraro India offers mission-critical components that are integral to its customers’ final products. sThe company’s product portfolio includes axles and transmission systems designed for agricultural tractors and construction vehicles such as backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders. It also manufactures gears, shafts, and ring gears for industrial and automotive vehicles. Carraro India caters to a diverse range of off-highway vehicles, offering axles and transmission systems across various horsepower (HP) categories.
The agricultural tractor segment, which dominates the Indian market with a 90% share, is driven by farm mechanization and favourable government policies. Meanwhile, the construction vehicle segment, holding the remaining 10%, is bolstered by significant infrastructure investments. The Indian government’s ₹10 lakh crore budget allocation for infrastructure development in 2023–24, alongside the ₹27 lakh crore National Infrastructure Pipeline (NIP) investment by FY2025 and ₹7 lakh crore for road and highway projects over the next 2–3 years, is expected to drive robust demand for construction vehicles.
Financial Highlights Summary
Revenue Growth: The company achieved consistent growth in operating revenue, increasing from ₹1,497.54 Cr in FY22 to ₹1,788.96 Cr in FY24, showcasing robust demand and operational efficiency.
Profitability Metrics:
EBITDA: Improved from ₹82.86 Cr in FY22 to ₹149.99 Cr in FY24, with margins rising from 5.45% to 8.30%, highlighting better cost management.
PAT: Grew from ₹22.42 Cr in FY22 to ₹62.56 Cr in FY24, with PAT margins improving from 1.50% to 3.50%.
Return Metrics:
ROCE: Increased from 10% in FY22 to 19.35% in FY24, reflecting efficient resource utilization.
Cash Flow & Liquidity:
CFOA: Despite fluctuations, stable operational cash flows support liquidity and operational health.
Asset & Equity Growth:
Total assets grew from ₹1,012.44 Cr in FY22 to ₹1,072.89 Cr in FY24, while net worth rose from ₹292.49 Cr to ₹369.82 Cr, reinforcing financial stability.
Debt Management: Controlled borrowing with total debt at ₹212.55 Cr in FY24 indicates balanced financial management.
Overall: The company exhibits strong revenue growth, enhanced profitability, efficient capital use, and solid financial health, ensuring a positive outlook for stakeholders.
IPO Objectives
The Carraro India Limited Initial Public Offering (IPO) is structured entirely as an Offer for Sale (OFS), wherein the promoter selling shareholder will divest a portion of their stake. Consequently, the company itself will not receive any proceeds from this offering. All funds generated will be directed to the promoter selling shareholder, net of offer-related expenses and applicable taxes.
In an OFS, existing shareholders sell their shares to the public, allowing them to monetize their holdings. This approach does not result in capital inflow to the company but enables the promoters to reduce or liquidate their ownership stake. For investors, participating in such an IPO provides an opportunity to invest in a company with an established operational history and financial track record.
It’s important to note that since the company won’t receive any proceeds from this IPO, there won’t be immediate capital available for business expansion or debt reduction. Investors should consider this aspect when evaluating the potential impact of the IPO on the company’s future growth and financial strategy.
Subscription Status as of December 20, 2024, 05:00 PM
Investor Category
Subscription (times)
Explanation
Qualified Institutional Buyers (QIB)
0
No subscription from QIBs on the current day.
Non-Institutional Investors (NII)
0.06
Limited participation from NIIs, indicating a 6% subscription of their portion.
– bNII (bids above ₹10L)
0.04
High-value bids (above ₹10L) accounted for only 4% of the allotted category.
– sNII (bids below ₹10L)
0.1
Smaller value bids (below ₹10L) achieved a 10% subscription.
Retail Investors
0.16
Stronger interest from retail investors with a 16% subscription rate.
Total
0.09
The overall subscription rate across all categories is 9%, reflecting moderate interest.
Conclusion:
Carro India Limited, a company in the [specific industry, e.g., automobile, technology, etc.], presents both opportunities and risks for potential investors. Here are key factors to consider before deciding to invest:
Positives:
Growth Potential: If the company operates in a high-growth sector with favorable macroeconomic trends, it may benefit from increased demand.
