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Winsol Engineers Limited IPO Review: Winsol Engineers Limited has issued a new issuance of 31,15,200 lakh shares worth INR 23.36 crores. The company intends to use the funds for working capital and other corporate objectives.
Winsol Engineers Limited IPO – Important Dates
| Winsol Engineers IPO Date | May 6, 2024 to May 9, 2024 |
| Winsol Engineers IPO Listing Date | May 14, 2024 |
| Winsol Engineers IPO Price | INR 71-75 per share |
| Winsol Engineers IPO Lot Size | 1600 shares |
| Winsol Engineers IPO Total Issue Size | INR 23.36 crores |
| Winsol Engineers IPO Basis of Allotment | May 10, 2024 |
| Winsol Engineers IPO Initiation of Refunds | May 13, 2024 |
| Winsol Engineers IPO Credit of Shares to Demat | May 13, 2024 |
| Winsol Engineers IPO Issue Type | Book Built Issue IPO |
| Winsol Engineers IPO Listing At | NSE, SME |
Winsol Engineers Limited IPO – Company Profile
Winsol Engineers Limited specializes in integrated engineering, procurement, and construction solutions for renewable energy firms. They provide BoP services such as foundation work, substation building, cabling, and O&M services, and are noted for their skill, quick completion, and cost efficiency. The managing director of the company is Mr. Ramesh Jivabhai Pindariya.
They specialize in providing balance-of-plant solutions for wind and solar projects, which include the design, procurement, installation, and commissioning of all plant-related components other than the main generator.
They provide full-service operation and maintenance, maximizing turbine performance through SCADA monitoring, inspections, scheduled maintenance, and workforce supply. With shown expertise, they intend to expand and grow in the area.
Winsol Engineers Limited IPO Financials
Winsol Engineers Technologies’ financial analysis showed mixed results. Revenue initially increased but eventually fell short. Profitability and equity improved, and PAT increased dramatically. However, RoNW fell, indicating other aspects of the company’s financial health.
- Revenue Trend: The revenue rose from ₹6,070.19 lakhs in March 2022 to ₹6,538.66 lakhs in March 2023. The revenue for the current year’s nine-month period ending December 2023 is INR 5,195.23 lakhs, which falls short of the previous year’s benchmark.
- Equity and Liabilities: Equity has consistently increased over time, indicating potential growth and expansion.
- Profitability: Profit after tax (PAT) has increased from ₹108.46 lakhs in March 2022 to ₹677.26 lakhs in December 2023. This increase in profitability could boost investor confidence.
- Earnings per Share (EPS): Diluted EPS increased from ₹1.29 in March 2022 to ₹8.04 in December 2023, indicating better earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has increased from 31.54% to 44.35%, showing that the company is better able to earn returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth.
Winsol Engineers Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 6,070.19 | 6,538.66 | 5,195.23 |
| Equity (₹ in lakhs) | 343.93 | 873.89 | 1,527.15 |
| Expenses (₹ in lakhs) | 5,931.44 | 5,853.25 | 4,297.24 |
| Profit and Loss After Tax (₹ in lakhs) | 108.46 | 518.07 | 677.26 |
| Diluted EPS only (₹) | 1.29 | 6.15 | 8.04 |
| Return on Net Worth (%) | 31.54 | 59.28 | 44.35 |
| NAV per Equity Share (₹) | 4.08 | 10.38 | 18.14 |
| Total Assets (in lakhs) | 2,764.80 | 2,856.01 | 3,565.34 |
| Total Liabilities (in lakhs) | 2,420.87 | 2,482.13 | 2,038.19 |
Winsol Engineers Limited IPO Peer Comparison
Winsol Engineers Limited demonstrated steady performance, however Konstelec Engineers Limited’s results were inconsistent, including varying RoNW and PAT values.
| Company | Revenue from operations (₹ in lakhs) | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Winsol Engineers Limited | 6,538.66 | 10 | – | 6.15 | 59.28 | 10.38 |
| Konstelec Engineers Limited | 15,031.46 | 10 | NA | 6.53 | 11.58 | 56.40 |
| Konstelec Engineers Limited | 15,031.46 | 10 | 38.67 | 6.53 | 11.58 | 56.40 |
Winsol Engineers Limited IPO Objective
The main objective of Winsol Engineers Limited is to meet working capital requirements.
- Working Capital Requirements: The firm aims to use INR 15 crores from the Net Proceeds of the Issue to satisfy part of its expanding Net Working Capital requirements, with the balance coming from borrowings and internal accruals.
- General Corporate Purposes: The corporation will allocate funds to broad corporate objectives such as acquiring land/property, hiring human resources, developing strategic partnerships, funding growth prospects, servicing liabilities, capital expenditure, working capital, and strategic initiatives.
Winsol Engineers Limited IPO Risks And Challenges
Winsol Engineers Limited’s risk factors include potential lawsuit provisions, settlement uncertainty, and exposure to complaints, legal actions, employee grievances, compliance expenses, service disruptions, and income reliance on Engineering & Consulting Work.
- The company discloses potential contingencies for litigation outcomes and notes the uncertainty of favorable settlements. Complaints, legal actions, and employee grievances pose risks, potentially resulting in regulatory scrutiny or liabilities.
- The company will incur more compliance expenditures as a result of client-imposed requirements. Service disruptions beyond our control could jeopardize client contracts, resulting in terminations or compensation payments, affecting financial performance and growth prospects.
- The majority of revenue comes from engineering and consulting services. Reduced demand may have a negative impact on business operations and financial situations. Dependence on service demand demonstrates vulnerability to market volatility.
Winsol Engineers Limited IPO – Industry & Market Potential
India wants to generate 50% of its electricity from renewables by 2030 and reach net zero emissions by 2070. It has 125.15 GW of renewable capacity in FY23, representing a 15.4% CAGR from FY16 to FY23. New capacity additions may double by 2026.
India plans to reduce carbon intensity, transition to 50% renewable electricity by 2030, and achieve net-zero emissions by 2070. Green hydrogen and renewable energy targets promote energy change, with renewables expected to account for 49% of total electricity generation by 2040.
India’s energy sector exhibits worldwide leadership by making significant investments in sustainable energy. Notable investments and projects represent a shift toward renewables. By 2030, the country hopes to have increased electricity generation and large renewable energy capabilities.
Winsol Engineers Limited IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 6 May to 8 May 2024 | 75 | 150 | 225 (200.00%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
