Rulka Electricals Limited is planning an IPO worth INR 26.40 crores, consisting of a fresh issue of shares worth INR 19.80 crores and an offer to sell its existing shares for INR 6.60 crore. The company will use the funds raised to meet its working capital requirements and general corporate purposes.
Rulka Electricals IPO – Important Dates
| Rulka Electricals Limited IPO Date | May 16, 2024 to May 21, 2024 |
| Rulka Electricals Limited IPO Listing Date | May 24, 2024 |
| Rulka Electricals Limited IPO Price | INR 223-235 per share |
| Rulka Electricals Limited IPO Lot Size | 600 Shares |
| Rulka Electricals Limited IPO Total Issue Size | INR 26.40 crores |
| Rulka Electricals Limited IPO Basis of Allotment | May 22, 2024 |
| Rulka Electricals Limited IPO Initiation of Refunds | May 23, 2024 |
| Rulka Electricals Limited IPO Credit of Shares to Demat | May 23, 2024 |
| Rulka Electricals Limited IPO Issue Type | Book Built Issue IPO |
| Rulka Electricals Limited IPO Listing At | NSE SME |
Rulka Electricals Ltd IPO – Company Profile
Rulka Electricals Limited offers end-to-end services encompassing Designing, Supplying, Installation, Testing & Commissioning, and Maintenance for diverse projects nationwide, including Warehouses, Retail Stores, Theatres, Hospitals, and Hospitality facilities.
They prioritize comprehensive solutions by offering tailored Operations and Maintenance (O&M) services for electrical and fire-fighting systems. Their proactive approach includes routine inspections, preventive maintenance, issue resolution, and emergency response, ensuring client satisfaction.
They offer customized Annual Maintenance Contracts, providing dedicated teams for system upkeep. With over a decade’s experience, they prioritize modern facilities, boasting upgraded infrastructure for fabrication, testing, and installation of electrical products, ensuring efficient client service.
Rulka Electricals IPO Review
Rulka Electricals Limited’s financial analysis reveals a mixed performance. Revenue trended upward steadily, reaching a significant milestone by February 2024. Profitability surged, showcasing robust performance, while the inventory turnover ratio declined, possibly indicating sales challenges or inventory management issues.
- Revenue Trend: The revenue increased from ₹3,626.51 lakhs in March 2022 to ₹4,683.74 lakhs in March 2023. The revenue for the current year ending February 2024 is INR 6,518.64 lakhs.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹112.08 lakhs in March 2022 to ₹565.77 lakhs by January 2024. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹3.40 in March 2022 to ₹16.67 by February 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has increased from 40.49% to 43.85%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Rulka Electricals Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 29 February 2024 |
| Revenue (₹ in lakhs) | 3,626.51 | 4,683.74 | 6,518.64 |
| Equity (₹ in lakhs) | 276.82 | 557.33 | 1,290.15 |
| Expenses (₹ in lakhs) | 3,436.96 | 4,327.89 | 5,770.75 |
| Profit and Loss After Tax (₹ in lakhs) | 112.08 | 280.52 | 565.77 |
| RoNW (%) | 40.49 | 50.33 | 43.85 |
| NAV per Equity Share (₹) | 8.39 | 16.89 | 37.77 |
| Diluted EPS only (₹) | 3.40 | 8.50 | 16.67 |
| Total Assets (in lakhs) | 1,919.04 | 2,826.95 | 4,082.09 |
| Total Liabilities (in lakhs) | 1,642.22 | 2,269.62 | 2,791.95 |
| Debt Equity Ratio (in times) | 5.83 | 4.06 | 2.16 |
| Current Ratio (in times) | 1.05 | 1.17 | 1.42 |
| Inventory Turnover Ratio (in times) | 61.79 | 91.75 | 61.76 |
Rulka Electricals IPO Peer Comparison
Rulka Electricals Limited demonstrates strong fundamentals with a high EPS and RoNW, indicating robust performance. Meanwhile, HEC Infra Projects Limited exhibits a lower P/E ratio and EPS, suggesting potential growth challenges.
| Company | Type of Financial | Face Value per Equity Share (₹) | P/E | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Rulka Electricals Limited | Standalone | 10 | – | 8.50 | 50.33 | 16.89 |
| HEC Infra Projects Limited | Standalone | 10 | 37.24 | 0.78 | 2.62 | 29.16 |
Rulka Electricals Ltd IPO Objective
The main objective of Rulka Electricals Limited is to meet working capital requirements.