Financial Strength: Analyze its revenue growth, profitability margins, and debt levels. Consistent growth in revenue and profit would indicate a strong financial position.
Competitive Edge: The company might hold unique advantages, such as innovative technology, cost-efficiency, or a strong brand reputation in the market.
Industry Position: Evaluate the company’s standing compared to peers. A leadership position in a niche market could indicate long-term growth potential.
Concerns:
Valuation: Assess the Price-to-Earnings (P/E) ratio and compare it with industry peers. A high valuation could indicate that the stock is overvalued.
Operational Risks: Analyze the risks in supply chain management, raw material costs, and dependency on specific markets or clients.
Market Sentiment: If subscription numbers (e.g., from QIBs, NIIs, retail investors) are low, it may suggest weak investor confidence.
Macroeconomic Risks: Factors like interest rate hikes, inflation, or geopolitical issues could impact the company’s growth prospects.
Before investing, thoroughly review the company’s Red Herring Prospectus, assess the subscription demand across investor categories, and consult with a financial advisor. Investing in IPOs carries inherent risks, so ensure the investment aligns with your financial goals and risk appetite.
Founded in February 2008, Transrail Lighting Ltd. is an engineering construction company that manufactures lattice structures, conductors, and monopoles, specializing in energy transmission and distribution. There was also an offer for sale of 1.02 crore shares valued at Rs 438.91 crore. The IPO auction was launched on December 19, 2024, and will conclude on December 23, 2024. The allotment of shares will be finalized on December 24, 2024, and the shares are scheduled to be listed on BSE and NSE on December 27, 2024. 2024 The price range for IPOs has been fixed at ₹410 to ₹432 per share. Investors can apply for a minimum of 34 shares, with a retail investment of ₹ ₹14,688 The minimum investment for small non-institutional investors (sNII) is 14 lots (476 shares) equivalent to ₹2,05,632, while the minimum investment for large non-institutional investors (bNII) is ₹14,688) is 69 lots (2,346 shares) for a total of ₹10,13,472.
IPO Subscription Period
The Transrail Lighting Limited IPO is scheduled to open for subscription on December 19, 2024, and will close on December 23, 2024. The share allotment is expected to be finalized by December 24, 2024, with the tentative listing date set for December 27, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Transrail Lighting Limited IPO offers investors an opportunity to invest in a prominent player in the engineering and construction industry. Below are the key details:
Price Band: ₹410 to ₹432 per share. The lower limit is ₹410, while the upper cap is ₹432.
Lot Size: A minimum investment requires 34 shares, amounting to approximately ₹14,688 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹838.91 crore, comprising a fresh issue of 0.93 crore equity shares worth ₹400 crore and an Offer for Sale (OFS) of 1.02 crore shares valued at ₹438.91 crore.
Face Value: ₹2 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Transrail Lighting IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
34
14,688
Retail (Max)
Maximum: 13
442
1,90,944
Small HNIs (Min)
Minimum: 14
476
2,05,632
Small HNIs (Max)
Maximum: 68
2,312
9,98,784
Large HNIs (Min)
Minimum: 69
2,346
10,13,472
Reservation Structure
The Transrail Lighting Limited IPO employs a structured reservation system to ensure participation from diverse investor categories:
Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (476 shares), amounting to ₹2,05,632 at the upper price band.
Large HNIs (lNIIs): Minimum 69 lots (2,346 shares), totaling ₹10,13,472 at the upper price band
Retail Investors: 35% of the total issue is reserved for retail investors.
Minimum lot size: 1 lot (34 shares), requiring an investment of ₹14,688 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Initiation of Refunds: Thursday, December 26, 2024
Credit of Shares to Demat Accounts: Thursday, December 26, 2024
Listing Date on BSE and NSE: Friday, December 27, 2024
Book Running Lead Managers
The Transrail Lighting Limited IPO is being managed by the following Book Running Lead Managers (BRLMs):
Inga Ventures Private Limited
Axis Capital Limited
HDFC Bank Limited
IDBI Capital Market Services Limited
The registrar for the IPO is Link Intime India Private Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Transrail Lighting Limited is led by a seasoned management team with extensive experience in the transmission and distribution (T&D) industry.
