Shivalic Power Control IPO: A Strategic Launch

Shivalic Power Control Ltd, a well-established manufacturer of low and high tension electric panels, is set to launch its Initial Public Offering (IPO) on June 24, 2024. With a price band set between ₹95 and ₹100 per share, the company aims to raise ₹64.32 crore through the public offering. This strategic financial move is designed to enhance its operational capabilities and pursue growth through both organic expansion and strategic acquisitions.

Industry Position and Product Portfolio

Having operated for over 20 years, Shivalic Power Control has cemented its reputation in the electrical equipment industry. The company’s extensive product range includes PCC panels, IMCC panels, Smart panels, MCC panels, DG synchronization panels, outdoor panels, and HT panels up to 33KV. Their 1,25,000 square feet in-house manufacturing facility underscores a commitment to quality and innovation, catering to various sectors including industrial, commercial, and utility applications.

Utilization of Proceeds

The proceeds from the IPO are earmarked for multiple strategic initiatives:

• Working Capital Requirements: Approximately ₹30.03 crore will support day-to-day operations, ensuring the company maintains its market responsiveness and operational efficiency.
• Capital Expenditure: Around ₹5.86 crore is allocated for the procurement of new machinery, and an additional ₹1.82 crore is set for the construction of a new assembly line, aiming to boost production capacity and enhance product quality.
• Inorganic Growth: With ₹5.75 crore reserved for acquisitions, Shivalic Power Control is looking to expand its market reach and capabilities through strategic buyouts.

Market Enthusiasm and Investor Confidence

The IPO has generated considerable interest among investors, as reflected by the grey market premium (GMP) of ₹125. This premium indicates strong investor confidence and an optimistic outlook for the company’s share price performance post-listing.

Key Dates and Subscription Details

The IPO subscription will open on June 24 and close on June 26, with the basis of share allocation scheduled for June 27. Refunds will be processed by June 28, and the shares are expected to be credited to allottees’ demat accounts on the same day. The shares are anticipated to list on the NSE SME platform shortly thereafter, providing investors with an opportunity to participate in the company’s growth journey.

This IPO not only highlights Shivalic Power Control’s robust financial health and promising future but also offers a substantial opportunity for investors looking to gain from the company’s growth trajectory and market expansion strategies. For potential investors, this IPO represents a pivotal moment to engage with a company poised for significant advancements in the electrical manufacturing industry.

For more detailed information, potential investors can refer to the company’s official documents and updates available on financial news websites like Livemint and others referenced in the preparation of this overview