Akanksha Power and Infrastructure IPO - Key Details You Need to Know

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  • 27 Dec 2023
Akanksha Power and Infrastructure IPO - Key Details You Need to Know

About the Company

Established in 2008, Akanksha Power and Infrastructure Limited manufactures electric equipment, including vacuum contractors, electrical panels, instrument transformers, etc. It caters to the needs of consumers from the electricity transmission and distribution utilities. The company also provides services related to the distribution and management of power and is also engaged in managing electrical distribution networks for distribution companies.

IPO Details

The issue size of the IPO comprises Rs 54.98 crore, with 9,996,000 shares offered. Here are the other key details of the IPO.

IPO Subscription Opens On 27 December
IPO Subscription Ends On
29 December
Issue Price
Rs 52 - Rs 55
Minimum Lot Size
2000
Face Value
Rs 10

While 50% of the shares are for qualified institutional buyers, 15% are for non-institutional buyers, and 35% are for retail investors. With the proceeds received, the company plans to meet its:

  • Capital expenditure and working capital requirements
  • Issue expenses
  • General corporate purpose

Financial Snapshot

The company has seen a slight dip in revenue in FY 23 compared to FY 22. Here are some of its key financial details for FY 23:

Revenue from Operation Rs 4,609.44 lakhs
Profit After Tax
Rs 290.50 lakhs
Total Assets
Rs 3,303.71 lakhs
Total Liabilities
Rs 2,402.61 lakhs
Earnings Per Share
2.29
Return on Net Worth
18.20%

Company Strengths and Risks

Strengths

Given below are the key strengths of the company:

Company Strengths and Risks

Strengths

Given below are the key strengths of the company:

Robust Product Technology

The company boasts of a robust product technology and has tie-ups with TDK-Japan, MATRICA-Russia, and JANITZA-Germany. It also has an efficient in-house testing process that reduces the time and cost of manufacturing products.

Established Relationships With Suppliers

Akanksha Power and Infrastructure enjoys a sound relationship with its suppliers, which helps it source quality and timely supplies of materials. This enables it to manage its inventories and supply quality products on a timely basis. Further, the company has been accredited with ISO 9001:2015 certification, which speaks about its quality standards.

Wide Range of Products and Stable Customer Base

The company has a broad range of products and services and has significantly expanded its product base since its inception. It also provides a wide range of turnkey services with the help of its trained employees. The firm also enjoys a long-standing relationship with its customers. It also supplies its products to several government agencies.

Risks

Some of the risks associated with the company are:

  • Involvement in certain legal proceedings
  • No long-term contracts with suppliers
  • Negative cash flows from its operating, investing, and financing activities
  • Unsecured loans amounting to Rs 543.28 lakhs that lenders may recall

How to Apply for this IPO?

You can easily apply for this IPO through Kotak Securities. To apply:

  • Visit the current IPO section by logging into your Demat account
  • Input the IPO details, specify the number of lots, and put your application price
  • Enter your UPI ID and click on submit to place your bid
  • You will get a notification on your UPI ID to block funds
  • Your funds get blocked when you approve them

In Conclusion

Power is one of the critical components of infrastructure and plays an essential role in the economic welfare of nations. Adequate power infrastructure is needed for sustained growth of the economy. Over the years, the Indian government has played a crucial role in promoting sustained industrial development, along with demand growth, energy mix, and market operations. As per estimates of the Central Electricity Authority, India's power requirement is expected to reach 817 GW by 2030.

These developments position Akanksha Power and Infrastructure to take advantage of the growing demand in the coming days, which could subsequently boost its revenues. In such a scenario, investing in the company's shares could be profitable. That said, evaluating your risk appetite and going through the red herring prospectus to get an overview of the risks is essential.

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