Digambar Chunnilal Bagde, the Executive Chairman, holds a Bachelor of Engineering (Civil) degree and has over 47 years of experience in the design and execution of transmission lines in both Indian and international markets. He has been associated with the company since its inception in 2008.
Randeep Narang, the Managing Director and Chief Executive Officer, holds a Master of Business Administration from NMIMS Mumbai and has attended several leadership development and strategic management programs in the U.S. and India. With more than 36 years of experience managing complex profit and loss responsibilities across various industries, he has been instrumental in steering the company’s growth and operations.
Sanjay Kumar Verma, a Non-Executive Director, holds a diploma of master in computer systems and networks from Khaikov State Polytechnical University, Ukraine. He has several years of experience in business administration and serves as a director on the boards of multiple companies.
The promoters of Transrail Lighting Limited include Ajanma Holdings Private Limited, Digambar Chunnilal Bagde, and Sanjay Kumar Verma. This leadership team brings a wealth of expertise and strategic vision to Transrail Lighting Limited, positioning the company for sustained growth and success in the T&D sector.
About Transrail Lighting Ltd.
Founded in February 2008, Transrail Lighting Ltd is a leading engineering, procurement and construction (EPC) company with a primary focus on energy transmission and distribution. With over four decades of expertise The company has thus built a strong reputation for providing turnkey EPC solutions to civil construction. This includes bridges, tunnels and cooling towers. as well as poles and lighting systems and railway infrastructure, such as overhead electrification. Signal and rail connections making the company successful in transmitting power and Worldwide distribution project It has started operations in 58 countries, including Bangladesh, Kenya, Nigeria, Finland and Poland… This global presence reinforces our ability to execute large-scale projects in a variety of challenging markets. Especially in Asia and Africa… Financially, Transrail is showing strong growth. Its revenue increased from Rs 2,139.09 crore in 2021 to Rs 3,086.14 crore in 2023, coupled with lower costs. This indicates improved operational efficiency. As of September 2023, the company had 1,575 employees, reflecting its commitment to improving operations and building capacity. Transrail is well positioned to capitalize on growing demand in the global communications and electricity distribution sectors, driven by growing energy demand in emerging markets. The integration of smart grids and renewable energy sources presents significant opportunities, especially in high voltage (HV) and ultra-high voltage (EHV) solutions. The company’s focus is on delivering sustainable, quality infrastructure. That high is consistent with the priorities of industry trends.
Financial Highlights: Investor-Centered Approach
Strong revenue growth Operating Income: ₹4,009 Crore in FY2022, up 75.5% from FY2022. This sustained growth underscores our strong business performance and extensive market position. Total revenue: ₹4,113 million in fiscal year Reflecting two-year growth of 73.4%, supported by operational excellence and additional revenue streams.
Effective cost management Consumables expenses: Increased to ₹2,246 trillion in FY2024, in line with revenue growth. which shows efficiency in operations Subcontract costs: ₹499 million in fiscal year This demonstrates scalable operations. At the same time, external work can be managed efficiently.
Increase profits Profit after tax (PAT): ₹233 trillion in FY, up 118% from FY23 and 264% from FY22, highlighted by key operational and financial improvements. Other Income: Continued growth in non-operating income, such as interest or dividends. Helps create profits.
Expanding assets and financial strength Total assets: ₹4,836 crore as on June 30, 2024, up 70% from FY2022, indicating substantial investment in the capital structure. Net worth: ₹1,140 million in FY2024, up 90% in three years, reflecting strong profits and reinvestment ability.
Careful debt management Total debt: ₹603 million in fiscal year which is in outstanding proportion to the growth of assets It signals disciplined financial practices. Finance Expenditure: Fixed at ₹50 million, emphasizing efficient debt service amid expansion.
Investing in human fixed assets Employee benefit expenditure: ₹198 million in fiscal year This emphasizes the company’s commitment to its people. Depreciation and Amortization: Continued growth to ₹164 trillion in FY2024 indicates strategic investments in fixed assets and long-term growth initiatives.
Important points for investors
Transrail Lighting Ltd shows a clear path to revenue growth. Improving Profitability and efficiency in operations.
Combined with disciplined spending and debt management. The company’s financial strength provides a solid foundation for sustainable performance.
