Concord Control Systems – The Company Overview
Concord Control Systems IPO will open on 27th September 2022 for three days to close on 29th September. The company filed the DRHP document with market regulator SEBI on September 8, 2022, for approval. Concord Control Systems is a BSE SME IPO to raise INR 8.31 crores via IPO. The company started its operations in the year 2011. Brief about the company below.
- Concord Control Systems is in the business of manufacturing and supply of coach-related and electrification products for Indian Railways and other Railway Contractors.
- The company manufactures such as Inter-Vehicular Coupler, Emergency Lighting System, Brushless DC carriage fan, Exhaust fans, Cable Jackets, Bellows, etc., and products required for electrification of coaches.
- Concord Control Systems also manufactures a broad-gauge network of Indian Railways such as Battery Charger 200 AH, Battery Charger 40 AH, and Tensile Testing Machine.
- The company operates in two manufacturing units situated at Lucknow, Uttar Pradesh with a total size measuring over 1880 sq. mtrs.
- Promoters of the company – Mr. Nitin Jain and Mr. Gaurav Lath – has over 15 years of experience in the business.
- The products of the company are accredited with ISO 9001:2015 quality management system for TUV- SUD South Asia Pvt. Ltd.
- The key clients of the company include various zones of the Indian Railways and organizations like KEC International Limited, Larsen & Toubro Limited, Kalpataru Power Transmission Ltd., Rail Vikas Nigam Limited, Fedders Lloyd Corporation Limited, Tata Projects Limited, etc.
Concord Control Systems Financial analysis
The company reported strong revenue from operations of over 80% growth to reach INR 3144.69 lakhs in FY 2022 from INR 1727.05 lakhs in FY 2021. The Profit after Tax for a similar period was INR 264.21 lakhs in FY 2022 as against INR 135.84 lakhs in FY 2021. Concord Control Systems also registered strong growth in Concord Control Systems from INR 48.8 lakhs in FY 2021 to INR 226.3 lakhs in FY 2022. The earnings per share of Concord Control Systems is INR 6.17 per equity share.
Concord Control Systems IPO pricing and issue size
Concord Control Systems’ initial public offering (IPO) opened on 27th September. The company is offering 15,12,000 Equity Shares through Public Issue with a face value of INR 10.
Book Running Lead Managers and registrar of this IPO are
- HEM SECURITIES LIMITED
- The registrar for this IPO is BIGSHARE SERVICES PRIVATE LIMITED.
The company’s equity shares outstanding before the initial public offer stand at 4200,000 shares. Equity Shares outstanding after the Issue is up to 57,12,000 Equity Shares of face value INR 10 each. The face value of the Equity Shares is INR 10 per Equity Share.
- 78,000 Equity Shares are reserved for the Market Makers.
- Up to 14,34,000 Equity Shares are reserved for the Public
Utilization of Net Proceeds from Concord Control Systems IPO
The company proposed listing its Equity Shares will enhance the visibility and brand image of the company. The company proposes to utilize the net to proceed to meet the below objectives.
- To meet working capital requirements;
- General Corporate Purpose;
- To meet issue expenses.
Do you invest?
The government of India is focusing on improving the infrastructure and logistics sector. Railways play an important role in this segment. Fundamentally, Concord Control Systems is looking good with a strong tailwind from the broader market. The promoters of Concord Control Systems are not diluting their stake in this IPO. The company has strong execution capabilities as well.
However, there is no strong entry barrier in this industry. The USP of the company is only its long-term contracts and relationship with its clients. This IPO is SME and retail investors may not be interested in this IPO. Concord Control Systems is a BSE SME IPO to raise INR 8.31 crores via IPO. I will not put my money into this company.
Concord Control Systems Details
|Concord Control Systems||IPO details|
|BID/OFFER Opens on||26-09-2022|
|BID/OFFER closes On||29-09-2022|
|Refund to Account||06-10-2022|
|Shares Credit to Demat Account||07-10-2022|
|Concord Control Systems IPO Listing Date||10-10-2022|
|Price Band||INR 53 -55|
|Equity shares on Offer||15,12,000 Equity Shares|
|Equity Shares outstanding before the Issue||42,00,000 Equity Shares|
|Equity Shares outstanding after the Issue||57,12,000 Equity Shares|
|Minimum bid (lot size)||Minimum 2000 shares for 1 lot|
|Face Value||INR 10 per share|