- To Meet Working Capital Requirement: The company plans to use INR 14 crores from the offer proceeds for working capital, supplemented by borrowings, to fuel business expansion in the Electric & Power industry.
- General Corporate Purposes: The company plans to deploy the balance of the funds towards general corporate purposes, including meeting operating expenses, initial development costs for projects, enhancing business development and marketing capabilities, and addressing difficulties.
Rulka Electricals IPO Risks And Challenges
Rulka Electricals Limited’s risks include revenue volatility from client contracts, dependence on major clients, project execution challenges, and vulnerability to regional economic and policy fluctuations, which can hinder national expansion and competitiveness.
- Revenue volatility arises from varied client contracts and reliance on a few significant clients, exposing the business to individual contract risks. Events like market shifts or client insolvency could harm operations, while project delays or quality issues may strain client relationships.
- As per the Red Herring Prospectus, ongoing projects entail inherent risks such as planning and execution challenges; although past experiences indicate minimal cost overruns, future delays or overruns may impede returns from project sales.
- The company heavily relies on Indian operations, with exports limited to SEZ zones. This concentration increases vulnerability to regional risks like industrial slowdowns and policy changes, hindering national expansion and competitiveness against local players.
Rulka Electricals Limited IPO – Industry & Market Potential
India’s electricity sector expects significant changes in demand, energy sources, and market dynamics in the current decade. With a focus on reliability and clean energy, plans include boosting solar and nuclear power, aiming for 500 GW of renewable energy capacity by 2030.
The Indian electrical industry possesses a mature manufacturing base and robust supply chain to meet domestic demand and infrastructure needs. Operating at 60-70% capacity, it generated USD 30 billion in 2021-22, with USD 10 billion in exports and USD 11 billion in imports.
India envisions becoming a top-three global economy by 2047, with 25% of the world’s working-age population. The power equipment industry showed a V-shaped recovery, with 17% growth in FY 21-22 and an estimated 30% growth due to inflationary pressures.
Rulka Electricals Ltd IPO – Type of Offer
Rulka Electricals Limited includes a fresh issue worth INR 19.8 crores and an offer to sell existing shares worth INR 6.60 crore shares by the existing shareholders.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 19.80 crores. The company plans to utilize it to fund working capital requirements and general corporate purposes.
- Offer for sale: Rulka Electricals Limited is offering to sell 6.60 crore existing shares. The following are the details of the existing shareholder who is also the promoter selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale |
| Abhay Kantilal Shah HUF | 2,80,800 |
Rulka Electricals IPO Offer Size
The offer size of Rulka Electrical Limited is INR 26.40 crores, consisting of a fresh issue of 19.80 crores and an offer to sell existing shares worth INR 6.60 crore shares. The company seeks funds to meet the working capital requirements.
Rulka Electricals Limited IPO Allotment Structure
Rulka Electrical Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 56,400 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 56,400 shares, are reserved for marker makers.
How to apply for a Rulka Electricals Limited IPO?
To apply for the Rulka Electricals Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Rulka Electricals Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Rulka Electricals Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Rulka Electricals Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Rulka Electricals Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Rulka Electricals Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Rulka Electricals Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Rulka Electricals Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE and SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Rulka Electricals Limited Ltd IPO Offer Registrar
The registrar for the Rulka Electricals Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Office No S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East) Mumbai – 400 093,
Maharashtra, India
Tel No: 022 – 6263 8200
Email: [email protected]
Website: www.bigshareonline.com
Rulka Electricals Limited Limited IPO – FAQs
The allotment date of the Rulka Electricals Limited IPO is May 22, 2024.
The price band of the issue is INR 223-235 per share.
The offer size of Rulka Electrical Limited is INR 26.40 crores, consisting of a fresh issue of 19.80 crores and an offer to sell existing shares worth INR 6.60 crore shares. The company seeks funds to meet the working capital requirements.
The listing date of Rulka Electricals Limited’s IPO is May 24, 2024.