The company’s strategic investments in assets and employees further position it as a reliable and growth-oriented player in the EPC sector.
Transrail is an attractive investment opportunity for those wanting exposure to a fast-growing and well-run enterprise in the communications, electricity, and infrastructure sectors.
IPO Objectives
Transrail Lighting Limited is proposing an Initial Public Offering (IPO) with the aim of utilizing the net proceeds for various purposes. The company intends to allocate the funds towards the following objectives:
Incremental working capital requirements to support the company’s operations.
Funding capital expenditure to aid in the company’s growth and development.
General corporate purposes to enhance its overall business activities.
The total number of shares to be issued is as follows: 92,59,259 shares will be issued through a fresh issue, while 1,01,60,000 shares will be offered for sale by existing shareholders.
Subscription Status as of December 20, 2024, 06:54 PM
Category
Subscription (times)
Shares Offered
Shares Bid For
Qualified Institutional Buyers (QIB)
1.36
37,95,889
51,51,680
Non-Institutional Investors (NII)
7.42
28,46,917
2,11,36,508
– bNII (bids above ₹10L)
5.67
18,97,945
1,07,70,010
– sNII (bids below ₹10L)
10.92
9,48,972
1,03,66,498
Retail Investors
7.13
66,42,805
4,73,67,100
Employee Portion
1.53
4,29,814
6,55,792
Total
5.42
1,37,15,425
7,43,11,080
Recommendation:
Transrail Lighting Limited stands out with strong profitability, consistent revenue growth, and superior operational efficiency, outperforming larger peers like KEC International and Kalpataru Projects. Its higher Operating and Net Profit Margins reflect effective management.
Despite its smaller scale and shorter history in the T&D sector (since 2016), its lower P/E ratio suggests potential undervaluation, though market sentiment may remain cautious. Strong management and customer relationships support growth, but risks like order book susceptibility and regulatory challenges should be considered. A promising T&D growth story with risks; thorough due diligence is essential.
DAM Capital Advisors IPO is a book-built issue of Rs 840.25 crores. It is entirely an offer to sell 2.97 crore shares.
About DAM Capital Advisors Limited
DAM Capital Advisors Limited, founded on May 7, 1993, is a renowned investment bank in India. DAM Capital serves its customers with investment banking services which include equity capital markets (“ECM”), mergers and acquisitions (“M&A”), private equity (“PE”), and structured finance counselling, as well as institutional equities services such as broking and research. Their primary concentration is on the Indian capital market, which is currently one of the fastest-growing marketplaces in the world. As of July 31, 2024, they have completed 67 ECM transactions, including five offers for sale, six preferential issues, three rights issues, seven buybacks, four open offers, one initial public offering of units by a real estate investment trust, 26 IPOs, and 15 placements by qualifying institutions. Moreover, till July 31, 2024, DAM Capital Advisory has also advised on 20 advisory transactions including M&A advisory, private equity advisory and structured finance advisory, and has also executed block trades. On March 31, 2024, the revenue increased by 114% and profit after tax (PAT) increased by 713%.
IPO Subscription Period
Open Date: December 19, 2024
Close Date: December 23, 2024
Allotment Date: December 24, 2024
Listing Date: December 27, 2024
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹269 – ₹283 per Share
Face Value: ₹2 per Share
Minimum Lot Size: 53 shares
Investment Requirement:
Retail Investors: Minimum ₹14999 (53 shares)
Small Non-Institutional Investors (sNII): 14 lots (742 shares) – ₹209986
Big Non-Institutional Investors (bNII): 67 lots (3551 shares) – ₹1004933
Cut-off time for UPI mandate confirmation: 5 PM on December 23, 2024
Book Running Lead Managers
DAM Capital Advisors Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
Nuvama Wealth Management Limited
Link Intime India Private Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: The promoters of the company are Dharmesh Anil Mehta, Sonali Dharmesh Mehta and Boombucket Advisors Private Limited.
Shareholding:
Pre-Issue: 45.88%
Post-Issue: 39.89%
Financial Highlights
Revenue: In FY22 revenue was ₹94.51 crores, in FY23 it was ₹85.04 crores and in FY24 it is ₹182 crores.
Profit after Tax (PAT): PAT has increased year on year, FY23 ₹8.67 crores to in FY24 ₹70.52 crores.
Net Worth: ₹162 crores
Total Borrowing: ₹4.93 crores
Key Performance Indicators (KPIs):
ROE: 54.72%
RoNW: 44.98%
P/BV: 12.76
EPS (Pre-IPO): ₹9.98
EPS (Post-IPO): ₹9.98
P/E Ratio (Pre-IPO): 28.37x
P/E Ratio (Post-IPO): 28.4x
IPO Objectives
The company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Subscription Status (As of December 20, 2024)
Retail: 5.11x
QIB: 0.01x
NII: 5.32x
Overall Subscription: 3.71x
Recommendation
DAM Capital Advisors Ltd. is a great company which don’t need any funds for operations or expansions. It has enough cash reserves to pay the minimal debt on the balance sheet. The revenue numbers are really great and have potential to rise more in future. Grey Market Premium (GMP) is really high shows good listing gain and also good for long term investment in company.
Concord Enviro IPO is a book built issue of Rs 500.33 crores. The issue is a combination of fresh issue of 0.25 crore shares aggregating to Rs 175.00 crores and offer for sale of 0.46 crore shares aggregating to Rs 325.33 crores.
About Concord Enviro System Limited
Concord Enviro Systems Limited was incorporated in July 1999 and engaged in the business of water provider and wastewater reuse with the advanced technology zero-liquid discharge (ZLD). Due to giving more importance to customer satisfaction and building strong and long relationships, now they have around 353 domestic and 24 international customers, including various industries such as pharmaceuticals, chemicals, food and beverage, defense and energy, automotive and auto ancillaries, steel, and textiles. Additionally, the company has a broad global reach, exporting to regions including North America, Latin America, Africa, the Middle East, and Southeast Asia. It is noticeable that the company’s revenue has increased from 2022 to 2024, raising INR 329.37 crores to INR 496.86 crores, and the net income of 2024 is also satisfactory at INR 41.44 crores. Further, this company works in two countries with two manufacturing facilities, one in Vasai, Maharashtra, India, and the other in Sharjah, UAE.
IPO Subscription Period
Open Date: December 19, 2024
Close Date: December 23, 2024
Allotment Date: December 24, 2024
Listing Date: December 27, 2024
Stock Exchanges: BSE and NSE
Pricing Details
Price Band: ₹665 – ₹701 per Share
Face Value: ₹5 per Share
Minimum Lot Size: 21 shares
Investment Requirement:
Retail Investors: Minimum ₹14721 (21 shares)
Small Non-Institutional Investors (sNII): 14 lots (249 shares) – ₹20604
Big Non-Institutional Investors (bNII): 68 lots (1428 shares) – ₹1001028
Cut-off time for UPI mandate confirmation: 5 PM on December 23, 2024
Book Running Lead Managers
Concord Enviro Systems Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
Motilal Oswal Investment Advisors Limited
Equirus Capital Private Limited
Link Intime India Private Limited has been designated as the registrar for the IPO.
Promoter Information
Promoter: The promoters of the company are Prayas Goel, and Prerak Goel.
Shareholding:
Pre-Issue: 60.93%
Post-Issue: %
Financial Highlights
Revenue: In FY22 revenue was ₹337 crores, in FY23 it was ₹350 crores and in FY24 it is ₹512 crores.
Profit after Tax (PAT): PAT has increased year on year, FY23 ₹5.49 crores to in FY24 ₹41.44 crores.
Net Worth: ₹320 crores
Total Borrowing: ₹167 crores
Key Performance Indicators (KPIs):
ROE: 13.73%
RoNW: 12.92%
P/BV: 3.96
EPS (Pre-IPO): ₹22.77
EPS (Post-IPO): ₹0.6
P/E Ratio (Pre-IPO): 30.72x
P/E Ratio (Post-IPO): 1171.2x
IPO Objectives
Investment in the wholly owned Subsidiary, Concord Enviro FZE (“CEF”) for financing its capital expenditure requirements for the greenfield project to develop an assembly unit to assemble systems and plants for the treatment of water, wastewater and related membrane modules (the “U.A.E Project”);
Investment in our wholly owned Subsidiary, Rochem Separation Systems (India) Private Limited (“RSSPL”), for financing its capital expenditure requirements for the brownfield project to expand the manufacturing facilities, storage and supporting activities (the “Vasai Project”);
Funding capital expenditure requirements of the Company for the purchase of plant and machinery;
Investment in our wholly owned Subsidiary, Concord Enviro FZE, for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by Concord Enviro FZE;
Investment in the wholly owned Subsidiary, Concord Enviro FZE, for funding working capital requirements of Concord Enviro FZE;
Investment in the joint venture, Reserve Enviro Private Limited, to grow our pay-per-use/pay-as-you-treat business.
Subscription Status (As of December 20, 2024)
Retail: 1.96x
QIB: 0.03x
NII: 0.94x
Overall Subscription: 1.2x
Recommendation
Concord Enviro Systems Ltd. Is in waste treatment segment, which has high expansion possibility in future and has high revenue generating capacity hence it is a really great company. But, its post IPO PE ratio is 1172 times which is really high and the grey market premium is also about 10% show less interest from public. It is a great investment if you get an attractive price, but only apply for minimal listing gain.
Sanathan Textiles Limited, a leading textile manufacturer, is launching its Initial Public Offering (IPO) with a total issue size of ₹550 crore. The offering includes a fresh issue of 1.25 crore shares worth ₹400 crore and an Offer for Sale (OFS) of 0.47 crore shares valued at ₹150 crore. The IPO will be open for subscription from December 19 to December 23, 2024, with allotment details finalized on December 24, 2024. Shares are set to list on BSE and NSE on December 27, 2024. The price band for the IPO is ₹305 to ₹321 per share. Retail investors can participate with a minimum lot size of 46 shares, requiring an investment of ₹14,766. Small Non-Institutional Investors (sNII) must invest in a minimum of 14 lots (644 shares), totalling ₹2,06,724, while Large Non-Institutional Investors (bNII) need at least 68 lots (3,128 shares), amounting to ₹10,04,088. Sanathan Textiles plans to utilize the proceeds from the fresh issue for capacity expansion, debt reduction, and working capital requirements. With its strong presence in the textile sector and the growing demand for Indian textile exports, this IPO offers investors a promising opportunity in a sector poised for significant growth.
IPO Subscription Period
The Sanathan Textiles Limited IPO is scheduled to open for subscription on December 19, 2024, and will close on December 23, 2024. The share allotment is expected to be finalized by December 24, 2024, with the tentative listing date set for December 27, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Sanathan Textiles Limited IPO offers investors an opportunity to participate in the growth of a leading textile manufacturer. Below are the key details:
Price Band: ₹305 to ₹321 per share. The lower limit is ₹305, while the upper cap is ₹321.
Lot Size: A minimum investment requires 46 shares, amounting to approximately ₹14,766 at the upper price band.
Issue Size: The IPO aims to raise a total of ₹550 crore, comprising a fresh issue of 1.25 crore equity shares worth ₹400 crore and an Offer for Sale (OFS) of 0.47 crore shares valued at ₹150 crore.
Face Value: ₹2 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
The Sanathan Textiles IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
Category
Lots
Shares
Investment Amount (₹)
Retail Investors
Minimum: 1
46
14,766
Retail (Max)
Maximum: 13
598
1,91,958
Small HNIs (Min)
Minimum: 14
644
2,06,724
Small HNIs (Max)
Maximum: 67
3,082
9,89,322
Large HNIs (Min)
Minimum: 68
3,128
10,04,088
Reservation Structure
The Sanathan Textiles Limited IPO employs a structured reservation system to ensure participation from diverse investor categories:
Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (644 shares), amounting to ₹2,06,724 at the upper price band.
Large HNIs (lNIIs): Minimum 68 lots (3,128 shares), totalling ₹10,04,088 at the upper price band.
Retail Investors: 35% of the total issue is reserved for retail investors.
Minimum lot size: 1 lot (46 shares) requiring an investment of ₹14,766 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Initiation of Refunds: Wednesday, December 25, 2024
Credit of Shares to Demat Accounts: Thursday, December 26, 2024
Listing Date on BSE and NSE: Friday, December 27, 2024
Book Running Lead Managers
The Sanathan Textiles Ltd IPO is being managed by the following Book Running Lead Managers (BRLMs):
Dam Capital Advisors Ltd (formerly IDFC Securities Ltd)
ICICI Securities Ltd
The registrar for the IPO is KFin Technologies Ltd, which is responsible for processing applications and managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Sanathan Textiles is led by an experienced management team with deep roots in the textile industry.
Paresh Vrajlal Dattani, the Chairman and Managing Director, has been serving on the Board since October 10, 2005. A science graduate from the University of Calcutta, he brings 46 years of experience to the company. He oversees the company’s overall performance, drives growth strategies, and provides leadership guidance. In addition, he has been a partner at Ramniklal Nandlal Bros since 1978.
Ajay Vallabhdas Dattani, the Joint Managing Director, has also been on the Board since October 10, 2005. A commerce graduate (honors) from the University of Calcutta, Ajay plays a key role in the operations and expansion of the cotton division, as well as overseeing finance, production, and compliance. With over 18 years of experience in the textile industry, he contributes significantly to the company’s operational growth.
Anilkumar Vrajdas Dattani, the Executive Director, joined the Board on the same date and is a commerce graduate from the University of Bombay. He oversees corporate social responsibility initiatives and administrative functions of the company. Like Paresh, Anilkumar has 46 years of industry experience and has been a partner at Ramniklal Nandlal Bros since 1978.
The collective expertise and leadership of the Dattani family form the backbone of Sanathan Textiles, ensuring strong strategic direction and operational excellence.
About Sanathan Textiles Ltd.
Sanathan Textiles Limited, incorporated in 2005, is a leading polyester yarn manufacturer and global supplier of cotton yarn. The company operates through three key business verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses. These technical textiles are utilized across various industries, including automotive, healthcare, construction, sports and outdoor activities, and protective clothing. With a robust manufacturing base in Silvassa, Sanathan Textiles serves a broad range of clients worldwide and is known for its diversified product offerings.
As of September 30, 2024, Sanathan Textiles had more than 3,200 active varieties of yarn products manufactured between April 1, 2021, and September 30, 2024. The company can produce over 14,000 varieties of yarn products and more than 190,000 stock-keeping units (SKUs), which are used across multiple end applications. In terms of global reach, Sanathan Textiles exports its products to 14, 27, and 29 countries in 2024, 2023, and 2022, respectively. The company also has a strong distribution network, with over 925 distributors in seven countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.
Sanathan Textiles’ client base includes some of the most reputable names in the textile and garment industries, such as Welspun India Limited, Valson Industries Limited, G.M. Fabrics Private Limited, Premco Global Limited, and Banswara Syntex Limited. This extensive and diverse clientele reflects the company’s ability to cater to a wide array of requirements, from large multinational corporations to regional businesses.
One of the key strengths of Sanathan Textiles is its presence across multiple sectors, including polyester, cotton, and technical textiles. This diversification gives the company a competitive edge in the Indian market. The company places a strong emphasis on product development, focusing on process innovation to meet the evolving demands of the textile industry. Additionally, the fully integrated yarn manufacturing plant is strategically located and equipped with state-of-the-art machinery from both domestic and globally renowned suppliers, ensuring the production of high-quality yarn products.
Sanathan Textiles’ long-standing relationships with consumer brands have resulted in a low customer concentration, which reduces dependency on any single client. The company’s deep understanding of optimal product assortment and its well-established supplier network contribute to efficient procurement practices, ensuring competitive pricing. This operational efficiency is further supported by a healthy financial performance and an experienced management team with a proven track record in the textile sector.
The company’s strategic focus includes expanding manufacturing capacity, enhancing the value addition in existing products, and continuing to innovate through new product development. Moreover, Sanathan Textiles aims to harness digitization and technology to enhance production processes, with a strong emphasis on energy efficiency and sustainable practices.
Despite these strengths, there are several risks that the company faces. One of the key challenges is the lack of long-term agreements for raw materials, which may impact procurement stability. The company is also highly dependent on a small number of key suppliers for its raw materials, which could pose a risk to supply continuity. Additionally, Sanathan Textiles’ inventory turnover cycle increased to 69 days in Fiscal 2024, which could impact working capital management.
The company also faces a high level of revenue dependency on its distributors, who contributed 96.55% of the revenue in June 2024. This concentration poses a risk to the company’s revenue stream. Furthermore, Sanathan Textiles experienced a decline in both revenue (by 11.17%) and profit after tax (by 12.37%) in Fiscal 2024, which may indicate potential financial challenges. High working capital requirements also pose a risk to operational continuity if funding is insufficient. The company’s proposed capacity expansion could face challenges if it does not match the anticipated demand growth. Lastly, the company’s heavy reliance on markets in Gujarat, Maharashtra, and Punjab exposes it to regional risks that could affect business stability.
Financial Highlights
Metric
30-Jun-24
31-Mar-24
31-Mar-23
31-Mar-22
Explanation
Assets (₹ Cr)
2,529.53
2,203.68
1,906.67
1,796.47
The company’s total assets have grown consistently over the years, reflecting its expanding scale of operations and investments in its business.
Revenue (₹ Cr)
787.76
2,979.80
3,345.02
3,201.46
Revenue dipped in Q1 FY25 compared to full-year FY24 and prior periods, indicating potential seasonality or temporary challenges in operations.
Profit After Tax (₹ Cr)
50.07
133.85
152.74
355.44
Profitability has seen a decline, with PAT dropping significantly from FY22 to FY24 and a modest figure reported for Q1 FY25.
Net Worth (₹ Cr)
1,324.06
1,273.98
1,140.13
987.39
The company’s net worth has steadily increased, reflecting improved equity position and retained earnings over the years.
Total Borrowing (₹ Cr)
644.93
379.88
281
378.19
Borrowings have risen sharply in FY24 and Q1 FY25, indicating the company may be leveraging debt to fund growth or manage operations.
IPO Objectives
Sanathan Textiles Limited is conducting an initial public offering (IPO) to raise approximately ₹550 crore, comprising a fresh issue of ₹400 crore and an offer for sale of ₹150 crore.
The primary objectives for utilizing the proceeds from this IPO are:
Repayment and Prepayment of Borrowings: The company plans to allocate ₹160 crore to reduce its outstanding debts, thereby strengthening its financial position.
Investment in Subsidiary: An amount of ₹140 crore is earmarked for investment in its subsidiary, Sanathan Polycot Pvt. Ltd., to support its growth and operations.
General Corporate Purposes: The remaining funds will be utilized for general corporate needs, which may include working capital requirements, capital expenditures, and other business-related expenses.
By addressing these areas, Sanathan Textiles aims to enhance its operational efficiency, reduce financial leverage, and support the expansion of its business operations.
Subscription Status as of December 20, 2024, 05:58 PM
Category
Subscription Status
Explanation
Retail Individual Investor (RII)
2.1517 times
The retail category was oversubscribed by 2.15 times, indicating strong interest from individual investors.
Non-Institutional Investor (NII)
1.5253 times
The NII category (high-net-worth individuals and others) was subscribed 1.52 times, showing moderate demand from this segment.
Qualified Institutional Buyers (QIB)
0.0935 times
QIBs subscribed to only 9.35% of their allotted portion, reflecting low participation from institutional investors.
Overall Subscription
1.43 times
The IPO received an overall subscription of 1.43 times, driven mainly by the retail and NII categories, while QIB demand was significantly subdued.
Recommendation:
Long-Term Investors: Sanathan Textiles could be a viable option for investors looking for a stable, low-risk opportunity in the textile sector. Its low leverage, moderate valuation, and steady profitability make it a relatively safe bet.
Short-Term Investors: Given the moderate metrics, short-term gains may be limited unless market sentiment turns highly favorable.
Action Plan:
Before investing, consider:
The industry’s current and future outlook in light of global market trends.
Final IPO pricing and peer comparison to assess valuation attractiveness.
Your personal investment goals and risk tolerance.
In summary, Sanathan Textiles IPO offers stability and moderate growth potential, making it more suitable for conservative, long-term investors.
